Analysis HGV
Hilton Grand Vacations cuts outlook as sales fixes take longer
Hilton Grand Vacations lowered its 2026 adjusted earnings outlook as contract sales fell. Construction accounting and a credit estimate change lifted reported results.
Ticker Byline
Hilton Grand Vacations Inc.
Hilton Grand Vacations sells vacation ownership interests and operates resorts and membership clubs. Its latest results show weaker contract sales and a lower 2026 adjusted earnings outlook.
- Ticker
- HGV
- Exchange
- XNYS
- SEC CIK
- 0001674168
Business
Hilton Grand Vacations, listed on the NYSE as HGV, sells vacation ownership interests and operates resorts and membership clubs. Contract sales measure new signed purchase agreements; they are different from revenue recorded in the accounts.
Latest results
Quarter ended September 30, 2026. Dollar figures are in millions. Adjusted EBITDA attributable to shareholders includes construction-related timing effects and excludes several costs included in reported profit.
| Metric | Q3 2026 | Q3 2025 |
|---|---|---|
| Contract sales | $807 | $907 |
| Recognized revenue | $1,961 | $1,300 |
| Net income attributable to shareholders | $291 | $25 |
| Adjusted EBITDA attributable to shareholders | $609 | $245 |
| Operating cash flow | $87 | $34 |
| Free cash flow | $52 | -$4 |
Construction completion added $536 million to revenue and $296 million to adjusted EBITDA in Q3 2026. Construction deferrals had reduced adjusted EBITDA by $57 million in Q3 2025. A revised customer-loan loss estimate separately reduced the allowance by $55 million and increased recognized sales. Neither change is evidence of stronger new contract sales. Free cash flow subtracts non-inventory equipment and software spending from operating cash flow.
Outlook and finances
The 2026 adjusted EBITDA forecast excluding construction deferrals and recognitions is $1.165 billion to $1.180 billion, reduced from the $1.225 billion to $1.265 billion range reaffirmed in July. Tour volume increased 1.7% in Q3, but sales per guest declined 12.5%. Management says sales-improvement initiatives are taking longer than expected.
At September 30, 2026, cash and cash equivalents were $227 million, with a separate $275 million of restricted cash. Corporate debt was $4.885 billion and non-recourse debt was $2.891 billion, both net of financing costs and discounts. Non-recourse borrowing is backed by specified customer-loan assets, which lenders generally rely on for repayment rather than the wider company. HGV repurchased $110 million of shares during Q3.
Completed Elara acquisition
On April 29, 2026, HGV bought the remaining 75% interest in the Elara resort business for $131 million in cash, taking ownership to 100%. It previously accounted for its 25% stake as an investment and now consolidates Elara. This changes the scope of the reported group.
Latest reporting