Tourism Holdings Ltd (ASX:THL) (Q1 2026) Earnings Call Highlights: Strong Revenue Growth and …

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Mon, February 23, 2026 at 2:00 PM GMT+9 4 min read

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**Services Revenue Increase:** 11% increase, primarily driven by rental revenue.

**Net Operating Cash Flow:** Rose 67% to $40.5 million.

**Net Debt:** $493 million at the end of the half, reduced by $30 million in January.

**Debt-to-EBITDA Ratio:** Forecasted to be under 2 by year-end.

**Gross CapEx:** Expected to be $210 million, reflecting lower North American purchases.

**Interim Dividend:** $0.03 per share, up 20% from the prior year.

**Full Year Dividend Expectation:** Expected to be up around 55% year on year.

**Guidance for Full Year Impact:** $43 million to $47 million, impacted by UK divestment.

**Forward Bookings:** Over 20% in New Zealand, over 30% in Canada.

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Release Date: February 22, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Tourism Holdings Ltd (ASX:THL) reported an 11% increase in services revenue, primarily driven by strong rental revenue.

The company is on track to reduce net debt to below $400 million by year-end, with a debt-to-EBITDA ratio under two.

New Zealand is expected to have a record result, with forward bookings well over 20% and a strong outlook for the full financial year.

Canada has shown a positive situation with forward bookings up over 30%, contributing to the overall positive outlook.

The company declared an interim dividend of $0.03 per share, up 20% from the prior year, with expectations for the full year dividend to increase by around 55% year on year.

Negative Points

Sales have been a drag over the last few years, with a rapid decline in volumes, although some stabilization is now being observed.

The USA market remains uncertain, with international visitors staying away, impacting both rentals and vehicle sales.

The UK business, despite a positive half, was divested, impacting high season earnings.

The North American market continues to face challenges, with the company needing to maintain strong discipline on return on funds employed.

Australia's retail market is still tough, with competition from Chinese products taking market share, particularly in the towable space.

Q & A Highlights

Q: How does Tourism Holdings Ltd plan to manage its net debt while aiming for a fleet of 9,000 vehicles by June 2028? A: Oliver Farnsworth, CFO, stated that the company expects strong operating cash flow over the coming years, which will sustain the growth profile needed to reach the fleet target. Net debt is expected to remain reasonably flat, with a slight reduction anticipated, and the net debt-to-EBITDA ratio is expected to fall as EBITDA improves.

Story Continues  

Q: Can you discuss the regional differences in the vehicle sales market, particularly between New Zealand, Canada, and the USA? A: Grant Webster, CEO, explained that globally, there is a trend towards purchasing cheaper units due to inflation in the RV market. New Zealand is performing well with lower-priced units, Canada is benefiting from well-priced stock, and the USA is just entering its selling season with early positive indications. Australia faces challenges with Chinese products gaining market share.

Q: What is the outlook for retail vehicle volumes, especially with potential interest rate increases in Australia and New Zealand? A: Grant Webster noted that while the retail market remains tough in Australia, the company expects improvement due to a new product launch. In New Zealand, the impact is less significant as fleet volumes compensate for retail challenges.

Q: How does Tourism Holdings Ltd view the competitive landscape in Australasia, particularly with new entrants like Indi Campus and Road Surf? A: Grant Webster stated that while there are new competitors, Tourism Holdings Ltd remains confident in its market position due to scale benefits, a strong build-rent-sale model, and robust trade relationships. The company monitors competitors closely but is satisfied with its current standing.

Q: What impact do events like the FIFA World Cup and the 250th anniversary have on the US market for Tourism Holdings Ltd? A: Grant Webster indicated that such events do not significantly boost RV rentals due to their dispersed nature. However, broader brand awareness and consideration are improving, suggesting potential future benefits rather than immediate gains.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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