Pursuit Attractions and Hospitality, Inc. Q2 FY2026 earnings call

Strategic Transactions: • Completed two transformative strategic transactions: acquired Eagle Wing Tours, a leading whale watching and marine sightseeing attraction in Victoria, British Columbia, for ~6.5x adjusted EBITDA, adding entry into the high-demand Vancouver Island market that draws 5 million annual visitors • Completed the sale of the non-core Flyover business to Klook, completing Pursuit's transformation into a pure-play attractions and hospitality growth company focused on nature-centric experiences in iconic destinations, and strengthening the balance sheet for future aligned growth investments

Portfolio and Strategic Positioning: • Pursuit operates 14 sightseeing attractions and 29 distinctive lodging properties across 4 iconic, supply-constrained destinations with regulated, difficult-to-replicate development • Integrated operating model connecting attractions, lodging, dining, retail and transportation creates seamless guest journeys that drive higher visitation, satisfaction, yield, and scalable cash flow growth, aligned with global travel trends prioritizing experience-based outdoor/immersive travel • Long-term proven capital deployment strategy: from 2014-2025, $578 million invested in growth projects and acquisitions generated ~$102 million 2025 adjusted EBITDA, for an effective multiple of ~6x

Vision 2030 Long-Term Targets: • Target double-digit revenue CAGR through 2030, with meaningful adjusted EBITDA growth and margin expansion, reaching over $265 million adjusted EBITDA (more than double 2025 levels)

Four Core Growth Levers Progress:

1. Same-Store Performance Improvement: H1 2026 delivered 6% increase in effective attraction ticket price and 9% same-store lodging RevPAR growth; low-capital experience programming (Rockies Rangers kids program, Banff Gondola Bloomin' Brunch/Sunset Festival, Lake Minnewanka Beer Voyage) increases off-peak visitation and capacity utilization
2. Organic Growth Investments: Over $300 million in approved organic investment opportunities planned 2026-2030, expected to generate over $40 million incremental annual adjusted EBITDA at an effective multiple of <7x. Key projects include:
   • Opened new net park at Golden Sky Bridge attraction; planning modernized lifts and expanded amenities for Jasper Skytram and Banff Gondola
   • Relaunching high-margin Denali Backcountry Adventure in 2027 following park road completion; adding new 56-passenger cruise boat at Maligne Lake and redeploying an existing boat to Lake Minnewanka to meet strong demand
   • Multiple lodging renovation and expansion projects: Forest Park Hotel (Jasper) Woodland Wing renovation already delivering 22% ADR lift; Grouse Mountain Lodge (Whitefish) first phase renovations complete with new event center opened; full renovations planned for Lobstick Lodge and amenity additions (wellness facilities) for Pyramid Lake Lodge (Jasper); adding 41 new elevated cabins near Glacier National Park
3. Disciplined Strategic Acquisitions: Only targets iconic, supply-constrained assets in perennial demand destinations that exceed a 15% IRR hurdle rate. Tabacon (Costa Rica thermal resort/accommodations) marked its one-year anniversary of ownership: delivered over 20% EBITDA growth in year one, pushing the effective purchase multiple down to ~9x; 3 new premium luxury villas are under development to meet growing demand for large group/luxury stays, with long-term plans to build out a broader Costa Rica experience collection
4. Opportunistic Share Repurchases: $43 million in shares repurchased to date at an average price of $35.72, representing a >40% return based on recent trading; ~$57 million remaining under the $100 million authorization, with repurchases continuing when returns are compelling relative to other investment options

Balance Sheet Strength: • Pro forma for recent transactions, June 30 net leverage ratio was ~1x, well below the 2-3.5x target range, with ~$220 million in immediate balance sheet liquidity. This provides flexibility to simultaneously invest in organic growth, strategic acquisitions, and share repurchases

Overall: Q2 2026 total revenue grew 14% year-over-year to a record $133.5 million. Adjusted EBITDA increased $3 million YoY to $32.7 million, and adjusted net income grew to $14 million from $10.1 million in Q2 2025. A $4.6 million non-recurring pretax gain from Jasper wildfire business interruption insurance was excluded from adjusted metrics.

Attractions Segment: Q2 attraction ticket revenue was $55 million, representing a 3% YoY increase. 6% YoY same-store effective ticket price growth offset softer visitation caused by higher poor weather incidence this quarter compared to Q2 2025's ideal weather conditions. Tabacon was the primary driver of segment growth.

Hospitality Segment: Q2 room revenue totaled $33 million, a 27% YoY increase driven by strong performance from Tabacon and improvements in same-store average daily rate (ADR) and occupancy. Excluding Tabacon, same-store constant-currency revenue per available room (RevPAR) grew 10% YoY. Hospitality performance was less impacted by poor weather than attractions.

• Full-year 2026 guidance has been increased to incorporate incremental contributions from the Flyover business prior to sale and the Eagle Wing Tours acquisition, partially offset by unfavorable exchange rate assumption changes • New adjusted EBITDA guidance range is $128 million to $138 million, representing a 14% YoY growth at the midpoint, which is a $5 million increase to the prior guidance range • The guidance adjustment breakdown is: ~$6 million incremental contribution from Flyover prior to sale, $1 million to $2 million incremental contribution from Eagle Wing Tours, and ~$2 million negative impact from revised exchange rates • Underlying core organic business performance expectations for full-year 2026 remain unchanged from prior guidance, supported by strong ongoing lodging booking pacing that indicates continued strong consumer demand for the peak summer season • No changes to long-term Vision 2030 targets; most large organic growth projects initiated in 2026 will continue into 2027, with the majority of growth inflection expected in the back half of the 2026-2030 period

• Poor weather and wildfire smoke can negatively impact near-term attraction visitation, though impacts are temporary and demand rebounds once conditions improve • Large organic growth projects in national park markets face permitting, stakeholder consultation, and labor/construction timing risks that can cause project delays, though standard construction contingencies are included in all project budgets • Foreign exchange rate fluctuations create downward pressure on reported results, contributing a $2 million headwind to 2026 guidance • Travel trade gateway city market disruptions (such as hotel price increases tied to global events like the FIFA World Cup) can shift near-term travel trade booking demand to later seasons

Q: Why was EBITDA margin down ~90 bps YoY this quarter, despite strong same-store and revenue growth? Is this tied to mix shift? / A: The margin decline is driven by weather impacts that disproportionately hit the high-margin attractions segment this quarter, following ideal weather that drove very strong attraction results in Q2 2025. Meanwhile, the lower-margin lodging segment outperformed expectations, creating a mix shift that dragged down overall aggregate margin, matching the observed trend.

Q: What impact have Northeast wildfires and smoke had on Canadian operations, bookings, and daily attraction visitation? / A: No Pursuit assets or facilities are threatened by nearby fires, but long-traveled smoke has caused temporary spotty impacts on some days. On smoky days, guests shift activity from sightseeing to more in-property dining and shopping, but demand for attractions immediately rebounds once wind clears smoke. These temporary impacts have not changed full year performance expectations.

Q: How has travel trade demand performed recently, and what is the current channel mix? Is China inbound travel recovering? / A: Overall travel trade demand remains strong, but the 2026 FIFA World Cup caused a temporary Q2 shift, as steep hotel price increases in Canadian gateway cities (Vancouver, Toronto) led tour operators to shift itineraries to later in the season. China inbound travel is recovering slowly as flight capacity increases. The company balances travel trade demand with direct consumer and OTA channels to optimize inventory yield.

Q: Tabacon has now been owned for one full year; how has performance compared to original expectations, and what can you share about the new premium villa project? / A: Original expectations were ~$10 million annual EBITDA, and the asset delivered over 20% EBITDA growth in its first year, bringing the effective purchase multiple down to ~9x, outperforming initial projections. The new 3-villa project is designed to meet growing demand from large multi-generational and group travel to the Arenal region. Cost and contribution details will be released closer to completion.