Second Quarter 2026
Filed Aug 6, 2026Marriott Vacations Worldwide Reports Second Quarter 2026 Financial Results
Vacation Ownership contract sales, VPG, net income, adjusted net income, adjusted EPS and adjusted EBITDA increased year over year, and the Company raised full-year guidance. Exchange & Third-Party Management revenue, members and Segment Adjusted EBITDA declined, while Vacation Ownership Segment Adjusted EBITDA margin also declined.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Contract salesother | $545 million | – | 22% |
| Net income attributable to common stockholdersGAAP | $77 million | – | – |
| Diluted earnings per shareGAAP | $2.12 | – | – |
| Adjusted net income attributable to common stockholdersnon-GAAP | $84 million | – | 9% |
| Adjusted diluted earnings per sharenon-GAAP | $2.31 | – | 18% |
| Adjusted EBITDAnon-GAAP | $215 million | – | – |
| Vacation Ownership revenues excluding cost reimbursementsother | $853 million | – | 10% |
| Vacation Ownership VPGother | $4,477 | – | 23% |
| Vacation Ownership toursother | 112,721 | – | (1%) |
| Vacation Ownership segment financial results attributable to common stockholdersother | $219 million | – | 12% |
| Vacation Ownership segment marginother | 25.7% | – | 30 bps |
| Vacation Ownership Segment Adjusted EBITDAnon-GAAP | $246 million | – | 7% |
| Vacation Ownership Segment Adjusted EBITDA marginnon-GAAP | 28.9% | – | (90 bps) |
| Exchange & Third-Party Management revenues excluding cost reimbursementsother | $50 million | – | (2%) |
| Total active Interval International members (000's)other | 1,475 | – | (2%) |
| Average revenue per Interval International memberother | $36.83 | – | (2%) |
| Exchange & Third-Party Management segment financial results attributable to common stockholdersother | $17 million | – | 2% |
| Exchange & Third-Party Management segment marginother | 33.1% | – | 110 bps |
| Exchange & Third-Party Management Segment Adjusted EBITDAnon-GAAP | $22 million | – | (7%) |
| Exchange & Third-Party Management Segment Adjusted EBITDA marginnon-GAAP | 43.3% | – | (260 bps) |
| General and administrative costs increaseother | $1 million | – | – |
| Interest expense on warehouse credit facility borrowingsother | $2 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Vacation OwnershipContract 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. 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. | $853 million | – | 10% |
| Exchange & Third-Party ManagementTotal active Interval International members and average revenue per Interval International member each declined 2% year over year. | $50 million | – | (2%) |
Full Year 2026 outlook
- Tax rate31% to 29%
- NoteContract sales: $2,080 to $2,115
- NoteAdjusted EBITDA*: $805 to $830
- NoteAdjusted net income attributable to common stockholders*: $300 to $330
- NoteAdjusted earnings per share - diluted*: $8.25 to $9.05
- NoteAdjusted free cash flow*: $410 to $460
- NoteInterest expense, net: $178 to $174
- NoteDepreciation and amortization: $140 to $138
What drove it
- Vacation Ownership 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.
- Vacation Ownership Segment Adjusted EBITDA increased primarily due to higher contract sales.
- General and administrative costs increased due to higher variable compensation, partially offset by other operational savings.
Concerns
- Vacation Ownership Segment Adjusted EBITDA margin declined primarily due to higher marketing and sales costs and higher unsold maintenance fee expense, partially offset by lower product cost as a percentage of sale of vacation ownership products.
- Exchange & Third-Party Management revenue declined 2%, total active Interval International members declined 2%, and Segment Adjusted EBITDA declined 7%.
- Reported Vacation Ownership tours declined 1% due to purposeful actions to prioritize higher profitability and cash flow in the Asia-Pacific region.
- The full-year outlook excludes impacts from certain asset sales, foreign currency changes, restructuring costs, litigation charges, modernization costs, transaction and integration costs, and impairments.
What to watch
- Delivery against full-year Contract sales guidance of $2,080 to $2,115.
- Delivery against full-year Adjusted EBITDA guidance of $805 to $830.
- Vacation Ownership Segment Adjusted EBITDA margin following the 90 bps year-over-year decline.
- Interval International member levels and average revenue per member.
- Net corporate leverage ratio following the decline to 4.0 times.
Balance sheet and cash flow
- Liquidity: $928 million, including $211 million of cash and cash equivalents and $650 million of available capacity under its revolving corporate credit facility.
- Corporate debt: $3.1 billion.
- Non-recourse debt related to securitized vacation ownership notes receivable: $2.4 billion.
- Net corporate leverage ratio: 4.0 times, compared to 4.2 times at the end of the first quarter.
- Inventory: $902 million, including $229 million classified as a component of Property and equipment.
Analysis
Second-quarter performance was led by Vacation Ownership. Contract sales increased 22% to $545 million, while revenues excluding cost reimbursements increased 10% to $853 million. VPG increased 23% to $4,477, with the Company attributing the increase to higher average transaction size from product and operational enhancements. Tours were 112,721, down 1%, although tours in North America increased 3%; the Company attributed the reported decline to purposeful actions in Asia-Pacific to prioritize profitability and cash flow.
Vacation Ownership profitability increased in dollars but showed a mixed margin outcome. Segment financial results attributable to common stockholders increased 12% to $219 million and segment margin rose 30 bps to 25.7%. Segment Adjusted EBITDA increased 7% to $246 million, but its margin declined 90 bps to 28.9%. The Company cited higher marketing and sales costs and higher unsold maintenance fee expense, partly offset by lower product cost as a percentage of sale of vacation ownership products.
Exchange & Third-Party Management was weaker. Revenues excluding cost reimbursements declined 2% to $50 million, total active Interval International members declined 2% to 1,475, and average revenue per member declined 2% to $36.83. Segment financial results attributable to common stockholders increased 2% to $17 million and segment margin increased 110 bps to 33.1%, but Segment Adjusted EBITDA declined 7% to $22 million and its margin declined 260 bps to 43.3%.
At the consolidated level, GAAP net income attributable to common stockholders was $77 million versus $69 million, and diluted EPS was $2.12 versus $1.77. Adjusted net income attributable to common stockholders increased 9% to $84 million, adjusted diluted EPS increased 18% to $2.31, and Adjusted EBITDA increased to $215 million from $203 million. Liquidity was $928 million, net corporate leverage declined to 4.0 times from 4.2 times at the end of the first quarter, and the Company reported $3.1 billion of corporate debt alongside $2.4 billion of non-recourse debt.
The Company raised full-year 2026 guidance for contract sales, Adjusted EBITDA, adjusted net income attributable to common stockholders, adjusted diluted EPS and Adjusted Free Cash Flow. Current guidance calls for contract sales of $2,080 to $2,115, Adjusted EBITDA of $805 to $830, adjusted net income attributable to common stockholders of $300 to $330, adjusted diluted EPS of $8.25 to $9.05, and Adjusted Free Cash Flow of $410 to $460. The outlook is non-GAAP only and excludes several potentially significant items that the Company cannot forecast with sufficient accuracy.
Management, verbatim
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.
Matt Avril, Chief Executive Officer
Not in the filing
stated, not guessed- Total consolidated revenue.
- Gross profit and gross margin.
- GAAP operating income or loss.
- Non-GAAP operating income or loss.
- Operating cash flow.
- GAAP free cash flow.
- Capital-return activity, including share repurchases and dividends.
- Prior-quarter values for reported operating metrics, except the net corporate leverage ratio comparison.
- Prior-year adjusted diluted earnings per share value.
- Prior-year adjusted net income attributable to common stockholders value.
- Previous-release outlook for comparison against reported results.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.