Travel Leisure Co.

Greetings and welcome to Travel and Leisure's second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Andrew Burns, Vice President, Investor Relations. Please go ahead.

Thank you, Donna. Good morning, everyone. Before we begin, I'd like to remind you that our discussion today will include forward-looking statements. Actual results could differ materially from those indicated in the forward-looking statements, and the forward-looking statements made today are effective only as of today. We undertake no obligation to publicly update or revise these statements. The factors that could cause actual results to differ are discussed in our SEC filings in our press release accompanying this earnings call. You can also find a reconciliation of non-GAAP financial measures discussed today in the earnings press release available on our Investor Relations website. Please note that all references to EBITDA, net income, earnings per share, free cash flow made during this call are on an adjusted basis as disclosed in our earnings press release today. Additionally, all references to earnings per share are on a diluted basis. This morning, Michael Brown, our President and Chief Executive Officer, will provide an overview of our results and our longer-term growth strategy. And then Erik Hoag, our Chief Financial Officer, will provide greater detail on our results, capital allocation strategy, and outlook for 2026. Following our prepared remarks, we'll open the call up for questions. Finally, all comparisons today are to the same period of the prior year unless specifically stated. With that, I'll turn the call over to Mike.

Good morning and thank you for joining us. Our strong second quarter and first half results demonstrate consistent execution in the durability of our business model. Healthy owner trends and robust travel demand translated into recurring upgrade sales, increasing new owner sales, predictable cash flow, and meaningful capital returns. I want to thank our associates across travel and leisure for delivering the exceptional vacation experiences that are the foundation of our success. The sustained momentum we have in our business is clearly reflected in first half results. Revenue growth combined with EBITDA margin improvement and our shareholder-friendly capital allocation approach fueled compounding growth across the P&L. Gross VOI sales, the core engine that drives multiple predictable revenue streams, increased 7%. EBITDA grew 9% fueled by 120 basis point improvement in EBITDA margin. Earnings per share were up 21% year over year as share repurchases amplified per share economics. Through the first half of the year, we've returned $253 million to shareholders through dividends and share repurchases. We've been able to reduce our common shares outstanding by 4% reflecting our ongoing commitment to disciplined capital allocation. For the quarter, we generated revenue of $1.06 billion and EBITDA of $269 million. Gross VOI sales increased 6% and was above our guidance range, supported by high-quality tours and strong owner engagement. Volume for guests also exceeded plan at $3,318, up 2% year-over-year. Our consumer remains healthy and continues to prioritize travel. First half arrivals adjusted for strategic resort closures increase year-over-year, and forward bookings give us clear visibility into continued growth in the second half. Key booking metrics also remain strong. The booking window was 109 days and average length of stay was four days, both at or above prior year levels. Together, these trends reflect the health of our owner base and the value proposition of our products. Overall, this second half visibility combined with our strong first half performance gives us the confidence to raise our full year EBITDA Vacation Ownership Sales, and BPG Outlook. Our updated guidance also reflects the expected accretion from the acquisitions of Yes And Vacations and Spinnaker Resorts, which we announced last week. These acquisitions at high-quality resorts and high-demand vacation destinations increase our owner base and are immediately accretive to earnings. Let me share with you the strategic benefits in more detail. These acquisitions at 23 resorts, including six properties in Hilton Head and seven in Maui. These are highly sought after leisure destinations where new development is challenging. This more than offsets our recent strategic resort closures, demonstrating our commitment to proactively grow our network while improving the quality, reach, and relevance of our resorts. Adding premier destinations through acquisitions and development while removing older, lower-demand properties enhances our owner value proposition and supports long-term growth. We are also adding over 100,000 owners, expanding our owner base by more than 10%. These owners are similar in age and average income to Travel and Leisure's owner base, and approximately 80% of them have fully paid off their timeshare loan. Adding these owners creates a larger embedded audience for future upgrade activity, particularly as we introduce these owners to our broader product set and flexible points-based system. From a capital allocation perspective, these acquisitions clear our returns-based thresholds and offer attractive long-term return profiles and immediate accretion. The size of these transactions preserves our balance sheet flexibility and allows us to maintain our capital allocation strategy, including dividends and share repurchases. Importantly, we believe these deals have low integration risk. They are well-run platforms with established owner bases, existing resort operations, and familiar business models. We can preserve what is working locally while thoughtfully bringing the businesses onto our platform, which lowers execution risks and allows us to integrate at the correct pace. During the second quarter, we continued to make meaningful progress scaling our multi-brand strategy. Margaritaville is on track to exceed $150 million in annual VOI sales. Accor Vacation Club sales remain on track to nearly double in 2026. And Eddie Bauer Adventure Club sales are meaningfully exceeding our expectations. Sports Illustrated Resort is also progressing with our Nashville resort opening in the third quarter and sales already underway at our new sales center. Each brand gives us a distinct way to reach new traveler profiles while leveraging the scale, sales expertise, and operating platform of travel and leisure. Combined VOI sales from these brands remain on track to approach 10% of our sales mix this year. Our multi-brand strategy is grounded in a simple but powerful insight. Consumers increasingly choose leisure travel that reflects who they are and how they want to spend their time. Whether it is the toes in the sand, drink in hand energy of Margaritaville or the excitement surrounding Sports Illustrated resorts and SEC football weekends, these brands create a more personal and emotional connection with travelers. That is what makes the strategy so compelling, and the measurable progress we are making gives us confidence that it is developing as we originally envisioned. We are also investing in digital infrastructure to support this strategy. We recently launched the Margaritaville app, giving owners a more seamless way to engage with the brand. This is another milestone in advancing our broader digital roadmap, which is designed to help owners search, plan, book, and travel through digital channels. By way of example, the award-winning Club Window map, which we launched less than two years ago, now represents more than 30% of total club bookings. Turning to the resort optimization initiative, it continues to perform exceptionally well. As a reminder, this initiative involves removing a small number of aging, lower demanded resorts to strengthen the overall system for our club HOAs and owners and improve the financial health of travel and leisure. We are realizing the expense savings that we expected as part of our resort optimization initiatives, and to date, stronger conversion and BPG have more than offset the lost tour volume from closed sales centers. allowing us to maintain our VOI sales growth rate. To close, our results reflect exceptional execution and reinforce the strength of our model. We are entering the back half of the year with clear visibility into continued growth. At the same time, we are investing in areas that will extend our growth runway. including scaling our multi-brand strategy, enhancing the quality and reach of our resort portfolio, and improving the owner experience through digital innovation. All of these factors support sustainable long-term growth and give us the confidence to raise our full-year EBITDA, vacation ownership sales, and BPG guidance. Now I'll turn the call over to Erik to further elaborate on our results, capital allocation framework,