Hilton Grand Vacations (HGV) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenues for Q3 2025 were $1.300 billion, impacted by a net deferral of $99 million[4] - Net income attributable to stockholders was $25 million, with diluted EPS at $0.28, while adjusted net income was $54 million and adjusted diluted EPS was $0.60[4] - Adjusted EBITDA for Q3 2025 was $249 million, down 18.9% from $307 million in Q3 2024[72] - Net income attributable to stockholders for Q3 2025 was $25 million, down from $29 million in Q3 2024[65] - Net income for Q3 2025 was $30 million, a decrease of 6.25% from $32 million in Q3 2024[67] - Total revenues for Q3 2025 were $1.3 billion, slightly down from $1.306 billion in Q3 2024, representing a decrease of 0.46%[71] - Adjusted net income attributable to stockholders for Q3 2025 was $54 million, a decrease of 20.6% from $68 million in Q3 2024[88] - Total net income for the nine months ended September 30, 2025, was $46 million, compared to $34 million in the same period of 2024, indicating a growth of 35.3%[88] Revenue Segments - Real Estate Sales and Financing segment revenues decreased by $25 million to $789 million, with Adjusted EBITDA at $184 million and a profit margin of 23.3%[9] - Financing revenues increased by $23 million, driven by a higher average balance of the originated portfolio[12] - Resort Operations and Club Management segment revenue increased by $23 million to $406 million, with Adjusted EBITDA at $159 million and a profit margin of 39.2%[13] - Real estate sales and financing revenue for Q3 2025 was $789 million, a decrease of 3.07% from $814 million in Q3 2024[71] - Rental and ancillary services revenues for the three months ended September 30, 2025, were $186 million, slightly up from $183 million in 2024, indicating a growth of 1.6%[83] Cash Flow and Expenses - Free cash flow was $(4) million for Q3 2025, compared to $59 million for the same period in the prior year[19] - The company reported a net cash provided by operating activities of $34 million for Q3 2025, down from $91 million in Q3 2024[69] - Interest expense for Q3 2025 was $79 million, slightly down from $84 million in Q3 2024[89] - General and administrative expenses increased to $58 million in Q3 2025 from $44 million in Q3 2024, marking a rise of 31.8%[89] - The company incurred acquisition and integration-related expenses totaling $237 million, highlighting ongoing strategic investments[26] Market Metrics - The estimated value of the total contract sales pipeline is $14.1 billion, with $10.7 billion related to currently available inventory[14] - Contract sales, an important operational metric, reflect the overall volume and pace of sales, with a focus on fee-for-service, just-in-time, developed, and points-based products[57] - Net Owner Growth (NOG) represents the year-over-year change in membership, a critical metric for assessing customer retention and growth[59] - Volume per guest (VPG) measures sales effectiveness, calculated by dividing contract sales by tour flow, indicating the average transaction price and closing rate[60] - Total members as of September 30, 2025, were 721,488, a slight decrease from 721,504 in 2024, showing a net owner growth decline of 16 members[81] Asset and Liability Overview - Total cash and cash equivalents were $215 million, with total corporate debt at $4.7 billion and a weighted average interest rate of 5.980%[16] - Total assets as of September 30, 2025, were $11,680 million, an increase from $11,442 million at the end of 2024[64] - Total liabilities increased to $10,139 million as of September 30, 2025, compared to $9,547 million at the end of 2024[64] Yearly Performance Highlights - Adjusted EBITDA for the year reached $1,094 million, reflecting a strong operational performance despite challenges[26] - Adjusted EBITDA attributable to stockholders was $1,078 million for the year, showcasing effective cost management strategies[26] - Interest expense for the year amounted to $329 million, indicating a slight increase from the previous year[26] - The company reported a depreciation and amortization expense of $268 million for the year, consistent with prior periods[26] - The company anticipates future revenues and direct expenses related to sales of VOIs under construction, which may impact financial results[36]