Tourism Holdings Ltd (ASX:THL) (FY 2026) Earnings Call Highlights: Strategic Divestments and ...

Q & A Highlights

Q: Can you provide an update on the status of the takeover approaches and the expected timeline for the process? A: Grant Webster (CEO) confirmed there are two bidders: the BGH consortium at NZ$3.10 per share and another party at NZ$3.30 to NZ$3.40 per share, which the Board considers a critical strategic offer. Both proposals remain non-binding and are subject to due diligence, financing, and internal approvals. The process is expected to continue for approximately another four to six weeks, with management sessions and site visits underway. The current proposals represent a substantial increase over last year's NZ$2.30 per share offer.

Q: How is the fleet expected to evolve over the next 12 to 24 months, particularly given the vehicle sales market challenges? A: Grant Webster (CEO) stated that the growth rate in fleet will diminish significantly over the next 12 to 24 months compared to the last three years. While there will still be some growth, the company has room to improve utilization in most markets. Fleet growth will be centered in the Southern Hemisphere (New Zealand and Australia) for now, as the company needs to prove out the North American model. Canada may need a little more fleet growth, and the US could see more if confidence builds.

Q: What is the expectation for net debt over the next couple of years, and is this the low point? A: Ollie Farnsworth (CFO) confirmed that the company's target of NZ$400 million in net debt has not been reached this year due to circumstances around vehicle sales, but the company should be managing toward that level. Net debt is expected to fall further over the next couple of years, notwithstanding some lumpiness in the timing of vehicle sales.

Q: Can you provide detail on the rental booking trends and revenue intake across New Zealand, Australia, and North America, in terms of yield versus booking days or RevPARV versus utilization? A: Grant Webster (CEO) explained that van yield is relatively static around the world, but the company is achieving the inflationary lift of 2% to 3% planned for in core metrics. The growth story is primarily driven by booking days, with some ancillary-revenue benefits from recent actions. From a utilization perspective, there are opportunities in the USA, Australia, and New Zealand, while Canada is nearly maxed out over the peak season.

Q: What was the impact of the Middle East conflict on booking intakes, and is there a recovery underway? A: Grant Webster (CEO) noted that prior to the conflict, Southern Hemisphere bookings were tracking strongly (New Zealand up 25% and Australia up over 20% as of February). By August, bookings had dropped to 15% ahead for New Zealand and 5% for Australia. However, in the last four weeks, New Zealand bookings have recovered to be up around 14% and Australia up 15%. While this momentum may not fully recover quarter one, it could potentially help the high season. The US has recovered from being down 35% to only 15%, with recent weeks showing 45% improvements over prior year bookings, possibly linked to the FIFA World Cup sentiment change.

Q: What progress has been made on the strategic initiatives announced in August 2025? A: Grant Webster (CEO) highlighted several achievements: the sale of the UK and Ireland business for around NZ$57 million, exiting two loss-making dealerships in Australia, consolidating manufacturing back from Australia to New Zealand, achieving cost initiatives in North America, and delivering around NZ$5 million in underlying cost savings across labor, corporate, and digital costs. The full benefits of some initiatives, particularly procurement benefits on a fleet basis, will flow through in future years via lower depreciation.

Q: What is the outlook for FY27 given the disruption from the Middle East conflict? A: Grant Webster (CEO) stated that the conflict created a gap in forward-booking intake that is unlikely to be fully recoverable, particularly impacting Q1 FY27. While the company still expects some level of growth in FY27, the level of volatility makes it too difficult to revise guidance at this point. However, the company stands by its NZ$100 million underlying earnings goal, as the core driversrental growth, manufacturing, and procurement benefitsremain intact.

Q: How is the RV sales market performing, and what is the company's view on recovery? A: Grant Webster (CEO) acknowledged continued pressure on the sales side globally, citing RV Industry Association wholesale shipment data in the US showing an 11% reduction since the start of the year. Both Thor and Camping World have reduced their expectations for total shipments in 2026. However, the fundamentals of the RV industry remain strong, with people still wanting to travel in RVs, increasing trip numbers, and a decreasing average age of buyers. The company believes its focus on RV rentals positions it well for this shift away from purchasing expensive large RVs.

Q: What were the key drivers of the FY26 financial results? A: Grant Webster (CEO) reported an underlying net profit after tax from continuing operations of NZ$46.1 million, which was not where the company wanted to be but was pleasing given the Middle East situation. Total services revenue increased 11% to nearly NZ$517.5 million, driven by rental growth. The average rental fleet increased by around 800 vehicles to nearly 8,600, and RevPARV was flat to slightly improved on a constant-currency basis. Operating cash flows were positive at NZ$67 million, and net debt of NZ$436 million is heading in the right direction.

Q: What is the dividend situation for FY26? A: Ollie Farnsworth (CFO) confirmed a full-year dividend of NZ$0.105 per share, comprising a final dividend of NZ$0.075 per share (100% imputed in New Zealand, 10% franked in Australia) and an earlier interim dividend of NZ$0.03 per share. This is consistent with the company's 50% payout plan.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .