thl lifts FY26 profit guidance to around $46 million on strong late bookings
Tourism Holdings Limited (NZX: THL, ASX: THL) has upgraded its FY26 earnings guidance, now expecting underlying net profit after tax (uNPAT) from continuing operations of around $46 million, above the previously stated range of $40 million to $43 million issued at its 29 May 2026 update.
The figure relates to the financial year ended 30 June 2026 and is based on unaudited management accounts. It remains subject to completion of the external audit and final accounting and tax adjustments.
thl is dual-listed on the NZX and ASX and is described by the Company as the largest commercial recreational vehicle (RV) rental operator in the world.
An above-range upgrade issued just under two months after issuing guidance signals building momentum for the operator as it heads towards its next reporting period.
When big ASX news breaks, our subscribers know first
What drove the earnings beat
thl attributed the improved result to three factors spanning bookings, financing and asset sales:
-
Favourable year-end interest outcomes
-
Strong late booking trends across all markets
-
Vehicle sales performance at the upper end of expectations in New Zealand
The Company’s stated drivers indicate the beat was broad-based rather than the result of a single one-off item, with contributions coming from operational demand, financing conditions and vehicle disposals.
The upgrade represents a sharp reversal from the prior FY26 guidance downgrade issued in late May, when thl cut its uNPAT range to $40M-$43M and flagged a material net debt increase to $460M-$470M driven by Middle East conflict disruption and softer Australian rental conditions.
FY26 guidance: then vs now
The table below compares thl’s prior guidance with the updated position disclosed on 23 July 2026.
| Metric | 29 May 2026 Guidance | Updated (23 Jul 2026) | Change / Note |
|---|---|---|---|
| FY26 uNPAT (continuing ops) | $40m–$43m | ~$46m | Above range (unaudited) |
| Net debt (30 June 2026) | $460m–$470m | $436m reported | Lower — timing differences |
| Normalised net debt | — | $453m | Broadly in line with expectations |
Stronger balance sheet position
Reported net debt as at 30 June 2026 came in at $436 million, below the previously expected range of $460 million to $470 million.
thl noted the lower figure was primarily due to timing differences around year end rather than a structural reduction in borrowings.
On a normalised basis, measured across average balances over the four-week period from mid-June to mid-July, net debt was $453 million, which the Company described as broadly consistent with expectations.
For investors, the normalised figure offers a truer picture of the underlying position. The headline $436 million flatters the result slightly due to timing, so the deleveraging should not be overstated.
Understanding thl’s business
thl operates a tourism-focused model built around recreational vehicle rentals and vehicle sales, with earnings closely tied to travel seasonality and cross-border tourism demand.
The Company’s operations span rental, manufacturing, retail, travel technology, and tourism attractions, with earnings driven by both travel demand and asset performance across these divisions.
thl’s footprint spans two major regions:
-
New Zealand and Australia: rental brands (Maui, Britz, Apollo, Mighty, Hippie, Cheapa Campa), manufacturing, retail dealerships, travel technology and tourism attractions including the Waitomo Glowworm Caves
-
North America: Road Bear RV, El Monte RV, CanaDream, Britz and Mighty rental brands
This dual reliance on rental activity and vehicle sales explains why late bookings and strong New Zealand vehicle sales both featured among the drivers of the upgraded FY26 result.
Forward bookings point to a stronger FY27
thl reported that forward booking trends remain positive across its key markets, with North America leading the momentum.
-
North America bookings are significantly ahead of the prior year, with USA bookings more than 50% higher in recent weeks
-
Australia and New Zealand forward bookings have returned to growth following disruption associated with geopolitical events in the Middle East between March and June
The recovery in Australia and New Zealand reflects a return to growth after a period of disruption, rather than a first-time milestone.
The Company stated that, while global uncertainty remains, it is increasingly confident in the outlook for the FY27 Southern Hemisphere summer season and sees improved opportunities for growth in Australia and New Zealand.
thl Current Trading Outlook
USA bookings are more than 50% higher in recent weeks, while Australia and New Zealand forward bookings have returned to growth following earlier disruption, according to the Company’s market update.
What comes next for investors
thl intends to release its audited full-year result and Integrated Report on 25 August 2026, which represents the next key catalyst for the stock.
Today’s figures are drawn from unaudited management accounts and remain subject to completion of the external audit as well as final accounting and tax adjustments. The ~$46 million uNPAT estimate should therefore be treated as a management expectation rather than a confirmed result.
An above-range FY26 upgrade, combined with accelerating North American bookings and recovering demand across Australia and New Zealand, positions thl with momentum heading into FY27. Confirmation, however, awaits the audited August result.
The profit upgrade lands against a backdrop of competing acquisition bids, with the BGH Capital-led consortium formally opening due diligence on a NZ$3.10 per share all-cash offer in early July 2026 and a separate unnamed strategic buyer tabling a higher indicative range of NZ$3.30-$3.40 per share.
The update was authorised by Cathy Quinn, ONZM, Chair.
Don’t Miss the Next Consumer & Tourism Breakout on ASX
Big News Blast delivers FREE breaking ASX news and in-depth analysis directly to your inbox within minutes of release. Join 20,000+ investors already staying ahead of market-moving announcements. Click the “Free Alerts” button at StockWire X to get the next big update the moment it hits.