Yahoo Finance

• Revenue: Total company revenue increased year-over-year.

• Adjusted EBITDA: Increased 3% to $192 million with strong margins at 23%.

• First-Time Buyer Sales: Increased 6% year-over-year.

• Contract Sales: Declined 2% compared to the prior year.

• Development Profit: Increased 4% with a 70 basis point increase in development margin.

• Rental Profit: Declined 10% year-over-year to $46 million.

• Management Exchange Profit: Increased 4% to $98 million.

• Financing Profit: Increased 6% driven by higher interest income.

• Corporate G&A: Decreased 3% compared to last year.

• Liquidity: Ended the quarter with $865 million in liquidity.

• Leverage: 4.1 times at the end of the quarter; first lien net leverage at 1.1 times.

• Share Buybacks: $91 million returned to shareholders; 1.4% of outstanding shares repurchased.

• Dividends: Paid two dividends totaling $55 million.

• Adjusted Free Cash Flow: Expected to be in the $270 million to $330 million range for the year.

• Warning! GuruFocus has detected 4 Warning Signs with VAC.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Marriott Vacations Worldwide Corp (NYSE:VAC) reported a 6% increase in first-time buyer sales, indicating strong demand and long-term health of the system.

• The company achieved a 3% year-over-year increase in adjusted EBITDA, demonstrating financial growth despite a challenging economic environment.

• Modernization initiatives are on track to deliver $150 million to $200 million in run-rate benefits by the end of 2026, with accelerated savings expected this year.

• High resort occupancy rates of over 90% in the first quarter, with strong forward bookings, reflect robust consumer demand for vacation experiences.

• The company has a strong liquidity position with $865 million in liquidity and no corporate debt maturities until early 2026, providing financial stability.

Negative Points

• Total company contract sales declined 2% compared to the prior year, driven by lower owner arrivals and slightly lower VPG (Volume Per Guest).

• The company had to update its full-year sales guidance due to lower contract sales experienced at the start of the year.

• Total company rental profit declined 10% year-over-year, impacted by higher unsold maintenance fees and other variable costs.

• The economic environment remains volatile, which could impact consumer confidence and spending on vacation ownership.

• The company is facing challenges in maintaining VPG levels, particularly with owner sales, requiring promotional adjustments to enhance the owner value proposition.