Marriot Vacations Worldwide

Marriott Vacations Worldwide raised its full-year adjusted free cash flow outlook to $410-$460 million from $375-$425 million previously, as stronger sales execution and cost discipline drove a recovery in growth and profitability. In the second quarter of 2026, contract sales increased 22% year over year to $545 million, while VPG rose 23% to $4,477, and owner contract sales climbed 41% on a 33% rise in owner VPG. Adjusted EBITDA rose to $215 million from $203 million a year earlier, development profit increased $14 million to $106 million, and marketing and sales expense as a percentage of contract sales improved 150 basis points year over year and 700 basis points sequentially. Adjusted free cash flow totaled $87 million in the second quarter and $201 million in the first half of 2026, compared with $22 million in the prior-year period, and the company ended the quarter with about $928 million in liquidity, including $211 million of cash and $650 million of available capacity under its revolving corporate credit facility. Net corporate leverage declined to 4.0 times from 4.2 times at the end of the first quarter, and management is targeting $200 million of noncore asset-sale proceeds by the end of 2027, while expecting inventory spending in Asia-Pacific to decline by $35 million this year.

Marriott Vacations reported second-quarter results that beat Wall Street expectations and raised its full-year guidance. Revenue came in at $1.32 billion versus analyst estimates of $1.29 billion, a 5.9% year-over-year increase, while adjusted EPS of $2.31 beat estimates of $2.00 by 15.4%. Adjusted EBITDA was $215 million, above the $195.9 million consensus, and management lifted full-year adjusted EPS guidance to $8.65 at the midpoint, a 16.5% increase, with EBITDA guidance of $817.5 million also above analyst estimates of $761.5 million. CEO Matthew Avril attributed the strong performance to new commercial strategies, including data-driven Tour Logistics and enhanced owner benefits, which drove a 22% rise in contract sales. During the earnings call, analysts questioned management on the sustainability of growth, the ramp-up of Inner Circle and Premier Vacations programs, and hotel linkage marketing expansion, with President Mike Flaskey noting plans for 50 headline events in 2026 and a ramp to 1,000 events annually.

Marriott Vacations reported first-quarter revenues of $1.26 billion, up 4.8% year on year and exceeding analysts' expectations by 4.6%, though adjusted operating income and EPS significantly missed estimates. The company expects second-quarter contract sales to increase 4% to 8% and adjusted EBITDA between $187 million and $202 million. Among the 19 consumer discretionary travel and vacation providers tracked, the group overall beat revenue consensus by 1.6% but provided next-quarter revenue guidance 8.1% below expectations. Sabre posted the strongest quarter with revenues of $760.3 million, up 8.3% year on year and beating estimates by 4.4%, while Delta Air Lines reported revenues of $15.85 billion, up 12.9% year on year but missed EPS estimates and guidance. Marriott Vacations shares have risen 42.2% since the report.