VAC · Marriott Vacations Worldwide Corporation

Marriott Vacations Worldwide's Q1 2026 results showed a 2% decline in contract sales to $411 million, driven by a 3% drop in tours due to strategic shifts prioritizing higher profitability in Asia-Pacific and reducing tours to lower FICO score customers. VPG rose 1% to $4,016, providing some offset. Vacation Ownership segment revenues were flat at $758 million excluding cost reimbursements, but Adjusted EBITDA fell 15% to $188 million with margin contracting 440 bps to 24.8%, reflecting higher marketing/sales costs, product costs, and unsold maintenance fees. Exchange & Third-Party Management revenues declined 6% to $53 million amid lower Aqua-Aston performance, though segment margin improved to 36.3%. Corporate G&A rose due to severance. CEO Matt Avril noted alignment with expectations, with Q2 contract sales guided up 4-8% and Adjusted EBITDA at $187-202 million, signaling seasonal recovery. Full-year guidance held steady at $755-780 million Adjusted EBITDA, supported by executive changes, sales/marketing enhancements, cost actions, and dispositions including the $50 million Westin Cancun sale. Listed assets target >$125 million proceeds this year, on pace for $200-250 million by 2027 end. Liquidity stood at $854 million with manageable $3.3 billion corporate debt, positioning for H2 improvement.