Pursuit Attractions and Hospitality, Inc. (PRSU) Q1 2026 Earnings Call Transcript

Access earnings results, analyst expectations, report, slides, earnings call, and transcript.

Overview

The earnings call highlighted strong financial performance with a 37% revenue increase and improved net loss figures. The positive outlook is supported by robust demand, strategic growth plans, and a significant share repurchase program. Despite potential risks and uncertainties, management's confidence and strategic execution suggest a positive sentiment. The Q&A reinforced this with no major concerns raised by analysts, and the company's proactive approach to capital allocation and competitive positioning adds to the positive outlook.

Key Financial Performance

Revenue Revenue grew 37% year-over-year to reach $51.6 million. This growth was primarily driven by strong performance at Tabacon, which was acquired in July 2025, and continued strong demand across the broader portfolio of year-round iconic experiences.

Net Loss Attributable to Pursuit Net loss attributable to Pursuit was $24.9 million, compared to $31.1 million in the prior year. The improvement was primarily driven by lower transaction-related costs from the GES sale and stronger revenue.

Adjusted Net Loss Adjusted net loss was $26.2 million, compared to $26.9 million in the prior year. The improvement primarily reflects higher adjusted EBITDA, partially offset by a lower amount of seasonal first-quarter losses being allocated to noncontrolling interest.

Adjusted EBITDA Adjusted EBITDA improved by $2.6 million year-over-year to negative $14.9 million. This was primarily driven by higher revenue with strong margin improvement, supported by the contribution of Tabacon and continued cost discipline.

Attraction Ticket Revenue Attraction ticket revenue reached $23 million, reflecting a 22% year-over-year increase. This was driven by strong performance at Tabacon and increases in same-store effective ticket prices. Same-store constant currency effective ticket price grew by 5% compared to 2025.

Lodging Room Revenue Lodging room revenue totaled $13 million, reflecting a 78% year-over-year increase. This was driven by strong performance at Tabacon and improvement in same-store constant currency ADR.

Same-Store Constant Currency RevPAR Same-store constant currency RevPAR grew 6% compared to 2025. This reflects the strong demand for lodges situated in iconic high-demand destinations.

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Operating Highlights

Tabacon Revenue: Tabacon delivered $10 million of revenue in Q1 2026, showcasing strong demand and operational adjustments to drive volume growth through its thermal river attractions.

Jasper SkyTram Modernization: Plans to replace the aged tram system with a modern gondola to improve guest experience, throughput, and efficiency.

Banff Gondola Expansion: Expansion of Sky Bistro to increase premium guest capacity and revenue per visitor.

Denali Backcountry Adventure: Reintroduction as a premium guided experience in Denali National Park, targeting rare access and unforgettable moments.

Geographic Expansion: Pursuit operates in 4 countries, including Canada, the U.S., Iceland, and Costa Rica, with iconic destinations such as Banff, Jasper, and Denali.

Tabacon Acquisition: Acquired in 2025, Tabacon in Costa Rica is performing well, with strong attraction visitation and lodging performance.

Revenue Growth: Achieved a 37% revenue growth in Q1 2026, reaching $51.6 million, driven by strong demand and operational efficiencies.

Cost Discipline: Maintained strong cost discipline, contributing to margin improvement and higher adjusted EBITDA.

Lodging Performance: Lodging room revenue grew 78% year-over-year, with same-store constant currency RevPAR increasing by 6%.

Vision 2030: Targeting over $265 million in adjusted EBITDA by 2030, focusing on organic growth and strategic acquisitions.

Share Repurchases: Repurchased $40.4 million worth of shares at an average price of $35.40, with an additional $60 million authorized for future repurchases.

FlyOver Sale: Pending sale of FlyOver expected to close in May 2026, improving U.S. financial results and lowering the effective tax rate to 22%-26%.

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Risk or Challenges

Regulatory hurdles: The transcript does not explicitly mention regulatory hurdles, but the discussion of strategic acquisitions and growth projects implies potential regulatory challenges in obtaining necessary approvals and planning.

Supply chain disruptions: The transcript does not explicitly mention supply chain disruptions, but the mention of shifts in expected timing of cash outlays for growth projects suggests potential challenges in supply chain or project execution.

Economic uncertainties: The transcript reflects confidence in the demand for Pursuit's offerings despite the current macro backdrop, suggesting awareness of potential economic uncertainties that could impact demand.

Strategic execution risks: The transcript highlights the importance of disciplined capital allocation, strategic acquisitions, and organic growth projects, indicating potential risks in executing these strategies effectively.

Competitive pressures: The transcript emphasizes Pursuit's unique positioning and differentiation from traditional theme park and hotel companies, suggesting awareness of competitive pressures and the need to maintain a competitive edge.

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Guidance & Outlook

Revenue and Adjusted EBITDA Growth: The company expects double-digit growth in revenue and adjusted EBITDA at the midpoint for 2026, excluding FlyOver. Adjusted EBITDA guidance range is $123 million to $133 million, reflecting a 9% increase at the midpoint from 2025.

Vision 2030 Targets: By 2030, the company aims to achieve more than $265 million in adjusted EBITDA, doubling 2025 levels, with margins above 30%. This growth will be driven by organic expansion and strategic acquisitions.

Capital Expenditures: The company plans to invest $70 million to $80 million in growth capital expenditures during 2026, focusing on multi-year growth projects. The timing of some cash outlays has shifted to 2027, but project completion timelines remain on track.

Organic Growth Investments: Approximately $300 million in organic growth investments are planned from 2026 through 2030, with $200 million front-loaded over the next two years. These investments are expected to contribute over $40 million in incremental adjusted EBITDA by 2030.

Strategic Acquisitions: The company is pursuing strategic acquisitions, exemplified by the Tabacon acquisition, which is expected to reduce its effective adjusted EBITDA multiple below 9x by year 3 and provide long-term growth opportunities.

Lodging and Attractions Enhancements: Investments in attractions like the Jasper SkyTram, Banff Gondola, and Denali Backcountry Adventure aim to elevate guest experiences and drive incremental demand. Lodging projects like the Forest Park Hotel Woodland Wing and Grouse Mountain Lodge are expected to enhance ADR and RevPAR.

Market Trends and Demand: The company anticipates continued strong demand for experiential travel and iconic destinations, supported by trends like wellness-focused travel, group travel, and flexible work patterns extending stays.

Tax Rate Outlook: Following the pending FlyOver sale, the company expects a lower effective tax rate of approximately 22% to 26% in 2026 and beyond.

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Shareholder Return Plan

Share Repurchase Program: To date, the company has repurchased $40.4 million worth of shares at an average price of $35.40. Additionally, the Board has recently approved an increase in the share repurchase authorization by another $50 million, leaving approximately $60 million available for future repurchases.

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Key Q&A

Q:Have you seen any discernible impact on lodging bookings following the start of the conflict in the Middle East?

A:The conflict in the Gulf has not affected booking patterns or travel behavior. The destinations are considered safe, and there is continuity in visitation. In times of global crises, the company tends to experience more tailwinds than headwinds.

Q:What is the potential impact of crude oil prices staying above $100 per barrel on project costs and growth CapEx plans?

A:The company does not expect significant impacts from fuel cost increases. Fuel is not a major expense line for operations or capital projects. Dynamic pricing allows flexibility to adjust prices based on demand and external factors.

Q:How have elevated fuel prices historically impacted visitation to your locations?

A:Elevated fuel prices have had a marginal effect on the business. Guests may opt for less exotic trips and focus on local destinations. Historical data shows no significant impact on visitation during global crises, and booking momentum remains strong.

Q:How do share buybacks fit into your strategy compared to growth CapEx investments?

A:The company views share buybacks as a strong investment in itself, alongside growth CapEx. With a strong capital structure, they can pursue all growth levers simultaneously, including share repurchases when there is a valuation disconnect.

Q:Are ADRs in the Canadian Rockies at record levels?

A:The company does not describe ADRs as record levels but attributes increases to improved guest experiences and investments in hotel quality. Strong ADR growth is expected, supported by guest satisfaction and value perception.

Q:What are the biggest bottlenecks to growing the Jasper SkyTram?

A:The primary bottleneck is the outdated lift infrastructure, which is 60 years old. Improvements will enhance capacity, guest experience, and accommodate group business better. The upgrades will also improve restrooms and overall quality of experience.

Q:Review of Unclear Management Responses

A:None of the questions were avoided or lacked clarity. All responses were direct and provided sufficient detail.

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Earnings Word Cloud

The most frequently occurring keywords in this quarter's earning call

PRSU Transcript

Pursuit Attractions and Hospitality, Inc. (PRSU) Q1 2026 Earnings Call Transcript

Positive5-7

Pursuit Attractions and Hospitality, Inc. (PRSU) Q4 2025 Earnings Call Transcript

Positive2-28

The earnings call highlights strong financial performance with a 23% revenue increase and a 52% rise in adjusted EBITDA. The company raised its 2025 EBITDA guidance and anticipates continued growth in 2026, supported by favorable market trends. Despite some vague responses in the Q&A, the optimistic guidance, record revenue growth, and strategic investments signal a positive stock price movement in the short term.

Pursuit Attractions and Hospitality, Inc. (PRSU) Q3 2025 Earnings Call Transcript

Positive11-6

The earnings call reveals strong financial performance, with significant revenue and EBITDA growth, driven by strategic acquisitions and organic investments. Positive guidance and expansion plans, including the Costa Rica acquisition, bolster future growth prospects. The Q&A session supports this with confidence in continued demand and strategic investments. The raised guidance and robust financial health, coupled with strategic growth initiatives, suggest a strong positive outlook for the stock price over the next two weeks.

Pursuit Attractions and Hospitality, Inc. (PRSU) Q2 2025 Earnings Call Transcript

Positive8-7

The earnings call reveals strong financial performance, with a 15% revenue increase and significant EBITDA growth. Positive factors include optimistic guidance for 2025, a strategic buyback program, and successful acquisitions. The Q&A reinforces confidence in the company's strategy and market positioning, despite some uncertainty regarding specific investments and buyback details. Overall, the positive aspects outweigh the negatives, suggesting a likely stock price increase.

Frequently Asked Questions

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