Tourism Holdings forecasts major profit drop for 2025

Tourism Holdings has provided a trading update for the 2025 financial year, revealing a significant decline in performance expectations.

The company attributed the weaker operating environment to recent global geopolitical and tariff developments, which have negatively impacted consumer confidence.

This, in turn, has led to a further deterioration in vehicle sales demand, affecting volumes and margins in all countries.

thl also reported a sharp drop in interest for inbound travel to the USA, resulting in a substantial slowdown in new bookings and elevated cancellations for USA rentals in the high season.

Booking intakes for this market from key European countries were down 40-50% compared to last year.

While there has been slight growth in domestic rental demand in the USA, it is not expected to offset the shortfall in international bookings.

The company said that, although other rental markets, particularly Canada, are experiencing some growth, it will not compensate for the lost international bookings in the USA.

As a result of these developments, thl now expects underlying net profit after tax in FY25 to be significantly below the current analyst consensus of $45.2 million.

The company said it has no need or intention to raise equity and is comfortable with its banking covenant position.