Key Takeaways Marriott Vacations reported Q4 EPS of $1.86, topping estimates, while revenues of $1.323B missed forecasts.VAC saw contract sales fall 4% on lower tour flow and VPG, pressuring development profit and margins.Marriott Vacations issued 2026 guidance, projecting up to $780M in EBITDA and $7.80 in adjusted EPS.Marriott Vacations Worldwide Corporation (VAC) reported mixed results for its fourth quarter of 2025, with adjusted earnings beating the Zacks Consensus Estimate, while revenues missed the s ...

Marriott Vacations Worldwide (NYSE:VAC) Q4 2025 Earnings call February 26, 2026 08:00 AM ET Speaker8Greetings, welcome to the Marriott Vacations Worldwide fourth quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to ...

We recently published an article titled 10 Best Cruise Stocks to Buy Right Now. On January 16, Morgan Stanley raised its price target on Travel + Leisure Co. (NYSE:TNL) to $80 from $68 while maintaining an Overweight rating. In its 2026 sector outlook, the firm noted that gaming, lodging, and leisure fundamentals were relatively muted in 2025, with pockets of resilience concentrated among companies catering to older and higher-income consumers. Looking ahead, Morgan Stanley expects similar underlying tren ...

Performance was anchored by the vacation ownership business, where management converted high owner engagement into recurring demand and predictable cash flow. The company achieved 8% gross vacation ownership sales growth, driven by a 6% increase in Volume Per Guest (VPG) and accelerating tour flow that peaked in the fourth quarter. Management attributed sustained consumer demand to a deliberate shift toward higher-quality demographics, with average FICO scores rising above 740 and household incomes ex ...

Financial Data and Key Metrics Changes - In 2025, the company achieved revenue of $4.02 billion, an increase of 4% year-over-year, and EBITDA of $990 million, up 7% year-over-year [17][18] - The fourth quarter revenue was $1.026 billion, with EBITDA of $272 million, reflecting an 8% year-over-year growth [15][18] - Earnings per share (EPS) for the year was $6.34, representing a 10% increase year-over-year [17][18] Business Line Data and Key Metrics Changes - The Vacation Ownership segment saw gross sales rise by 8% year-over-year, driven by a 5% increase in tour flow in the fourth quarter, the strongest level of the year [16][18] - The Travel and Membership segment reported fourth quarter revenue of $148 million, down 6% year-over-year, with EBITDA of $47 million, down 10% [17][18] Market Data and Key Metrics Changes - The company noted strong leisure demand as a key driver for its Vacation Ownership business, with a loyal owner base contributing to predictable cash flow [6][8] - The average FICO score for new originations remained above 740, indicating high-quality loans [17][18] Company Strategy and Development Direction - The company is focused on brand expansion and optimizing its resort portfolio to drive sustainable, profitable growth [6][7] - A Resort Optimization Initiative is underway, which involves closing lower-performing resorts and replacing them with higher-demand properties [12][21] - The company aims to enhance owner experiences through technology investments and partnerships, such as those with Live Nation and Authentic Brands [11][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for leisure travel and the company's ability to deliver another year of revenue growth and EBITDA margin expansion in 2026 [14][26] - The company expects EBITDA for 2026 to be in the range of $1.03 billion to $1.055 billion, reflecting 4%-7% year-over-year growth [14][24] Other Important Information - The company returned $449 million to shareholders in 2025 through dividends and share repurchases, with a new $750 million share repurchase authorization approved [19][20] - The company is committed to maintaining a disciplined capital allocation strategy while investing in organic growth [20] Q&A Session Summary Question: Can you elaborate on the optimization initiative and its long-term impact on EBITDA? - Management indicated that 2025 was a catch-up year for the optimization initiative, with expectations for a return to normal growth in subsequent years [30][31] Question: How is the consumer demographic performing currently? - Management noted continued strong demand from consumers, with household incomes above $100,000 and improved FICO scores, reinforcing the value of vacation experiences [39][40] Question: What are the expectations for the Travel and Membership business moving forward? - Management expects the Travel and Membership segment to follow a consistent trend with disciplined cost management, contributing to EBITDA growth [93] Question: What is the anticipated loan loss provision for 2026? - Management expects the loan loss provision to decrease to around 20%, with a long-term goal of settling into the high teens [90][91] Question: Can you provide insights on the new brand launches and their expected contributions? - Management anticipates that new brands like Sports Illustrated and Eddie Bauer will grow as a percentage of overall sales, contributing positively to future growth [72][74]

Financial Data and Key Metrics Changes - In 2025, the company achieved revenue of $4.02 billion, an increase of 4% year-over-year, and EBITDA of $990 million, reflecting a 7% growth [17][18] - The fourth quarter revenue was $1.026 billion, with EBITDA of $272 million, marking an 8% year-over-year increase [15][16] - Earnings per share (EPS) for the year was $6.34, up 10% from the previous year [18] Business Line Data and Key Metrics Changes - The Vacation Ownership segment saw gross sales rise by 8% year-over-year, driven by a 5% increase in tour flow during the fourth quarter [16][18] - The Travel and Membership segment reported revenue of $148 million in the fourth quarter, down 6% year-over-year, with EBITDA of $47 million, a 10% decline [17] Market Data and Key Metrics Changes - The company noted strong leisure demand continuing into 2026, with early trends in Q1 consistent with expectations [14] - The average volume per guest (VPG) was reported at $3,359, up 6% year-over-year, indicating strong sales execution [16][18] Company Strategy and Development Direction - The company is focused on brand expansion and optimizing its resort portfolio to ensure sustainable growth beyond 2026 [6][7] - A Resort Optimization Initiative is underway, which involves closing underperforming resorts and replacing them with higher-demand properties [12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of revenue growth and EBITDA margin expansion in 2026, with EBITDA expected to be between $1.03 billion and $1.055 billion [14][25] - The company anticipates a continued focus on enhancing owner experiences and leveraging technology to improve operations [11][12] Other Important Information - The company returned $449 million to shareholders in 2025 through dividends and share repurchases, reflecting a commitment to disciplined capital allocation [19][20] - A new $750 million share repurchase authorization was approved, indicating confidence in the company's valuation [20] Q&A Session Summary Question: Can you elaborate on the optimization initiative and its long-term impact on EBITDA? - Management indicated that 2025 was a catch-up year for the optimization initiative, with expectations for a return to normal growth in subsequent years [30][31] Question: How is the consumer demographic performing currently? - Management noted no significant changes in consumer demand, with household incomes rising above $100,000 and improved FICO scores contributing to strong performance [40][41] Question: What are the expectations for the loan loss provision in 2026? - The loan loss provision is expected to decrease to around 20%, with a long-term goal of settling into the high teens [44][92] Question: What is the outlook for the Travel and Membership business? - The Travel and Membership segment is expected to follow a consistent trend with disciplined cost management, contributing to EBITDA growth [94] Question: What is the sales contribution from new brands like Sports Illustrated and Eddie Bauer? - Management anticipates that these new brands will grow to represent a larger percentage of overall sales, with expectations for significant growth in the coming years [73][75]

Financial Data and Key Metrics Changes - In 2025, the company achieved a revenue growth of 4% and an EBITDA growth of 7% compared to the previous year [5][17] - The fourth quarter revenue was $1.026 billion, with an EBITDA of $272 million, reflecting an 8% year-over-year growth [14][17] - Earnings per share (EPS) for the year was $6.34, representing a 10% increase year-over-year [17] Business Line Data and Key Metrics Changes - The Vacation Ownership business saw gross sales growth of 8%, driven by a 5% increase in tour flow in the fourth quarter, marking the strongest year-over-year growth for the year [6][15] - The Travel and Membership segment reported a revenue of $148 million in the fourth quarter, down 6% year-over-year, with EBITDA of $47 million, down 10% [16] Market Data and Key Metrics Changes - The company noted strong leisure demand continuing into 2026, with expectations for gross VOI sales to increase by 1%-5% year-over-year [23] - The average volume per guest is expected to be in the range of $3,175-$3,275, slightly lower than the previous year [23] Company Strategy and Development Direction - The company is focused on brand expansion, optimizing its resort portfolio, and enhancing the owner experience through technology and partnerships [4][10] - The Resort Optimization Initiative aims to remove lower-demand resorts and replace them with higher-demand properties, which is expected to improve financial health and owner satisfaction [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for leisure travel and the company's ability to deliver another year of revenue growth and EBITDA margin expansion in 2026 [13][24] - The company anticipates a net EBITDA benefit from the Resort Optimization Initiative, projecting EBITDA in the range of $1.03 billion-$1.055 billion for 2026 [23][24] Other Important Information - The company returned $449 million to shareholders through dividends and share repurchases in 2025, with a new $750 million share repurchase authorization approved [18][19] - The company is investing in technology to enhance the vacation experience and deepen owner engagement [10][11] Q&A Session Summary Question: Can you elaborate on the optimization initiative and its long-term impact on EBITDA? - Management indicated that 2025 was a catch-up year for the optimization initiative, with expectations for a return to normal growth in subsequent years [28] Question: How is the consumer demographic performing currently? - Management noted continued strong demand from consumers, with household incomes above $100,000 and improved FICO scores, contributing to positive performance [38] Question: What are the expectations for the loan loss provision in 2026? - The company expects the loan loss provision to decrease to around 20%, with a trajectory towards the high teens over time [90] Question: What is the outlook for the Travel and Membership business? - The company models the Travel and Membership business to follow the 2025 trend line, focusing on disciplined cost management [92] Question: What is the sales contribution from new brands like Sports Illustrated and Eddie Bauer? - Management anticipates that these new brands will grow as a percentage of overall sales, aiming for high single digits this year and moving towards double digits in the coming years [72]

Core Viewpoint - Hilton Grand Vacations Inc. announces the championship field for the 2026 Hilton Grand Vacations Tournament of Champions, highlighting its significance as a premier event in the LPGA Tour season [1] Group 1: Event Details - The tournament features a unique format that pairs LPGA champions with celebrity competitors [1] - It is a four-day tournament that has become a must-watch spectacle [1] - The event serves as the signature kickoff to the LPGA Tour season [1] Group 2: Participants - This year's tournament will feature defending champion A Lim Kim leading the competition [1]

Core Viewpoint - Marriott Vacations Worldwide Corp. (NYSE:VAC) is viewed positively by Wall Street despite a 13% decline in share price since fiscal Q3 2025, which was reported on November 4 [1] Financial Performance - The company reported a 3.22% year-over-year decline in revenue to $1.26 billion, missing expectations by $49.78 million [3] - Earnings per share (EPS) of $1.69 exceeded consensus estimates by $0.09 [3] - Adjusted EBITDA for Vacation Ownership decreased by 16% year-over-year, attributed to lower development and rental profit [3] Management Response - Management expressed disappointment over the results and is implementing strategic initiatives to return to growth, including realigning sales and marketing to boost productivity [4] - Plans to reduce third-party commercial rental activity to increase owner arrivals were also highlighted [4] Guidance Adjustment - Due to the underperformance, the company has lowered its full-year guidance for net sales to a range of $1.760 billion to $1.780 billion, down from $1.740 billion to $1.830 billion [5] - Adjusted EBITDA guidance has also been revised down to $740 million to $755 million, from the previous range of $750 million to $780 million [5] Company Overview - Marriott Vacations Worldwide Corporation is a global vacation company involved in vacation ownership, rental, resort, and property management, with operations divided into Vacation Ownership and Exchange & Third-Party Management segments [6]

Core Points - Marriott Vacations Worldwide Corporation announced an increase in its quarterly dividend to $0.80 per share, payable on or around January 7, 2026, to stockholders of record as of December 24, 2025 [1] - The Board of Directors extended the share repurchase authorization through December 31, 2026, allowing for various methods of repurchase depending on market conditions and other factors [1][2] Company Overview - Marriott Vacations Worldwide Corporation is a leading global vacation company offering vacation ownership, exchange, rental, and resort management services, with a portfolio of 120 vacation ownership resorts and approximately 700,000 owner families [3] - The company operates an exchange network and membership programs with over 3,200 affiliated resorts in more than 90 countries and territories, maintaining long-term relationships with Marriott International, Inc. and Hyatt Hotels Corporation [3]