Travel + Leisure Co. (NYSE:TNL) shares climbed 3.84% in premarket trading Wednesday after the company delivered third-quarter earnings that topped analyst forecasts and raised its full-year outlook, supported by robust performance in its vacation ownership business.
The leisure travel group reported adjusted earnings of $1.80 per share, beating the consensus estimate of $1.74. Revenue came in at $1.04 billion, slightly ahead of expectations of $1.03 billion and up 5% year-over-year.
“Travel + Leisure Co. delivered another exceptional quarter, exceeding the high end of our Adjusted EBITDA guidance and achieving our 18th consecutive quarter with a VPG above $3,000,” said Michael D. Brown, President and CEO of Travel + Leisure Co.
The company’s Vacation Ownership segment led the gains, with revenue increasing 6% to $876 million. Net vacation ownership interest sales grew 9%, and gross VOI sales jumped 13%, supported by a 10% increase in volume per guest (VPG) to $3,304 and a 2% rise in tours.
Adjusted EBITDA rose 10% to $266 million, with margins expanding to 25.5% from 24.4% a year earlier. Travel + Leisure also returned $106 million to shareholders during the quarter through $36 million in dividends and $70 million in share buybacks.
On the back of its strong results, the company raised its full-year 2025 guidance. It now expects Adjusted EBITDA between $965 million and $985 million, with a midpoint of $975 million. The outlook for gross VOI sales was lifted to $2.45–$2.50 billion, while VPG is now projected to range between $3,250 and $3,275.
Meanwhile, the Travel and Membership segment delivered more moderate growth, with revenue inching up 1% to $169 million. A 12% increase in transactions was partially offset by an 8% decline in revenue per transaction.