Tourism Holdings Limited Analysis

Overview

Tourism Holdings Limited is New Zealand's premier tourism company. It is the largest provider of holiday vehicles for rent and sale in Australia and New Zealand under the Maui, Britz, Mighty, KEA Australia and Motek Vehicle Sales brands. In the USA it owns and operates the Road Bear RV Rentals and Sales brand.

Within New Zealand, Tourism Holdings Limited also operatse Kiwi Experience and the Discover Waitomo Group which includes Waitomo Glowworm Caves, Ruakuri Cave, Aranui Cave and The Legendary Black Water Rafting Co.

In 2012 the company entered in a joint venture to form RV Manufacturing Group LP, New Zealand's largest motorhome and specialist vehicle manufacturer. RVMG LP has operations both in Auckland and Hamilton.

Performance

The following information was extracted from Tourism Holdings Limited's Full Year report, released on 25 August 2025:

FY25 ANNUAL RESULTS

•Statutory net loss after tax of -$25.8 million, compared to statutory net profit after tax of $39.4 million in FY24. The result includes -$54.5M in one-off adjustments, primarily driven by non-cash impairments of USA goodwill, and of USA and UK deferred tax assets

•Underlying net profit after tax of $28.7 million (1), down 45% from $51.8 million in FY24, reflecting expected bottom-of-the-cycle earnings

•Sale of services (primarily rentals) revenue grew 10% to $486.5 million, with closing fleet size up 8% to 8,564 vehicles

•Final dividend of 4 cents per share, representing a full-year dividend pay-out of approximately 50% of underlying net profit after tax, at the mid-point of thl’s policy range

•Group ROFE of 6.9%, down from 10.0% in FY24

•Capital disciplines employed to reduce Australian retail RV inventory by over $35M, and reduce group net fleet capital expenditure by $22M compared to FY24, supporting a return to positive operating cashflows

•Closing net debt of $492M, with expectations for net debt to decrease in the coming years

•Strategic initiatives underway in respect of underperforming divisions of North America, UK & Ireland, Australian Retail Sales and Australian Manufacturing

•As announced on 4 August 2025, thl has a goal to exceed $100M in annualised NPAT over the next three to four years

Tourism Holdings Limited (NZX:THL, ASX:THL, “thl” or “the Company”) today releases its results for the twelve months ending 30 June 2025.

Cathy Quinn, thl Chair, said “FY25 was a challenging year, defined by uncertainty and instability in thl’s trading environment globally, a tough macroeconomic environment and difficult market conditions throughout, and the FY25 financial result reflects the reality that the retail RV market remained in bottom-of-the-cycle market conditions across the year.

“The Board believes thl has responded to these challenges effectively and has now passed an inflection point, with plans in place and initiatives under way to improve financial performance and deliver rental revenue growth while continuing to reduce costs and manage debt levels effectively.”