Marriot Vacations Worldwide Stock Earnings Reports

Marriott Vacations Worldwide reported Q3 2025 contract sales down 4% year-over-year, driven primarily by weakness in Orlando and Maui; excluding those markets, system-wide contract sales were roughly flat. Management has implemented a set of near- and medium-term initiatives to restore growth: (1) revised sales and marketing incentive plans to better align compensation with long‑term objectives and improve retention/recruiting of high‑performers, (2) efforts to curb a small subset of owners running commercial rental activity (to free inventory for owners and boost owner arrivals, tours and VPG), and (3) use of FICO scoring in marketing to improve VPGs and credit outcomes. The company is progressing on a modernization program targeting $150–$200 million of run‑rate EBITDA benefit by end of 2026 (including an August HR/Finance reorganization expected to save $20 million annually). At quarter end the company had ~270,000 packages in the pipeline, loan delinquencies down year-over-year, $1.4 billion of liquidity, and leverage of 4.1x after issuing $575 million of 6.5% senior notes. Updated full‑year outlook: contract sales now expected to decline 2–3%, adjusted EBITDA $740–$755 million, and adjusted free cash flow $235–$270 million (guidance excludes ~ $100 million of one‑time modernization cash costs). Rental profit and development profit were notable headwinds in the quarter (rental profit down due to higher unsold maintenance fees and lower RevPAR expectations); management expects some elevated unsold maintenance costs into 2026 tied to mix and reacquired inventory, and will provide more detail at Investor Day on December 17.