PRSU — Pursuit Attractions and Hospitality, Inc.

Summary of Pursuit's Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Total Revenue: $241 million, up 32% year-over-year.
• Adjusted EBITDA: $117.4 million, a 41.5% increase from the previous year.
• Net Income: $73.9 million, compared to $48.6 million in Q3 2024.
• Adjusted Net Income: $75.3 million, up from $50.7 million year-over-year.
• Adjusted EBITDA Margin: Expanded to 49%.
• Attraction Ticket Revenue: $100.4 million, reflecting a 33% increase.
• Lodging Room Revenue: $59.7 million, a 42% increase year-over-year.
• Liquidity: $274.4 million, with a net leverage ratio of 0.7x.

2. Strategic Updates and Business Highlights

• Record Performance: Achieved significant year-over-year growth, particularly in Jasper following wildfire recovery.
• Refresh, Build, Buy Strategy: Continued execution of this strategy is enhancing the asset portfolio and driving growth.
• Acquisition of Tabacon: Completed in Q3, providing a unique resort experience in Costa Rica, expected to contribute $3 million to EBITDA in H2 2025 and $10 million annually thereafter.
• Investment Pipeline: Identified over $250 million in refresh and build opportunities over the next six years, with $38 million to $43 million planned for 2025.

3. Forward Guidance and Outlook

• Adjusted EBITDA Guidance: Raised to $116 million to $122 million for the full year 2025, an increase of $6 million at the midpoint from previous guidance.
• 2026 Outlook: Positive indicators for continued growth, supported by strong demand for experiential travel and favorable trends in Canada, including renewed free admission to national parks.

4. Bad News, Challenges, or Points of Concern

• Insurance Proceeds: While $4.2 million in business interruption insurance was received, it is nonrecurring and not included in adjusted EBITDA guidance.
• Competitive Market Dynamics: Rising competition in the hospitality sector may impact pricing power and guest traffic.
• Integration of Tabacon: While integration is progressing well, it requires management attention and resources, potentially impacting capacity for additional acquisitions.
• Seasonality Risks: Tabacon's performance is expected to be stronger in Q1 and Q4, which may create uneven revenue streams throughout the year.

5. Notable Q&A Insights

• Insurance Proceeds: Clarified that insurance proceeds were not factored into previous EBITDA guidance.
• Effective Ticket Pricing: Growth in effective ticket prices is attributed to a combination of price increases and enhanced guest experiences, with confidence in maintaining this trend into 2026.
• Future Investment Capacity: Management expressed confidence in their ability to handle multiple projects simultaneously, both operationally and financially.
• Jasper Recovery: The recovery of Jasper's tourism is expected to benefit the overall market, with new lodging supply anticipated to enhance visitation rather than detract from it.

Overall, Pursuit's Q3 2025 results reflect strong financial performance, strategic growth initiatives, and a positive outlook for the future, tempered by potential challenges related to competition and integration efforts.