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The call reflects a mixed outlook: significant negative near-term impacts from unprecedented adverse weather led to notable declines in visitation, revenue, and EBITDA, and prompted a downward update to guidance. Offsetting these headwinds, management highlighted strong operational execution (record guest scores, full staffing), meaningful outperformance versus the broader industry on lift ticket visitation, successful product experiments (Epic Friend, super-advanced tickets, young adult pass), substantial cost savings from the Resource Efficiency Transformation Plan, and a healthy balance sheet. Given the balance of material short-term financial hits and clear strategic/operational progress and mitigants, the overall sentiment is balanced.
Vail updated fiscal 2026 guidance with resort reported EBITDA now expected at $735–$755 million and net income attributable to Vail Resorts at $128–$162 million (the EBITDA midpoint implies a ~12% year‑over‑year decline and is ~14% below the original FY26 guidance), and cash taxes of $75–$85 million. Management reiterated balance‑sheet and capital plans with liquidity of about $1.1 billion, net leverage ~3.5x LTM EBITDA, core capital spending of $215–$220 million (total capex $234–$239 million), a maintained quarterly dividend of $2.22/share and ~$45 million of buybacks YTD. The company expects to exceed its two‑year Resource Efficiency Transformation target (achieving $106 million of annualized efficiencies by year‑end, plus an incremental $30 million in FY28 and ~$45 million of incremental efficiencies year‑over‑year before $13 million of one‑time costs), and cited pass and lift‑ticket trends feeding the guidance (spring pass units down ~10% and dollars including tax down ~5%, pass days sold down ~8%, North America committed visitation down ~17%, lift‑ticket visitation down ~10%, with early strength in Australia: EPIC Australia units +26% and dollars +31%).
Achieved record guest experience scores with year-over-year increases at every resort in the Rockies despite severe weather. Maintained full seasonal staffing, strong seasonal employee return rates, improved employee engagement, and reduced employee injuries per labor hour.
Company lift ticket visitation declined ~10% while U.S. industry lift ticket visitation was down ~20%; in the Northeast Vail Resorts' lift ticket visits increased ~8% versus industry down ~8%. Epic Friend benefit tickets drove a 10% increase in visitation from benefit tickets.
Super-advanced lift tickets (30% discount for purchases ~1 month in advance) produced a 65% increase in tickets sold >28 days out. Expanded pass benefits and product adjustments improved post-Labor Day sales trends by ~5 percentage points versus earlier selling period.
On track to exceed the initial 2-year target with expected $106 million of annualized efficiencies by year-end (above the $100M target) and an additional $30 million of savings planned for fiscal 2028; implies an incremental $45 million of efficiencies year-over-year (before $13M of one-time costs).
Ended quarter with approximately $1.1 billion in liquidity, net leverage ~3.5x trailing 12 months EBITDA, reaffirmed capital plans ($215M–$220M core capex; $234M–$239M total capex), maintained quarterly dividend of $2.22 per share, and repurchased ~$45M of stock YTD.
EPIC Australia PASS units were up ~26% and dollars up ~31%. New young adult pass product is pacing meaningfully ahead of other age groups and unlimited/core Epic products are outperforming frequency products.
Thank you for your continued patience. Your meeting will begin shortly. If you need a assistance at any time, please press 0, and a member of our team will be happy to help you. Good afternoon, and welcome to the Bell Resource Fiscal Third Quarter 26 Earnings Conference Call. Today's conference is being recorded. And following management's prepared remarks, the call will be open for your questions. If you need to remove yourself from the queue, press 2. To get as many questions as time permits, we ask you please limit yourself to question and 1 follow-up.
At any time, if you should need operator assistance, please press 0. I will now turn the call over to Connie Wang. Vice president of investor relations at Vail Resorts. You may begin.
Thank you, operator. Good afternoon, everyone, and welcome to Vail Resorts fiscal 26 third quarter earnings conference call. Joining me on the call today are Robert A. Katz, our Chief Executive Officer and Angela Korch, our Chief Financial Officer. Before we begin, let me remind you that some information provided during this call may include forward looking statements that are based on certain assumptions and are subject to a number of risks and uncertainties as described in our SEC filings. And actual future results may vary materially. Forward looking statements in our press release issued this afternoon along with our remarks on this call are made as of today, 06/08/2026, and we undertake no duty to update them as actual events unfold. Today's remarks also include certain non GAAP financial measures.
Reconciliations of these measures are p...