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ORLANDO, Fla.--(BUSINESS WIRE)--Marriott Vacations Worldwide Corporation (NYSE: VAC) (“MVW,” the “Company,” “we” or “our”) reported financial results for the second quarter of 2026.


Second Quarter 2026 Highlights
“Our second quarter results demonstrate the strong progress we have made this year, with VPG improving 23% year over year and contract sales growing 22%. This was driven by the power of our brands, our strategy, and the execution by our associates,” said Matt Avril, Chief Executive Officer. “Our raised guidance reflects our focus on driving continued contract sales growth and increasing Adjusted EBITDA. We also remain committed to delivering best-in-class hospitality experiences for our owners, members, and guests.”
In the tables that follow “*” denotes Non-GAAP Financial Measures. Please see page A-17 for additional information about our reasons for providing these alternative financial measures and limitations on their use. Additionally, in the tables below “†” denotes prior year amounts that have been reclassified to conform with our current year presentation and “NM” means not meaningful.
Vacation Ownership | |||||||||
Three Months Ended |
| Change |
| ||||||
(In millions, except volume per guest (“VPG”) and tours) | June 30, 2026 |
| June 30, 2025 |
|
| ||||
Revenues excluding cost reimbursements | $ | 853 |
| $ | 775 |
| 10 | % |
|
Contract sales | $ | 545 |
| $ | 445 |
| 22 | % |
|
VPG | $ | 4,477 |
| $ | 3,631 |
| 23 | % |
|
Tours | 112,721 |
| 114,402 |
| (1 | %) |
| ||
Segment financial results attributable to common stockholders† | $ | 219 |
| $ | 197 |
| 12 | % |
|
Segment margin† | 25.7% |
| 25.4% |
| 30 bps |
| |||
Segment Adjusted EBITDA* | $ | 246 |
| $ | 231 |
| 7 | % |
|
Segment Adjusted EBITDA margin* | 28.9% |
| 29.8% |
| (90 bps) |
| |||
Contract sales increased 22% compared to the prior year. VPG increased 23% year over year driven by higher average transaction size from product and operational enhancements. Tours in North America increased 3% year over year. The 1% decline in reported tours was attributable to the Company’s purposeful actions to prioritize higher profitability and cash flow in the Asia‑Pacific region.
Segment Adjusted EBITDA increased primarily due to higher contract sales. Segment Adjusted EBITDA margin declined primarily due to higher marketing and sales costs and higher unsold maintenance fee expense, partially offset by lower product cost as a percentage of sale of vacation ownership products.
Exchange & Third-Party Management | |||||||||
(In millions, except total active Interval International members and average revenue per member) | Three Months Ended |
| Change |
| |||||
June 30, 2026 |
| June 30, 2025 |
|
| |||||
Revenues excluding cost reimbursements | $ | 50 |
| $ | 51 |
| (2 | %) |
|
Total active Interval International members (000's)(1) |
| 1,475 |
|
| 1,507 |
| (2 | %) |
|
Average revenue per Interval International member | $ | 36.83 |
| $ | 37.40 |
| (2 | %) |
|
Segment financial results attributable to common stockholders | $ | 17 |
| $ | 16 |
| 2 | % |
|
Segment margin† | 33.1% |
| 32.0% |
| 110 bps |
| |||
Segment Adjusted EBITDA* | $ | 22 |
| $ | 23 |
| (7 | %) |
|
Segment Adjusted EBITDA margin* | 43.3% |
| 45.9% |
| (260 bps) |
| |||
(1) Includes members at the end of each period. | |||||||||
Corporate and Other
General and administrative costs increased $1 million in the second quarter compared to the prior year due to higher variable compensation, partly offset by other operational savings.
Balance Sheet and Liquidity
The Company ended the quarter with $928 million in liquidity, including $211 million of cash and cash equivalents and $650 million of available capacity under its revolving corporate credit facility. The Company had $3.1 billion of corporate debt and $2.4 billion of non-recourse debt related to its securitized vacation ownership notes receivable at the end of the second quarter.
The Company’s net corporate leverage ratio declined to 4.0 times in the second quarter compared to 4.2 times at the end of the first quarter.
The Company also had $902 million of inventory at the end of the quarter, including $229 million classified as a component of Property and equipment.
Full Year 2026 Outlook
During the first quarter of 2026, the Company began including interest expense associated with its warehouse credit facility borrowings as a component of consumer financing interest expense. In the second quarter of 2026, interest expense on warehouse credit facility borrowings was $2 million.
The Company provides full year 2026 guidance as reflected in the chart below.
(in millions, except per share amounts) |
Current
|
|
Previous
| ||||
Contract sales | $2,080 | to | $2,115 |
| $1,815 | to | $1,885 |
Adjusted EBITDA* | $805 | to | $830 |
| $755 | to | $780 |
Adjusted net income attributable to common stockholders* | $300 | to | $330 |
| $255 | to | $285 |
Adjusted earnings per share - diluted* | $8.25 | to | $9.05 |
| $7.05 | to | $7.80 |
Adjusted free cash flow* | $410 | to | $460 |
| $375 | to | $425 |
The guidance provided above excludes impacts from certain asset sales, foreign currency changes, restructuring costs, litigation charges, modernization costs, transaction and integration costs, and impairments, each of which the Company cannot forecast with sufficient accuracy to factor them into the guidance provided above and without unreasonable efforts, and which may be significant. As a result, the full year 2026 outlook is presented only on a non-GAAP basis and is not reconciled to the most comparable GAAP measures. Where one or more of the currently unavailable items is applicable, some items could be material, individually or in the aggregate, to GAAP reported results.
The Company’s 2026 guidance is based on the following supplemental estimates:
($ in millions) |
Current
|
|
Previous
| ||||
Interest expense, net | $178 | to | $174 |
| $184 | to | $179 |
Depreciation and amortization | $140 | to | $138 |
| $150 | to | $148 |
Tax rate used to calculate adjusted net income attributable to common stockholders | 31% | to | 29% |
| 31% | to | 29% |
Non-GAAP Financial Information
Non-GAAP Financial Measures are reconciled and adjustments are shown and described in further detail in the Financial Schedules that follow. Please see page A-17 for additional information about our reasons for providing these alternative financial measures and limitations on their use. In addition to the foregoing Non-GAAP Financial Measures, we present certain key metrics as performance measures which are further described in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission.
Second Quarter 2026 Financial Results Conference Call
The Company will hold a conference call on August 6, 2026, at 8:30 a.m. ET to discuss these financial results and provide an update on business conditions. Participants may access the call by dialing (888) 396-8049 or (201) 689-8341 for international callers. A live webcast of the call will also be available in the Investor Relations section of the Company's website at ir.mvwc.com. An audio replay of the conference call will be available for 30 days on the Company’s website.
About Marriott Vacations Worldwide Corporation
Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates an exchange network and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit www.marriottvacationsworldwide.com.
The Company routinely posts important information, including news releases, announcements and other statements about its business and results of operations, that may be deemed material to investors on the Investor Relations section of the Company’s website, www.marriottvacationsworldwide.com. The Company uses its website as a means of disclosing material, nonpublic information and for complying with the Company’s disclosure obligations under Regulation FD. Investors should monitor the Investor Relations section of the Company’s website in addition to following the Company’s press releases, filings with the SEC, public conference calls and webcasts.
Note on forward-looking statements
This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including statements about expectations, plans, objectives, outlook and prospects for future performance and growth; expected asset dispositions; and its full year 2026 outlook and guidance for contract sales, results of operations and cash flows.
Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could” or the negative of these terms or similar expressions. The Company cautions you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess, such as: uncertainty in the current global macroeconomic environment created by rapid governmental policy and regulatory changes, including those affecting international trade or travel; future health crises and related governmental responses and their potential adverse effects; variations in demand for vacation ownership and exchange products and services; failure of vendors and other third parties to timely comply with their contractual obligations; worker absenteeism; our ability to attract and retain our global workforce; price inflation; difficulties associated with implementing new or maintaining existing technologies; the ability to integrate artificial intelligence (“AI”) technologies successfully while managing and mitigating related operational, legal, intellectual property, data security and reputational risks; changes in privacy and other laws and regulations affecting our business; instability, disruptions, or distress in the banking system or financial institutions; impacts of severe weather events, climate conditions or natural or man-made disasters; delinquency and default rates in our financing business; global supply chain disruptions; volatility in the international and national economies and credit markets; the impacts of ongoing global conflicts and related sanctions or geopolitical measures; competitive conditions; the availability of capital to finance growth; the impact of changes in interest rates; the effects of steps we have taken and may continue to take to reduce operating costs and accelerate growth and profitability; political or social strife; and other matters referred to under the heading “Risk Factors” in our most recent Annual Report on Form 10-K, and which may be updated in our future periodic filings with the U.S. Securities and Exchange Commission.
All forward-looking statements in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. There may be other risks and uncertainties that we cannot predict at this time or that we currently do not expect will have a material adverse effect on our financial position, results of operations or cash flows. Any such risks could cause our results to differ materially from those we express in forward-looking statements.
Financial Schedules Follow
MARRIOTT VACATIONS WORLDWIDE CORPORATION
FINANCIAL SCHEDULES
QUARTER 2, 2026
TABLE OF CONTENTS
Summary Financial Information and Adjusted EBITDA by Segment | A-1 | ||
Interim Consolidated Statements of Income | A-2 | ||
Adjusted Net Income Attributable to Common Stockholders Adjusted Earnings Per Share - Diluted | A-3 | ||
Adjusted EBITDA | A-4 | ||
Segment Adjusted EBITDA |
| ||
Vacation Ownership | A-5 | ||
Exchange & Third-Party Management | |||
Contract Sales to Development Profit | A-6 | ||
Supplemental Information | A-7 | to | A-10 |
Interim Consolidated Balance Sheets | A-11 | ||
Interim Consolidated Statements of Cash Flows | A-12 | ||
Free Cash Flow and Adjusted Free Cash Flow | A-14 | ||
2026 Outlook - Adjusted Free Cash Flow | A-15 | ||
Quarterly Operating Metrics | A-16 | ||
Non-GAAP Financial Measures | A-17 | ||
A-1 | |||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION SUMMARY FINANCIAL INFORMATION (In millions, except per share amounts) (Unaudited) | |||||||||||||||
| Three Months Ended |
| Change % |
| Six Months Ended |
| Change % | ||||||||
| June 30, 2026 |
| June 30, 2025 |
|
| June 30, 2026 |
| June 30, 2025 |
| ||||||
GAAP Measures |
|
|
|
|
|
|
|
|
|
|
| ||||
Revenues | $ | 1,320 |
| $ | 1,246 |
| 6% |
| $ | 2,577 |
| $ | 2,446 |
| 5% |
Revenues excluding cost reimbursements | $ | 920 |
| $ | 839 |
| 10% |
| $ | 1,747 |
| $ | 1,666 |
| 5% |
Income before income taxes and noncontrolling interests | $ | 114 |
| $ | 94 |
| 21% |
| $ | 159 |
| $ | 196 |
| (19%) |
Net income attributable to common stockholders | $ | 77 |
| $ | 69 |
| 11% |
| $ | 99 |
| $ | 125 |
| (21%) |
Diluted shares |
| 38.2 |
|
| 41.7 |
| (8%) |
|
| 38.0 |
|
| 41.9 |
| (9%) |
Earnings per share - diluted | $ | 2.12 |
| $ | 1.77 |
| 20% |
| $ | 2.82 |
| $ | 3.23 |
| (13%) |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Non-GAAP Measures* |
|
|
|
|
|
|
|
|
|
|
| ||||
Adjusted EBITDA | $ | 215 |
| $ | 203 |
| 6% |
| $ | 376 |
| $ | 395 |
| (5%) |
Adjusted pretax income | $ | 126 |
| $ | 110 |
| 14% |
| $ | 198 |
| $ | 216 |
| (9%) |
Adjusted net income attributable to common stockholders | $ | 84 |
| $ | 77 |
| 9% |
| $ | 127 |
| $ | 142 |
| (10%) |
Adjusted earnings per share - diluted | $ | 2.31 |
| $ | 1.96 |
| 18% |
| $ | 3.56 |
| $ | 3.62 |
| (2%) |
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. | |||||||||||||||
A-2 | |||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited) | |||||||||||||||
| Three Months Ended |
| Six Months Ended | ||||||||||||
| June 30, 2026 |
| June 30, 2025 |
| June 30, 2026 |
| June 30, 2025 | ||||||||
REVENUES |
|
|
|
|
|
|
| ||||||||
Sale of vacation ownership products | $ | 430 |
|
| $ | 370 |
|
| $ | 773 |
|
| $ | 725 |
|
Management and exchange |
| 225 |
|
|
| 219 |
|
|
| 441 |
|
|
| 434 |
|
Rental |
| 173 |
|
|
| 160 |
|
|
| 349 |
|
|
| 329 |
|
Financing |
| 92 |
|
|
| 90 |
|
|
| 184 |
|
|
| 178 |
|
Cost reimbursements |
| 400 |
|
|
| 407 |
|
|
| 830 |
|
|
| 780 |
|
TOTAL REVENUES |
| 1,320 |
|
|
| 1,246 |
|
|
| 2,577 |
|
|
| 2,446 |
|
EXPENSES |
|
|
|
|
|
|
| ||||||||
Cost of vacation ownership products |
| 43 |
|
|
| 41 |
|
|
| 89 |
|
|
| 83 |
|
Marketing and sales |
| 281 |
|
|
| 237 |
|
|
| 523 |
|
|
| 471 |
|
Management and exchange |
| 121 |
|
|
| 121 |
|
|
| 241 |
|
|
| 238 |
|
Rental |
| 140 |
|
|
| 125 |
|
|
| 280 |
|
|
| 248 |
|
Financing |
| 42 |
|
|
| 37 |
|
|
| 83 |
|
|
| 73 |
|
Royalty fee |
| 29 |
|
|
| 28 |
|
|
| 57 |
|
|
| 56 |
|
General and administrative |
| 62 |
|
|
| 61 |
|
|
| 126 |
|
|
| 122 |
|
Depreciation and amortization |
| 32 |
|
|
| 38 |
|
|
| 66 |
|
|
| 76 |
|
Litigation charges |
| (1 | ) |
|
| 5 |
|
|
| 1 |
|
|
| 12 |
|
Modernization† |
| 10 |
|
|
| 34 |
|
|
| 26 |
|
|
| 44 |
|
Restructuring† |
| — |
|
|
| — |
|
|
| 6 |
|
|
| — |
|
Impairment† |
| — |
|
|
| — |
|
|
| — |
|
|
| 2 |
|
Cost reimbursements |
| 400 |
|
|
| 407 |
|
|
| 830 |
|
|
| 780 |
|
TOTAL EXPENSES |
| 1,159 |
|
|
| 1,134 |
|
|
| 2,328 |
|
|
| 2,205 |
|
(Losses) gains and other (expense) income, net |
| (4 | ) |
|
| 24 |
|
|
| (2 | ) |
|
| 37 |
|
Interest expense, net |
| (43 | ) |
|
| (42 | ) |
|
| (87 | ) |
|
| (82 | ) |
Other |
| — |
|
|
| — |
|
|
| (1 | ) |
|
| — |
|
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS |
| 114 |
|
|
| 94 |
|
|
| 159 |
|
|
| 196 |
|
Provision for income taxes |
| (37 | ) |
|
| (25 | ) |
|
| (60 | ) |
|
| (70 | ) |
NET INCOME |
| 77 |
|
|
| 69 |
|
|
| 99 |
|
|
| 126 |
|
Net income attributable to noncontrolling interests |
| — |
|
|
| — |
|
|
| — |
|
|
| (1 | ) |
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 77 |
|
| $ | 69 |
|
| $ | 99 |
|
| $ | 125 |
|
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS |
|
|
|
|
|
| |||||||||
Basic shares |
| 34.8 |
|
|
| 34.9 |
|
|
| 34.7 |
|
|
| 35.0 |
|
Basic | $ | 2.21 |
|
| $ | 1.98 |
|
| $ | 2.86 |
|
| $ | 3.59 |
|
Diluted shares |
| 38.2 |
|
|
| 41.7 |
|
|
| 38.0 |
|
|
| 41.9 |
|
Diluted | $ | 2.12 |
|
| $ | 1.77 |
|
| $ | 2.82 |
|
| $ | 3.23 |
|
† Prior year amounts have been reclassified to conform with our current year presentation. Please see “Non-GAAP Financial Measures” for additional information. | |||||||||||||||
A-3 | |||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS AND ADJUSTED EARNINGS PER SHARE - DILUTED (In millions, except per share amounts) (Unaudited) | |||||||||||||||
| Three Months Ended |
| Six Months Ended | ||||||||||||
| June 30, 2026 |
| June 30, 2025 |
| June 30, 2026 |
| June 30, 2025 | ||||||||
Net income attributable to common stockholders | $ | 77 |
|
| $ | 69 |
|
| $ | 99 |
|
| $ | 125 |
|
Provision for income taxes |
| 37 |
|
|
| 25 |
|
|
| 60 |
|
|
| 70 |
|
Income before income taxes attributable to common stockholders |
| 114 |
|
|
| 94 |
|
|
| 159 |
|
|
| 195 |
|
Certain items: |
|
|
|
|
|
|
| ||||||||
Loss (gain) on disposition of hotel, land, and other |
| 1 |
|
|
| — |
|
|
| (2 | ) |
|
| — |
|
Foreign currency |
| 2 |
|
|
| (18 | ) |
|
| 5 |
|
|
| (21 | ) |
Insurance proceeds |
| — |
|
|
| (1 | ) |
|
| — |
|
|
| (8 | ) |
Change in indemnification asset |
| 2 |
|
|
| (3 | ) |
|
| 5 |
|
|
| (3 | ) |
Change in estimates relating to pre-acquisition contingencies |
| — |
|
|
| — |
|
|
| (4 | ) |
|
| (2 | ) |
Other |
| (1 | ) |
|
| (2 | ) |
|
| (2 | ) |
|
| (3 | ) |
Losses (gains) and other expense (income), net |
| 4 |
|
|
| (24 | ) |
|
| 2 |
|
|
| (37 | ) |
Litigation charges |
| (1 | ) |
|
| 5 |
|
|
| 1 |
|
|
| 12 |
|
Modernization† |
| 10 |
|
|
| 34 |
|
|
| 26 |
|
|
| 44 |
|
Restructuring† |
| — |
|
|
| — |
|
|
| 6 |
|
|
| — |
|
Impairment† |
| — |
|
|
| — |
|
|
| — |
|
|
| 2 |
|
Other |
| (1 | ) |
|
| 1 |
|
|
| 4 |
|
|
| — |
|
Adjusted pretax income* |
| 126 |
|
|
| 110 |
|
|
| 198 |
|
|
| 216 |
|
Provision for income taxes |
| (42 | ) |
|
| (33 | ) |
|
| (71 | ) |
|
| (74 | ) |
Adjusted net income attributable to common stockholders* | $ | 84 |
|
| $ | 77 |
|
| $ | 127 |
|
| $ | 142 |
|
|
|
|
|
|
|
|
| ||||||||
Diluted shares |
| 38.2 |
|
|
| 41.7 |
|
|
| 38.0 |
|
|
| 41.9 |
|
Adjusted earnings per share - Diluted* | $ | 2.31 |
|
| $ | 1.96 |
|
| $ | 3.56 |
|
| $ | 3.62 |
|
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. | |||||||||||||||
† Prior year amounts have been reclassified to conform with our current year presentation. Please see “Non-GAAP Financial Measures” for additional information. | |||||||||||||||
A-4 | |||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION ADJUSTED EBITDA (In millions) (Unaudited) | |||||||||||||||
| Three Months Ended |
| Six Months Ended | ||||||||||||
| June 30, 2026 |
| June 30, 2025 |
| June 30, 2026 |
| June 30, 2025 | ||||||||
Net income attributable to common stockholders | $ | 77 |
|
| $ | 69 |
|
| $ | 99 |
|
| $ | 125 |
|
Interest expense, net |
| 43 |
|
|
| 42 |
|
|
| 87 |
|
|
| 82 |
|
Provision for income taxes |
| 37 |
|
|
| 25 |
|
|
| 60 |
|
|
| 70 |
|
Depreciation and amortization |
| 32 |
|
|
| 38 |
|
|
| 66 |
|
|
| 76 |
|
Share-based compensation |
| 12 |
|
|
| 12 |
|
|
| 22 |
|
|
| 19 |
|
Amortization of cloud computing software implementation costs |
| 2 |
|
|
| 1 |
|
|
| 3 |
|
|
| 2 |
|
Certain items: |
|
|
|
|
|
|
| ||||||||
Loss (gain) on disposition of hotel, land, and other |
| 1 |
|
|
| — |
|
|
| (2 | ) |
|
| — |
|
Foreign currency |
| 2 |
|
|
| (18 | ) |
|
| 5 |
|
|
| (21 | ) |
Insurance proceeds |
| — |
|
|
| (1 | ) |
|
| — |
|
|
| (8 | ) |
Change in indemnification asset |
| 2 |
|
|
| (3 | ) |
|
| 5 |
|
|
| (3 | ) |
Change in estimates relating to pre-acquisition contingencies |
| — |
|
|
| — |
|
|
| (4 | ) |
|
| (2 | ) |
Other |
| (1 | ) |
|
| (2 | ) |
|
| (2 | ) |
|
| (3 | ) |
Losses (gains) and other expense (income), net |
| 4 |
|
|
| (24 | ) |
|
| 2 |
|
|
| (37 | ) |
Litigation charges |
| (1 | ) |
|
| 5 |
|
|
| 1 |
|
|
| 12 |
|
Modernization† |
| 10 |
|
|
| 34 |
|
|
| 26 |
|
|
| 44 |
|
Restructuring† |
| — |
|
|
| — |
|
|
| 6 |
|
|
| — |
|
Impairment† |
| — |
|
|
| — |
|
|
| — |
|
|
| 2 |
|
Other |
| (1 | ) |
|
| 1 |
|
|
| 4 |
|
|
| — |
|
Adjusted EBITDA* | $ | 215 |
|
| $ | 203 |
|
| $ | 376 |
|
| $ | 395 |
|
Adjusted EBITDA Margin* | 23.4% |
| 24.3% |
| 21.5% |
| 23.7% | ||||||||
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. | |||||||||||||||
† Prior year amounts have been reclassified to conform with our current year presentation. Please see “Non-GAAP Financial Measures” for additional information. | |||||||||||||||
A-5 | |||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions) (Unaudited) VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA | |||||||||||||||
| Three Months Ended |
| Six Months Ended | ||||||||||||
| June 30, 2026 |
| June 30, 2025 |
| June 30, 2026 |
| June 30, 2025 | ||||||||
Segment financial results attributable to common stockholders† | $ | 219 |
|
| $ | 197 |
|
| $ | 386 |
|
| $ | 395 |
|
Depreciation and amortization |
| 22 |
|
|
| 28 |
|
|
| 46 |
|
|
| 54 |
|
Share-based compensation |
| 2 |
|
|
| 3 |
|
|
| 4 |
|
|
| 4 |
|
Amortization of cloud computing software implementation costs |
| 2 |
|
|
| 1 |
|
|
| 3 |
|
|
| 2 |
|
Certain items: |
|
|
|
|
|
|
| ||||||||
Loss (gain) on disposition of hotel, land, and other |
| 1 |
|
|
| — |
|
|
| (2 | ) |
|
| — |
|
Insurance proceeds |
| — |
|
|
| — |
|
|
| — |
|
|
| (7 | ) |
Change in estimates relating to pre-acquisition contingencies |
| — |
|
|
| — |
|
|
| (4 | ) |
|
| (2 | ) |
Other |
| — |
|
|
| (1 | ) |
|
| — |
|
|
| (1 | ) |
Losses (gains) and other expense (income), net |
| 1 |
|
|
| (1 | ) |
|
| (6 | ) |
|
| (10 | ) |
Litigation charges |
| — |
|
|
| 3 |
|
|
| 1 |
|
|
| 7 |
|
Segment Adjusted EBITDA* | $ | 246 |
|
| $ | 231 |
|
| $ | 434 |
|
| $ | 452 |
|
Segment Adjusted EBITDA Margin* | 28.9% |
| 29.8% |
| 27.0% |
| 29.5% | ||||||||
EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA | |||||||||||||||
| Three Months Ended |
| Six Months Ended | ||||||||||||
| June 30, 2026 |
| June 30, 2025 |
| June 30, 2026 |
| June 30, 2025 | ||||||||
Segment financial results attributable to common stockholders | $ | 17 |
|
| $ | 16 |
|
| $ | 36 |
|
| $ | 34 |
|
Depreciation and amortization |
| 5 |
|
|
| 7 |
|
|
| 10 |
|
|
| 14 |
|
Share-based compensation |
| — |
|
|
| — |
|
|
| 1 |
|
|
| 1 |
|
Certain items: |
|
|
|
|
|
|
| ||||||||
Impairment† |
| — |
|
|
| — |
|
|
| — |
|
|
| 2 |
|
Other |
| — |
|
|
| — |
|
|
| (1 | ) |
|
| — |
|
Segment Adjusted EBITDA* | $ | 22 |
|
| $ | 23 |
|
| $ | 46 |
|
| $ | 51 |
|
Segment Adjusted EBITDA Margin* | 43.3% |
| 45.9% |
| 44.1% |
| 47.5% | ||||||||
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. | |||||||||||||||
† Prior year amounts have been reclassified to conform with our current year presentation. Please see “Non-GAAP Financial Measures” for additional information. | |||||||||||||||
A-6 | |||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION CONTRACT SALES TO DEVELOPMENT PROFIT (In millions) (Unaudited) | |||||||||||||||
| Three Months Ended |
| Six Months Ended | ||||||||||||
| June 30, 2026 |
| June 30, 2025 |
| June 30, 2026 |
| June 30, 2025 | ||||||||
Contract sales | $ | 545 |
|
| $ | 445 |
|
| $ | 956 |
|
| $ | 865 |
|
Less resales contract sales |
| (10 | ) |
|
| (7 | ) |
|
| (16 | ) |
|
| (16 | ) |
Contract sales, net of resales |
| 535 |
|
|
| 438 |
|
|
| 940 |
|
|
| 849 |
|
Plus: |
|
|
|
|
|
|
| ||||||||
Settlement revenue |
| 12 |
|
|
| 11 |
|
|
| 22 |
|
|
| 20 |
|
Resales revenue |
| 4 |
|
|
| 5 |
|
|
| 6 |
|
|
| 9 |
|
Revenue recognition adjustments: |
|
|
|
|
|
|
| ||||||||
Reportability |
| (20 | ) |
|
| 2 |
|
|
| (22 | ) |
|
| 7 |
|
Sales reserve |
| (72 | ) |
|
| (58 | ) |
|
| (122 | ) |
|
| (108 | ) |
Other(1) |
| (29 | ) |
|
| (28 | ) |
|
| (51 | ) |
|
| (52 | ) |
Sale of vacation ownership products |
| 430 |
|
|
| 370 |
|
|
| 773 |
|
|
| 725 |
|
Less: |
|
|
|
|
|
|
| ||||||||
Cost of vacation ownership products |
| (43 | ) |
|
| (41 | ) |
|
| (89 | ) |
|
| (83 | ) |
Marketing and sales |
| (281 | ) |
|
| (237 | ) |
|
| (523 | ) |
|
| (471 | ) |
Development Profit | $ | 106 |
|
| $ | 92 |
|
|
| 161 |
|
|
| 171 |
|
Development Profit Margin | 24.6% |
| 24.7% |
| 20.8% |
| 23.5% | ||||||||
(1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue. | |||||||||||||||
A-7 | |||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION SUPPLEMENTAL INFORMATION (In millions and Unaudited) | |||||||||
| Three Months Ended |
|
| ||||||
| June 30, 2026 |
| June 30, 2025 |
| Change | ||||
DEVELOPMENT PROFIT |
|
|
|
|
| ||||
Sale of vacation ownership products revenue | $ | 430 |
|
| $ | 370 |
|
| 16% |
Cost of vacation ownership products expense |
| (43 | ) |
|
| (41 | ) |
| (2%) |
Marketing and sales expense |
| (281 | ) |
|
| (237 | ) |
| (19%) |
Development Profit |
| 106 |
|
|
| 92 |
|
| 16% |
Development Profit Margin | 24.6% |
| 24.7% |
| (10 bps) | ||||
|
|
|
|
|
| ||||
MANAGEMENT AND EXCHANGE PROFIT |
|
|
|
|
| ||||
Vacation Ownership Segment |
| 166 |
|
|
| 165 |
|
| 1% |
Exchange & Third-Party Management Segment |
| 42 |
|
|
| 41 |
|
| 2% |
Corporate and Other(1) |
| 17 |
|
|
| 13 |
|
| 31% |
Management and Exchange Revenue |
| 225 |
|
|
| 219 |
|
| 3% |
Vacation Ownership Segment |
| (73 | ) |
|
| (76 | ) |
| 3% |
Exchange & Third-Party Management Segment |
| (28 | ) |
|
| (29 | ) |
| 1% |
Corporate and Other(1) |
| (20 | ) |
|
| (16 | ) |
| (21%) |
Management and Exchange Expense |
| (121 | ) |
|
| (121 | ) |
| (1%) |
Management and Exchange Profit |
| 104 |
|
|
| 98 |
|
| 6% |
Management and Exchange Profit Margin | 46.1% |
| 44.9% |
| 120 bps | ||||
|
|
|
|
|
| ||||
RENTAL PROFIT |
|
|
|
|
| ||||
Vacation Ownership Segment |
| 165 |
|
|
| 150 |
|
| 9% |
Exchange & Third-Party Management Segment |
| 8 |
|
|
| 10 |
|
| (16%) |
Corporate and Other(1) |
| — |
|
|
| — |
|
| NM |
Rental Revenue |
| 173 |
|
|
| 160 |
|
| 7% |
Vacation Ownership Segment |
| (143 | ) |
|
| (129 | ) |
| (11%) |
Exchange & Third-Party Management Segment |
| — |
|
|
| — |
|
| NM |
Corporate and Other(1) |
| 3 |
|
|
| 4 |
|
| (19%) |
Rental Expense |
| (140 | ) |
|
| (125 | ) |
| (11%) |
Rental Profit |
| 33 |
|
|
| 35 |
|
| (7%) |
Rental Profit Margin | 19.4% |
| 22.3% |
| (290 bps) | ||||
|
|
|
|
|
| ||||
FINANCING PROFIT |
|
|
|
|
| ||||
Financing Revenue |
| 92 |
|
|
| 90 |
|
| 3% |
Financing Expense |
| (42 | ) |
|
| (37 | ) |
| (14%) |
Financing Profit |
| 50 |
|
|
| 53 |
|
| (5%) |
Financing Profit Margin | 54.3% |
| 58.8% |
| (450 bps) | ||||
|
|
|
|
|
| ||||
OTHER |
|
|
|
|
| ||||
General and administrative |
| (62 | ) |
|
| (61 | ) |
| (3%) |
Royalty fee |
| (29 | ) |
|
| (28 | ) |
| —% |
Other(2) |
| 13 |
|
|
| 14 |
|
| (14%) |
ADJUSTED EBITDA* | $ | 215 |
|
| $ | 203 |
|
| 6% |
Adjusted EBITDA Margin | 23.4% |
| 24.3% |
| (90 bps) | ||||
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. | |||||||||
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the Financial Accounting Standards Board Accounting Standard Codification Topic 810, “Consolidation,” and represents the portion attributable to individual or third-party vacation ownership interest owners. | |||||||||
(2) Includes share-based compensation, amortization of cloud computing software implementation costs, net income or loss attributable to noncontrolling interests, and other. | |||||||||
NM = Not meaningful | |||||||||
Neal Goldner
Investor Relations
407-206-6149
IR@mvwc.com
Cameron Klaus
Global Communications
407-206-6300
media@mvwc.com
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