Outlook
- Company raises 2026 contract sales outlook to $2.08 bln-$2.115 bln from $1.815 bln-$1.885 bln
- Marriott Vacations Worldwide lifts 2026 adjusted EBITDA guidance to $805 mln-$830 mln from $755 mln-$780 mln
- Company now sees 2026 adjusted EPS at $8.25-$9.05, up from prior $7.05-$7.80 range
Overview
- US vacation ownership firm's Q2 revenue rose 6%, beating analyst expectations
- Adjusted EPS for Q2 rose 18% and beat analyst expectations
- Company raised full-year guidance for contract sales, adjusted EBITDA, and free cash flow
Result drivers
- Contract sales growth - Q2 contract sales rose 22% year over year, driven by higher average transaction size from product and operational enhancements
- Higher marketing and sales costs - Segment adjusted EBITDA margin declined due to increased marketing and sales costs and higher unsold maintenance fee expense, partly offset by lower product cost as a percentage of sale
- Asia-Pacific prioritization - Company reduced tours in Asia-Pacific to focus on higher profitability and cash flow, resulting in a 1% decline in reported tours
Key details and analyst coverage
VAC•
