Vail Resorts, Inc.

What they do

Vail Resorts operates three reportable segments: Mountain, Lodging and Real Estate. The Mountain segment, which represented approximately 89% of fiscal 2025 net revenue, operates 42 resorts and ski areas and earns revenue from lift tickets, pass products, ski school, dining and retail/rental. The Lodging segment, approximately 11% of net revenue, owns and/or manages luxury hotels and condominiums under the RockResorts brand, other strategic lodging properties, and National Park Service concessioner properties including the Grand Teton Lodge Company. The Real Estate segment owns, develops and sells real estate in and around resort communities.

Revenue drivers

• Mountain segment — Approximately 89% of fiscal 2025 net revenue, generated from lift tickets including pass products, ski school, dining and retail/rental operations across 42 resorts.
• Lodging segment — Approximately 11% of fiscal 2025 net revenue, from owned and/or managed luxury hotels and condominiums under the RockResorts brand, other lodging properties, and NPS concessioner properties including Grand Teton Lodge Company.
• Real Estate segment — Represented approximately 0% of fiscal 2025 net revenue, from owning, developing and selling real estate in and around resort communities.

Recent performance

Third quarter fiscal 2026 net income attributable to Vail Resorts, Inc. was $314.4 million compared to $389.7 million in the prior year. Resort Reported EBITDA decreased $61.3 million, or 9.5%, to $586.4 million. Resort net revenue decreased $90.4 million, or 7.0%, primarily driven by unfavorable weather conditions that impacted visitation and revenue for both local and destination guests, particularly at the Rockies and Tahoe resorts. Total lift revenue declined 5% despite visitation being down 15%, primarily as a result of 2025/2026 North American Pass Sales increasing 3% heading into the season.

Strategy

Management stated its strategic focus remains unchanged and it is pleased with progress made this year. The company is investing in lifts, snowmaking, terrain and talent, and plans to leverage the scale and strength of its integrated network to implement new technologies and enhance key elements of the guest experience. It has key initiatives underway in its gear, ski school and dining businesses, and in guest engagement and communication. The company expects to share updates on these efforts in the upcoming months. These initiatives are intended to drive future visitation growth and long-term value creation.

Risks

• Weather and climate — Unfavorable weather conditions or the impact of climate change, natural disasters or other events can materially reduce visitation and revenue, as seen in fiscal 2026.
• Economic weakness — Prolonged weakness in general economic conditions, including high inflation, elevated interest rates and trade disputes, could reduce discretionary travel and leisure spending.
• Seasonality and high fixed costs — The business is highly seasonal with a high fixed cost structure, so adverse events during peak periods can disproportionately impact results.
• Pass product sales decline — Pass product unit sales through May 26, 2026 for the upcoming 2026/2027 North American ski season decreased approximately 10%, days sold decreased approximately 8%, and sales dollars decreased approximately 5% compared to the prior year period.

Outlook

Management reduced fiscal 2026 guidance due to historically challenging weather conditions, now expecting net income attributable to Vail Resorts, Inc. of $128 million to $162 million and Resort Reported EBITDA of $735 million to $755 million. The company expects to deliver $106 million of annualized cost efficiencies, a $6 million increase above the original target, and remains on track to achieve an incremental $45 million of efficiencies over the prior year. Management sees significant opportunity to elevate the guest experience through continued investments and new technologies.