United Parks & Resorts Q2 Earnings Call Highlights

Key Points

• Second-quarter results weakened: Revenue fell 1.4% to $483.3 million, attendance declined 2.9%, net income dropped to $63.3 million, and adjusted EBITDA decreased to $195.5 million. Management attributed much of the attendance pressure to Easter timing and lower international visitation.
• Per-capita spending provided support, but July was challenging: In-park spending per guest rose a record 5.1%, partly offsetting lower attendance, while unfavorable weather, wildfires and air-quality issues contributed to an estimated 2% revenue decline in July. The company expects growth in the remaining months but is not forecasting full-year adjusted EBITDA growth.
• Management is pursuing growth and shareholder returns: United Parks is targeting $50 million in 2026 cost savings, expanding Halloween intellectual-property partnerships, and exploring potential real-estate sales. It repurchased about $217.7 million of shares in the first half, equal to 12.1% of shares outstanding, while maintaining approximately $658 million in liquidity.

United Parks & Resorts NYSE: PRKS reported lower second-quarter revenue and earnings as attendance declined following an unfavorable Easter calendar shift and reduced international visitation, while higher in-park spending partly offset the pressure.

Total revenue for the second quarter was $483.3 million, down $6.9 million, or 1.4%, from the year-earlier period, Interim Chief Financial Officer and Treasurer Jim Forrester said. Attendance fell about 179,000 guests, or 2.9%, to the prior-year quarter. The company said attendance would have been flat excluding the Easter timing effect and international visitation decline.

Net income declined to $63.3 million from $80.1 million a year earlier, while adjusted EBITDA fell $10.8 million to $195.5 million. Operating expenses rose $10.9 million, or 5.3%, and selling, general and administrative expenses increased $2.2 million, or 3.4%.

Per-Capita Revenue Offsets Some Attendance Pressure

Total revenue per capita increased 1.5% in the quarter. Admission revenue per capita declined 1.8%, primarily due to admissions-product mix, while in-park spending per capita rose 5.1%, reaching a second-quarter record, according to management.

Forrester attributed the gain in in-park spending to higher guest penetration and pricing initiatives. CEO Marc Swanson said the company is also benefiting from investments in food, retail and other park facilities, while Forrester cited self-order food-and-beverage kiosks, photo operations and catering events as contributors.

For the first half of 2026, United Parks reported revenue of $761.6 million, down 2% from a year earlier. Attendance fell 3.6% to 9.3 million guests, net income decreased $34.8 million to $29.2 million, and adjusted EBITDA declined $20.3 million to $253.4 million.

Deferred revenue totaled $211.9 million at the end of June, up approximately 2% from June 2025. The company’s paid pass base was down 1% year over year through June. Management said it has created a dedicated pass team and is launching 2027 passes with what it described as its “best benefits ever,” aiming for a meaningful pass-base increase in 2027 and beyond.

July Weather Weighed on Revenue

Swanson said July weather conditions, including wildfires and air-quality issues, excessive heat and extended rain in certain markets, hurt attendance. The company’s preliminary view is that July revenue declined approximately 2%.

However, Swanson said both admissions and in-park spending per capita increased during July, with admissions per capita moving into positive territory. He said the company expects to grow the business during the final five months of the year, though he clarified that management was not forecasting full-year adjusted EBITDA growth over 2025.

“We’ve got to grow now in August and September” to offset July’s revenue decline, Swanson said, adding that the company would also need growth in the fourth quarter. He pointed to per-capita performance, cost management, Halloween and Christmas events, and stronger comparisons later in the year as supportive factors.

Halloween Events and IP Partnerships

The company is preparing for fall Halloween events and year-end Christmas celebrations after wrapping up summer programming across its SeaWorld and Busch Gardens parks. Swanson said early forward ticket sales for Howl-O-Scream are ahead of last year across the parks.

United Parks has partnered with Sony Pictures to bring the horror films I Know What You Did Last Summer and Anaconda to Howl-O-Scream events at SeaWorld and Busch Gardens parks, respectively. Swanson said the company has historically done little with intellectual property at the events and sees the new partnership as a potential growth opportunity.

Management also said it is in discussions regarding additional recognized intellectual-property partnerships, with more information potentially available for 2027 and beyond. Advanced-booking revenue for Discovery Cove and group business was up double digits from the prior year, Swanson said.

Real Estate, Cost Savings and Capital Allocation

Swanson said United Parks has received significant interest from “serious parties” seeking to acquire some or most of its real estate. The company is negotiating terms but did not disclose potential counterparties or identify properties under consideration.

According to Swanson, proposed real-estate valuations compare favorably with the value public markets assign to the company’s enterprise. He said the process has demonstrated that multiple credible third parties place significant value on the real estate that management believes is not reflected in the public market value of its equity.

The company remains on pace to achieve its $50 million gross cost-savings target for 2026 and is developing objectives for 2027. It expects sponsorship revenue to exceed $15 million in 2026 and said it expects sponsorships to become at least a $30 million business in coming years.

United Parks spent approximately $68.6 million on capital expenditures in the second quarter, including $65.3 million of core spending and $3.2 million for expansion or return-on-investment projects. For the full year, it expects $180 million to $190 million in core capital expenditures and $75 million to $85 million for growth and ROI projects.

Management said added ROI spending includes efforts to reduce equipment lease costs, support the Howl-O-Scream intellectual-property initiative, and fund technology and in-park improvements intended to support per-capita growth.

Share Repurchases and Liquidity

As of June 30, the company had approximately $658 million of available liquidity, including about $19 million of cash. During the second quarter, United Parks repurchased approximately 3.3 million shares for nearly $125 million. In the first half, it repurchased about 5.9 million shares, representing 12.1% of shares outstanding, for approximately $217.7 million.

Swanson said the buybacks reflect the company’s cash-flow generation, its commitment to returning excess cash to shareholders and management’s belief that the shares are materially undervalued. He did not comment on whether repurchases continued in the third quarter.

About United Parks & Resorts (NYSE:PRKS)

United Parks & Resorts, Inc is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source