Vail Resorts Skis Past Expectations with Strong Q2 Results
Vail Resorts, a leader in the ski industry, has reported impressive second-quarter results for fiscal 2025. Despite challenges from normalization of industry demand and shifting guest visitation patterns, the company's resort reported EBITDA grew by 8% compared to the prior year.
"We're pleased with our overall results for the quarter," said Kirsten Lynch, Chief Executive Officer of Vail Resorts, on the company's recent conference call. "Our stability provided by our Season Pass Program, investments in the guest experience, and strong execution of our teams across all our Mountain Resorts have contributed to this success."
One key highlight from the quarter was the growth in ancillary spend per destination guest visit. This increase was driven by strong performance across Vail Resort's Ski School and Dining businesses. While overall revenue in these Ancillary businesses was impacted by a lower mix of destination visitation, the company sees this as an opportunity to further optimize its operations.
Another area where Vail Resorts has made significant strides is in resource efficiency transformation. The company announced a 2-year plan in September 2024 and is on track to achieve its goals for improved organizational effectiveness and scale for operating leverage as it grows globally. By the end of fiscal year 2026, Vail Resorts expects to deliver $100 million in annualized cost efficiencies.
Financial results were also strong, with net income attributable to Vail Resorts reaching $245.5 million or $6.56 per diluted share for the second quarter of fiscal 2025. This represents a significant increase from $219.3 million or $5.76 per diluted share in the same period last year.
Season-to-date metrics, however, showed a slight decline in total skier visits by 2.5% compared to the fiscal year 2024 season-to-date period. This was largely driven by decreased visitation at Vail Resorts' Western North American destination Mountain Resorts, which were affected by shifts in historical visitation patterns across the ski industry.
Despite this challenge, Vail Resorts remains optimistic about its future prospects. With a strong foundation of stability provided by its Season Pass Program and continued focus on optimizing operations through resource efficiency transformation, the company is well-positioned to navigate any challenges that may arise.
