Marriott Vacations Worldwide (VAC) Q2 2026 earnings summary

Executive summary

• Revenues for Q2 2026 rose 6% year-over-year to $1.32 billion, driven by a 22% increase in contract sales and a 23% rise in volume per guest (VPG), with adjusted EBITDA reaching $215 million, up 6% year-over-year.

• Net income attributable to common stockholders was $77 million for Q2 2026, up 11% from $69 million in Q2 2025, and diluted EPS rose to $2.12 from $1.77.

• Adjusted net income grew 9% to $84 million, and adjusted diluted EPS increased 18% to $2.31.

• Owner engagement and new commercial initiatives, including the Inner Circle platform, drove record sales and operational momentum.

• Full-year guidance for contract sales, adjusted EBITDA, and adjusted free cash flow was raised.

Financial highlights

• Q2 contract sales reached $545 million, up 22% year-over-year, with North America contract sales up 27%.

• Adjusted EBITDA margin for Q2 2026 was 23.4%, down 0.9 pts year-over-year.

• Adjusted free cash flow for the first half was $201 million, up from $22 million in the prior year.

• Net corporate debt stood at $3.1 billion, with leverage reduced to 4.0x from 4.2x.

• Cash provided by operating activities improved to $76 million for the first half of 2026, compared to cash used of $40 million in the prior year.

Outlook and guidance

• Full-year 2026 contract sales guidance raised to $2,080–$2,115 million, adjusted EBITDA to $805–$830 million, and adjusted free cash flow to $410–$460 million.

• Adjusted EPS guidance raised to $8.25–$9.05 from $7.05–$7.80.

• Guidance excludes impacts from asset sales, FX changes, restructuring, litigation, modernization, and integration costs.

• Management expects continued growth in contract sales and VPG through year-end, with marketing and sales expenses as a percentage of development revenue expected to decline in the second half of 2026.

• Anticipates approximately $200 million in gross cash proceeds from non-core asset dispositions in 2026 and 2027.