[Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) The company reported strong Q2 2025 results, with **$69 million** net income and **$203 million** Adjusted EBITDA, reiterating its full-year outlook and modernization program progress - Management highlighted the resilience of the business model, strong first-time buyer sales, and confirmed that its modernization program is on track to deliver **$150 million to $200 million** in annualized Adjusted EBITDA benefits by the end of next year[4](index=4&type=chunk) Q2 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Net income attributable to common stockholders | $69 million | | Diluted earnings per share (EPS) | $1.77 | | Adjusted net income attributable to common stockholders | $77 million | | Adjusted diluted EPS | $1.96 | | Adjusted EBITDA | $203 million | [Segment Performance](index=1&type=section&id=Segment%20Performance) The Vacation Ownership segment's Adjusted EBITDA increased **28%** due to a prior-year adjustment, while Exchange & Third-Party Management saw declines in revenue and Adjusted EBITDA [Vacation Ownership](index=1&type=section&id=Vacation%20Ownership) Vacation Ownership revenue grew **12%** to **$775 million** and Adjusted EBITDA increased **28%** to **$231 million**, despite a **1%** dip in contract sales and **3%** VPG decline Vacation Ownership Performance - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues (ex-cost reimbursements) | $775M | $694M | +12% | | Total consolidated contract sales | $445M | $449M | -1% | | VPG | $3,631 | $3,741 | -3% | | Tours | 114,402 | 111,752 | +2% | | Segment Adjusted EBITDA* | $231M | $181M | +28% | - The **28%** increase in Segment Adjusted EBITDA was primarily driven by a **$57 million** sales reserve adjustment in the prior year, which had reduced development profit in Q2 2024[8](index=8&type=chunk) [Exchange & Third-Party Management](index=2&type=section&id=Exchange%20%26%20Third-Party%20Management) Exchange & Third-Party Management revenue decreased **10%** to **$51 million** and Adjusted EBITDA fell **7%** to **$23 million**, primarily due to lower Interval International performance Exchange & Third-Party Management Performance - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues (ex-cost reimbursements) | $51M | $55M | -10% | | Total active Interval International members | 1,507k | 1,530k | -2% | | Avg. revenue per member | $37.40 | $38.30 | -2% | | Segment Adjusted EBITDA* | $23M | $25M | -7% | [Corporate and Other](index=2&type=section&id=Corporate%20and%20Other) General and administrative costs rose **12%** year-over-year, mainly due to lower variable compensation in the prior year tied to the sales reserve adjustment - General and administrative costs increased **12%** compared to the prior year due to lower variable compensation in the prior year tied to the sales reserve adjustment[10](index=10&type=chunk) [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) The company ended Q2 with **$799 million** in liquidity, including **$205 million** cash, and total debt of **$5 billion** split between corporate and non-recourse obligations - The company ended the quarter with **$799 million** in liquidity, including **$205 million** of cash and cash equivalents and **$539 million** of available capacity under its revolving corporate credit facility[11](index=11&type=chunk) - Total debt at the end of Q2 was composed of **$3 billion** in corporate debt and **$2 billion** in non-recourse debt related to securitized vacation ownership notes receivable[12](index=12&type=chunk) [Full Year 2025 Outlook](index=2&type=section&id=Full%20Year%202025%20Outlook) The company reiterated its full-year 2025 guidance, projecting contract sales between **$1,740 million** and **$1,830 million** and Adjusted EBITDA between **$750 million** and **$780 million** Full Year 2025 Guidance (Reiterated) | Metric | 2025 Guidance Range | | :--- | :--- | | Contract sales | $1,740M to $1,830M | | Adjusted EBITDA* | $750M to $780M | | Adjusted net income* | $250M to $280M | | Adjusted diluted EPS* | $6.40 to $7.10 | | Adjusted free cash flow* | $270M to $330M | 2025 Supplemental Estimates | Metric | 2025 Guidance Range | | :--- | :--- | | Interest expense, net | $175M to $172M | | Depreciation and amortization | $150M to $148M | | Tax rate (for adjusted net income) | 34% to 33% | [Financial Schedules](index=6&type=section&id=Financial%20Schedules) [Summary Financial Information (A-1)](index=7&type=section&id=Summary%20Financial%20Information%20(A-1)) Q2 2025 saw total revenues increase **9%** to **$1.246 billion** and net income rise **89%** to **$69 million**, with Adjusted EBITDA growing **29%** to **$203 million** Q2 2025 Financial Summary (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **GAAP Measures** | | | | | Revenues | $1,246M | $1,140M | +9% | | Net Income | $69M | $37M | +89% | | Diluted EPS | $1.77 | $0.98 | +81% | | **Non-GAAP Measures** | | | | | Adjusted EBITDA* | $203M | $158M | +29% | | Adjusted Net Income* | $77M | $42M | +84% | | Adjusted Diluted EPS* | $1.96 | $1.10 | +78% | [Interim Consolidated Statements of Income (A-2)](index=8&type=section&id=Interim%20Consolidated%20Statements%20of%20Income%20(A-2)) Q2 2025 income statement shows total revenues of **$1.246 billion**, driven by increased vacation ownership product sales, resulting in **$69 million** net income Q2 2025 Income Statement Highlights (vs. Q2 2024) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sale of vacation ownership products | $370M | $309M | | Total Revenues | $1,246M | $1,140M | | Total Expenses | $1,134M | $1,038M | | Net Income Attributable to Common Stockholders | $69M | $37M | [Non-GAAP Reconciliations (A-3 to A-6)](index=9&type=section&id=Non-GAAP%20Reconciliations%20(A-3%20to%20A-6)) This section details reconciliations from GAAP to non-GAAP metrics, with Q2 2025 adjustments bridging **$69 million** GAAP Net Income to **$77 million** Adjusted Net Income and **$203 million** Adjusted EBITDA [Adjusted Net Income and EPS (A-3)](index=9&type=section&id=Adjusted%20Net%20Income%20and%20EPS%20(A-3)) GAAP net income of **$69 million** was adjusted for items like a **$34 million** restructuring charge, resulting in **$77 million** Adjusted Net Income and **$1.96** Adjusted Diluted EPS for Q2 2025 Q2 2025 Reconciliation to Adjusted Net Income | Line Item | Amount | | :--- | :--- | | Net income attributable to common stockholders (GAAP) | $69M | | Add: Provision for income taxes | $25M | | Add/Subtract: Certain items (Restructuring, Gains, etc.) | $8M | | **Adjusted pretax income*** | **$110M** | | Less: Provision for income taxes (adjusted) | ($33M) | | **Adjusted net income attributable to common stockholders*** | **$77M** | [Adjusted EBITDA (A-4 & A-5)](index=10&type=section&id=Adjusted%20EBITDA%20(A-4%20%26%20A-5)) Q2 2025 Adjusted EBITDA reached **$203 million**, reconciled from **$69 million** GAAP net income, with Vacation Ownership contributing **$231 million** and Exchange & Third-Party Management **$23 million** Q2 2025 Reconciliation to Adjusted EBITDA | Line Item | Amount | | :--- | :--- | | Net income attributable to common stockholders (GAAP) | $69M | | Add: Interest expense, net | $42M | | Add: Provision for income taxes | $25M | | Add: Depreciation and amortization | $38M | | Add/Subtract: Other adjustments | $29M | | **Adjusted EBITDA*** | **$203M** | - On a segment basis for Q2 2025, Vacation Ownership generated **$231 million** in Adjusted EBITDA, while Exchange & Third-Party Management generated **$23 million**[38](index=38&type=chunk)[39](index=39&type=chunk) [Consolidated Contract Sales to Development Profit (A-6)](index=12&type=section&id=Consolidated%20Contract%20Sales%20to%20Development%20Profit%20(A-6)) Consolidated contract sales of **$445 million** in Q2 2025 reconciled to **$92 million** Development Profit, with a **24.7%** margin, significantly up from **14.7%** in the prior year Q2 2025 Reconciliation to Development Profit | Line Item | Amount | | :--- | :--- | | Consolidated contract sales | $445M | | Adjustments (resales, reserves, etc.) | ($75M) | | **Sale of vacation ownership products** | **$370M** | | Less: Cost of products | ($41M) | | Less: Marketing and sales | ($237M) | | **Development Profit** | **$92M** | | Development Profit Margin | 24.7% | [Supplemental Information (A-7 to A-10)](index=13&type=section&id=Supplemental%20Information%20(A-7%20to%20A-10)) This section details profitability by business line and revenue sources, with Q2 2025 Development Profit more than doubling to **$92 million** and Rental Profit decreasing **16%** [Profitability by Business Line (A-7 & A-8)](index=13&type=section&id=Profitability%20by%20Business%20Line%20(A-7%20%26%20A-8)) In Q2 2025, Development Profit surged **101%** to **$92 million**, Financing Profit grew **7%** to **$53 million**, while Rental Profit declined **16%** to **$35 million** Q2 2025 Profit by Line (vs. Q2 2024) | Profit Line | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Development Profit | $92M | $45M | +101% | | Management and Exchange Profit | $98M | $96M | +3% | | Rental Profit | $35M | $42M | -16% | | Financing Profit | $53M | $50M | +7% | [Management and Exchange Revenue Breakdown (A-9 & A-10)](index=15&type=section&id=Management%20and%20Exchange%20Revenue%20Breakdown%20(A-9%20%26%20A-10)) Total Management and Exchange revenue for Q2 2025 increased **2%** to **$219 million**, driven by **5%** growth in Ancillary Revenue and **4%** in Management Fee Revenue Q2 2025 Management & Exchange Revenue (vs. Q2 2024) | Revenue Source | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Ancillary Revenue | $76M | $73M | +5% | | Management Fee Revenue | $56M | $52M | +4% | | Exchange and Other Services Revenue | $87M | $90M | -2% | | **Total** | **$219M** | **$215M** | **+2%** | [Balance Sheet and Cash Flow (A-11)](index=17&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20(A-11)) As of June 30, 2025, the company held **$205 million** in cash and **$3.197 billion** in net debt, with **$40 million** cash used in operating activities for the first six months Key Balance Sheet Items (June 30, 2025) | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $205M | | Vacation ownership notes receivable, net | $2,485M | | Debt, net | $3,197M | | Stockholders' equity | $2,484M | Summary Cash Flow - Six Months Ended June 30 | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Operating activities | ($40M) | $33M | | Investing activities | ($43M) | ($88M) | | Financing activities | $19M | ($59M) | | **Net change in cash** | **($60M)** | **($117M)** | [2025 Outlook - Adjusted Free Cash Flow (A-12)](index=18&type=section&id=2025%20Outlook%20-%20Adjusted%20Free%20Cash%20Flow%20(A-12)) The company reiterated its full-year 2025 Adjusted Free Cash Flow guidance of **$270 million** to **$330 million**, derived from an Adjusted EBITDA range of **$750 million** to **$780 million** 2025 Adjusted Free Cash Flow Outlook | Component | Low | High | | :--- | :--- | :--- | | Adjusted EBITDA* | $750M | $780M | | Cash interest | ($150M) | ($145M) | | Cash taxes | ($150M) | ($155M) | | Corporate capital expenditures | ($65M) | ($65M) | | Inventory | ($75M) | ($60M) | | Financing activity and other | ($40M) | ($25M) | | **Adjusted free cash flow*** | **$270M** | **$330M** | [Quarterly Operating Metrics (A-13)](index=19&type=section&id=Quarterly%20Operating%20Metrics%20(A-13)) Q2 2025 operating metrics show a **2%** increase in tours to **114,402**, but Volume Per Guest (VPG) declined to **$3,631**, and active Interval International members decreased to **1.507 million** Key Operating Metrics - Q2 2025 vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Consolidated contract sales | $445M | $449M | | VPG | $3,631 | $3,741 | | Tours | 114,402 | 111,752 | | Total active Interval International members | 1,507,051 | 1,530,490 | [Non-GAAP Financial Measures (A-14)](index=20&type=section&id=Non-GAAP%20Financial%20Measures%20(A-14)) This section explains the rationale for using non-GAAP financial measures like Adjusted EBITDA, Adjusted Net Income, and Adjusted Free Cash Flow for clearer period-over-period comparisons of core operations - The company reports non-GAAP financial measures to allow for period-over-period comparisons of its on-going core operations before the impact of certain excluded items[67](index=67&type=chunk) - Definitions and rationale are provided for key non-GAAP metrics including Adjusted EBITDA, Adjusted Net Income Attributable to Common Stockholders, and Adjusted Free Cash Flow[69](index=69&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)

Core Insights - Investors in the Leisure and Recreation Services sector may consider Marriott Vacations Worldwide (VAC) and Trip.com (TCOM) as potential undervalued stocks [1] Group 1: Company Performance - VAC has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while TCOM has a Zacks Rank of 4 (Sell) [3] - VAC's forward P/E ratio is 12.42, significantly lower than TCOM's forward P/E of 17.89, suggesting that VAC may be undervalued [5] - VAC has a PEG ratio of 1.82, compared to TCOM's PEG ratio of 2.67, indicating better expected earnings growth relative to its valuation [5] Group 2: Valuation Metrics - VAC's P/B ratio is 1.17, while TCOM's P/B ratio is 2.06, further supporting the notion that VAC is more attractively valued [6] - Based on various valuation metrics, VAC holds a Value grade of A, whereas TCOM has a Value grade of C, indicating that VAC is the preferred choice for value investors [6]

Core Insights - Marriott Vacations Worldwide (VAC) is positioned to continue its earnings-beat streak, having surpassed earnings estimates by an average of 14.79% in the last two quarters [1][5]. Earnings Performance - For the most recent quarter, Marriott Vacations Worldwide reported earnings of $1.56 per share, missing the expected $1.66 per share by 6.41%. In the previous quarter, the company exceeded the consensus estimate of $1.51 per share by reporting $1.86 per share, resulting in a surprise of 23.18% [2]. Earnings Estimates and Predictions - Estimates for Marriott Vacations Worldwide have been trending higher, supported by its history of earnings surprises. The stock currently has a positive Zacks Earnings ESP of +3.71%, indicating bullish sentiment among analysts regarding its near-term earnings potential [5][8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong likelihood of another earnings beat, with historical data showing that stocks with this combination beat consensus estimates nearly 70% of the time [6][8]. Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions. This metric is crucial for predicting earnings surprises [7][9]. Importance of Earnings ESP - While many companies may beat consensus EPS estimates, the Earnings ESP metric is essential for assessing the likelihood of such outcomes. A negative Earnings ESP does not necessarily indicate an earnings miss, but it reduces predictive power [9][10].

Wall Street expects a year-over-year increase in earnings on higher revenues when Marriott Vacations Worldwide (VAC) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. Price, Consensus and EPS Surprise Earnings Whisper The earnings report, which is expected to be released on August 4, might help the ...

Group 1 - The logistics sector has seen significant engagement from investors, with a focus on stock investing and macroeconomic analysis over the past decade [1] - The ASEAN and NYSE/NASDAQ markets are highlighted as key areas of investment, particularly in banks, telecommunications, logistics, and hotels [1] - The popularity of insurance companies in the Philippines has influenced investment strategies, leading to diversification beyond traditional savings in banks and properties [1] Group 2 - Initial investments were made in blue-chip companies, but the portfolio has since expanded to include various industries and market capitalizations [1] - The US market was entered in 2020, following a period of learning and engagement through a relative's trading account [1] - The use of analyses from platforms like Seeking Alpha has enhanced comparative insights between the US and Philippine markets [1]

Investors in Marriott Vacations Worldwide Corporation (VAC) need to pay close attention to the stock based on moves in the options market lately. That is because the Jul 07, 2025 $50.00 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or t ...

Company Overview - Marriott Vacations Worldwide (VAC) shares have increased by approximately 1.1% since the last earnings report, underperforming the S&P 500 [1] - Recent estimates for the company have trended downward, with a consensus estimate shift of 5.78% [2] Performance Metrics - The company has a subpar Growth Score of D, but a strong Momentum Score of A, and a Value Score of A, placing it in the top quintile for value investment strategy [3] - The aggregate VGM Score for Marriott Vacations Worldwide is B, which is relevant for investors not focused on a single strategy [3] Outlook - The overall trend of estimates for Marriott Vacations Worldwide has been downward, but the magnitude of these revisions appears promising [4] - The company holds a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the upcoming months [4] Industry Comparison - Marriott Vacations Worldwide is part of the Zacks Leisure and Recreation Services industry, where Royal Caribbean (RCL) has seen a significant gain of 16.6% over the past month [5] - Royal Caribbean reported revenues of $4 billion for the last quarter, reflecting a year-over-year increase of 7.3%, with EPS rising from $1.77 to $2.71 [5] - Royal Caribbean is projected to post earnings of $4.04 per share for the current quarter, indicating a year-over-year change of 25.9% [6]

Summary of Marriott Vacations Worldwide (VAC) FY Conference Call Company Overview - **Company**: Marriott Vacations Worldwide (VAC) - **Date of Conference**: June 03, 2025 Key Industry Insights - **Cyclicality of Timeshare Business**: Timeshare purchases are discretionary but viewed as long-term investments in future vacations. Despite macroeconomic volatility, the company reported only a 2% decline in vacation purchase growth (VPG) for first-time buyers and owners, indicating continued consumer interest in long-term vacation investments [2][12] - **Post-COVID Consumer Behavior**: There is a notable shift towards prioritizing experiences over material goods, leading to high occupancy rates of over 90% across vacation ownership resorts [4] Financial Performance and Business Model - **Recurring Revenue**: Approximately 40% of EBITDA is recurring, with growth expected in financing profits and management fees despite higher securitization rates [6] - **Sales and Promotions**: The company has implemented promotional incentives to drive demand, particularly for first-time buyers, resulting in an increase in their mix of first-time buyers compared to competitors [7][8] - **Occupancy Rates**: The company maintains high occupancy rates, with resorts expected to remain over 90% occupied throughout the year [4] Consumer Demographics and Trends - **Target Demographics**: The average household income of customers is around $275,000, with a self-reported net worth of approximately $1 million. About 60% of first-time buyers are from the millennial and Gen X demographics [16][15] - **Product Evolution**: The timeshare product has evolved to include more flexible options, appealing to younger consumers and families, which helps maintain relevance across generations [13][14] Operational Efficiency and Cost Management - **Modernization Initiatives**: The company is targeting an incremental EBITDA of $150 million to $200 million through modernization efforts, with a focus on improving operational efficiency and agility [29] - **Cost of Vacation Ownership Interest (VOI)**: The cost of VOI has been managed through a mix of repurchased inventory and new inventory, with expectations of higher product costs in the future [31][34] Credit and Delinquency Management - **Delinquency Rates**: Delinquency rates have improved due to proactive outreach and technology enhancements, with maintenance fee increases kept to a low 3% for 2025 [38][39] - **FICO Scores**: The average FICO score for originations is approximately 735, reflecting a focus on higher-quality credit risk since the acquisition of ILG in 2018 [42] Capital Allocation and Free Cash Flow - **Free Cash Flow Conversion**: Historically, free cash flow conversion has been above 50%, but is expected to be in the low 40% range this year due to higher inventory spending [49] - **Asset Sales**: The company is actively selling non-core assets, such as the Sheraton Kauai Hotel, to focus on its core business and improve cash flow [55] Conclusion Marriott Vacations Worldwide is navigating a complex market environment with a focus on enhancing customer experience, maintaining high occupancy rates, and improving operational efficiencies. The company is well-positioned to leverage its strong brand and evolving product offerings to attract a diverse customer base while managing costs and improving financial performance.

Group 1 - Marriott Vacations is a significant player in the timeshare industry, competing with Hilton Grand Vacations and Travel + Leisure [1] - Unlike its competitors, Marriott Vacations has experienced a notable boom in its business [1]

Marriott Vacations Worldwide Corporation VAC reported better-than-expected first-quarter adjusted EPS results and raised its FY25 adjusted EPS guidance on Thursday.Marriott Vacations reported quarterly earnings of $1.66 per share which beat the analyst consensus estimate of $1.49 per share. The company reported quarterly sales of $1.20 billion which missed the analyst consensus estimate of $1.21 billion.“We had a strong first quarter growing first time buyer sales and Adjusted EBITDA, illustrating the power ...