Broomfield, Colorado — It turns out that the worst winter out west in decades can be costly financially.
Yesterday, Vail Resorts reported its financial results for the third fiscal quarter of 2026, which concluded on April 30, 2026. The metrics were bad. Net income was $314.4 million, down from $389.7 million last year. Resort reported EBITDA decreased from $647.7 million at this juncture in 2025 to $586.4 million.
The reasoning is that the West’s bad winters impacted Vail properties such as Beaver Creek, Breckenridge, Northstar, and Park City. Many had to close earlier than expected due to warm March temperatures. Overall, visitation at Vail Resorts properties was down 15% from the prior year. There were some positives from this past winter, such as the performance of Whistler Blackcomb and the resorts in the Northeast.
Because of their rough winter, Vail Resorts has issued new guidance for fiscal year 2026, with a projected net income of $128 million to $162 million and resort-reported EBITDA between $735 million and $755 million.
To keep shareholders from jumping ship, a cash dividend of $2.22 per share is being offered.
Pass Sales Are Down
Perhaps the most alarming part of the report regards pass sales. Compared to last year, pass sales are down approximately 10%, days sold are down approximately 8%, and dollars sold are down by approximately 5%. Katz noted in the press release that these numbers are better than what some companies in the ski industry are dealing with. With underwhelming pass sales, I do wonder whether Vail will run more promotions to return to normal numbers.
Here’s what Rob Katz, CEO of Vail Resorts, had to say regarding this past quarter:
“Weather conditions remained extremely unfavorable in the third quarter, adding to what had already been one of the most challenging winters in history across the western U.S., driving continued pressure on visitation and revenue in the quarter, particularly at our destination resorts in the Rockies. While these dynamics negatively impacted results, our advance commitment model provided considerable stability and strong cost discipline kept us on track to exceed our resource efficiency transformation plan savings for the year. At the same time, our continued investments in talent, technology and resort operations drove record guest satisfaction scores and strong employee engagement. Despite the weather challenges of the past year, our strategic focus remains unchanged, and we are pleased with the progress we made this year. The new lift ticket products and strategic shifts in our marketing approach showed early positive results this past season, with our lift ticket visitation meaningfully outperforming the industry based on preliminary data, including in the Rockies, and we continued to make significant strides in enhancing the guest experience.
Looking ahead, we see significant opportunity to further elevate the guest experience across our resorts through continued investments in lifts, snowmaking, terrain and our talent, while leveraging the scale and strength of our integrated network to implement new technologies and enhance key elements of the guest experience. We have key initiatives underway in our gear, ski school and dining businesses, as well as every facet of guest engagement and communication, and will share updates on these efforts in the upcoming months. Together, these initiatives will play an important role in driving future visitation growth and long-term value creation.”
Vail will have some chances for redemption in the fourth quarter, as Australia’s ski season is underway. Skier metrics are very good down under. Sales for the Epic Australia Pass are up approximately 26% in units and 31% in sales dollars compared to the year prior. With three ski resorts in the country, they’ll hope for continued improvement down under. They’ll also have summer activities at their summer destinations in North America, with places like Whistler Blackcomb, Breckenridge, and Stowe still being popular visits in the offseason.
Image/Video Credits: Manav Parekh, Bloomberg Podcasts, Vail Resorts
