ORLANDO, Fla.--(BUSINESS WIRE)--Marriott Vacations Worldwide Corporation (NYSE: VAC) ("MVW†or the "Company†) announced today the completion of a $470 million securitization of vacation ownership loans, offered to qualified institutional buyers in the United States pursuant to Rule 144A and outside the United States in accordance with Regulation S under the Securities Act of 1933, as amended. The notes were issued by MVW 2025-2 LLC (the "Issuer†). The notes have a blended interest rate of 4.62%. ...

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Financial Performance - Total revenues for Q3 2025 were $1,263 million, a decrease of 3.2% compared to $1,305 million in Q3 2024[184]. - The net loss attributable to common stockholders for Q3 2025 was $2 million, compared to a net income of $84 million in Q3 2024[184]. - Total revenues for the nine months ended September 30, 2025, increased by $69 million (2%) to $3,709 million compared to $3,640 million for the same period in 2024[186]. - The company reported a net loss attributable to common stockholders of $(155) million in Q3 2025, compared to $(136) million in Q3 2024[240]. - The company reported net income attributable to common stockholders of $123 million for the nine months ended September 30, 2025[280]. Vacation Ownership Sales - Vacation ownership product sales decreased to $358 million in Q3 2025 from $387 million in Q3 2024, reflecting a decline of 7.5%[184]. - Total contract sales for Vacation Ownership decreased by $21 million (4%) to $442 million in Q3 2025 compared to $463 million in Q3 2024[185]. - Sale of vacation ownership products decreased to $358 million in Q3 2025, down 8% from $387 million in Q3 2024[204]. - Contract sales for the third quarter of 2025 were $439 million, a decrease of 4% compared to $459 million in Q3 2024[204]. - Sale of vacation ownership products for the first three quarters of 2025 increased by 3% to $1,083 million compared to $1,048 million in the same period of 2024[209]. Operational Efficiency and Cost Management - The company expects to achieve annualized benefits of $150 million to $200 million from its Strategic Business Operations initiatives by the end of 2026[178]. - Annual cost savings of approximately $20 million are expected from the reorganization of corporate overhead in human resources and finance[179]. - The company is focused on modernizing processes and systems to drive operational efficiencies and revenue growth[178]. - Modernization expenses amounted to $51 million in Q3 2025, with a total of $94 million for the first three quarters, reflecting significant investment in operational efficiencies[243][244]. Revenue and Profit Margins - Adjusted EBITDA for Q3 2025 was $170 million, a decrease of $30 million (15%) compared to $200 million in Q3 2024[194]. - The Adjusted EBITDA margin for Q3 2025 was 20.9%, down 3.2 percentage points from 24.1% in Q3 2024[194]. - The segment adjusted EBITDA margin for Vacation Ownership was 26.1% for Q3 2025, down from 30.2% in Q3 2024, a decline of 4.1 percentage points[203]. - The average revenue per member declined by $1.02 (3%) to $37.91 in Q3 2025 from $38.93 in Q3 2024[185]. Financing and Debt Management - Financing revenue increased to $90 million in Q3 2025, up from $87 million in Q3 2024, representing a growth of 3.4%[184]. - The company had a corporate debt to Adjusted EBITDA ratio of 4.1 as of September 30, 2025, exceeding the targeted range of 2.5 to 3.0[258]. - The company issued $575 million in senior unsecured notes during the third quarter of 2025, receiving net proceeds of $567 million[266]. - Total material cash requirements amount to $8,038 million, with $4,085 million attributed to debt obligations[277]. Member Engagement and Active Membership - The average revenue per member for the Interval Network is a key metric for measuring member engagement[183]. - Total active members at the end of the period decreased by 46, or 3%, to 1,499,000 in Q3 2025 from 1,545,000 in Q3 2024[185]. Tax and Valuation Adjustments - The effective tax rate for Q3 2025 was impacted by a $25 million increase in valuation allowances, with a provision for income taxes of $(3) million compared to $(34) million in Q3 2024[249][250]. - For the nine months ended September 30, 2025, there was a $25 million increase in tax adjustments due to changes in valuation allowances, partially offset by $13 million in tax benefits from restructuring activities[253]. Other Financial Metrics - The company recorded litigation charges of $3 million in Q3 2025, up from $2 million in Q3 2024[201]. - The company recorded a non-cash impairment charge of $31 million in the third quarter of 2025 related to completed vacation ownership units and land[226]. - The company recorded a $2 million impairment related to an operating lease during the first three quarters of 2025[238]. - The company recorded $2 million of foreign currency translation gains in Q3 2025, while the first three quarters saw $23 million in such gains[247][248].

Company Performance - Marriott Vacations reported a revenue decline of 3.2% year-over-year to $1.26 billion, missing analyst estimates of $1.32 billion [2] - Adjusted EBITDA was $170 million, nearly 8% below consensus expectations, raising concerns about profitability [2] - The company’s adjusted earnings per share of $1.69 exceeded expectations by 5.6%, but the market focused on revenue weakness and a decline in conducted tours [2] Market Reaction - Shares of Marriott Vacations fell 20.8% in the morning session following the mixed third-quarter results [1] - The stock has shown volatility, with 14 moves greater than 5% over the past year, indicating significant market impact from this news [4] - The previous notable stock movement occurred 27 days prior, when shares dropped 3.2% due to concerns over trade relations with China [4] Industry Context - The leisure industry, which includes travel, entertainment, and hospitality, is sensitive to economic sentiment and discretionary spending [5] - Recent comments from President Trump regarding China have increased market volatility, particularly affecting leisure stocks [5] - China's new export controls on rare earth materials, essential for high-tech goods, have raised concerns about economic headwinds and potential impacts on consumer spending [5]

Business Overview - The company operates with iconic brands, approximately 120 resorts, and serves around 700,000 owner families[9] - The company's business model includes timeshare and exchange products, multiple brands, perpetual sales centers, and a capital-efficient development model[10] - Approximately 40% of the company's Adjusted EBITDA comes from recurring sources[12, 75] Financial Performance and Guidance - In 2024, the Segment Adjusted EBITDA for Exchange and Third-Party Management was $102 million, with a 46% margin[20] - The company anticipates $150 million to $200 million in annualized Adjusted EBITDA benefits by 2026 through strategic modernization[27, 75] - The company's full year 2025 guidance includes contract sales of $1,760 million to $1,780 million, Adjusted EBITDA of $740 million to $755 million, and Adjusted Free Cash Flow of $235 million to $270 million[70] Growth Strategies - The company aims to drive vacation ownership growth by leveraging strong license relationships[45] - The company is investing in digital capabilities to drive sales and efficiency, with 49% of 2024 tour packages sold digitally and 14% of 2024 contract sales sold non-traditionally[48, 49] - The company is focused on adding first-time buyers, with approximately 95,000 first-time buyers added in the last 5 years[57]

Core Insights - Marriott Vacations Worldwide reported $1.26 billion in revenue for Q3 2025, a year-over-year decline of 3.2% and a surprise of -5.2% compared to the Zacks Consensus Estimate of $1.33 billion [1] - The EPS for the same quarter was $1.69, down from $1.80 a year ago, with a surprise of +3.05% over the consensus estimate of $1.64 [1] Revenue Breakdown - Cost reimbursements revenue was $451 million, below the average estimate of $491 million, representing a year-over-year decline of 4.7% [4] - Rental revenue was $150 million, slightly below the average estimate of $157.8 million, with a year-over-year change of -0.7% [4] - Management and exchange revenue was $214 million, exceeding the average estimate of $211.67 million, showing a year-over-year increase of 3.4% [4] - Sales of vacation ownership products generated $358 million, below the average estimate of $376.71 million, reflecting a year-over-year decline of 7.5% [4] - Financing revenue was $90 million, in line with the average estimate of $90.22 million, with a year-over-year increase of 3.5% [4] Stock Performance - Shares of Marriott Vacations Worldwide have returned +2.4% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Marriott Vacations Worldwide reported quarterly earnings of $1.69 per share, exceeding the Zacks Consensus Estimate of $1.64 per share, but down from $1.80 per share a year ago, indicating an earnings surprise of +3.05% [1] - The company generated revenues of $1.26 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 5.2% and down from $1.31 billion year-over-year [2] - The stock has underperformed, losing approximately 26.2% since the beginning of the year, while the S&P 500 has gained 15.1% [3] Earnings Performance - Over the last four quarters, Marriott Vacations Worldwide has surpassed consensus EPS estimates four times [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $1.72 on revenues of $1.35 billion, and for the current fiscal year, it is $6.75 on revenues of $5.12 billion [7] Market Outlook - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] - The estimate revisions trend for the company was unfavorable ahead of the earnings release, which may impact future stock movements [5][6] - The Leisure and Recreation Services industry, to which the company belongs, is currently in the top 31% of Zacks industries, suggesting a favorable industry outlook [8]

Financial Performance - Contract sales for Q3 2025 were $439 million, a decline of 4% compared to $459 million in Q3 2024[4][9] - Revenues excluding cost reimbursements decreased by 2% to $748 million from $766 million year-over-year[7] - The segment margin fell to 18.4%, down 840 basis points from 26.8% in the prior year[7] - Adjusted EBITDA for the quarter was $170 million, a 16% decrease from $232 million in Q3 2024[8][9] - Total revenues for Q3 2025 were $1,263 million, a decrease of 3% compared to $1,305 million in Q3 2024[30] - Adjusted EBITDA for Q3 2025 was $170 million, down 15% from $200 million in Q3 2024[30] - Adjusted net income attributable to common stockholders for Q3 2025 was $66 million, an 8% decrease from $73 million in Q3 2024[37] - Adjusted net income attributable to common stockholders is projected to be between $262 million and $279 million for 2025[15] - Adjusted EBITDA for the nine months ended September 30, 2025, was $565 million, a 4% increase from $545 million in the same period of 2024[53] Liquidity and Cash Flow - The company ended Q3 2025 with $1,428 million in liquidity, including $474 million in cash and cash equivalents[12] - Cash provided by operating activities for the nine months ended September 30, 2025, was $22 million, down from $105 million in the same period of 2024[63] - Cash and cash equivalents as of September 30, 2025, were $474 million, significantly up from $197 million at the end of 2024[61] - Adjusted free cash flow guidance for fiscal year 2025 is projected to be between $235 million and $270 million[64] Sales and Revenue Trends - Full-year 2025 contract sales guidance is set between $1,760 million and $1,780 million, revised from $1,740 million to $1,830 million[15] - Average revenue per interval for Q3 2025 was $37.91, down 3% from $38.93 in Q3 2024[32] - The average revenue per Interval International member for 2025 is projected to be $37.91, a decrease from $39.15 in 2023[68] - Revenue from vacation ownership products for the nine months ended September 30, 2025, was $1,083 million, a 3% increase from $1,048 million in the same period of 2024[53] - Total management and exchange revenue for the nine months ended September 30, 2025, was $648 million, a 2% increase from $633 million in the prior year[59] Expenses and Losses - The company reported a net loss attributable to common stockholders of $2 million, resulting in a diluted loss per share of $0.07[8] - Total expenses for Q3 2025 were $1,230 million, an increase from $1,157 million in Q3 2024[35] - Net loss attributable to common stockholders for Q3 2025 was $(2) million, a decline of 103% from $84 million in Q3 2024[30] - Development profit for Q3 2025 was $72 million, down 32% from $105 million in Q3 2024, resulting in a development profit margin of 20.2%[50] - Rental profit for the nine months ended September 30, 2025, was $102 million, a 21% decrease from $131 million in the same period of 2024[53] Strategic Initiatives - The company expects a $150 million to $200 million Adjusted EBITDA benefit from its modernization program by the end of 2026[5] - The company plans to continue focusing on modernization and restructuring efforts, with $53 million allocated for modernization in Q3 2025[40] - The company plans to continue focusing on strategic opportunities, including acquisitions and strengthening the balance sheet[80] Member and Market Metrics - The number of international members remained stable at 1,499, a 3% decrease from 1,545 in Q3 2024[32] - Total active Interval International members decreased to 1,545,638 in December 2024, down from 1,563,849 in December 2023, a decline of 1.2%[68] - Tours for 2024 totaled 432,716, an increase from 405,825 in 2023, representing a growth of 6.6%[68] Impairments and Adjustments - The company recorded a $31 million impairment charge in both Q3 2025 and Q3 2024[44] - The company began excluding amortization of cloud computing software implementation costs from Adjusted EBITDA for comparability purposes[75] - Adjusted EBITDA is used as an indicator of operating performance, reflecting the company's ability to service debt and fund capital expenditures[77] - Free Cash Flow and Adjusted Free Cash Flow are evaluated as liquidity measures, providing insights into cash generated after capital expenditures[80] - Adjusted development profit margin is calculated by dividing Adjusted development profit by revenues from the Sale of vacation ownership products[73]

Core Insights - Ucore Rare Metals Inc. has signed a Memorandum of Understanding (MOU) with Vacuumschmelze GmbH & Co. KG and eVAC Magnetics LLC to develop a collaborative supply agreement for high-purity rare earth oxides (REOs) [1][4][6] - The partnership aims to secure a stable supply of REOs critical for various industries, including automotive, industrial automation, and defense systems [3][6][7] - Ucore's RapidSX™ refining technology will play a vital role in producing the necessary REOs for VAC and eVAC's operations [6][10] Company Overview - Ucore is advancing North American rare earth separation and refining through its Louisiana Strategic Metals Complex and commercialization of RapidSX™ separation technology [10] - The company received a follow-on award of US$18.4 million from the U.S. Department of Defense in 2025, bringing total funding under its current agreement to US$22.4 million [10] Strategic Importance - The collaboration is expected to enhance the strategic position of VAC and eVAC in the global rare earth supply chain, ensuring long-term access to critical raw materials [7] - The MOU was signed at the G7 Energy and Environment Minister's Summit, highlighting its significance on an international platform [8] Future Plans - The parties will define the structure and commercial terms for a definitive long-term agreement within nine months, supported by regular progress reviews [9]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Marriott Vacations Worldwide despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected on November 5, with a consensus EPS estimate of $1.64, reflecting an 8.9% decrease year-over-year. Revenues are projected at $1.33 billion, a 2.1% increase from the previous year [3][12]. Estimate Revisions - The consensus EPS estimate has been revised 0.87% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +0.80% for Marriott Vacations Worldwide, suggesting a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, the company exceeded the expected EPS of $1.72 by delivering $1.96, resulting in a surprise of +13.95%. Over the last four quarters, the company has consistently beaten consensus EPS estimates [13][14]. Investment Considerations - While a potential earnings beat is a positive indicator, other factors may influence stock performance, making it essential to consider the broader context [15][17].