• 17% increase in statutory net profit after tax to $29.6 million
• 11% increase in underlying net profit after tax to $29.5 million
• 4% increase in total revenue, with 11% growth in rental revenue

Tourism Holdings Limited (thl) has released its results for the six months ending on 31 December 2025, reporting a 17% increase in statutory net profit after tax to $29.6 million and an 11% increase in underlying net profit after tax to $29.5 million. The company's total revenue increased by 4%, consisting of an 11% increase in sale of services revenue (primarily rentals) and a 4% decline in sale of goods revenue. thl has made significant progress on its strategic initiatives, including the conditional agreement to sell its UK and Ireland operations for around $58.3 million, the exit of underperforming dealerships, the closure of its Brisbane factory, and cost-out actions in North America. The company's global rentals business continues to perform well, with a 10% increase in the closing rental fleet to 8,688 vehicles. thl has also increased its interim dividend by 20% to 3.0 cents per share, 100% imputed and 0% franked. Looking ahead, the company expects its underlying net profit after tax for FY26 to be in the range of $43 million to $47 million, reflecting expected NPAT growth of approximately 50% to 65%. This guidance includes the impact of an approximate $1 million reduction in underlying NPAT attributable to the timing of the UK divestment. The company's forward rental revenue (for future travel periods) in all markets except the U.S. remains very positive, with New Zealand and Australia up 20-25%, Canada up 30%, and the U.S. down 25-30%. The challenging vehicle sales conditions are expected to persist, with the second half of FY26 largely reflecting the trends seen in the first half. thl's net debt is expected to be below $400 million, with a net debt to EBITDA ratio below 2.0x, at 30 June 2026, supported by positive operating cash flows, lower net fleet capital expenditure, and expected proceeds from the UK divestment.

thl expects underlying NPAT for FY26 to be in the range of $43 million and $47 million, reflecting expected NPAT growth of approximately 50% to 65%. This guidance includes the impact of an approximate $1 million reduction in underlying NPAT attributable to the timing of the UK divestment.

thl remains confident in the outlook for global tourism, with structural drivers, including growing global airline capacity and growing demand for free independent travel, continuing to support a positive outlook for RV rentals. The company views FY26 as a transition year as it implements transformational initiatives against a background of ongoing weakness in RV sales markets, broader macroeconomic challenges, and uncertainty regarding the timing of a recovery. Looking further ahead, the execution of thl's strategic initiatives, continued recovery in international tourism and rental demand, alongside ongoing cost-out actions, are expected to materially benefit FY27.