Marriott Vacations Worldwide (VAC) investor relations material

Executive summary

• Q3 revenue rose 8% YoY to $1.367B; net income was $82M versus a $2M loss, and diluted EPS was $2.24 versus a $0.07 loss.

• Adjusted EBITDA increased 27% to $216M, with margin expanding to 23.4%; contract sales rose 29% to $565M and VPG increased 30% to $4,822.

• FY26 guidance midpoints rose to $2.13B in contract sales and $820M in adjusted EBITDA, inclusive of $16M in expected Hurricane Lowell lost profits.

Financial highlights

• Development revenue grew 28% YoY to $459M; development profit nearly doubled to $142M, with margin rising to 31.0% from 20.2%.

• Marketing and sales costs were 48% of contract sales, down 600 bps YoY; adjusted EBITDA margin expanded 250 bps to 23.4%.

• Nine-month revenue rose 6% to $3.944B, net income increased to $181M, and adjusted EBITDA rose 5% to $592M.

• Nine-month operating cash flow was $204M versus $22M; adjusted free cash flow was $449M versus $151M.

Outlook and guidance

• FY26 contract sales guidance is $2.120B–$2.140B and adjusted EBITDA guidance is $810M–$830M; adjusted free cash flow guidance is $410M–$430M.

• Adjusted net income guidance increased to $315M–$335M and adjusted diluted EPS to $8.65–$9.15.

• Q4 adjusted EBITDA is expected at $218M–$238M and contract sales at $599M–$619M; respective midpoints are up 23% and 33% YoY.

• Contract sales and VPG growth are expected to continue into 2027 at a slower pace; Investor Day on December 9 is planned to present longer-term strategy and a multi-year financial framework.

• FY26 guidance is non-GAAP and excludes asset sales, FX changes, restructuring, litigation, modernization, transaction and integration costs, and impairments.