Pursuit's Pivot to Pure-Play Pays Off: Record Q2 and Raised Guidance
The sale of Flyover sharpens focus on iconic experiences; Eagle Wing and Tabacon drive growth even as weather dents visitation.
VVI · Earnings Call · 2026-08-05
Portfolio Simplification Accelerates
The second quarter of 2026 marked a watershed moment for Pursuit (ticker VVI) as it completed the sale of its noncore Flyover business to Klook, closing years of work to become a pure-play attractions and hospitality company. As David Barry noted,
Pursuit is in a category of 1.
The transaction sharpens the company's focus on experiential infrastructure in iconic destinations, a strategy that is already yielding results. “given that we had some of the weather challenges that disproportionately impacted our attraction side of the business, that put a drag on the margin side” — Michael Heitz · 2026-08-05 – yet pricing power helped offset the volume headwind.
Resilient Results Despite Weather
Revenue grew 14% to a record $133.5 million, while adjusted EBITDA rose $3 million to $32.7 million. The company raised full-year adjusted EBITDA guidance to $128–$138 million, incorporating $6 million from Flyover pre-sale contributions, $1–2 million from the Eagle Wing acquisition, and a $2 million FX headwind. Same-store effective ticket price rose 6% and lodging RevPAR was up 10% (constant currency), demonstrating that Premium leisure demand remains robust even when weather disrupts attraction visits. “Actually, we have the multiple down to below or just nearing 9x at this point. And so just doing the math on that, that gets us to over 20 percent growth in EBITDA in that first year.” — Michael Heitz · 2026-08-05 – Tabacon, acquired last July, is outperforming expectations and validating the M&A strategy.
Demand Drivers and the World Cup Effect
The company's growth is underpinned by secular shifts toward experiences and outdoor travel. Experience Economy trends are evident in the strong booking pace across Canada and the U.S. Travel trade demand remains healthy, though the FIFA World Cup created a temporary shift. “Travel trade, Tyler, continues to be strong. We did have some FIFA impact when you look at the second quarter.” — David W. Barry · 2026-08-05 Management sees this as a timing issue, with itineraries moving later in the season and a positive outlook for 2027–2029 as China continues to recover. The company's positioning in iconic destinations with limited supply gives it pricing power, a theme echoed in the global World Cup discussions across the travel sector.
Balance Sheet Strength and Growth Levers
Pro forma net leverage sits at ~1x, well below the 2–3.5x target, providing ample liquidity for all four growth levers: operational improvements, organic investments, M&A, and opportunistic buybacks. Management has repurchased $43 million of shares at an average price of $35.72, seeing more than 40% return potential at current levels. With a pipeline of over $300 million of organic projects and a clear path to $265 million of EBITDA by 2030, the company is executing on its Vision 2030 targets. As prior communications noted on FX sensitivity, “our guide kept rates unchanged at the $0.69 for Canadian to US dollar rate. Given recent volatility in FX...” — Bo Heitz, CFO · 2025-05-08 – a reminder of the company's exposure to cross-border travel, but also its ability to adapt. The strategic pivot to a pure-play model, coupled with resilient yield-driven growth, makes this a compelling story for investors watching the experience economy.