Hilton Grand Vacations (HGV) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 results with total contract sales reaching $721 million, up 14% year-over-year, driven by operational improvements, integration initiatives, and a member count of 725,000.

• Total revenues were $1.148 billion, slightly down from $1.156 billion year-over-year, impacted by a $126 million net deferral related to projects under construction.

• Net loss attributable to stockholders was $(17) million, compared to $(4) million in the prior year; adjusted net income attributable to stockholders was $9 million, down from $99 million.

• Adjusted EBITDA attributable to stockholders was $180 million, down from $273 million year-over-year, affected by a $68 million net deferral and higher sales and marketing expenses.

• Proactive measures implemented to insulate business from macroeconomic volatility, leveraging a diversified business model and direct marketing approach.

Financial highlights

• Contract sales rose 14.3% to $721 million, driven by higher VPG and new inventory; VPG grew 15% to over $4,100, with owner channel VPG up 21% year-over-year.

• Total revenue (excluding cost reimbursements) increased 11% to $1.1 billion; adjusted free cash flow conversion rate reached 75% of adjusted EBITDA for Q1 2025.

• Diluted EPS was $(0.17), compared to $(0.04) year-over-year; adjusted diluted EPS was $0.09, down from $0.95.

• Free cash flow was $6 million, up from $(19) million; adjusted free cash flow was $185 million, up from $(374) million.

• Repurchased 5.7 million shares YTD for $210 million, representing 6% of shares outstanding.

Outlook and guidance

• Maintained 2025 adjusted EBITDA guidance of $1.125–$1.165 billion, excluding deferrals and recognitions, assuming stable macro environment.

• Expect adjusted EBITDA to free cash flow conversion rate of 65%-70% for the full year.

• Management expects continued integration of Bluegreen properties and further rebranding to Hilton Grand Vacations standards in 2025.

• Inventory supply visibility remains strong, with $13.2 billion in available inventory at current pricing, and 28% from capital-efficient arrangements.

• Anticipate mid to higher single-digit VPG growth for the remainder of the year, assuming current conditions persist.