Marriott Vacations Raises Outlook as Contract Sales Rebound
The company lifted the midpoint of its 2026 contract-sales forecast by $247.5 million.
Marriott Vacations Worldwide (VAC), the vacation-ownership company, reported a 22% increase in second-quarter contract sales as pricing gains helped reverse the prior quarter’s decline.
Contract sales reached $545 million, up 33% sequentially from $411 million in the first quarter. That marked a turn from the first quarter, when sales fell 2% from a year earlier and 10% sequentially.
Consolidated revenue rose 6% to $1.32 billion, while revenue excluding cost reimbursements increased 10% to $920 million. Diluted earnings rose 20% to $2.12 a share, aided by an 8% reduction in diluted shares.
Adjusted earnings also recovered from the first-quarter pullback. Adjusted net income increased 9% to $84 million and adjusted earnings rose 18% to $2.31 a share, reversing first-quarter declines of 34% and 25%, respectively. Adjusted EBITDA increased 6% to $215 million and climbed 34% sequentially.
Vacation Ownership supplied the rebound. Revenue excluding cost reimbursements increased 10% to $853 million after holding flat in the first quarter, while adjusted EBITDA rose 7% to $246 million following a 15% first-quarter decline. Volume per guest increased 23% to $4,477 as reported tours slipped 1%, reflecting the company’s reduction of lower-profit activity in Asia-Pacific.
Profitability remained below year-earlier levels despite the sequential recovery. Vacation Ownership’s adjusted EBITDA margin fell 90 basis points to 28.9%, as higher marketing and sales costs and unsold-maintenance-fee expense outweighed lower product costs as a share of sales. Financing profit declined 5% and its margin contracted 450 basis points as financing expense grew faster than revenue.
The company now expects 2026 contract sales of $2.08 billion to $2.115 billion, up from its previous range of $1.815 billion to $1.885 billion. It also forecasts adjusted EBITDA of $805 million to $830 million, raising both ends by $50 million, and adjusted earnings of $8.25 to $9.05 a share.
Marriott Vacations also raised its adjusted free-cash-flow forecast by $35 million at both ends, to $410 million to $460 million. Net corporate leverage ended the quarter at 4.0 times, down from 4.2 times three months earlier.