Q2 2026 Pursuit Attractions and Hospitality Inc Earnings Call Transcript
Key Points
- Record second quarter results with revenue growing 14% to $133.5 million, driven by strong performance at Tabacon and continued growth across existing geographies.
- Completed strategic transactions, including the acquisition of Eagle Wing Tours at an attractive 6.5 times adjusted EBITDA multiple and the sale of non-core flyover business, strengthening the balance sheet.
- Increased full-year 2026 guidance, expecting 14% adjusted EBITDA growth year-over-year at the midpoint, with a range of $128 million to $138 million.
- Strong same-store performance with a 6% increase in attraction effective ticket price and a 10% increase in lodging RevPAR, demonstrating pricing power and guest experience focus.
- Pro forma net leverage ratio of approximately 1 times, well below the target range of 2 to 3.5 times, with substantial liquidity of about $220 million, providing financial flexibility for growth investments.
- Tabacon acquisition outperforming expectations, with adjusted EBITDA growth driving the effective purchase multiple down to nearly 9 times in the first year, and new premium villas planned to meet demand.
- Robust pipeline of over $300 million in organic growth investment opportunities through 2030, expected to contribute more than $40 million of incremental adjusted EBITDA at an effective multiple of less than 7 times.
- Successful share repurchase program with $43 million bought back at an average price of $35.72, representing a return on investment of more than 40% based on recent trading levels.
- Second quarter attraction visitation was hampered by a higher portion of poor weather days compared to the near-ideal conditions in the prior year, impacting sightseeing visitation.
- Adjusted EBITDA margin declined approximately 90 basis points year-over-year due to a mix shift towards the lower-margin lodging business and weather-related drag on high-margin attractions.
- Full-year guidance includes a negative $2 million impact from unfavorable changes in exchange rate assumptions, partially offsetting gains from strategic transactions.
- Lodging booking pace and ADR in Canada decelerated sequentially from the May update, though still healthy, reflecting natural mix dynamics and go-to-market strategy adjustments.
- Wildfire smoke and weather conditions in Canada created spotty days of impact on attraction visitation, though the company notes it is not holding back full-year expectations.
- Major organic growth projects, such as the Jasper SkyTram and Banff Gondola lift modernizations, are complex and subject to permitting and timing uncertainties, with benefits weighted towards the back end of Vision 2030.
- The company is not yet providing specific 2027 guidance, and some larger projects will take longer to complete, potentially delaying the inflection point from growth capital investments.
Good afternoon. My name is Tiffany, and I will be your conference operator today.
At this time, I would like to welcome everyone to Pursuit's 2026 second quarter earnings conference call.
All lines have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question-and-answer session.
If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad.
If you would like to withdraw your question, press star one again.
Thank you.
Carrie Long, you may begin the conference.
Good afternoon, and thank you for joining us for our 2026 second quarter earnings conference call. During the call, led by David Berry, our President and CEO and Bo Heitz, our Chief Financial Officer, we will reference our earnings presentation, which is available on the Investors section of our website. We encourage investors to
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