Marriott Vacations Worldwide(US:VAC)2026-02-25 21:20Financial Performance - Consolidated contract sales for Q4 2025 were $458 million, a 4% decrease from $477 million in Q4 2024[5] - Full year 2025 consolidated contract sales totaled $1.8 billion, reflecting a net loss attributable to common stockholders of $308 million and a diluted loss per share of $8.84[5] - Adjusted EBITDA for Q4 2025 was $186 million, while full year 2025 adjusted EBITDA reached $751 million[5] - Total revenues for the three months ended December 31, 2025, were $1,323 million, a slight decrease of 0% compared to $1,327 million for the same period in 2024[29] - Adjusted EBITDA for the three months ended December 31, 2025, was $186 million, down 3% from $191 million in the prior year[29] - Adjusted net income attributable to common stockholders for the three months ended December 31, 2025, was $68 million, a decrease of 14% from $78 million in the prior year[36] - Adjusted earnings per share - diluted for the three months ended December 31, 2025, was $1.86, down 6% from $1.98 in the same period of 2024[36] - The company reported a net loss attributable to common stockholders of $431 million for the three months ended December 31, 2025, compared to a net income of $50 million in the same period of 2024[34] - The company’s total expenses for the three months ended December 31, 2025, were $1,774 million, an increase from $1,224 million in the prior year[34] - In fiscal year 2025, Marriott Vacations Worldwide Corporation reported a net loss of $307 million, compared to a net income of $217 million in 2024[67] Debt and Liquidity - The company had $3.5 billion of corporate debt and $2.1 billion of non-recourse debt at the end of 2025, with liquidity of $1.4 billion[10] - The company completed a securitization of $470 million of vacation ownership notes in Q4 2025, with a gross advance rate of 98%[11] - Borrowings from securitization transactions increased to $1.397 billion in 2025 from $1.324 billion in 2024[69] Shareholder Returns - The company returned $171 million to shareholders through dividends and share repurchases in 2025[5] - The company paid $110 million in dividends in 2025, slightly up from $107 million in 2024[69] Guidance and Projections - For full year 2026, the company provides guidance for contract sales between $1.745 billion and $1.815 billion, and adjusted EBITDA between $755 million and $780 million[15] - The company expects adjusted free cash flow to improve in 2026, indicating a positive outlook for future financial performance[29] - Adjusted EBITDA for fiscal year 2026 is projected to be between $755 million and $780 million, with adjusted free cash flow expected to range from $375 million to $425 million[71] Segment Performance - The segment margin for Vacation Ownership was -23.6% in Q4 2025, compared to 21.0% in Q4 2024[7] - Development profit for Q4 2025 was $94 million, an 8% decrease from $103 million in Q4 2024, with a development profit margin of 24.7%[49] - Segment Adjusted EBITDA for the Vacation Ownership segment was $221 million for Q4 2025, slightly down from $222 million in Q4 2024, with a margin of 27.9%[43] - Segment financial results for the Exchange & Third-Party Management segment showed a loss of $(165) million in Q4 2025, compared to a profit of $14 million in Q4 2024[44] Impairments and Charges - A non-cash impairment charge of $546 million was recorded in Q4 2025, impacting the financial results significantly[12] - Impairment charges for Q4 2025 amounted to $546 million, significantly higher than $28 million in Q4 2024[39] Member and Revenue Metrics - Total active Interval International members as of December 31, 2025, were 1,507,000, a decrease of 2% from 1,546,000 in the prior year[31] - Average revenue per Interval International member for the fiscal year ended December 31, 2025, was $150.51, a decrease of 2% from $154.34 in 2024[31] - Vacation ownership products revenue increased by 1% to $1,464 million for the fiscal year ended December 31, 2025, compared to $1,448 million in 2024[52] - Management and exchange profit rose by 6% to $384 million in 2025, up from $361 million in 2024[52] Cash Flow and Assets - Free cash flow decreased to $(32) million in 2025 from $177 million in 2024[61] - The company generated $28 million in net cash provided by operating activities in 2025, a significant decrease from $205 million in 2024[67] - Total assets decreased to $9,757 million in 2025 from $9,808 million in 2024[64] - Cash and cash equivalents increased to $406 million in 2025, up from $197 million in 2024[64] - Vacation ownership notes receivable increased to $2,565 million in 2025 from $2,440 million in 2024[64] - Total liabilities increased to $7,764 million in 2025 from $7,367 million in 2024[64] - Retained earnings decreased to $434 million in 2025 from $852 million in 2024[64] Cost and Expense Management - Marketing and sales expenses for Q4 2025 were $238 million, a slight decrease of 2% from $242 million in Q4 2024[49] - Financing profit for Q4 2025 was $53 million, up 10% from $47 million in Q4 2024, with a financing profit margin of 57.3%[49] - Adjusted pretax income is calculated as Adjusted EBITDA less depreciation, amortization, interest expense, share-based compensation, and cloud computing software costs[84] - Adjusted net income attributable to common stockholders is derived from Adjusted pretax income after tax provisions and certain adjustments[84] - Adjusted earnings per share - diluted equals adjusted net income attributable to common stockholders divided by diluted shares[84] - Free Cash Flow and Adjusted Free Cash Flow are evaluated as liquidity measures post capital expenditures and borrowing activities[85] - Adjusted Free Cash Flow includes adjustments for transaction, integration, restructuring, and modernization costs, among others[85] - Free Cash Flow analysis allows for period-over-period comparisons of cash generated by the business[85] - Adjusted Free Cash Flow facilitates management's comparison of results with competitors[85]