Marriott Vacations recorded a 4% drop in Q4 contract sales and adjusted EBITDA of $186 million, with full-year contract sales down 3% at $1.8 billion and adjusted EBITDA of $751 million. System-wide occupancy reached nearly 90%, while development profit fell 8% to $94 million and rental profit declined 26% to $25 million; management/exchange and financing profits rose to $92 million and $53 million respectively.

The company appointed Mike Flaskey as President and COO to enhance commercial performance, owner engagement and customer journey improvements. CEO Matt Avril reaffirmed his permanent role and outlined initiatives to lower inventory investment, streamline organizational alignment and reduce operating costs, noting a potentially bumpy first half before second-half benefits.

Management guided 2026 contract sales flat to up 1%, adjusted EBITDA of $755–780 million and free cash flow of $375–425 million, targeting a 50–55% conversion rate. Plans include cutting capital expenditures by $70–80 million, deferring Asia projects, reducing Asia-Pacific tours by 30% and pursuing $200–250 million in asset monetizations over two years, with net debt of $3.2 billion (4.2x leverage).

The company recorded $546 million of non-cash impairments in Q4, including $202 million on inventory and project write-downs, $160 million on assets slated for monetization and $184 million related to goodwill and intangibles from the ILG acquisition. These charges align with a strategy to optimize the asset portfolio and improve free cash flow conversion.