The significant EPS miss and broad earnings decline outweigh the raised contract sales guidance. Watch for Q2 2025 results to validate management's expectation of 4%-8% contract sales growth and $187M-$202M Adjusted EBITDA. The stock is likely to trade down sharply on the earnings miss and deteriorating profitability trends.
Price Chart
Executive Summary
Marriott Vacations Worldwide reported Q1 2026 results with GAAP EPS of $0.64 (down 56% YoY) and adjusted EPS of $1.24 (down 25% YoY), missing consensus estimates of $1.71. Contract sales declined 2% YoY to $411M and Adjusted EBITDA fell 16% to $161M. The company reiterated its full-year 2026 guidance, including Adjusted EBITDA of $755M-$780M, and raised its contract sales guidance range to $1.815B-$1.885B from $1.745B-$1.815B.
Key Financial Metrics
Key Facts
- GAAP diluted EPS of $0.64 vs $1.46 in prior year, a 56% decline
- Adjusted diluted EPS of $1.24 vs $1.66 in prior year, a 25% decline, missing consensus of $1.71
- Adjusted EBITDA fell 16% to $161M from $192M in prior year
- Contract sales declined 2% YoY to $411M
- Full-year 2026 Adjusted EBITDA guidance reiterated at $755M-$780M
- Full-year 2026 contract sales guidance raised to $1.815B-$1.885B from $1.745B-$1.815B
- Net income attributable to common stockholders fell 61% to $22M from $56M
- Segment Adjusted EBITDA margin in Vacation Ownership declined 440 bps to 24.8%
- Development profit margin declined 610 bps to 16.1%
- Company expects Q2 2026 contract sales to increase 4%-8% and Adjusted EBITDA of $187M-$202M
Financial Impact
Adjusted EPS of $1.24 missed consensus of $1.71 by 27.5%; Adjusted EBITDA down 16% YoY; GAAP net income down 61%
Risk Factors
- Continued decline in contract sales and tours
- Further margin compression in Vacation Ownership segment
- High leverage with $3.3B corporate debt and $2.3B non-recourse debt
- Execution risk on asset disposition strategy targeting $200M-$250M by 2027
- Restructuring and modernization costs may continue to pressure earnings
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001524358-26-000020 |
| Document: vac-20260505.htm | 0001524358-26-000020 |
| Document: 0001524358-26-000020-index-headers.html | 0001524358-26-000020 |
| Document: 0001524358-26-000020-index.html | 0001524358-26-000020 |
| Document: 0001524358-26-000020.txt | 0001524358-26-000020 |
| 8-K Data (Synthetic) | 0001524358-26-000020 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 20, 2026 9w ago | Insider Cluster | $110.28 $103.02 | ▲ +6.58% | ▲ +6.58% | $108.83 (+1.31%) |
Aug 10, 2026 11w ago | 144 | $113.24 $102.41 | ▼ −9.56% | ▼ −8.65% | $108.83 (−3.89%) |
Aug 6, 2026 11w ago | 8-K | $124.75 $99.21 | ▼ −20.47% | ▼ −21.07% | $108.83 (−12.76%) |
Jul 21, 2026 14w ago | 8-K | $97.98 $115.04 | ▲ +17.41% | ▲ +14.85% | $108.83 (+11.07%) |
May 18, 2026 23w ago | 8-K | $69.56 $93.96 | ▲ +35.09% | ▲ +34.10% | $108.83 (+56.47%) |
May 5, 2026 25w ago | 8-K | $73.72 $89.66 | ▼ −21.62% | ▼ −16.67% | $108.83 (−47.63%) |
Feb 25, 2026 34w ago | 8-K | $66.86 $70.22 | ▼ −5.02% | ▼ −11.42% | $108.83 (−62.76%) |
US Market Status
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