Vail Resorts Reports Q3 Earnings Miss, Cuts Full-Year Guidance Amidst Poor Snowfall & Declining Pass Sales
Summary
Vail Resorts announced a significant drop in Q3 earnings and lowered its full-year guidance due to persistent poor weather, alongside a decline in early season pass sales for the upcoming ski season.
Key Events
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Q3 Financial Performance Decline
Net income attributable to Vail Resorts, Inc. decreased to $314.4 million in Q3 fiscal 2026 from $389.7 million in the prior year. Resort Reported EBITDA also fell to $586.4 million from $647.7 million year-over-year, primarily due to unfavorable weather conditions impacting visitation and revenue.
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Reduced Full-Year Guidance
The company lowered its fiscal 2026 guidance, now expecting net income attributable to Vail Resorts, Inc. between $128 million and $162 million, and Resort Reported EBITDA between $735 million and $755 million, citing historically challenging weather.
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Decreased Season Pass Sales
Early season pass product unit sales for the 2026/2027 North American ski season decreased approximately 10%, days sold decreased approximately 8%, and sales dollars decreased approximately 5% through May 26, 2026, compared to the prior year period.
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Quarterly Dividend Declared
Vail Resorts declared a quarterly cash dividend of $2.22 per share, payable on July 9, 2026, to shareholders of record as of June 25, 2026, maintaining its payout despite the challenging financial results.
Analysis
Vail Resorts reported a significant decline in Q3 fiscal 2026 net income and Resort Reported EBITDA, primarily due to extremely unfavorable weather conditions in the western U.S. This led to a further reduction in the company's full-year fiscal 2026 guidance for both net income and Resort Reported EBITDA. Additionally, early season pass sales for the upcoming 2026/2027 North American ski season are down across units, days sold, and sales dollars, indicating a softening in future demand. This filing confirms and deepens the negative trend previously reported in April, highlighting ongoing operational challenges and a weaker outlook for the near term.
At the time of this filing, MTN was trading at $136.40 on NYSE in the Trade & Services sector, with a market capitalization of approximately $4.9B. The 52-week trading range was $118.51 to $172.00. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.