Travel + Leisure Co. Surges 25% YTD After Q2 Earnings

Travel + Leisure Co. shares surged 7% after Q2 2025 earnings release, bringing its YTD increase to over 25%. This stands out as consumer discretionary stocks have been weak this year. The company's performance is attributed to sustained upside in the travel and leisure industry.

Travel + Leisure Co. (T+L) shares surged 7% following the release of its Q2 2025 earnings report, marking a significant increase in the year-to-date performance. This robust performance stands out against the broader trend of weakness in consumer discretionary stocks this year. The company's strong financial results are attributed to sustained growth in the travel and leisure industry.

During the Q2 2025 earnings call, Michael Brown, the company's CEO, President, and Director, highlighted the solid performance of the company's core segments. The company reported over $1 billion in revenue, $250 million in adjusted EBITDA, and $1.65 in adjusted earnings per share, all up year-over-year. These figures reflect a 3% increase in revenue and a 2% increase in adjusted EBITDA compared to the same period last year [1].

The Vacation Ownership business segment was a key driver of the company's performance. It delivered accelerating revenue, rising tour flow, historically high volume per guest (VPG), and double-digit growth in average transaction size. The segment's revenue grew 6% to $853 million for the quarter, driven by a 3% increase in tours and a VPG of $3,251, up 7% from last year [1].

Erik Hoag, the new Chief Financial Officer, emphasized the company's financial discipline and operational focus. He noted that the company's strong free cash flow allows it to invest in strategic initiatives, brand expansion, and digital innovation. The company has returned $2.7 billion to shareholders through its dividend and share repurchase program since the beginning of the year [1].

The company's multi-brand strategy also contributed to its strong performance. It expanded its Margaritaville footprint with a new sales location in Nashville and launched the Accor Vacation Club with a new Asia-based club in Indonesia. Additionally, the company announced its newest Sports Illustrated Resorts location in Nashville, Tennessee [1].

Looking ahead, the company remains focused on growing its core vacation ownership business and expanding into new markets. It aims to leverage data and technology to enhance the customer experience across all platforms and mitigate headwinds in its Traveler Membership segment.

References:
[1] https://www.marketscreener.com/news/transcript-travel-leisure-co-q2-2025-earnings-call-jul-23-2025-ce7c5cd2dc89ff27