The Tourism Holdings Ltd (ASX: THL) share price is front of mind for investors after the company reported a 34% jump in underlying NPAT to $46.1 million and lifted its full-year dividend by 62% to 10.5 cents per share for FY26.
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What did Tourism Holdings report?
- Statutory NPAT from continuing operations of $39.9 million (FY25: loss of $14.1 million)
- Underlying NPAT up 34% to $46.1 million
- Sale of services revenue (rentals) up 11% to $517.5 million; total revenue $852.9 million (down 5%)
- Full-year dividend of 10.5 cents per share, up 62%
- Net operating cashflows up 67% to $67.3 million
- Net debt reduced to $436 million; leverage improved, equity ratio at 41%
What else do investors need to know?
Tourism Holdings delivered on its four key strategic priorities, including the sale of its UK & Ireland business and exiting two loss-making Australian dealerships, which helped further strengthen its balance sheet. The company also consolidated manufacturing in Australasia and unlocked about $5 million in labour, corporate, and digital savings.
Shareholders will want to note two current takeover proposals: a $3.10 per share bid from BGH consortium and a competing offer between $3.30 and $3.40 per share from a credible strategic acquirer. Both proposals remain non-binding and subject to due diligence over the next six weeks.
What did Tourism Holdings management say?
CEO Grant Webster said:
Rentals remain the engine of thl. Sale of services revenue increased 11% to $517.5 million, the average rental fleet grew 11.5% and RevPARV increased 1% to $58,000.
We entered the second half of FY26 with real momentum. The Middle East conflict in March disrupted international travel with the flow on impacts on fuel pricing impacting domestic tourism for a time. Southern Hemisphere booking intake has since recovered to be ahead of the prior year, with New Zealand intake over the last four weeks up around 40%, Canada is on track for record rental revenue this summer season, and recent U.S. intake is tracking around 45% ahead. That tells us a portion of demand was deferred rather than lost.
Operationally this was a year of delivering hard actions. We consolidated Australasian manufacturing into Hamilton and launched a redesigned Winnebago range, opened a new Queenstown site on 17 August, exited two loss-making Australian dealerships and delivered approximately $5 million of underlying labour, corporate and digital cost savings.
What's next for Tourism Holdings?
Tourism Holdings says the fundamentals remain supportive of its $100 million underlying NPAT goal, even though the delay in RV sales market recovery and international disruptions have tempered near-term expectations. Recent booking trends are positive, with New Zealand and Australia up around 40% and 15% respectively over four weeks, and Canada and the US seeing record or strong rental demand.
While uncertainty from the Middle East conflict has impacted FY27 momentum, management continues to focus on fleet growth, manufacturing efficiencies, and further cost initiatives, believing the longer-term potential is intact for shareholders.
Tourism Holdings share price snapshot
Over the past 12 months, Tourism Holdings shares have risen 17%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.
