Loading...
•
Sep 30
Marriott Vacations Q3 2025 Earnings Report
Marriott Vacations reported its third quarter 2025 financial results, with a net loss attributable to common stockholders of $2 million and diluted loss per share of $0.07. Adjusted net income was $66 million, and adjusted diluted EPS was $1.69. Consolidated contract sales declined 4% year-over-year.
Key Takeaways
Marriott Vacations Worldwide experienced a challenging third quarter in 2025, reporting a net loss and a decline in consolidated contract sales, VPG, and tours compared to the prior year. Despite these setbacks, the company achieved positive adjusted net income and adjusted diluted EPS, and management is implementing strategic actions to return to growth and expects significant Adjusted EBITDA benefits from its modernization program by the end of 2026.
Consolidated contract sales were $439 million, a 4% decline compared to the prior year, driven by a 1% decline in tours and a 5% decline in VPG.
The company reported a net loss attributable to common stockholders of $2 million and a diluted loss per share of $0.07.
Adjusted net income attributable to common stockholders was $66 million, and adjusted diluted earnings per share was $1.69.
Adjusted EBITDA for the quarter was $170 million, a 15% decrease from the prior year.
Management is taking concrete actions to return to growth, including realigning sales and marketing incentives, curbing third-party commercial rental activity, and implementing FICO-based screening to enhance lead quality.
Marriott Vacations
Marriott Vacations
Marriott Vacations Revenue by Segment
Revenue by Segment
Sale of vacation ownership products Revenue
CapyFin.comManagement and exchange Revenue
CapyFin.comRental Revenue
CapyFin.comFinancing Revenue
CapyFin.comCost reimbursements Revenue
CapyFin.com Forward Guidance
Marriott Vacations Worldwide has updated its full-year 2025 outlook, with revised guidance for contract sales, Adjusted EBITDA, Adjusted net income, Adjusted diluted EPS, and Adjusted free cash flow. The company expects to see a $150 million to $200 million Adjusted EBITDA benefit from its modernization program by the end of 2026.
Positive Outlook
- The company expects a $150 million to $200 million Adjusted EBITDA benefit from its modernization program by the end of 2026.
- Adjusted net income attributable to common stockholders guidance for 2025 has a lower bound of $262 million, an increase from the previous guidance's lower bound of $250 million.
- Adjusted earnings per share - diluted guidance for 2025 has a lower bound of $6.70, an increase from the previous guidance's lower bound of $6.40.
- The company is implementing concrete actions to return to growth, including realigning sales and marketing field incentives.
- FICO-based screening is being implemented to enhance lead quality and drive improved VPGs.
Challenges Ahead
- The high end of the 2025 contract sales guidance has been lowered to $1,780 million from $1,830 million.
- The Adjusted EBITDA guidance for 2025 has been lowered, with the high end now $755 million, down from $780 million.
- Adjusted free cash flow guidance for 2025 has been significantly lowered, with the high end now $270 million, down from $330 million.
- The guidance excludes impacts from asset sales, foreign currency changes, restructuring costs, litigation charges, strategic modernization initiative costs, transaction and integration costs, and impairments, which may be significant.
- The company is not satisfied with its current performance and is taking actions to address declines in contract sales, tours, and VPG.