Marriott Vacations Worldwide (VAC) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 contract sales declined 4% year-over-year to $458 million, with VPG down 60 basis points and Adjusted EBITDA at $186 million; full-year contract sales reached $1.8 billion, down 3% from the prior year, with Adjusted EBITDA at $751 million.

• Net loss attributable to common stockholders was $431 million in Q4 and $308 million for the full year, driven by $546 million and $577 million in non-cash impairment charges and other one-time costs, respectively.

• Leadership changes include the permanent appointment of Matt Avril as CEO and the hiring of Mike Flaskey as President and COO to drive operational effectiveness.

• Strategic focus is on improving profitability, free cash flow, and returning to growth, with actions taken to reduce costs, optimize inventory, and monetize non-core assets.

• The company is in the early stages of a significant transition, expecting a bumpy first half of the year but improvements in the second half.

• Unique and resilient business model leverages iconic brands and a large customer base, with a three-point growth strategy: optimize VPG and lower costs, add new owners, and reduce inventory.

Financial highlights

• Q4 revenues excluding cost reimbursements were $792 million, down 3% year-over-year; full year revenues excluding cost reimbursements were $3.33 billion, up 2%.

• Q4 Adjusted EBITDA was $186 million; full-year Adjusted EBITDA was $751 million.

• Adjusted EBITDA margin for Q4 was 21.7%; for the full year, 22.5%.

• System-wide occupancy ran nearly 90% in Q4; high occupancy rates and resilient high-margin revenue streams in management, exchange, and financing.

• Contract sales reached $1,762 million in 2025, up 1% year-over-year.

• 40% of Adjusted EBITDA comes from recurring revenue sources.

Outlook and guidance

• 2026 guidance: contract sales of $1.745–$1.815 billion, adjusted EBITDA of $755–$780 million, adjusted net income of $255–$285 million, adjusted diluted EPS of $7.05–$7.80, and adjusted free cash flow of $375–$425 million.

• Guidance excludes impacts from asset sales, FX, restructuring, litigation, modernization, integration, and impairments; presented only on a non-GAAP basis.

• Tours expected to decline mid-single digits, mainly due to a 30% reduction in Asia-Pacific business.

• Inventory spending projected at $160 million–$170 million, including $55 million for prior commitments.

• Additional $200 million–$250 million in asset sales targeted over the next two years.