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Tourism Holdings Limited (ASX:THL) has confirmed its FY25 profits after tax will be on the lower end of guidance, not too long after the stock won top gainer status in mid-June on a takeover – even beating energy players as crude soared on fresh Middle East tensions.
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If the market was particularly bothered by the guidance revelations, it didn’t show. Stocks were unchanged heading into the second hour of Friday trade.
But it was the reasoning behind why Tourism Holdings is pointing towards lower-end guidance of $27 million – $34 million that stood out. (Once you get past the fact that a variance of $7M is, perhaps, a bit wide.)
Ultimately, while the RV seller and rental provider has pointed to strong growth in Australian and NZ markets, the company noted a U.S. slowdown and attributed that, in part, to the fact guidance will be lower range.
The culprit, as far as THL reports, is that RV demand in the U.S. slumped right after Trump announced Liberation Day tariffs – likely as a result of families anticipating financial shocks to come, that made the relatively expensive dream of serious RV travel look a bit unwise.
“In the USA, while forward rental bookings initially declined by 40 to 50% following the USA’s Liberation Day, recent booking intakes have recovered closer to typical levels,” THL wrote.
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The company added: “Total forward bookings in this market, beyond the current impacted high season, show a single-digit percentage decline in forward rental revenue, compared to the same time last year.”
Worth noting: The company started FY26 with $500M in debt. Make of that what you will.
THL last traded at $2.05/sh.
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