THL Targets $100M Net Profit with 25% Rental Day Growth by 2028

A Turning Point for Tourism Holdings

Tourism Holdings Limited (thl), the world’s largest commercial recreational vehicle (RV) rental operator, has announced a detailed growth roadmap that signals a confident shift in its financial trajectory. The company’s board, led by Chair Cathy Quinn, believes thl has passed a critical inflection point and is poised for a period of significant performance improvement.

Central to this optimism is the expectation of robust rental revenue growth, supported by a rebound in global tourism and evolving travel preferences, particularly among younger demographics. The company’s forward bookings in New Zealand and Australia are already approximately 25% higher than the same period last year, underscoring a strong recovery momentum.

Strategic Initiatives to Drive Profitability

Beyond revenue growth, thl is aggressively pursuing a suite of strategic initiatives designed to enhance long-term shareholder value. These include a strategic review of its UK & Ireland division, which has underperformed relative to expectations, with potential capital release through divestment under consideration. Manufacturing cost disparities between New Zealand and Australia are being addressed, with New Zealand production currently 20% more cost-effective on certain models after shipping costs.

In Australia, the retail sales division is undergoing rationalisation to reduce overheads and inventory, which has already been trimmed from a peak of $110 million to $72 million. Meanwhile, in North America, thl is accelerating its synergy project to unify fleet operations across the USA and Canada, aiming to improve procurement efficiencies and profitability.

Financial Outlook and Operational Efficiency

Thl’s growth plan is underpinned by key assumptions including a 25% increase in rental hire days, a moderate fleet size expansion to around 9,000 vehicles by mid-2028, and a net debt reduction exceeding $100 million. The company anticipates that operating leverage will allow costs to grow at a slower pace than revenue, improving margins. Additionally, a major digital transformation initiative nearing completion is expected to yield both revenue and cost benefits through integrated platforms.

However, thl acknowledges risks that could impact its ambitions. These include potential setbacks in global tourism demand, tariff reinstatements affecting North American operations, prolonged economic downturns, inflationary pressures, and execution challenges related to its strategic initiatives. The company also faces competitive pressures and the looming transition from internal combustion engine vehicles to low-emission alternatives.

Looking Ahead

Thl plans to release its FY25 financial results and integrated annual report on 25 August 2025, which will provide further clarity on the progress of these initiatives. Investors will be watching closely to see how the company navigates the balance between growth and cost control, and whether it can deliver on its ambitious $100 million net profit target within the stated timeframe.