Hilton Grand Vacations (HGV) Q4 2025 earnings summary

Executive summary

• Achieved 10% contract sales growth for 2025, the highest since 2022, with EBITDA above guidance midpoint; Q4 2025 contract sales rose 1.8% year-over-year to $852 million, and total revenues reached $1.394 billion, up 1.5% year-over-year.

• HGV Max memberships grew 35%, driven by Bluegreen integration and new buyer demand.

• Returned $600 million to shareholders in 2025, totaling over $1 billion in two years via share repurchases; Q4 share repurchases totaled $150 million, with $339 million remaining under the program.

• Integration and operational excellence led to $100 million in cost synergies, achieved ahead of schedule; Bluegreen Vacations acquisition completed in January 2024.

• Entered 2026 with strong momentum, focusing on growth, innovation, and efficiency.

Financial highlights

• Adjusted EBITDA for 2025 reached $1.152 billion, up 4.3% year-over-year; Q4 Adjusted EBITDA was $324 million, up 12.1% year-over-year.

• Q4 total revenue before cost reimbursements grew 1% to $1.3 billion; contract sales up 2% to $852 million.

• Adjusted free cash flow for 2025 was $756 million (66% conversion), exceeding the 65%-70% target range.

• Repurchased 15 million shares in 2025, reducing float by over 20%; capital returned to shareholders in 2025 was $600 million.

• Total cash and cash equivalents at year-end were $239 million; total debt (corporate and non-recourse) was $7.2 billion.

Outlook and guidance

• 2026 Adjusted EBITDA guidance: $1.185–$1.225 billion, factoring in $25–$35 million in expense headwinds.

• Expect low single-digit contract sales growth and mid-single-digit EBITDA growth for 2026.

• Q1 2026 EBITDA expected flat to slightly down due to tough comps and expense headwinds; sequential improvement anticipated through the year.

• Free cash flow conversion for 2026 expected in the lower half of 55%-65% range.

• Plan to maintain $150 million in quarterly share repurchases without increasing leverage.