PRSU — Pursuit Attractions and Hospitality, Inc.

Summary of PRSU Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Revenue: Achieved a record $452 million, up 23% year-over-year.
• Adjusted EBITDA: Increased by 52% to $117.1 million, with margins expanding to 26%.
• Net Income: Reported at $22.7 million, down from $368.5 million in the prior year due to the sale of GES.
• Adjusted Net Income: Rose to $33.5 million from $3.7 million in the previous year.
• Attraction Ticket Revenue: Reached $201 million, a 24% increase driven by higher visitor numbers and effective pricing.
• Lodging Room Revenue: Totaled $105 million, reflecting a 28% increase, supported by strong recovery in Jasper properties.

2. Strategic Updates and Business Highlights

• Acquisitions: Successfully acquired Tabacón in Costa Rica and increased ownership in Glacier Park and FlyOver Iceland.
• Portfolio Management: Sold non-core FlyOver business at a premium valuation, simplifying capital structure and eliminating $25 million in noncontrolling interest liabilities.
• Share Repurchase Program: Returned $14.5 million to shareholders, demonstrating confidence in long-term value.
• Vision 2030: Introduced long-term financial targets aiming for over $845 million in revenue and more than $265 million in adjusted EBITDA by 2030.
• Investment Pipeline: Committed to over $300 million in growth capital from 2026 to 2030 to enhance guest experiences and expand capacity.

3. Forward Guidance and Outlook

• 2026 Expectations: Adjusted EBITDA is projected between $123 million and $133 million, reflecting approximately 9% growth from 2025.
• Revenue Growth: Anticipated double-digit growth in revenue and adjusted EBITDA, excluding FlyOver.
• Demand Drivers: Strong early indicators for lodging and attraction bookings, bolstered by favorable tourism trends and government initiatives in Canada.
• Tax Rate Improvement: Expected lower effective tax rate of 22% to 26% due to improved U.S. financial results post-FlyOver sale.

4. Bad News, Challenges, or Points of Concern

• Net Income Decline: Significant drop in net income attributed to the previous year's sale of GES, which may raise concerns about profitability sustainability.
• Weather Normalization: Anticipated normalization in weather conditions may impact performance compared to the unusually favorable conditions of 2025.
• Operational Risks: Potential disruptions during phased lodge renovations could affect short-term performance.
• Market Competition: The company faces competitive pressures in the experiential travel sector, necessitating continuous innovation and customer engagement.

5. Notable Q&A Insights

• M&A Contributions: Management indicated that while acquisitions will contribute to growth, the majority of revenue growth is expected to come from organic sources.
• Investment Returns: The targeted blended multiple for new projects is sub-7x, reflecting confidence in achieving returns similar to historical performance.
• Pricing Strategy: There is potential for further ticket price increases, contingent on continued service improvements and guest satisfaction.
• Project Prioritization: Key projects like the Jasper SkyTram and Banff Gondola are expected to be significant contributors to future EBITDA, emphasizing the importance of experiential infrastructure.

Overall, Pursuit demonstrated strong financial performance in 2025, with ambitious growth targets and strategic initiatives that position the company well for the future, despite some challenges and market pressures.