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Marriott Vacations Q4 Earnings Top Estimates, Revenues Miss, Stock Up
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Key Takeaways
Marriott Vacations reported Q4 EPS of $1.86, topping estimates, while revenues of $1.323B missed forecasts.
VAC saw contract sales fall 4% on lower tour flow and VPG, pressuring development profit and margins.
Marriott Vacations issued 2026 guidance, projecting up to $780M in EBITDA and $7.80 in adjusted EPS.
Marriott Vacations Worldwide Corporation (VAC - Free Report) reported mixed results for its fourth quarter of 2025, with adjusted earnings beating the Zacks Consensus Estimate, while revenues missed the same. Meanwhile, both metrics declined year over year.
In the fourth quarter, results at Marriott Vacations were supported by the strength of the company’s brands, high-quality resort portfolio and resilient recurring revenue base. Management noted that Adjusted EBITDA came in toward the high end of guidance, reflecting disciplined execution despite a challenging operating environment. Entering 2026, management is prioritizing profitability, cost discipline, capital allocation, inventory reduction and stronger cash flow generation while taking decisive actions to enhance long-term performance.
However, consolidated contract sales declined due to lower tour flow and a modest reduction in volume per guest, resulting in softer development profit and some margin compression during the quarter.
Following the results, the company’s shares rose 6.9% in the after-hours trading session yesterday.
Q4 Earnings & Revenue Performance
Adjusted earnings per share of $1.86 surpassed the Zacks Consensus Estimate of $1.72 by 8.1%. In the year-ago quarter, it reported an adjusted EPS of $1.98.
Marriott Vacations Worldwide Corporation Price, Consensus and EPS Surprise
Quarterly revenues of $1.323 billion missed the consensus mark of $1.325 billion by 0.1% and decreased 0.3% on a year-over-year basis.
Segment Highlights of VAC
Vacation Ownership: Revenues (excluding cost reimbursements) declined 3% year over year to $792 million. Consolidated contract sales were $458 million, down 4% year over year, as both tours and VPG declined 3% and 1%, respectively. Segment adjusted EBITDA decreased 1% to $221 million, with margin expanding 70 bps to 27.9%.
Exchange & Third-Party Management: Revenues declined 5% year over year to $47 million, reflecting lower Interval International revenues. Adjusted EBITDA fell 13% to $19 million, with margin contracting 380 bps to 40.6%.
Corporate and Other: Expenses rose $8 million compared to the prior-year quarter.
Q4 Margins & Profitability
Adjusted EBITDA fell 3% year over year to $186 million, translating to a 21.7% margin, which remained unchanged year over year.
Adjusted operating income fell to $95 million, marking a 10% decrease.
Balance Sheet & Liquidity
The company ended the fourth quarter with $1.4 billion in liquidity, comprising $406 million of cash and equivalents and $787 million in available credit.
Total inventory stood at $916 million, while debt included $3.5 billion in corporate debt and $2.1 billion in non-recourse securitized debt tied to vacation ownership notes receivable.
During the fourth quarter of 2025, the company completed its second securitization transaction of the year, issuing $470 million in vacation ownership notes. The transaction carried a gross advance rate of 98% and a blended interest rate of 4.62%.
VAC’s 2025 Highlights
Revenues for 2025 came in at $5.03 billion compared with $4.97 billion reported in 2024.
Adjusted EBITDA in 2025 came in at $751 million compared with $736 million reported in 2024.
In 2025, adjusted EPS came in at $7.16 compared with $6.72 reported in the previous year.
2026 Outlook Provided by VAC
For 2026, Marriott Vacations expects contract sales to range between $1,745 million and $1,815 million, while adjusted EBITDA is projected to be in the range of $755 million to $780 million.
Adjusted net income is anticipated to come in between $255 million and $285 million, with adjusted diluted earnings per share estimated at $7.05 to $7.80. The company also expects to generate adjusted free cash flow in the range of $375 million to $425 million.
VAC’s Zacks Rank & Key Picks
Marriott Vacations currently carries a Zacks Rank #3 (Hold).
The company delivered a trailing four-quarter earnings surprise of 173.7%, on average. APEI stock has moved up 49.6% in the past six months. The Zacks Consensus Estimate for APEI’s 2026 sales and EPS indicates an increase of 7.1% and 106.5%, respectively, from the year-ago levels.
New Oriental Education & Technology Group, Inc. (EDU - Free Report) currently flaunts a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 31.8%, on average. EDU stock has climbed 18.2% in the past six months.
The Zacks Consensus Estimate for EDU’s fiscal 2026 sales and EPS implies growth of 12% and 17.7%, respectively, from the year-ago levels.
Expedia Group, Inc. (EXPE - Free Report) currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 3%, on average. EXPE stock has edged up 1.2% in the past six months.
The Zacks Consensus Estimate for Expedia Group’s fiscal 2026 sales and EPS implies growth of 7.5% and 20.7%, respectively, from the year-ago levels.
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Marriott Vacations Q4 Earnings Top Estimates, Revenues Miss, Stock Up
Key Takeaways
Marriott Vacations Worldwide Corporation (VAC - Free Report) reported mixed results for its fourth quarter of 2025, with adjusted earnings beating the Zacks Consensus Estimate, while revenues missed the same. Meanwhile, both metrics declined year over year.
In the fourth quarter, results at Marriott Vacations were supported by the strength of the company’s brands, high-quality resort portfolio and resilient recurring revenue base. Management noted that Adjusted EBITDA came in toward the high end of guidance, reflecting disciplined execution despite a challenging operating environment. Entering 2026, management is prioritizing profitability, cost discipline, capital allocation, inventory reduction and stronger cash flow generation while taking decisive actions to enhance long-term performance.
However, consolidated contract sales declined due to lower tour flow and a modest reduction in volume per guest, resulting in softer development profit and some margin compression during the quarter.
Following the results, the company’s shares rose 6.9% in the after-hours trading session yesterday.
Q4 Earnings & Revenue Performance
Adjusted earnings per share of $1.86 surpassed the Zacks Consensus Estimate of $1.72 by 8.1%. In the year-ago quarter, it reported an adjusted EPS of $1.98.
Marriott Vacations Worldwide Corporation Price, Consensus and EPS Surprise
Marriott Vacations Worldwide Corporation price-consensus-eps-surprise-chart | Marriott Vacations Worldwide Corporation Quote
Quarterly revenues of $1.323 billion missed the consensus mark of $1.325 billion by 0.1% and decreased 0.3% on a year-over-year basis.
Segment Highlights of VAC
Vacation Ownership: Revenues (excluding cost reimbursements) declined 3% year over year to $792 million. Consolidated contract sales were $458 million, down 4% year over year, as both tours and VPG declined 3% and 1%, respectively. Segment adjusted EBITDA decreased 1% to $221 million, with margin expanding 70 bps to 27.9%.
Exchange & Third-Party Management: Revenues declined 5% year over year to $47 million, reflecting lower Interval International revenues. Adjusted EBITDA fell 13% to $19 million, with margin contracting 380 bps to 40.6%.
Corporate and Other: Expenses rose $8 million compared to the prior-year quarter.
Q4 Margins & Profitability
Adjusted EBITDA fell 3% year over year to $186 million, translating to a 21.7% margin, which remained unchanged year over year.
Adjusted operating income fell to $95 million, marking a 10% decrease.
Balance Sheet & Liquidity
The company ended the fourth quarter with $1.4 billion in liquidity, comprising $406 million of cash and equivalents and $787 million in available credit.
Total inventory stood at $916 million, while debt included $3.5 billion in corporate debt and $2.1 billion in non-recourse securitized debt tied to vacation ownership notes receivable.
During the fourth quarter of 2025, the company completed its second securitization transaction of the year, issuing $470 million in vacation ownership notes. The transaction carried a gross advance rate of 98% and a blended interest rate of 4.62%.
VAC’s 2025 Highlights
Revenues for 2025 came in at $5.03 billion compared with $4.97 billion reported in 2024.
Adjusted EBITDA in 2025 came in at $751 million compared with $736 million reported in 2024.
In 2025, adjusted EPS came in at $7.16 compared with $6.72 reported in the previous year.
2026 Outlook Provided by VAC
For 2026, Marriott Vacations expects contract sales to range between $1,745 million and $1,815 million, while adjusted EBITDA is projected to be in the range of $755 million to $780 million.
Adjusted net income is anticipated to come in between $255 million and $285 million, with adjusted diluted earnings per share estimated at $7.05 to $7.80. The company also expects to generate adjusted free cash flow in the range of $375 million to $425 million.
VAC’s Zacks Rank & Key Picks
Marriott Vacations currently carries a Zacks Rank #3 (Hold).
Here are some top-ranked stocks from the Consumer Discretionary sector:
American Public Education, Inc. (APEI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
The company delivered a trailing four-quarter earnings surprise of 173.7%, on average. APEI stock has moved up 49.6% in the past six months. The Zacks Consensus Estimate for APEI’s 2026 sales and EPS indicates an increase of 7.1% and 106.5%, respectively, from the year-ago levels.
New Oriental Education & Technology Group, Inc. (EDU - Free Report) currently flaunts a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 31.8%, on average. EDU stock has climbed 18.2% in the past six months.
The Zacks Consensus Estimate for EDU’s fiscal 2026 sales and EPS implies growth of 12% and 17.7%, respectively, from the year-ago levels.
Expedia Group, Inc. (EXPE - Free Report) currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 3%, on average. EXPE stock has edged up 1.2% in the past six months.
The Zacks Consensus Estimate for Expedia Group’s fiscal 2026 sales and EPS implies growth of 7.5% and 20.7%, respectively, from the year-ago levels.