Vail Resorts Reports Mixed Fiscal 2025 Results, Dividend Holds Steady
Vail Resorts, a leading ski resort operator, has reported mixed results for fiscal 2025. Despite a 2% rise in resort EBITDA and net income of roughly $280 million, the company faces challenges such as a 3% decline in skier visits and a 3% drop in season-pass units. Meanwhile, Vail maintains its quarterly dividend at $2.22 per share, offering a 6% yield.
Vail Resorts' fiscal 2025 results showed a mixed performance. Resort EBITDA rose by 2%, while net income increased to approximately $280 million. However, total skier visits across North American resorts declined by 3%, and season-to-date pass product sales indicated a 3% decrease in units but a 1% increase in dollars. The company's net debt stands at around 3.2 times EBITDA.
Management guided for fiscal 2026 with net income between $201 million and $276 million, and resort reported EBITDA in the range of $842 million to $898 million. This suggests flat or modest EBITDA growth and a potential earnings decline at the midpoint. Income-focused investors may be attracted to Vail's 6% yield, but the high payout ratio and leverage limit flexibility, warranting a cautious approach. The company balanced capital returns between dividends and approximately $270 million in buybacks during fiscal 2025.
Rob Katz's return as CEO could serve as a catalyst for the business, but any turnaround efforts are expected to take time to materialize.
Vail Resorts' fiscal 2025 results showed a mixed performance, with challenges in skier visits and season-pass units. The company maintains a high dividend yield, but investors should exercise caution due to the high payout ratio and leverage. Rob Katz's return as CEO may bring positive changes, but these will likely take time to impact the business.
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