Vail Resorts Slashes Guidance; Weather Impacts Profit

(MTN) reported a challenging Q2 2026, with financial results significantly impacted by unprecedented low snowfall and warm temperatures in the Rockies. Total net revenue declined approximately 5%, and Resort Reported EBITDA fell about 8% compared to the prior year.

Skier visitation dropped by 12% season-to-date, leading the company to reduce its fiscal 2026 net income guidance to a range of $144 million to $190 million and Resort Reported EBITDA guidance to $745 million to $775 million. Despite these headwinds, Vail maintains a strong liquidity position of approximately $1.1 billion and a net leverage of 3.1 times trailing 12 months EBITDA. The company highlighted record-high systemwide guest satisfaction scores and the stability provided by its pass holder program, which has grown 55% over five years and now accounts for 75% of annual visitation.

Strategic initiatives for the 2026-2027 season include new products, enhanced marketing, and targeted pricing, such as a 20% discount for young adults aged 13 to 30. Management views the severe weather as an aberration, not a long-term deterrent to skiing engagement, and continues planned capital expenditures for snowmaking as part of a long-term strategy.