Pursuit Attractions: A Strategic Pivot to Growth and Balance Sheet Strength

Pursuit Attractions and Hospitality (NYSE: PRSU) has undergone a dramatic transformation over the past year, positioning itself as a leaner, more focused operator of premium attractions and hospitality assets. The sale of its GES events business in late 2024 marked a pivotal shift, reducing debt to zero and unlocking liquidity to fuel high-return investments. This strategic reset, paired with a pipeline of growth catalysts, could redefine the company's trajectory—though risks such as currency headwinds and operational execution remain key concerns.

Balance Sheet Optimization: From Debt-Driven to Cash-Flow Positive

Pursuit's decision to sell GES—a $535 million deal—was its boldest move in years. The transaction eliminated $393 million in high-cost debt, slashed annual interest payments by $30 million, and generated $410 million in net cash proceeds. By December 2024, the company's net leverage ratio had dropped to zero, and total liquidity soared to $249.7 million, including a new $200 million undrawn revolving credit facility.

This financial restructuring has positioned Pursuit to weather volatility. would show a stark improvement post-GES sale, highlighting the transition from a leveraged operator to a financially agile player.

Growth Catalysts: Investing in High-ROI Attractions

With a clean balance sheet, Pursuit is doubling down on its “Refresh, Build, Buy” strategy, targeting assets that drive recurring revenue and brand differentiation.

• Tuck-in Acquisitions: In 2024, the company spent $34 million on three properties, including Eddie's Café & Mercantile in Glacier National Park and the Jasper SkyTram. These assets complement its existing portfolio while reducing reliance on seasonal tourism.
• Capital Projects: The $20 million invested in 2024 included expanding the Sky Lagoon geothermal spa in Iceland and opening Flyover Chicago, an immersive 4D experience. For 2025, Pursuit plans $38–$43 million in growth capital, including a $10 million renovation of the Forest Park Hotel in Jasper National Park.
• 2025 Outlook: Management forecasts Adjusted EBITDA to jump 27–39% to $98–$108 million, driven by a recovery in Jasper's leisure travel (which suffered from 2024 wildfires), contributions from new assets, and cost discipline.

Risks and Challenges

While the path forward looks promising, execution risks loom large:
1. Currency Volatility: A 5–10% Canadian dollar headwind in 2025 could shave $7 million off EBITDA, given the company's exposure to Canadian operations.
2. Operational Hurdles: The Flyover Las Vegas attraction faced asset write-downs in 2024, highlighting execution risks for new projects.
3. Wildfire Recovery: Jasper's tourism recovery remains uncertain, as the 2024 wildfires disrupted visitation and revenue by $15 million.

Investment Considerations

Pursuit's stock (PRSU) has underperformed peers like Six Flags (SIX) and Merlin Entertainments over the past year, but the structural improvements warrant attention.

would show PRSU's lagging performance despite its balance sheet improvements.

Investors should consider:
- Valuation: At a 2025E EBITDA multiple of ~10x (based on current stock price and guidance), PRSU trades at a discount to peers. This could reflect skepticism around execution, but the valuation appears reasonable if growth targets are met.
- Dividend Potential: While the company has no dividend, its improved liquidity could allow future returns to shareholders.
- Catalysts to Watch: Recovery in Jasper's visitation rates, Flyover Chicago's performance, and progress on the SkyTram expansion will be critical near-term metrics.

Final Take

Pursuit Attractions has executed a textbook turnaround, leveraging non-core asset sales to rebuild its financial foundation. Its focus on high-margin attractions and strategic investments positions it to capitalize on travel demand recovery. However, investors must weigh this potential against execution risks and currency exposure. For a cautious buy-and-hold investor, PRSU offers an intriguing mix of value and growth—if management can deliver on its 2025 targets.

Rating: Buy (with caution)
Price Target: $18–$22 (assuming 2025E EBITDA of $105 million and a 12–14x multiple)

Disclosure: This analysis is based on publicly available data and does not constitute personalized financial advice.