Pursuit Attractions and Hospitality, Inc. 2026 Q2 Earnings Call

Good afternoon. Thank you for joining us for our 2026 second quarter earnings conference call. During the call, led by David Barry, our President and CEO, and Bo Heitz, our Chief Financial Officer, we will reference our earnings presentation, which is available on the investors section of our website. We encourage investors to monitor the investors section of our website, in addition to our press releases, filings submitted with the SEC, and any public conference calls or webcasts. Before I turn the call over to David, I would like to draw your attention to important disclaimers on pages two and three of our presentation regarding non-GAAP financial measures and the use of forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Page two identifies forward-looking statements and discusses risks and other important factors that could cause results to differ from those expressed in such statements. Page three identifies and defines the non-GAAP financial measures we use, and reconciliations to the most directly comparable GAAP financial measures are provided in the appendix of the presentation and in our earnings release. With that, I am pleased to turn the call over to David, who will start on page four.

Thanks, Carrie. Thank you all for joining us. We're excited to review our 2026 second quarter results and share our view to continued significant long-term growth and value creation. Let's start with three key highlights that demonstrate our strategy is working and show the momentum in our business. First, we delivered exceptional guest experiences and record second quarter results. Revenue grew 14% with strong contributions from Tabacón and continued growth across our existing geographies. Second, we completed two strategic transactions at compelling valuations that advance our growth strategy. The acquisition of Eagle Wing Tours, a leading sightseeing attraction in Victoria, British Columbia, strengthens our portfolio and reflects our approach to disciplined capital deployment. We completed the sale of our non-core FlyOver business, bolstering our balance sheet for future growth investments more aligned with our strategy and Vision 2030 targets.

Third, we're increasing our full year 2026 guidance to incorporate incremental contributions from our recent strategic transactions. Our demand indicators remain positive, and we expect to deliver 14% adjusted EBITDA growth year-over-year at the midpoint. Turning to page six, I'll spend a moment on the sale of FlyOver and what that does for our business. This transaction has been years in the making and is the final chapter in Pursuit's transformational story of becoming a pure play attractions and hospitality growth engine. With the sale complete, we further sharpen our singular focus on delivering great guest experiences where nature is our content and driving growth through sightseeing attractions and hospitality experiences in iconic destinations with an even stronger balance sheet to support our growth into the future. This is a clear example of focused portfolio management.

It simplifies the business, strengthens our financial position, and allows us to invest behind the opportunities with the greatest long-term value creation potential. We wish the talented FlyOver team great success in their future growth journey with their new owner, Brogent Technologies. Let's turn to page seven to briefly reinforce what makes Pursuit special. Simply put, Pursuit is in a category of 1. We own and operate unforgettable and inspiring experiences in some of the world's most iconic destinations with a portfolio of 14 sightseeing attractions and 29 distinctive lodging properties across four countries. Page eight highlights our differentiated model. Pursuit's assets are one-of-a-kind experiential infrastructure that connect guests to extraordinary places. Our demand is anchored to destinations with perennial global appeal. Importantly, we operate in supply-constrained markets where development is regulated and difficult to replicate.

We build on these dynamics with an integrated operating model and a strong culture of guest-obsessed hospitality, experience design, and our own unique growth mindset. By connecting attractions, lodging, dining, retail, and transportation, we create a seamless guest journey that drives visitation, guest satisfaction, yield, and sustainable and scalable cash flow growth. Pursuit has a compelling position that is aligned to the global travel trends as shown on page nine. Increasingly, people all over the world are prioritizing experiences over things and building trips around must-do bucket list moments. Exactly what Pursuit delivers. Outdoor adventure, wellness, curated travel, group demand, flexible work, and the desire to unplug all support our iconic nature immersive experiences. For Pursuit, AI is an enabler, not a disruptor. AI can help plan your trip but never take your vacation for you.

We build upon our compelling positioning with a consistent, proven growth strategy that drives shareholder value. As shown on page 10, we have a long track record of deploying capital into growth investments that deliver strong returns for shareholders. From 2014 through 2025, we invested approximately $578 million across major growth projects and acquisitions that generated approximately $102 million of adjusted EBITDA in 2025. That's an effective EBITDA multiple of roughly six times. This is a proven and repeatable playbook. Disciplined investments in one-of-a-kind experiences and iconic destinations with a strong cultural and strategic fit drives strong investment outcomes and strong growth. Page 11 shows the growth journey that we've been on over the past 10 years and the expected continuation of that journey into the future.

From 2015 to 2025, Pursuit delivered a 15% revenue CAGR through a combination of growth investments in iconic assets, a relentless focus on the guest experience, and an ever-present growth mindset. As we go forward, we're replicating that success using the same proven playbook with an even sharper focus and a stronger balance sheet to deliver compelling growth and exceptional hospitality. Which brings me to our Vision 2030 targets on page 12. Pursuit is on a path to once again deliver a double-digit revenue CAGR through 2030 with meaningful EBITDA growth and margin expansion. By 2030, we expect to deliver over $265 million of Adjusted EBITDA, which is more than double 2025 levels. These Vision 2030 targets aren't merely aspirational. They are the next chapter of a strategy that's already working. This strategy comes to life through our four growth levers that are shown on page 14.

First, we work to improve performance across every business, leveraging perennial demand and maintaining an unwavering focus on the guest experience. Second, we invest organically to elevate experiences, expand capacity, and drive attractive returns. Third, we pursue strategic acquisitions that strengthen our portfolio. Finally, we repurchase shares opportunistically when valuations are compelling. These levers work, and our track record proves it. As shown on page 15, our strong balance sheet allows us to invest across all four of these levers at the same time when returns are compelling. Pro forma for the sale of FlyOver and the acquisition of Eagle Wing Tours, our June 30th net leverage ratio was approximately one times, which is well below our target range of two to 3.5 times. We had substantial immediate balance sheet liquidity of about $220 million also on a pro forma basis.

This balance sheet strength, combined with continued Adjusted EBITDA growth, gives us the financial flexibility to simultaneously invest in high-return organic growth projects, one-of-a-kind strategic acquisitions, and opportunistic share repurchases. Now I'll walk you through the progress we're making on each one of our growth levers, starting on page 16. We're improving performance across our existing experiences. During the first half of 2026, we drove a 6% increase in attraction effective ticket price and a 9% increase in lodging RevPAR on a same-store basis. This is the hospitality profit chain hard at work. Strong team member engagement drives guest satisfaction and drives growth. Next, on page 17, we highlight a few recent examples of how our growth mindset and relentless focus on the guest experience is driving incremental visitation to our attractions.

Across Pursuit, we continually find ways to offer new differentiated experiences that create more reasons for guests to visit. For example, strategic programming initiatives at our attractions require little to no capital investment and help fill white space, maximizing capacity utilization and flow through. Our newly launched Rockies Rangers program for kids is bringing families deeper into our Canadian attractions through interactive exploration, education, and achievement-based experiences. At the Banff Gondola, Bloom & Brunch and the Sunset Festival are expanding morning and evening visitation with unique mountaintop experiences, live music, and great dining. At Lake Minnewanka, Beer Voyage is driving growth and evening visitation through a premium cruise experience with rotating local craft beer tastings. These are three great examples of our growth mindset in using experience design to drive results.

Let's move on to our second growth lever, investing in ourselves through organic growth projects on page 18. We have a pipeline of more than $300 million of organic growth investment opportunities from 2026 through 2030. These are low-risk investments in well-instrumented businesses that we already own, know, and operate. By 2030, we expect these investments will contribute more than $40 million of incremental AEBITDA at an estimated effective multiple of less than 7 times. As these investments are completed, additional organic growth investments under development in our internal pipeline will continue to come forward in the natural cycle of our business. On page 19, our Golden Skybridge attraction is a powerful example of our organic growth investment playbook in action. What started as sightseeing suspension bridges has become a multi-experience adventure park that continues to scale.

On August 1st, we open a new net park at Golden Skybridge that adds another compelling reason to visit. The team keeps elevating the guest journey, and it's driving stronger revenue per visitor and improved net promoter scores. Pages 20 to 29 include many exciting growth investment examples across Pursuit that help demonstrate the strength of our pipeline. I'll cover a few of them now, and I encourage you to review them in more detail after the call. At the Jasper SkyTram and the Banff Gondola, we're planning to elevate the arrival-to-summit journey with new modernized lifts and expanded amenities to strengthen their positions as must-do experiences in Jasper and Banff National Parks. In Denali, we're preparing to relaunch the high-margin Denali Backcountry Adventure attraction in 2027. This premium wildlife safari tour will take guests deep inside Denali National Park for a bucket list, nature-focused backcountry experience.