• Challenging year with 15% ROFE target not achieved
• Continued focus on cost-out and strategic initiatives
• Confidence in return to growth in FY26 supported by tourism recovery
• Exploring strategic options for UK & Ireland division

Tourism Holdings Ltd (thl) held its 2025 Annual Meeting, reflecting on a challenging year in which the company did not achieve its 15% Return on Funds Employed (ROFE) target. The broader RV industry faced significant headwinds, with many operators making losses due to subdued global consumer demand for RV purchases. Despite these challenges, thl's New Zealand Rentals & Sales and Tourism divisions delivered record EBIT results for the second consecutive year. The company continued to focus on execution of its cost-out and optimization programme, while also undertaking significant planning that culminated in several strategic initiatives. These include a strategic review of the UK & Ireland operations, plans to reduce capital employed and improve profitability in the Australian Retail Sales division, actions to address the cost gap between New Zealand and Australian manufacturing, and acceleration of the North American synergy project. The company is confident in a return to growth in FY26, supported by the continued recovery in international tourism and rental revenue, alongside the expansion of its fleet in recent years. While FY26 is expected to be a transitional year as the company implements these changes, the benefits should be evident in FY27.

thl expects growth in New Zealand Rentals & Sales, Australian Rentals, Canada, UK/Ireland and Tourism to be partly offset by expected declines in the US, Australian Retail and Manufacturing. Given the scale of transformation underway, the company is not providing profit guidance for FY26 at this stage.

thl remains confident that it has turned a corner and expects a return to NPAT growth in FY26. The company is focused on continuing to grow its strong performers while taking decisive action to lift areas not meeting expectations.