Universal Q2 2026 Results

[Tbad556]

Starting my conspiracy theory the World Cup killed Jellicle Ball.

 

[Mad Dog]

We'll see if that theory holds up for Q-3, but I doubt it. March was pretty slow and April was only strong for the two weeks around Easter. May wasn't very good either. July has been slow and August hotel bookings is looking pretty bad. There are bigger issues at play than the World Cup that's primarily tough on the 'hosted' cities just like the Olympics are. HHN needs to be very strong this year.

 

[Brian G.]

We'll see if that theory holds up for Q-3, but I doubt it. March was pretty slow and April was only strong for the two weeks around Easter. May wasn't very good either. July has been slow and August hotel bookings is looking pretty bad. There are bigger issues at play than the World Cup that's primarily tough on the 'hosted' cities just like the Olympics are. HHN needs to be very strong this year.

Q1 was considered a much stronger quarter and didn't raise attendance concerns, though?

 

[Mad Dog]

Some very strong weeks in January and especially February around Presidents/Valentines week...but then the crowds got pretty lean in March, which is traditionally pretty busy. Gas and airline prices spiked in March right after the blockade.

 

[OrlLover]

I think the challenge is finding the right balance between good attendance but also the guests not having a bad experience because of the crowds.

UOR had nothing new to really offer this summer so that doesn’t help as well. Epic despite its issues seems to be the saving grace in Orlando for Universal at the moment.

 

[Brian G.]

At this point, you could throw a dart at a board of reasons that impacted tourism and probably hit something that contributed.

 

[Mad Dog]

At this point, you could throw a dart at a board of reasons that impacted tourism and probably hit something that contributed.

Yes, it's been a number of issues, some more prominent than others, contributing to the weakness, especially in Orlando. Universal & Disney wouldn't be offering such generous ticket and hotel discounts if all was well. I'm hoping for a strong HHN season to buttress Universal through this difficult time. Disney can always fall back on Cruise ship numbers to pad the results.

 

[MAC]

At this point, you could throw a dart at a board of reasons that impacted tourism and probably hit something that contributed.

Not enough churro stands. That’s my story and I’m sticking with it.

 

[Parkscope Joe]

At this point, you could throw a dart at a board of reasons that impacted tourism and probably hit something that contributed.

It’s a complicated issue and reducing it to one issue and not among many is not giving an accurate picture of the situation. The amount of times we’ve had a singular impact on tourism in the past 25 or so years I can count on one hand.

Basically: Do we want an accurate picture of the industry or do we want to confirm our priors?

 

[DragonSlayer]

One thought which I keep coming back to on this topic is that Universal’s attitude towards various other dips and bumps over the last 10-15 years has always been to build their way out of it. I wonder whether that will remain the case, or what it would take to change that outlook if they aren’t intending to do that going forward.

The next few years could bring F&F, LC replacement, Dark Universe expansion and Potter expansion. Or, the latter three of those could end up kicked down the road. We’ll see.

 

[Parkscope Joe]

One thought which I keep coming back to on this topic is that Universal’s attitude towards various other dips and bumps over the last 10-15 years has always been to build their way out of it. I wonder whether that will remain the case, or what it would take to change that outlook if they aren’t intending to do that going forward.

The next few years could bring F&F, LC replacement, Dark Universe expansion and Potter expansion. Or, the latter three of those could end up kicked down the road. We’ll see.

Many execs are on the record saying they regret the Epic pause and any cuts due to COVID. The lessons of Potter after the Great Recession are still applicable.

 

[MAC]

Many execs are on the record saying they regret the Epic pause and any cuts due to COVID. The lessons of Potter after the Great Recession are still applicable.

Do they regret the pause because it wasn't open to take advantage of the post-COVID boom in travel?

 

[Jake S]

Do they regret the pause because it wasn't open to take advantage of the post-COVID boom in travel?

Yes, and by pausing at a time when things were "cheap" they ended up paying inflated post-COVID prices for everything from materials to labor. Universal isn't alone in this, obviously, but I imagine plenty of other companies share that regret.

 

[Jerroddragon]

I remember because this also affected SNW and was like won't it just cost more to build in a year or two, plus all the lost revenue of the land not being open

Cool they can look back and see the mistake but also then please put your money where your mouth is, at least at USH and I'd be building the next new ride now and not in 12 months when it will cost more and leave the park without a new ride longer. Also I'm hoping they can built the hotel at the same time as new rides and it not affect those budgets but we will find out soon

 

[MAC]

Yes, and by pausing at a time when things were "cheap" they ended up paying inflated post-COVID prices for everything from materials to labor. Universal isn't alone in this, obviously, but I imagine plenty of other companies share that regret.

Ah yes, the explosion in steel costs. Yeah, hindsight is 20/20. Though at the start of COVID, there was no telling what direction things were going to go in and how long it would last and the long lasting impacts.

 

[Jake S]

Ah yes, the explosion in steel costs. Yeah, hindsight is 20/20. Though at the start of COVID, there was no telling what direction things were going to go in and how long it would last and the long lasting impacts.

For sure! You can regret something while acknowledging you made what felt like the correct decision at the time based on the information you had. Don't ask me how I know.

 

[Grabnar]

Yes, and by pausing at a time when things were "cheap" they ended up paying inflated post-COVID prices for everything from materials to labor. Universal isn't alone in this, obviously, but I imagine plenty of other companies share that regret.

This is why they’re rushing to start projects now while the market is ignoring the effects of Hormuz imo. Everywhere is scrambling to lock in pricing for capital projects.