Marriott Vacations Worldwide (VAC) Q2 2026 earnings summary

Executive summary

• Revenues for Q2 2026 rose 6% year-over-year to $1.32 billion, driven by a 22% increase in contract sales and a 23% rise in VPG, with net income up 11% to $77 million and adjusted EBITDA reaching $215 million, a 6% increase year-over-year.

• Owner engagement initiatives, new loyalty tiers, and experiential event platforms contributed to record sales and operational momentum.

• Management focused on profitability, cash flow, and operational efficiency, with modernization initiatives reducing consulting spend and targeting less than $60 million in non-recurring expenses for the remainder of 2026.

• Full-year guidance for contract sales, adjusted EBITDA, and adjusted free cash flow was raised, reflecting strong operational momentum and improved profitability.

• The business operates with iconic brands, a global footprint, and a three-point growth strategy: new initiatives to drive tours and sales, adding new owners, and enhancing profitability.

Financial highlights

• Q2 2026 contract sales rose 22% year-over-year to $545 million, with VPG up 23% to $4,477 and adjusted EBITDA margin at 23.4%.

• Net income attributable to common stockholders was $77 million for Q2 2026, up from $69 million in Q2 2025; diluted EPS rose to $2.12 from $1.77.

• Adjusted free cash flow for the first half was $201 million, up from $22 million in the prior year.

• Development profit margin for Vacation Ownership was 24.6% in Q2 2026, essentially flat year-over-year.

• Gross corporate debt, net of cash and equivalents, to Adjusted EBITDA ratio was 4.0 at June 30, 2026.

Outlook and guidance

• Full-year 2026 contract sales guidance raised to $2,080–$2,115 million, adjusted EBITDA to $805–$830 million, and adjusted free cash flow to $410–$460 million.

• Adjusted EPS guidance raised to $8.25–$9.05.

• Management expects continued growth in contract sales and VPG, with marketing and sales expenses as a percentage of development revenue expected to decline in the second half of 2026.

• Anticipates approximately $200 million in gross cash proceeds from non-core asset dispositions in 2026 and 2027.

• Guidance excludes impacts from asset sales, FX changes, restructuring, litigation, modernization, and integration costs.