Vail Resorts Q2 2025 Results: Total Revenue Up $59 Million and Visitation Increased Over Last Year

Vail Resorts, Inc. (NYSE: MTN) yesterday reported financial results for the second quarter of fiscal 2025 ended January 31, 2025 and provided the Company’s ski season-to-date metrics through March 2, 2025.

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Tl;dr:

– Financial Highlights: Vail Resorts reported a net income of $245.5 million, up from $219.3 million in the same period last year. Resort Reported Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 8% to $459.7 million.
– Visitation Trends: North American resort visitation was slightly above prior year levels, with local visitation strong but destination visitation lower due to industry demand normalization and a shift to later in the season.
– Revenue Growth: Total lift revenue increased by 6.9%, driven by pass and non-pass revenue growth. Ski school and dining revenues also saw increases.
– Guidance Update: The company expects fiscal 2025 net income between $257 million and $309 million, with Resort Reported EBITDA projected between $841 million and $877 million.
– Operational Focus: Vail Resorts is on track with its resource efficiency transformation plan, aiming for $100 million in annualized cost efficiencies by the end of fiscal 2026.

Here’s a summary of Vail Resorts’ segment performance for the second quarter of fiscal 2025 compared to the same period last year:

Mountain Segment

– Total Lift Revenue: Increased by $41.5 million, or 6.9%, driven by growth in both pass and non-pass revenue. Non-pass revenue rose 17.5% due to higher visitation at Eastern U.S. resorts and a 4.4% increase in non-pass Effective Ticket Price (excluding Crans-Montana).
– Ski School and Dining Revenue: Ski school revenue increased by 5.0%, and dining revenue by 10.8%, benefiting from increased local skier visitation and pricing.
– Retail/Rental Revenue: Decreased by $1.0 million, or 0.7%, due to lower retail sales partially offset by increased rental revenues.
– Mountain Reported EBITDA: Increased by $37.3 million, or 8.9%, compared to the prior year.

Lodging Segment

– Net Revenue: Decreased by $3.1 million, or 4.3%, primarily due to reduced destination skier visitation and a decrease in available managed condominium rooms.
– Lodging Reported EBITDA: Decreased by $2.7 million, or 56.5%, impacted by lower demand for lodging services and reduced property tax refunds.

Resort Segment (Combination of Mountain and Lodging)

– Resort Net Revenue: Increased by $59.3 million to $1,137.1 million, reflecting overall growth in resort operations.
– Resort Reported EBITDA: Increased by $34.6 million, or 8.1%, to $459.7 million, despite one-time costs related to the resource efficiency transformation plan.

Highlights

• Net income attributable to Vail Resorts, Inc. was $245.5 million for the second quarter of fiscal 2025 compared to $219.3 million in the same period in the prior year.
• Resort Reported EBITDA was $459.7 million for the second quarter of fiscal 2025, which included $2.9 million of one-time costs related to the previously announced two-year resource efficiency transformation plan and $0.1 million of acquisition and integration related expenses. In the same period in the prior year, Resort Reported EBITDA was $425.0 million, which included $2.1 million of acquisition related expenses.
• The Company updated its guidance for fiscal year 2025 and is now expecting net income attributable to Vail Resorts, Inc. to be between $257 million and $309 million. Excluding a $7 million impact from the change in foreign currency rates, the Company’s Resort Reported EBITDA guidance midpoint for the year ending July 31, 2025 is unchanged from the original guidance provided on September 26, 2024. Including the impact of changes in foreign currency rates, Resort Reported EBITDA is now expected to be between $841 million and $877 million. Consistent with prior guidance, this range includes an estimated $15 million impact related to one-time costs in support of the Company’s resource efficiency transformation plan, and an estimated $1 million impact related to acquisition and integration related expenses specific to Crans-Montana.
• The Company’s Board of Directors declared a quarterly cash dividend of $2.22 per share of Vail Resorts’ common stock that will be payable on April 10, 2025 to shareholders of record as of March 27, 2025, and the Company repurchased approximately 0.1 million shares during the quarter at an average price of approximately $196 per share for a total of $20 million.

Commenting on the Company’s fiscal 2025 second quarter results, Kirsten Lynch, Chief Executive Officer, said, “We are pleased with our overall results for the quarter, with 8% growth in Resort Reported EBITDA compared to the prior year. Our results reflect the stability provided by our season pass program, our investments in the guest experience, and the strong execution of our teams across all of our mountain resorts. Second quarter visitation at our North American resorts was slightly above prior year levels with the benefit of improved conditions, partially offset by the expected continued industry demand normalization and the shift in destination guest visitation to the spring. Destination guest visitation at our western North American mountain resorts was below prior year levels, which we believe was driven by the continued shift in historical visitation patterns across the ski industry to later in the ski season, which increased after challenging early season conditions in the prior year. Local guest visitation was in line with expectations as conditions across our North American resorts improved from the prior year and returned to more typical conditions.

“Ancillary spend per destination guest visit was strong across our ski school and dining businesses throughout the quarter, while overall revenue in our ancillary businesses was impacted by the lower mix of destination visitation. Through the second quarter, guest satisfaction scores across our destination mountain resorts and regional ski areas were strong and grew relative to scores in the prior three years, excluding Park City Mountain, where the guest experience during the thirteen-day patrol union strike was not the experience we wanted to provide.”

Regarding the Company’s resource efficiency transformation plan, Lynch said, “Vail Resorts is on track to achieve its two-year resource efficiency transformation plan, which was announced in September 2024. Through scaled operations, global shared services, and expanded workforce management, the Company is on track to improve organizational effectiveness and scale for operating leverage as the Company grows globally and deliver the expected cost efficiencies in fiscal year 2025, along with the $100 million in annualized cost efficiencies by the end of its 2026 fiscal year.”

Season-to-Date Metrics through March 2, 2025 & Interim Results Commentary

The Company reported certain ski season metrics for the comparative periods from the beginning of the ski season through March 2, 2025, and for the prior year period through March 3, 2024. The reported ski season metrics are for the Company’s North American destination mountain resorts and regional ski areas, excluding the results of the Australian and European resorts and ski areas in both periods. The data mentioned in this release is interim period data and is subject to fiscal quarter end review and adjustments.

• Season-to-date total skier visits were down 2.5% compared to the prior year season-to-date period.
• Season-to-date total lift ticket revenue, including an allocated portion of season pass revenue for each applicable period, was up 4.1% compared to the prior year season-to-date period.
• Season-to-date ski school revenue was up 3.0% and dining revenue was up 3.1% compared to the prior year season-to-date period. Retail/rental revenue for North American resort and ski area store locations was down 2.9% compared to the prior year season-to-date period.

Commenting on the season-to-date metrics, Lynch said, “Similar to the drivers in the second quarter, season-to-date results through March 2, 2025 reflect strong local visitation from improved early season conditions with destination visitation impacted by industry demand normalization and an expected shift in destination guest visitation to the spring. Ancillary spend per destination guest visit was strong across the Company’s ski school and dining businesses, with overall performance reflecting the higher mix of local visitation during the period.”

Operating Results

A more complete discussion of our operating results can be found within the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of the Company’s Form 10-Q for the second fiscal quarter ended January 31, 2025, which was filed today with the Securities and Exchange Commission. The following are segment highlights:

Mountain Segment

• Total lift revenue increased $41.5 million, or 6.9%, compared to the same period in the prior year, to $644.9 million for the three months ended January 31, 2025, due to increases in both pass revenue and non-pass revenue. Non-pass revenue increased 17.5% primarily as a result of an increase in visitation at our Eastern U.S. Resorts (comprising the Midwest, Mid-Atlantic, and Northeast), as well as an increase in non-pass Effective Ticket Price (“ETP”) (excluding Crans-Montana) of 4.4%, and incremental non-pass revenue from Crans-Montana of $6.6 million. Total non-pass ETP, including the impact of Crans-Montana, was flat compared to the same period in the prior year. Additionally, pass product revenue increased 3.2%, which was primarily driven by an increase in pass product sales for the 2024/2025 North American ski season compared to the prior year. Pass product revenue, although primarily collected prior to the ski season, is recognized in the Consolidated Condensed Statements of Operations throughout the ski season on a straight-line basis using the skiable days of the season to date period relative to the total estimated skiable days of the season.
• Ski school revenue increased $6.4 million, or 5.0%, and dining revenue increased $8.8 million, or 10.8%, driven by increased local skier visitation and increased pricing, partially offset by decreased destination skier visitation, as these guests typically utilize more ancillary services. Additionally, dining revenue benefited from $3.3 million incremental revenue from Crans-Montana.
• Retail/rental revenue decreased $1.0 million, or 0.7%, for which retail revenues decreased $2.0 million, or 2.6%, driven by lower sales at our on-mountain retail locations, and the mix of retail merchandise purchased by customers, including decreased sales of higher-margin accessories and apparel goods, partially offset by increased rental revenues of $1.0 million, or 1.6%.
• Operating expense increased $27.2 million, or 4.7%, which was primarily attributable to increased variable expenses associated with increased revenue, and incremental operating expenses from Crans-Montana.
• Mountain Reported EBITDA increased $37.3 million, or 8.9%, for the second quarter compared to the same period in the prior year, which includes $6.6 million of stock-based compensation expense for the three months ended January 31, 2025 compared to $6.3 million in the same period in the prior year. Mountain segment results also include one-time operating expenses attributable to our resource efficiency transformation plan of $2.6 million for the three months ended January 31, 2025, as well as acquisition and integration related expenses of $0.1 million and $2.1 million for the three months ended January 31, 2025 and 2024, respectively.

Lodging Segment

• Lodging segment net revenue (excluding payroll cost reimbursements) decreased $3.1 million, or 4.3%, to $70.2 million for the three months ended January 31, 2025 as compared to the same period in the prior year, primarily driven by a decrease in destination skier visitation which decreased demand for lodging and other ancillary services proximate to our mountain resorts, as well as a net reduction in our inventory of available managed condominium rooms proximate to our mountain resorts.
• Lodging Reported EBITDA decreased $2.7 million, or 56.5%, for the second quarter compared to the same period in the prior year, which includes $0.9 million of stock-based compensation expense for the both the three months ended January 31, 2025 and 2024. Lodging segment results were impacted by a decrease in property tax refunds received compared to the prior year period, and also include one-time operating expenses attributable to our resource efficiency transformation plan of $0.3 million for the three months ended January 31, 2025.

Resort – Combination of Mountain and Lodging Segments

• Resort net revenue was $1,137.1 million for the three months ended January 31, 2025, an increase of $59.3 million as compared to Resort net revenue of $1,077.8 million for the same period in the prior year.
• Resort Reported EBITDA was $459.7 million for the three months ended January 31, 2025, an increase of $34.6 million, or 8.1%, compared to the same period in the prior year, which includes one-time operating expenses attributable to our resource efficiency transformation plan of $2.9 million for the three months ended January 31, 2025, as well as $0.1 million of acquisition related expenses for the second quarter of fiscal 2025 compared to $2.1 million of acquisition related expenses for the second quarter of the prior year.

Total Performance

• Total net revenue increased $59.3 million, or 5.5%, to $1,137.2 million for the three months ended January 31, 2025 as compared to the same period in the prior year.
• Net income attributable to Vail Resorts, Inc. was $245.5 million, or $6.56per diluted share, for the second quarter of fiscal 2025 compared to net income attributable to Vail Resorts, Inc. of $219.3 million, or $5.76 per diluted share, in the second quarter of the prior year.

Outlook

Excluding a $7 million impact from the change in foreign currency rates, the Company’s Resort Reported EBITDA guidance midpoint for the year ending July 31, 2025 is unchanged from the original guidance provided on September 26, 2024. For the remainder of the season, the Company is expecting improved performance compared to the season-to-date period, including a continued shift in destination visitation patterns to later in the ski season, based on the significant base of pre-committed guests, current lodging booking trends, and historical guest behavior patterns.

The Company now expects net income attributable to Vail Resorts, Inc. for fiscal 2025 to be between $257 million and $309 million. The Company expects Resort Reported EBITDA for fiscal 2025 to be between $841 million and $877 million. Consistent with the original fiscal 2025 guidance issued September 26, 2024, the updated guidance includes an estimated $15 million in one-time costs related to the multi-year resource efficiency transformation plan and an estimated $1 million of acquisition and integration related expenses specific to Crans-Montana. In addition, compared to the original fiscal 2025 guidance, the updated guidance includes an estimated $7 million impact from foreign exchange rates. At the midpoint, the guidance implies an estimated Resort EBITDA margin for fiscal 2025 to be approximately 28.8% or 29.3% before one-time costs from the resource efficiency transformation plan.

The updated guidance also assumes (1) a continuation of the current economic environment, (2) industry normalization to pre-COVID guest behavior, and (3) normal weather conditions for the remainder of the 2024/2025 North American and European ski season and the 2025 Australian ski season. In addition, the updated guidance also reflects foreign currency exchange rate volatility as compared to the assumptions included in our original guidance provided on September 26, 2024. The updated guidance assumes foreign currency exchange rates as of March 7, 2025, including an exchange rate of $0.70between the Canadian Dollar and U.S. Dollar related to the operations of Whistler Blackcomb in Canada, an exchange rate of $0.63 between the Australian Dollar and U.S. Dollar related to the operations of Perisher, Falls Creek and Hotham in Australia, and an exchange rate of $1.13 between the Swiss Franc and U.S. Dollar related to the operations of Andermatt-Sedrun and Crans Montana in Switzerland, and does not include any potential impacts related to future fluctuations in foreign currency exchange rates, which may be impacted by tariffs, trade disputes, or other factors.