VAC

Marriott Vacations delivered a second quarter that surpassed Wall Street expectations, with management emphasizing the impact of new commercial strategies and owner engagement initiatives. CEO Matthew Avril highlighted that contract sales rose 22% year over year, attributing this to the rollout of data-driven Tour Logistics and enhancements to owner benefits. President Mike Flaskey noted the sequential improvement throughout the quarter, with May and June standing out as the company’s highest sales months to date. Management credited the execution of its five-step commercial plan, which included updates to loyalty tiers, experiential events, and targeted marketing, for driving both contract sales and adjusted EBITDA growth. Is now the time to buy VAC? Find out in our full research report (it’s free). Revenue: $1.32 billion vs analyst estimates of $1.29 billion (5.9% year-on-year growth, 2.1% beat) Adjusted EPS: $2.31 vs analyst estimates of $2.00 (15.4% beat) Adjusted EBITDA: $215 million vs analyst estimates of $195.9 million (16.3% margin, 9.8% beat) Management raised its full-year Adjusted EPS guidance to $8.65 at the midpoint, a 16.5% increase EBITDA guidance for the full year is $817.5 million at the midpoint, above analyst estimates of $761.5 million Operating Margin: 12.2%, up from 9% in the same quarter last year Guests: down 32,000 year on year Market Capitalization: $4.10 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Benjamin Chaiken (Mizuho): Asked whether Tour Logistics was the primary driver of contract sales in Q2 and about the ramp-up impact of Inner Circle and Premier Vacations. President Mike Flaskey confirmed that Tour Logistics and refreshed owner benefits were key, with the new initiatives gaining momentum late in the quarter. Elizabeth Dove (Goldman Sachs): Requested details on the sustainability of elevated contract sales and EBITDA guidance. CEO Matthew Avril pointed to the pipeline created by new initiatives, increased owner engagement, and expanded use of loyalty program databases as drivers for future growth. Charles Scholes (Truist Securities): Sought clarity on the ramp-up plans for Inner Circle events and loan loss provision trends. Flaskey outlined plans for 50 headline events in 2026 and a ramp to 1,000 events annually, while CFO Jason Marino explained the increase in sales reserve was due to higher financing propensity among buyers. David Katz (Jefferies): Inquired about the strategy and potential scale for hotel linkage marketing desks. Flaskey said the company is currently in four or five hotels and aims to expand significantly, leveraging key market partnerships. Stephen Grambling (Morgan Stanley): Asked about occupancy rates and inventory needs as owner upgrades increase. Marino responded that owner occupancy is around 65% and the company can support additional owner growth without significant new inventory. Looking ahead, our analysts will be monitoring (1) the pace at which Marriott Vacations scales its Inner Circle and Premier Vacations programs, (2) the rate of hotel linkage and preview package expansion into new markets, and (3) continued progress on cost savings, asset disposals, and margin improvement. Execution on owner engagement and first-time buyer initiatives will also be critical to sustaining contract sales momentum. Marriott Vacations currently trades at $119.26, up from $101.74 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:30 a.m. ET Vice President, Investor Relations - Neal Goldner Chief Executive Officer - Matthew Avril President and Chief Operating Officer - Michael Flaskey Executive Vice President and Chief Financial Officer - Jason Marino Operator: Good morning, ladies and gentlemen, and welcome to the Marriott Vacations Worldwide Second Quarter 2026 Earnings Call. [Operator Instructions] I would now like to turn the conference call over to Neal Goldner, Vice President, Investor Relations. Please go ahead. Neal Goldner: Thank you, and welcome to the Marriott Vacations Worldwide Second Quarter Earnings Conference Call. I'm joined today by Matt Avril, our Chief Executive Officer; Mike Flaskey, our President and Chief Operating Officer; and Jason Marino, our Executive Vice President and Chief Financial Officer. I need to remind everyone that many of our comments today are not historical facts and are considered forward-looking statements under federal securities laws. These statements are subject to numerous risks and uncertainties, which could cause future results to differ materially from those expressed in or implied by our comments. Forward-looking statements in the press release as well as comments on this call are effective only when made and will not be updated as actual events unfold. Throughout the call, we will make references to non-GAAP financial information. You can find a reconciliation of non-GAAP financial measures in the schedules attached to our press release and on our website. With that, it's now my pleasure to turn the call over to Matt. Matthew Avril: Thank you, Neal, and good morning, everyone, and thank you for joining us today. On our last call, I indicated that we would update you on the progress we are making and our outlook ahead. So let me start there. In the second quarter, we exceeded the high end of our guidance for both contract sales and adjusted EBITDA. Contract sales increased 22% over prior year, driven by our industry-leading VPGs of $4,477. Owner contract sales increased 41% compared to the prior year, driven by a 33% lift in owner VPG. On the strength of this performance, adjusted EBITDA grew to $215 million, $12 million over last year and a $20 million increase over the midpoint of our second quarter guidance. As a result, we generated $87 million of adjusted free cash flow in the second quarter and $201 million to-date compared to $22 million for the 6 months in 2025. In light of these results, I want to recognize the impactful efforts of our team across the MVW system. As we navigate this period of rapid change, we are executing with focus and discipline, and our second quarter results are a good indication of the progress we are making. Earlier this year, we laid out our priorities: return the company to revenue growth, drive increased profitability, improve free cash flow and maintain disciplined capital allocation. Based on our second quarter results, it's fair to say that the execution of that plan has taken hold, and we are now focused on sustaining and furthering that momentum. First was returning the company to growth. Contract sales increased 22% year-over-year in the quarter, reflecting the benefits of our disciplined sales execution led by our Tour Logistics and product experience enhancements. Second, an increased emphasis on profitability and cash flow. We continue to manage the business with a clear focus on improving cash generation and maintaining disciplined capital allocation. As a result, we delivered $201 million of adjusted free cash flow in the first half of the year compared to $22 million over the same period last year. Third, we continue to make progress on the disposition of $200 million worth of noncore assets by the end of 2027, which Jason will discuss in more detail. We also rightsized our Asia Pacific business and are seeing the benefits of those actions in our cash flow. Our inventory spending in that region is expected to be down $35 million this year compared to last year, and it has reduced our required investment in related receivables. Mike will walk through our commercial initiatives we launched in the second quarter and the results we are already seeing. Let me take a moment to frame why these matter. The operating leverage in our business requires excellence in our sales and marketing capabilities. These are not isolated programs. Enhancing the owner benefit levels, our new event platform, new marketing tools and our Tour Logistics are all part of our disciplined model designed to strengthen engagement with our owners and create a more predictable path for revenue growth over time. Our owners consistently use and value the vacations they have purchased. In the second quarter, our resorts ran at 90% occupancy, providing us a strong platform for our in-house sales and consistent management fee business. As we look to the balance of the year, our focus remains on growing contract sales and translating that into stronger profitability, free cash flow and adjusted EBITDA. The opportunity in front of us is substantial. We have industry-leading brands, a highly engaged owner base and meaningful opportunities to further improve our performance, and they are all within our control. In addition, we enjoy the strong consumer tailwinds driving upper upscale and luxury travel demand. Ultimately, our future is based on our ability to attract, develop and retain top talent, reinforcing our position as the employer of choice in the industry. We have a motivated associate base that is seeing this year's earlier tough decisions yielding demonstrable results. We also have an engaged owner base of 700,000 owners that is seeing us reinvigorate their vacation experiences, strengthening our connection and driving utilization and higher levels of satisfaction. Delivering best-in-class hospitality experiences is what our owners expect of us and drives our associates to deliver. Combined, they all drive our results. The work underway is about driving consistent revenue growth, maintaining disciplined cost management, improving free cash flow and positioning the company for sustaining performance. The second quarter was an important step on that journey. As a result of our performance and our current outlook, we are raising our guidance for adjusted EBITDA for the full year to $805 million to $830 million, a $50 million increase over our previous guidance. Make no mistake, we are pleased with our progress, yet there is much ahead for us to accomplish. We look forward to providing an update on our strategies and longer-term growth plans at an Investor Day we are planning for December 9 in New York City. With that, I'll turn the call over to Mike to discuss the operating initiatives in more detail. Michael Flaskey: Thanks, Matt, and good morning, everyone. Let me start by saying how encouraged we are with our second quarter results, and more importantly, with the precise execution of our sales and marketing teams that delivered these results on a very aggressive time line that we had laid out. It took a company-wide effort to get these merchandising tools launched. Today, I will be highlighting the 5-step commercial strategy that drove our second quarter results and provide color on each of these initiatives and how they impacted the quarter. I will then focus on how we will sustain the long-term growth of the company. Since joining the company in mid-February, we identified a significant value creation opportunity to improve performance and then created a disciplined 5-step commercial strategy. During the second quarter, we completed implementation of that strategy and the results began to show. We launched the 5 key commercial initiatives and began executing them across the organization. Each month of the quarter got sequentially better, including May and June, which were the 2 highest sales months in the company's history. Highlighting our results, our contract sales increased 22% year-over-year in the quarter, while VPG grew 23% to $4,477. These results were the product of our proven strategy, the power of our brands, along with the outstanding execution of our team. Let me walk through the key initiatives we've implemented and what we're seeing so far. First, at the heart of the strategy is connections. Our commitment to connecting with our owners while they're on vacation and creating deeper interactions throughout their ownership journey. Everything that we are doing is designed to deepen those relationships, create more meaningful engagement, improve the customer experience and ultimately drive stronger tour flow and contract sales. I am happy to report that we improved our owner arrival-to-tour ratio, now branded Connections, by 600 basis points in the second quarter compared to last year, and we will continue to improve this key driver. Second, our Tour Logistics initiative. We launched this data-driven yield management algorithm starting in April to better match the right customer with the right sales executive every tour wave across our company. The goal was to improve both the effectiveness of conversion and the overall guest experience while using propensity data to drive our decision-making. What we're seeing is significantly higher VPGs, driven by a higher average transaction size. As the quarter progressed, we saw VPG continue to improve month after month as our Tour Logistics gained momentum and our teams executed against the strategy. North America tours increased 3% in the quarter and are now up 1% year-to-date through the end of the quarter, showing excellent demand for our product. Together, these results show that both Connections and Tour Logistics are driving stronger tour flow and contract sales performance across our sales organization. Third, a complete transformation of our owner loyalty program, including creating and rolling out 2 new loyalty tiers at the top, Reserve and Pinnacle. These new tiers are driving aspiration to own more and are designed to better engage our owners and help them get even more value from their ownership given their affinity to our brands. Our average points owner owns just 1.3 weeks equivalency of ownership. In my 30 years in this industry, my experience would indicate that owners with a high affinity for brands and with strong engagement will purchase 3 to 4 weeks equivalent over the lifetime of their ownership. Early response has been extremely positive. We're seeing increased engagement from our owner base and a nice lift in average transaction size. This is exactly the kind of owner response we had hoped to see, and it reinforces our diligence that there is significant long-term embedded value still to unlock within our existing owner base. Fourth, our Premier Vacations initiative was introduced on June 9 as a new point-of-sale incentive, designed to support increased sales today while also creating a significant and predictable pipeline of future tours that will generate our highest VPG channel when traveling on their premier vacation's incentive trip. We are already seeing this program contribute to near-term VPGs while also creating a growing and predictable future pipeline that will drive highly profitable future sales. Fifth, our Inner Circle presented by Aflac headline event franchise. We launched this experiential platform on June 22 with country music superstar Lee Brice and executed an additional 5 highly successful events during the second quarter. The VPGs have been tremendous, and our owner feedback and engagement was outstanding. Our objective is clear: to create higher quality engagement with our owners, drive lifetime value, improve connections with our owners and drive incremental tour flow. Importantly, VPGs associated with these events were well above our average and significantly exceeded our expectations. This reinforced our knowledge that this platform will drive stronger connection rates and contract sales with the power of our execution and our owners' affinity to our brands. We expect Inner Circle to become a key driver of higher quality tour flow and continued VPG growth as we rapidly scale the program. We also believe this type of experiential platform fits extremely well with our brands, our owner base and the way our customers want to vacation. As for the long-term plan for our business, I would like to lay out our strategy. It falls into 3 distinct areas: owner growth, first-time buyer growth and operational growth. First, owner growth. VPG increase. We are continuing to see VPG growth. We believe we have strong tailwinds and a healthy upside embedded in our recently launched strategy. Premier Vacations is building a large pipeline of very predictable owner tour flow. When owners travel on this bonus vacation, we expect that they will convert at a very strong VPG level. Connection rate. We will continue to improve owner arrival to tour rates with our owners when they travel to our resorts in the future. Inner Circle will be scaled in a significant way over the course of 2027 and beyond, allowing us to realize the increased connection rate associated with producing one of our experiential events as well as the outsized VPGs associated with them. First-time buyer growth. Package sale pipeline. We will continue to grow through previews sold to guests who will tour our beautiful resorts in the future and attend a sales presentation while doing so. This preview package sales growth will continue to be fueled by the robust Marriott Bonvoy and World of Hyatt databases. Hotel linkage program. This is being aggressively expanded, whereby we will have marketing desk in the lobby of select branded hotels across North America, and we will invite hotel guests to purchase a preview package to tour one of our resorts in North America. Partnership marketing. This is a significant incremental growth channel for us. We are building a team that will sell packages face-to-face in the marketplaces. They will identify companies and events with high guest flow of leisure-minded guests who will provide us the opportunity to sell a preview package to their guests as well as make offers electronically to their database. Operational growth, recruiting. We have recently invested in enhancing our sales and marketing recruiting team to ensure that we are staffed appropriately and positioned to take advantage of the growth that lies ahead in front of us. Training platforms have been decentralized back to the regions to enhance the training process as well as the speed to market. Price elasticity. The business has upside opportunity given our strong performance in Q2. We increased prices on July 1, and our performance continues to be strong. We have confidence that there is still incremental price increase opportunity ahead. Cost reductions. We will continue to address these within the business while effectively supporting the necessary growth strategy that we have in place. We are confident in the sustainability of our performance. As we have said, the second half of this year will continue our revenue growth story, and we also expect nice margin improvement driven by both leveraging our fixed cost and the impact of the cost-saving measures that have been implemented. We are also focused on 2027 and beyond and are strategically ramping a predictable pipeline of both owner and first-time buyer tour flow growth. In closing, during my discussions to join Marriott Vacations, it was clear there was a meaningful opportunity in the company. Having now spent 6 months immersed in the organization, I would tell you that the opportunity is even greater than I could have forecasted. We have outlined a very powerful near-term transformation strategy that is already showing excellent results. In addition, we have laid out a very sustainable long-term plan that will provide predictable and profitable growth for the company out into the future. These plans, coupled with our world-class brands, access to 2 great loyalty programs with highly engaged and qualified owner bases and an extremely talented team give us tremendous confidence in the future of the company. What excites me most is that the results we delivered in the second quarter show what is possible when we execute with focus, discipline and speed. The quarter reinforced my confidence in both the near-term and long-range value creation opportunity and our team's ability to execute it. With that, I'll turn it over to Jason. Jason Marino: Thank you, Mike. Good morning, everyone. Our second quarter results reflect the tremendous success of the work of our teams, new programs and operating discipline, and I'm pleased to report that our transformation is well underway. Our contract sales increased 22% year-over-year to $545 million, driven by an increase in VPG. As a result of our new programs and sales operating excellence, our sales to existing owners increased 41%. North American tours increased 3% due to our increased connection rate with owners and North America contract sales increased 27%, principally influenced by our average transaction size. Development profit increased $14 million year-over-year to $106 million due to the strong contract sales growth we delivered this quarter, combined with our cost of vacation ownership sales declining 130 basis points year-over-year as a percent of development revenue. It is important to remember that in periods of significant growth, there is an adverse impact to our reported revenue related to our contract sales, which we call reportability. Simply put, we don't recognize revenue from contracts sold in the last 10 days of the quarter as they are still in the rescission period. However, we do recognize most of the sales and marketing costs. This negatively impacted development profit by $15 million in the quarter. Marketing and sales expense as a percent of contract sales decreased 150 basis points year-over-year. This is a substantial 700 basis point sequential improvement from Q1. As Mike mentioned, we are focused on improving development margins and expect them to improve in the second half of the year. Sales reserve was 13.4% of contract sales in the quarter. Given the significant 22% increase in contract sales, we determined it was prudent to increase our sales reserve measured as a percentage of our contract sales this quarter and expect a similar rate in the second half of the year. Our sales reserve is the lowest in the industry, reflecting the quality of our brands and property portfolio, the strong financial profile of our owners and their affinity to our products. Management and exchange profit increased $6 million year-over-year and financing profit was unchanged, excluding the change in the presentation of interest expense in our warehouse credit facility, which we've discussed previously. Finally, adjusted EBITDA increased 6% year-over-year to $215 million. Turning to the balance sheet. We finished the quarter with $3.1 billion of net corporate debt and leverage of approximately 4x, down from 4.2x at the end of the first quarter. Over the past year, we have made progress on our debt levels, lowering our debt outstanding approximately $100 million since last June. Our adjusted free cash flow was $87 million in the quarter and $201 million year-to-date, including the $50 million of proceeds we received from the sale of the Westin Cancun in Q1 as compared to $22 million year-to-date last year. We are making good progress on our noncore asset dispositions, actively marketing multiple assets for sale with key brokers. We anticipate adding our New York City property to our inventory trust to support our higher contract sales this year and into the future. This asset was previously included on our targeted noncore asset disposition list. And as a result, we now expect total proceeds from our noncore asset sales to be $200 million by the end of 2027. We expect to sell $50 million of noncore assets in the second half of this year, which are included in the overall disposition numbers I mentioned, though excluded from our adjusted free cash flow guidance. Turning to guidance. Given our Q2 contract sales and the strong momentum that continued into July, we now expect contract sales to increase 18% to 20% for the year, implying 25% to 29% growth in the second half. As a result of our contract sales growth and continued focus on cost, we will drive better margins in the second half. We are raising our adjusted EBITDA guidance to be $805 million to $830 million this year. This reflects a $50 million higher range than our previous guidance. From a cash flow perspective, we are raising our adjusted free cash flow estimate for the full year to be between $410 million and $460 million this year, a $35 million increase at the midpoint. We expect our free cash flow conversion this year to be in the mid-50% range. As we continue to grow our free cash flow, we will evaluate opportunities to deploy capital with an emphasis on repayment of debt, dividends and opportunistic share repurchases. In closing, we had a great quarter. Our new initiatives are resonating with our owners, highlighted by 22% contract sales increase and 23% VPG growth in the quarter. Our team is reinvigorated, and I couldn't be more optimistic about the direction we're headed and the opportunities ahead of us. With that, we will be happy to answer your questions. Operator? Operator: [Operator Instructions] And your first question is from Ben Chaiken from Mizuho. Benjamin Chaiken: Maybe just to dive in on 2Q. It sounds like the Tour Logistics was the major driver of contract sales in 2Q. Is that fair? And I asked because I think Premier Vacations and Inner Circle only recently launched, if I'm not mistaken. And some -- I'm assuming those didn't contribute much in the quarter. So I guess the question is; A, if I frame the first part of that correctly? And B, how did you think about the ramp of those 2 aspects, Inner Circle and Premier Vacations in the context of the guide? And then one quick follow-up. Michael Flaskey: Ben, it's Mike here. Yes, you are correct. Tour Logistics and our owner benefit levels. So it wasn't exactly just Tour Logistics. Tour Logistics, as we have discussed, has had a tremendous impact, and the algorithm is designed to make sure we're using propensity to match up every tour wave, the right salesperson with the right tour to give us the highest propensity for conversion. And then when you couple that with the owner benefit levels that were completely refreshed, including adding the Reserve and the Pinnacle levels, we have created an aspiration for our owners to want to buy more of the product while making sure that the matchups through Tour Logistics are putting the right salespeople in front of the right customer. As we moved into the later part of Q2, you are correct, and we rolled out our Inner Circle presented by Aflac event series and our Premier Vacations. And the early indicators that we got in the second half of June were excellent, above our expectations. Matthew Avril: So Ben, it's Matt. Thanks for joining us. And so, to your point, as we considered our guidance for the balance of the year, certainly, sort of the runway that we see for those programs introduced late in the quarter are certainly a catalyst for the second half of the year. Benjamin Chaiken: Okay. That's very helpful. And then maybe a question on recruitment. It sounds -- if I was maybe reading between the lines, it sounds like you were able to attract some new talent. Where does that stand? Have the bulk of these hires been made already? And while obviously, a long-term or a medium-term/long-term positive, it sounds like that's weighing on flow-through in the near term slightly. I guess, is the expectation that there's some sequential improvement there? And then obviously, totally understand that there's also the reportability dynamic as well, unrelated. Michael Flaskey: So I'll handle 2 of the 3, and Jason can talk about the reportability. We don't have anything as it relates to recruitment that is impacting flow-through. In fact, we've been incredibly blessed as they say in professional baseball, the players know. And the top talent in the industry has choices. And they've been boating our way. And it's driven by our innovation, it's driven by our brands, it's driven by the demographic of our customer and frankly, our sales and marketing leadership and the culture that they create. So we've been really blessed on that front, and we continue to see top talent coming our way. Jason Marino: Yes. Ben -- I don't think he had a question on reportability. I think he understand it. Operator: And your next question is from Lizzie Dove from Goldman Sachs. Elizabeth Dove: I don't want to kind of front run anything on the Investor Day, of course. But I guess, high level, how do you think about some building blocks of just normalized EBITDA or kind of where your earnings power is from here? I appreciate you took the guidance up a fair amount, but I'm guessing you don't think you're done this year. And so any just broad color of how to think about the next year or a few years would be great. Matthew Avril: Lizzie, this is Matt. Thanks for joining us. And to your point, I appreciate you allowing us to beg off just a little bit towards the Investor Day, but I would reinforce a couple of the points that Mike made. Some of the things we're introducing right now, the Premier vacations, by way of example, not only add to the value proposition on day 1 sell, but they are designed to build a pipeline of guests returning next year on that Premier Vacation. And the way that we've designed those, those -- they all come back to our existing properties by design. And so that's one way in which we build out additional tour flow opportunities next year. Secondly, as we look at both how far we utilize and penetrate the loyalty programs that exist, both at Marriott and Hyatt, we have opportunities to grow our tour flow in that regard. So simply put, and I won't go too much more specifically, we have very much had our eyes on -- right now, it has been about increasing the connections with our owners and bringing value to them, and we're seeing that in our results now, and that will be an ongoing driving engine of the future. In addition to that, between new partnerships we can establish, better utilization of databases we already have, we see the opportunity to increase our tour flow in future years and increase our staffing levels to take advantage of that. So we're excited about what's ahead, but I'll beg off more details until we see you in December. Elizabeth Dove: Great. And then just one follow-up. So I think you said last quarter that as of April, your VPG and contract sales have been up. I think it was 12% and 8%, respectively. And so seems like given what you did in the quarter, there's a kind of huge acceleration and very, very strong exit rate. Appreciate you said the momentum kind of continued into July, but anything you'd be able to share more specifically on just how things have been trending quarter-to-date? Jason Marino: Yes. Lizzie, this is Jason. So yes, what we said on the last call was 8% contract sales growth in April. So just doing the math, that implies, call it, 29% for May and June. And I would just say that July was largely consistent with the May and June numbers. Operator: And your next question is from Patrick Scholes from Truist Securities. Charles Scholes: Certainly, the adjective demonstrable is fitting here. Mike, a question for you. You talked about at a high level, ramping up on Inner Circle. I think you said you had done 5 in 2Q. Do you have a specific number that you're targeting for the back half of the year? And what should we think of as a -- come next year, a full year run rate for those types of events? Michael Flaskey: Patrick, we have plans to do about 50 in 2026. And as I've said before to you, I believe the proof of concept is not in whether the event platform works. We certainly know that's proven, and we know how to execute it. We want to get the Marriott team up to speed on how to execute these headline events. And so we have been incredibly pleased with the rollout of the headline events. But remember, only 20% of the total event platform going forward will be the headline events. 80% of them will be smaller regional in-market events like casino nights, murder mysteries, things along that line, which also have the outsized VPG performance. So when we get to 2027, our goal is to do a couple of hundred headline events, and I would say, target 1,000 events for the full year 2027. Charles Scholes: Okay. So pretty sizable -- expected ramp-up there. Jason, you had -- moving on here. Jason, you had just briefly touched on the loan loss provision. Can you give a little more granularity on trends within that and changes, et cetera? I did see that it was up modestly year-over-year in the results. Jason Marino: Yes. Thanks, Patrick. So yes, I think for the year -- for the quarter, we're up about 20 basis points year-over-year as measured as a percentage of contract sales. We feel good about where the portfolio sits. The trends from Q1 to Q2 are good. You'll see that our delinquencies in the, call it, the sub 120-day bucket are down 54 basis points. We did have some higher propensity year-over-year too, which drove some of that increase. But we feel good about where it's going and July actually finished up with good results as well. So we're confident in where we sit today. Charles Scholes: Okay. What do you mean by higher propensity? A higher propensity to default or just more buyers and they had higher propensity. If you could explain what that term. Jason Marino: Sorry. Yes, I'll be more clear on that. Higher propensity to finance their purchases, so that drives how we reserve for it. It's just higher dollars financed. Operator: And your next question is from David Katz from Jefferies. David Katz: Mike, I wanted to just go a little farther on 1 of the 5 strategies, which -- and I don't remember which number it was, but there was hotel linkage. And my sense historically is that's kind of a normal course channel. Could you provide a little more color on sort of where that was when you got here or where that -- where you intend to take that and just give us more of a sense of what you feel like you can do with that? That just always seem like a part of the process to me. Michael Flaskey: Yes. David, I think that the answer to the first part of your question, there were very limited hotel partners in the system when Matt and I arrived. We believe that there is significant upside to going out and partnering with the hotel owners that have the brands that are on our brand bar and basically creating a win-win scenario to create an incremental revenue stream for the hotel owners, whereby giving us the opportunity to get in front of their leisure-minded travelers and sell one of our 4-day, 3-night preview packages to come preview one of our resorts in North America. And we see that as a significant opportunity to ramp that up going forward. David Katz: Can I -- if I may follow up, just kind of an order of magnitude where maybe you were in 100 hotels and you want to go to 1,000, something whether that's qualitative or otherwise? Michael Flaskey: Yes, sir. I would tell you, we're in 4 or 5 hotels today. And our goal is to get in as many of them that we think would be accretive to the business and scale it in a fashion that we can staff it up appropriately. David Katz: 4 or 5 today -- go ahead. Sorry. Matthew Avril: David, it's Matt. I think simply put, almost as we talked earlier in our calls this year, we were focusing on key markets. There are key markets where we know there's opportunities. As you know, over time, hotel owners change in various branded portfolios. And we are simply refocusing on all of those key relationships, particularly in key markets where we operate, where we generate package tours on our own. We think there is just simply more opportunity. So order of magnitude, I might ask you to give us just a little bit of time between now and our Investor Day. It's an area that we know simply has more opportunity, and that's what we were highlighting today. You'll see more specificity by the time we're together. Operator: And your next question is from Stephen Grambling from Morgan Stanley. Stephen Grambling: Mike, you gave this stat, I think you previously kind of talked about this average owner has 1.3 weeks versus other networks are more like 3 to 4 weeks. Can you remind us where occupancy across the portfolio is both from owners and then in total with rentals? And as you continue down this path of upselling to the existing owners, is there a need to add inventory to ensure you don't have any kind of degradation in the availability of what you're selling? Michael Flaskey: Yes, Stephen, I'll cover the first part, and I'll ask Jason to talk about the inventory. As it relates to the specific question, we feel like that we're in a good spot. We -- as I said, this owner base is significantly underserved. There is tremendous runway left in this owner base. And we're very excited about the initial responses to what we have rolled out. The inventory piece of it, Jason, you can comment specifically on that. Jason Marino: Yes, Stephen. So we run, call it, 65% owner occupancy across the system. The 90% that we routinely quote is added to with marketing stays that we use for packages and marketing stays to support the sales and marketing business as well as transient. So we feel like we've got good opportunity there for -- to increase the ownership base without significantly increasing our inventory. Stephen Grambling: Okay. And then you mentioned the propensity to finance went up. Curious what's the average down payment for existing owners in the quarter? And how does that compare to history? Jason Marino: Yes. It was relatively unchanged for our average down payment, including equity that they are using from, call it, previous ownership, it's in the mid-to-high 20s for down payments. Stephen Grambling: But I guess if you exclude that equity, is that -- I mean, do you -- I think some don't allow -- some of your peers don't allow existing owners to use that. Jason Marino: Yes. I don't know necessarily what all of our peers do, but we have minimum 10% down loans. So for first-time buyers, it would be minimum 10% cash down. But for people that are what we call upgrading from one product to another or same product, we allow them to use their existing equity, and that's the number in the high 20s. Operator: And your next question is from Trey Bowers from Wells Fargo. Nicholas Weichel: This is Nick on for Trey. I just want to ask about the decision to no longer look to sell the property in New York. Kind of just -- what was the rationale behind that? Any color would be great. Jason Marino: Yes, Trey, I think as you look at our inventory on the balance sheet today, we've got about $900 million at cost that represents about a year, 1.7 years given the guidance that we just gave. And as we're looking to really support sales, we thought it's prudent to put that inventory in the trust as we go forward. Matthew Avril: Yes. Nick, this is Matt. And I think we felt it important to indicate that at this point, we anticipate that's one of the options as our sales pace continues over the next 2 quarters. And in that section, we were updating what the disposition proceeds were likely to be and knowing that we're evaluating that as one of the changes as our sales pace continues to grow. We thought it was important to signal in the context of our disposition proceeds that may come out, and we'll make that decision as we progress over the next 2 or 3 months. But it was certainly an optionality that we needed to preserve to support the sales pace. Operator: [Operator Instructions] And your next question is from Patrick Scholes from Truist Securities. Charles Scholes: Great. Just a quick follow-up question, just for Jason. As we think about the EBITDA ramping up, it implies you may be able to get back to mid-3x net debt to EBITDA by the end of this year. In that scenario, how are you thinking about getting potentially back to share repurchases? Jason Marino: Yes. As I said in our prepared remarks, we're at 4x based on the guidance and what we expect for cash flow, we would be in the, call it, upper 3s by the end of the year. And so the way we're thinking about it right now is, we want to remain disciplined get the debt to a more appropriate level. But as I've said before, as we get below 4x, we can be more opportunistic in terms of share repurchases, and we'll evaluate that strategy on a continuous basis as we go forward. Operator: There are no further questions at this time. I would now like to turn the conference call back over to Matt Avril for the closing remarks. Matthew Avril: Thank you, everyone, for joining our call today. As we began the year, we committed to reestablishing your confidence in our company. We generated revenue growth by focusing on the fundamentals of the business and strengthening our connections with our owners. The owner experience programs we have introduced are proving to be a meaningful catalyst towards that objective. These initiatives have generated excitement among our owners by creating more personalized interactions, enhancing their vacation experiences and increasing awareness of the value available across our network of brands and destinations. At the same time, they have reignited energy throughout this organization by giving our teams new tools and new opportunities to engage with customers and greater visibility into the impact of their efforts. The improved owner engagement and stronger organizational alignment we are seeing today gives us confidence that the operational improvements achieved this quarter represent the early stages of a more durable and sustainable growth trajectory. On behalf of all of our associates, owners and members, I want to thank you for your continued interest in Marriott Vacations Worldwide. Thank you, and have a great day. Operator: Thank you. Ladies and gentlemen, that concludes the conference call for today. Thank you all for joining. You may now disconnect your lines. Before you buy stock in Marriott Vacations Worldwide, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Marriott Vacations Worldwide wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Marriott Vacations (VAC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Marriott Vacations Worldwide Corporation? Here are five stocks we like better. Marriott Vacations exceeded Q2 expectations: Contract sales rose 22% year over year to $545 million, while adjusted EBITDA increased 6% to $215 million, supported by stronger sales productivity and owner engagement. Commercial initiatives drove improved performance: Tour logistics, refreshed owner loyalty benefits and new programs such as Premier Vacations and Inner Circle helped increase average transaction sizes and lift owner sales. The company raised its full-year outlook: Marriott Vacations now expects 18%–20% contract-sales growth, adjusted EBITDA of $805 million–$830 million and adjusted free cash flow of $410 million–$460 million, with debt repayment, dividends and share repurchases as capital priorities. 15 best consumer discretionary stocks for the rest of 2023 Marriott Vacations Worldwide (NYSE:VAC) reported second-quarter results that exceeded the high end of its guidance for contract sales and adjusted EBITDA, citing higher sales productivity, stronger owner engagement and new commercial programs. Chief Executive Officer Matt Avril said contract sales rose 22% from a year earlier, supported by vacation ownership sales productivity, or volume per guest (VPG), of $4,477. Owner contract sales increased 41%, while owner VPG rose 33%. → No Hangover: Revisiting Microsoft One Week After Earnings Airline and hotel stocks soar as Thanksgiving travel sets records Adjusted EBITDA increased 6% year over year to $215 million, or $12 million above the prior-year quarter and $20 million above the midpoint of the company’s guidance. Adjusted free cash flow totaled $87 million in the quarter and $201 million in the first half, compared with $22 million during the first six months of 2025. President and Chief Operating Officer Michael Flaskey said the company completed implementation of a five-part commercial strategy during the quarter. May and June were the two highest sales months in the company’s history, he said. → MarketBeat Week in Review – 08/03 - 08/07 Three (3) Top-Rated Dividend Payers Worth Your Attention The strategy includes a program called Connections, which focuses on engaging owners during their vacations and throughout their ownership experience. Marriott Vacations said its owner arrival-to-tour ratio, which it now calls Connections, improved 600 basis points year over year during the second quarter. The company also introduced a data-driven “tour logistics” system in April that uses customer propensity data to match guests with sales executives. Flaskey said the initiative helped lift VPG through higher average transaction sizes. North American tours rose 3% in the quarter and were up 1% year to date through the end of the period. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Other initiatives included revamped owner loyalty tiers, called Reserve and Pinnacle; a Premier Vacations point-of-sale incentive introduced June 9; and the Inner Circle presented by Aflac events platform, which launched June 22 with country artist Lee Brice. The company held an additional five events during the second quarter. Flaskey said VPG associated with Inner Circle events was above the company average and exceeded expectations. Marriott Vacations plans to hold about 50 events in 2026. For 2027, Flaskey said the company’s goal is a couple hundred headline events and roughly 1,000 total events, including smaller regional programs. During the question-and-answer session, Flaskey said tour logistics and refreshed owner benefit levels were the principal drivers of second-quarter sales gains. Premier Vacations and Inner Circle, which were introduced later in the quarter, showed early results that were ahead of expectations, he said. Chief Financial Officer Jason Marino said contract sales reached $545 million in the quarter. North American contract sales increased 27%, principally due to higher average transaction size, while development profit rose $14 million year over year to $106 million. Marino said the company’s reported development profit was reduced by $15 million because revenue from contracts sold in the final 10 days of the quarter was not recognized while those sales remained in their rescission period. Most related sales and marketing costs were recognized during the period. Marketing and sales expense as a percentage of contract sales declined 150 basis points from a year earlier and improved 700 basis points sequentially from the first quarter. The company expects development margins to improve during the second half. Its sales reserve was 13.4% of contract sales. Marino said the company increased the reserve rate because of the sharp growth in contract sales and expects a similar reserve rate in the second half. He said delinquencies in the sub-120-day category declined 54 basis points from the first quarter to the second quarter. Marriott Vacations ended the quarter with $3.1 billion in net corporate debt and leverage of about four times, down from 4.2 times at the end of the first quarter. Debt outstanding has declined by about $100 million since June of the prior year, according to Marino. The company said it has approximately $900 million of inventory at cost, representing about 1.7 years of inventory based on its updated sales outlook. It is considering adding its New York City property to its inventory trust to support sales rather than selling the asset. The property had previously been included among planned non-core dispositions. Marriott Vacations raised its full-year outlook for contract sales growth to 18% to 20%, implying growth of 25% to 29% in the second half. Marino said July’s sales trend was largely consistent with the strong performance recorded in May and June. Adjusted EBITDA guidance was raised to $805 million to $830 million, a $50 million increase from the prior range. Adjusted free cash flow guidance was raised to $410 million to $460 million, up $35 million at the midpoint. The company expects free-cash-flow conversion in the mid-50% range for the year. Marriott Vacations expects to sell $50 million of non-core assets in the second half and now expects total non-core asset-sale proceeds of $200 million by the end of 2027. Marino said future capital deployment will emphasize debt repayment, dividends and opportunistic share repurchases. He said the company expects leverage to be in the upper-three-times range by year-end and may become more opportunistic on buybacks as leverage falls below four times. Avril said the company plans to provide an update on its strategies and longer-term growth plans at an investor day scheduled for Dec. 9 in New York City. Marriott Vacations Worldwide Corporation, headquartered in Orlando, Florida, specializes in the development, marketing and management of vacation ownership resorts and related products. Originally launched as a division of Marriott International in 1984, the company became a separate publicly traded entity in 2011. Since then, it has expanded its offerings through both organic growth and strategic acquisitions, establishing itself as a leading provider in the global timeshare industry. The company's core business activities include selling vacation ownership interests, managing a growing portfolio of branded resorts and operating a loyalty program that allows members to exchange or use points at affiliated properties. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Marriott Vacations Worldwide Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Contract sales growth of 22% was primarily driven by the implementation of a data-driven Tour Logistics algorithm that matches high-propensity customers with specific sales executives. Management attributed the 41% surge in owner contract sales to the launch of new 'Reserve' and 'Pinnacle' loyalty tiers, which created aspirational demand for additional ownership weeks. The company successfully pivoted its Asia Pacific strategy, reducing inventory spending by $35 million to improve overall free cash flow and reduce receivable investment requirements. Operating leverage improved through a 150 basis point year-over-year reduction in marketing and sales expense as a percent of contract sales, despite rapid scaling of new programs. High resort occupancy of 90% provided a stable platform for in-house sales and consistent management fee revenue, reinforcing the resilience of the upper-upscale travel segment. Management emphasized that recent performance is the result of a disciplined 5-step commercial strategy focused on deepening owner connections and improving arrival-to-tour ratios. Full-year adjusted EBITDA guidance was raised by $50 million to a range of $805 million to $830 million, reflecting strong momentum sustained into July. The company plans to scale the 'Inner Circle' experiential event platform from 5 events in Q2 to approximately 1,000 events by 2027 to drive higher-margin tour flow. Management expects to generate $200 million from noncore asset dispositions by the end of 2027, though the New York City property may be retained to support inventory needs. Future growth will increasingly rely on the 'Premier Vacations' incentive program, which is designed to build a predictable pipeline of high-VPG owner tours for 2027 and beyond. The company is aggressively expanding its 'Hotel Linkage' program to place marketing desks in branded hotels, leveraging Marriott Bonvoy and World of Hyatt databases for first-time buyer growth. Reportability dynamics negatively impacted development profit by $15 million due to the timing of contract sales in the final 10 days of the quarter. The sales reserve was maintained at 13.4% of contract sales, which management noted is the lowest in the industry despite a slight increase to account for higher financing propensity. Net corporate debt leverage stood at 4x, with a strategic goal to reach the upper 3s by year-end before potentially resuming opportunistic share repurchases. The decision to potentially move the New York City asset into the inventory trust reflects a strategic pivot to support higher-than-expected sales volume rather than pursuing a pure sale. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that Tour Logistics and refreshed owner benefit levels were the primary Q2 drivers, as Inner Circle and Premier Vacations only launched late in the period. The second-half guidance assumes these late-quarter launches will serve as significant catalysts for the projected 25% to 29% growth in the back half of the year. The company plans to execute 50 events in 2026, with a long-term target of 1,000 events in 2027, consisting of 20% headline events and 80% smaller regional events. Management noted that VPGs associated with these events have significantly exceeded expectations, reinforcing the platform's ability to drive higher connection rates. Current owner occupancy sits at approximately 65%, with the remaining 25% of the 90% total occupancy filled by marketing packages and transient stays. Management believes there is significant room to increase the ownership base without a corresponding surge in inventory spending due to current utilization patterns. The program is currently active in only 4 or 5 hotels, representing a massive untapped opportunity to partner with hotel owners across the Marriott and Hyatt portfolios. The goal is to scale this face-to-face marketing channel in key markets to drive first-time buyer preview packages.

ORLANDO, Fla., August 06, 2026--(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 Contract sales increased 22% year over year to $545 million in the quarter. Net income attributable to common stockholders was $77 million compared to $69 million in the prior year and diluted earnings per share was $2.12 compared to $1.77 in the prior year. Adjusted net income attributable to common stockholders increased 9% to $84 million and adjusted diluted earnings per share increased 18% to $2.31. Adjusted EBITDA increased to $215 million compared to $203 million in the prior year. The Company raises its full-year Contract Sales, Adjusted EBITDA and Adjusted Free Cash Flow guidance. "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. 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. Corporate and OtherGeneral 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 LiquidityThe 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 OutlookDuring 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. 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: Non-GAAP Financial InformationNon-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 CallThe 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 CorporationMarriott 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 statementsThis 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 CORPORATIONFINANCIAL SCHEDULESQUARTER 2, 2026 TABLE OF CONTENTS MARRIOTT VACATIONS WORLDWIDE CORPORATIONNON-GAAP FINANCIAL MEASURES In our press release and schedules, and on the related conference call, we report certain financial measures that are not prescribed by GAAP. We discuss our reasons for reporting these non-GAAP financial measures below, and the financial schedules included herein reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure that we report (identified by an asterisk ("*") on the preceding pages). Although we evaluate and present these non-GAAP financial measures for the reasons described below, please be aware that these non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for revenues, net income or loss attributable to common stockholders, earnings or loss per share or any other comparable operating measure prescribed by GAAP. In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do or may not calculate them at all, limiting their usefulness as comparative measures. ReclassificationsBeginning in the third quarter of 2025, we began separately presenting Modernization expense in our Income Statements. As a result, prior year amounts for the three and six months ended June 30, 2025, were reclassified from Restructuring expense to conform with our current year presentation. Additionally, for the six months ended June 30, 2025, we reclassified $2 million related to the impairment of an operating lease and related assets from Restructuring expense to Impairment expense to conform with our current year presentation. Certain Items Excluded from Non-GAAP Financial MeasuresWe evaluate non-GAAP financial measures, including those identified by an asterisk ("*") on the preceding pages, that exclude certain items as further described in the financial schedules included herein, and believe these measures provide useful information to investors because these non-GAAP financial measures allow for period-over-period comparisons of our ongoing core operations before the impact of these items. These non-GAAP financial measures also facilitate the comparison of results from our ongoing core operations before these items with results from other companies. Adjusted Development Profit and Adjusted Development Profit MarginWe evaluate Adjusted development profit (Adjusted sale of vacation ownership products, net of expenses) and Adjusted development profit margin as indicators of operating performance. Adjusted development profit margin is calculated by dividing Adjusted development profit by revenues from the Sale of vacation ownership products. Adjusted development profit and Adjusted development profit margin adjust Sale of vacation ownership products revenues for the impact of revenue reportability, include corresponding adjustments to Cost of vacation ownership products associated with the change in revenues from the Sale of vacation ownership products, and may include adjustments for certain items as necessary. We evaluate Adjusted development profit and Adjusted development profit margin and believe they provide useful information to investors because they allow for period-over-period comparisons of our ongoing core operations before the impact of revenue reportability and certain items to our Development profit and Development profit margin. Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDAEBITDA, a financial measure that is not prescribed by GAAP, is defined as earnings, or net income or loss attributable to common stockholders, before interest expense, net (excluding consumer financing interest expense), income taxes, depreciation and amortization. Adjusted EBITDA reflects additional adjustments for certain items and excludes share-based compensation expense and amortization of cloud computing software implementation costs. Share-based compensation expense is excluded to address considerable variability among companies in recording compensation expense because companies use share-based payment awards differently, both in the type and quantity of awards granted. Amortization of cloud computing software implementation costs, which are not included in depreciation and amortization expense, are excluded from Adjusted EBITDA for comparability purposes to address the considerable variability among companies in the utilization of productive assets. For purposes of our EBITDA and Adjusted EBITDA calculations, we do not adjust for consumer financing interest expense because we consider it to be an operating expense of our business. We consider Adjusted EBITDA to be an indicator of operating performance, which we use to measure our ability to service debt, fund capital expenditures, expand our business, and return cash to stockholders. We also use Adjusted EBITDA, as do analysts, lenders, investors and others, because this measure excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. Adjusted EBITDA also excludes depreciation and amortization, as well as amortization of cloud computing software implementation costs because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating or amortizing productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We believe Adjusted EBITDA is useful as an indicator of operating performance because it allows for period-over-period comparisons of our ongoing core operations before the impact of the excluded items. Adjusted EBITDA also facilitates comparison by us, analysts, investors, and others, of results from our ongoing core operations before the impact of these items with results from other companies. Commencing in the first quarter of 2026, interest expense associated with our Warehouse Credit Facility is included as a component of Consumer financing interest expense within Financing expense. For the three and six months ended June 30, 2025, interest expense associated with our Warehouse Credit Facility is included as a component of Interest expense, net. Interest expense on our Warehouse Credit Facility was $2 million and $5 million for the three and six months ended June 30, 2026, respectively, and $3 million and $7 million for the three and six months ended June 30, 2025, respectively. Adjusted EBITDA Margin and Segment Adjusted EBITDA MarginWe evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin as indicators of operating profitability. Adjusted EBITDA margin represents Adjusted EBITDA divided by the Company’s total revenues less cost reimbursement revenues. Segment Adjusted EBITDA margin represents Segment Adjusted EBITDA divided by the applicable segment’s total revenues less cost reimbursement revenues. We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin and believe it provides useful information to investors because it allows for period-over-period comparisons of our ongoing core operations before the impact of excluded items. Adjusted Pretax Income, Adjusted Net Income Attributable to Common Stockholders, and Adjusted Earnings per Share - DilutedWe evaluate Adjusted pretax income, Adjusted net income attributable to common stockholders, and Adjusted earnings per share - diluted as indicators of operating performance. Adjusted pretax income is calculated as Adjusted EBITDA less depreciation and amortization, interest expense, net of interest income, share-based compensation expense and amortization of cloud computing software implementation costs. Adjusted net income attributable to common stockholders is calculated as Adjusted pretax income less provision for income tax adjusted for certain items and Adjusted earnings per share - diluted equals adjusted net income attributable to common stockholders divided by diluted shares. We evaluate these measures because we believe they provide useful information to investors because they allow for period-over-period comparisons of our ongoing core operations before the impact of certain non-recurring items such as impacts from asset sales, foreign currency changes, restructuring costs, litigation charges, modernization costs, transaction and integration costs, and impairments, and also facilitate the comparison of results from our ongoing core operations before these items with results from other companies. Free Cash Flow and Adjusted Free Cash FlowWe evaluate Free Cash Flow and Adjusted Free Cash Flow as liquidity measures that provide useful information to management and investors about the amount of cash provided by operating activities after capital expenditures for property and equipment and the borrowing and repayment activity related to our term securitizations, which cash can be used for, among other purposes, strategic opportunities, including acquisitions and strengthening the balance sheet. Adjusted Free Cash Flow, which reflects additional adjustments to Free Cash Flow for the impact of transaction, integration, restructuring, and modernization costs, litigation charges, insurance proceeds, impact of borrowings available from the securitization of eligible vacation ownership notes receivable, and changes in restricted cash and other items, allows for period-over-period comparisons of the cash generated by our business before the impact of these items. Analysis of Free Cash Flow and Adjusted Free Cash Flow also facilitates management’s comparison of our results with our competitors’ results. Net Corporate LeverageNet corporate leverage ratio represents gross corporate debt, less cash and cash equivalents, divided by Adjusted EBITDA realized over the last twelve months. The Company's corporate debt is composed of its corporate credit facility, senior unsecured notes, convertible notes, and finance leases. Management uses this measure to evaluate balance sheet strength, financial flexibility, and progress toward its leverage objectives. We believe net corporate leverage is an important measure of financial strength because it provides insight into our ability to invest in growth and return capital to shareholders. View source version on businesswire.com: https://www.businesswire.com/news/home/20260731144760/en/ Contacts Neal GoldnerInvestor [email protected] Cameron KlausGlobal [email protected]

This article first appeared on GuruFocus. Contract Sales: Increased 22% year-over-year to $545 million. VPG (Volume Per Guest): Grew 23% to $4,477. Owner Contract Sales: Increased 41% compared to the prior year. Adjusted EBITDA: Grew 6% year-over-year to $215 million. Adjusted Free Cash Flow: $87 million in the second quarter and $201 million year-to-date. Development Profit: Increased $14 million year-over-year to $106 million. Management and Exchange Profit: Increased $6 million year-over-year. Net Corporate Debt: $3.1 billion, with leverage at approximately 4 times. Full-Year Adjusted EBITDA Guidance: Raised to $805 million to $830 million. Full-Year Adjusted Free Cash Flow Guidance: Raised to $410 million to $460 million. Warning! GuruFocus has detected 7 Warning Signs with VAC. Is VAC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Marriott Vacations Worldwide Corp (NYSE:VAC) exceeded the high end of its guidance for both contract sales and adjusted EBITDA in Q2 2026, with contract sales increasing 22% year-over-year. The company's new commercial initiatives, including Tour Logistics and enhanced owner benefit levels, drove a 23% increase in VPG to $4,477 and a 41% surge in owner contract sales. Adjusted free cash flow improved significantly to $201 million in the first half of 2026, up from $22 million in the same period last year, driven by strong operational performance and cost discipline. Management raised its full-year 2026 adjusted EBITDA guidance by $50 million to a range of $805 million to $830 million, reflecting confidence in sustained momentum. The company is making progress on its balance sheet, reducing net corporate debt leverage to approximately 4.0 times from 4.2 times at the end of Q1 2026. New experiential platforms like 'Inner Circle presented by Aflac' and the 'Premier Vacations' incentive are showing early success, with VPGs well above average and creating a predictable pipeline for future tours. The company is expanding its hotel linkage program and partnership marketing channels to drive first-time buyer growth, leveraging the Marriott Bonvoy and World of Hyatt databases. The company faces an adverse impact on reported revenue due to 'reportability,' as contract sales made in the last 10 days of the quarter are not recognized until the rescission period ends, which negatively impacted development profit by $15 million in Q2. The sales reserve was increased to 13.4% of contract sales in the quarter, up 20 basis points year-over-year, due to a higher propensity of buyers to finance their purchases. The decision to potentially retain the New York City property for inventory trust instead of selling it reduces the expected proceeds from noncore asset dispositions, which are now targeted at $200 million by the end of 2027. While the company is seeing strong growth, it acknowledges that the second half of the year will require 25% to 29% growth in contract sales to meet the full-year guidance, which may be challenging to sustain. The company's leverage remains elevated at approximately 4 times net debt to EBITDA, and management indicates it will only be in the 'upper 3s' by year-end, limiting near-term capital return flexibility. The aggressive ramp-up of the Inner Circle event platform, targeting 50 events in 2026 and up to 1,000 in 2027, carries execution risk and could strain resources if not scaled effectively. The company's growth strategy relies heavily on upselling to existing owners, who currently own an average of only 1.3 weeks, but this may require significant additional inventory investment to avoid occupancy degradation. Q: Can you provide more color on the drivers of the strong second-quarter contract sales growth, and how should we think about the ramp of newer initiatives like Premier Vacations and Inner Circle in the context of the raised guidance? A: Mike Flaskey (President and COO) confirmed that Tour Logistics and refreshed owner benefit levels were the primary drivers of the 22% contract sales growth. The Tour Logistics algorithm matches the right salesperson with the right customer to maximize conversion propensity. While Premier Vacations and Inner Circle were only launched late in the quarter, their early indicators were excellent and above expectations. Matt Avril (CEO) added that these programs are a key catalyst for the second half of the year, supporting the company's increased guidance. Q: Given the strong momentum, what are the building blocks for normalized EBITDA and earnings power beyond this year? A: Matt Avril (CEO) highlighted that initiatives like Premier Vacations are designed to build a predictable pipeline of future tours, as guests return to existing properties. He also noted significant untapped opportunities to further penetrate the Marriott Bonvoy and World of Hyatt loyalty databases to grow tour flow. While declining to give specifics ahead of the December Investor Day, he emphasized a focus on increasing owner connections and expanding tour flow through new partnerships and better database utilization. Q: Can you share more specific trends on how business has been performing quarter-to-date in July? A: Jason Marino (CFO) confirmed that the momentum from May and June, which were the two highest sales months in company history, has continued. He noted that July's performance was largely consistent with the strong results seen in May and June, implying a continuation of the high-20s percentage growth in contract sales. Q: What is the target number for Inner Circle events in the back half of 2026 and into 2027? A: Mike Flaskey (President and COO) stated the company plans to execute about 50 events in 2026. He clarified that only 20% of the total event platform will be large headline events, with 80% being smaller regional in-market events like casino nights and murder mysteries, which also drive outsized VPGs. The goal for 2027 is to scale to a couple of hundred headline events and target 1,000 events in total for the full year. Q: Can you provide more granularity on the trends within the loan loss provision and the increase in sales reserve? A: Jason Marino (CFO) explained that the sales reserve increased to 13.4% of contract sales, up 20 basis points year-over-year, driven by a higher propensity of owners to finance their purchases. He noted that delinquencies in the sub-120-day bucket are down 54 basis points, indicating good portfolio health. The company expects a similar reserve rate in the second half of the year. Q: Can you elaborate on the hotel linkage program and its potential scale? A: Mike Flaskey (President and COO) revealed that the program is currently in only four or five hotels, a significant opportunity for growth. The strategy involves partnering with hotel owners to create a win-win scenario, generating incremental revenue for them while giving Marriott Vacations access to leisure-minded travelers to sell preview packages. Matt Avril (CEO) added that the company is refocusing on key market relationships and expects to provide more specifics at the Investor Day. Q: With the average owner holding only 1.3 weeks of ownership versus a potential of three to four weeks, is there a need to add inventory to support the upselling strategy? A: Jason Marino (CFO) stated that the system runs at about 65% owner occupancy, with the total 90% occupancy including marketing stays and transient guests. This provides ample opportunity to increase the ownership base without significantly increasing inventory. Mike Flaskey (President and COO) reinforced that the owner base is significantly underserved with tremendous runway for growth. Q: What was the rationale behind the decision to potentially retain the New York City property instead of selling it? A: Jason Marino (CFO) explained that with about $900 million of inventory on the balance sheet, representing roughly 1.7 years of supply, the company decided it was prudent to potentially add the New York property to its inventory trust to support higher contract sales. Matt Avril (CEO) added that this preserves optionality to support the growing sales pace, and the decision will be made over the next two to three months. Q: With EBITDA ramping, how are you thinking about capital allocation and the potential return to share repurchases? A: Jason Marino (CFO) stated that the company is at 4 times net debt to EBITDA and expects to be in the upper 3s by year-end based on guidance. While maintaining a disciplined approach to debt repayment, he noted that as leverage gets below 4 times, the company can be more opportunistic with share repurchases and will evaluate that strategy on a continuous basis. Q: Can you clarify the average down payment for existing owners and how it compares to history? A: Jason Marino (CFO) explained that the average down payment, including equity from previous ownership, is in the mid-to-high 20s percentage range, which is relatively unchanged. He clarified that while first-time buyers have a minimum 10% cash down requirement, existing owners upgrading their product can use their existing equity, which contributes to the higher average down payment figure. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Marriott Vacations Worldwide (VAC) came out with quarterly earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.98 per share. This compares to earnings of $1.96 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +16.67%. A quarter ago, it was expected that this timeshare company would post earnings of $1.6 per share when it actually produced earnings of $1.24, delivering a surprise of -22.5%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Marriott Vacations Worldwide, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $1.32 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.39%. This compares to year-ago revenues of $1.25 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Marriott Vacations Worldwide shares have added about 76.4% since the beginning of the year versus the S&P 500's gain of 12.8%. While Marriott Vacations Worldwide has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Marriott Vacations Worldwide was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.88 on $1.31 billion in revenues for the coming quarter and $7.32 on $5.25 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Services is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Lucky Strike Entertainment (LUCK), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +89.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Lucky Strike Entertainment's revenues are expected to be $312.74 million, up 3.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marriott Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report Lucky Strike Entertainment (LUCK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Marriott Vacations Worldwide (VAC) reported $1.32 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 5.9%. EPS of $2.31 for the same period compares to $1.96 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $1.28 billion, representing a surprise of +3.39%. The company delivered an EPS surprise of +16.67%, with the consensus EPS estimate being $1.98. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Marriott Vacations Worldwide performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Rental: $173 million compared to the $160.16 million average estimate based on six analysts. The reported number represents a change of +8.1% year over year. Revenues- Management and exchange: $225 million versus the three-analyst average estimate of $222.08 million. The reported number represents a year-over-year change of +2.7%. Revenues- Sales of vacation ownership products: $430 million compared to the $390.71 million average estimate based on three analysts. The reported number represents a change of +16.2% year over year. Revenues- Cost reimbursements: $400 million compared to the $409.68 million average estimate based on three analysts. The reported number represents a change of -1.7% year over year. Revenues- Financing: $92 million versus the three-analyst average estimate of $94.12 million. The reported number represents a year-over-year change of +2.2%. View all Key Company Metrics for Marriott Vacations Worldwide here>>> Shares of Marriott Vacations Worldwide have returned +8.1% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marriott Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research