Travel + Leisure Co. (NYSE:TNL) reported stronger-than-expected third-quarter results on Wednesday, driven by solid revenue growth and improved profitability.

The vacation ownership and travel services company posted quarterly adjusted earnings of $1.80 per share, surpassing Wall Street’s consensus estimate of $1.72 per share. The latest figure also represented a 14.7% increase from $1.57 per share reported in the same period last year.

The company’s revenue for the quarter rose 5.1% year-over-year to $1.04 billion from $0.99 billion last year quarter, coming in slightly above analysts’ expectations of $1.03 billion.

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The company reported total adjusted EBITDA of $266 million for the third quarter of 2025, up from $242 million a year earlier. The consolidated adjusted EBITDA margin improved to 25.5%, compared with 24.4% in the same period last year.

Michael D. Brown, president and CEO, said, 「This quarter marked exciting progress in our multi-brand strategy with the launch of the Eddie Bauer Adventure Club and the announcement of a new Sports Illustrated Resort in Chicago. These partnerships expand our reach to new audiences, strengthen our brand portfolio, and reinforce our ability to deliver exceptional vacation experiences.」

Capital Returns and Balance Sheet

The company paid a cash dividend of $36 million, or 56 cents per share, for the third quarter. Management said it will recommend a fourth-quarter dividend of 56 cents per share for approval by the Board of Directors in November 2025.

In the third quarter of 2025, the company repurchased 1.2 million shares of its common stock for $70 million, at a weighted average price of $59.90 per share.

The company reported cash and cash equivalents of $240 million as of September 30, 2025.

Segment Performance

Vacation Ownership revenue rose 6% year over year to $876 million in the third quarter of 2025. Net vacation ownership interest (VOI) sales climbed 9% from the prior year, despite a higher provision rate.

Travel and Membership revenue edged up 1% to $169 million in the third quarter of 2025, compared with a year earlier. The modest growth came as transaction revenue rose by $3 million, fueled by a 12% increase in transaction volumes, though this was partly offset by an 8% drop in revenue per transaction.

Outlook

Travel + Leisure expects adjusted EBITDA for 2025 between $965 million and $985 million, up from its prior outlook of $955 million to $985 million.

The company also expects gross vacation ownership interest (VOI) sales in the range of $2.45 billion to $2.50 billion, compared with its previous outlook of $2.4 billion to $2.5 billion.

The Volume Per Guest (VPG) is projected at $3,250 to $3,275, up from the prior outlook of $3,200 to $3,250.

Price Action: TNL shares were trading higher by 2.36% to $62.10 premarket at last check Wednesday.

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