Marriott Vacations raises profit expectations. Its cash target narrows.
Marriott Vacations raised its sales and profit outlook while narrowing adjusted free cash flow. The cash bridge separates financing from other cash needs.
Ticker Byline
Marriott Vacations Worldwide Corporation
Marriott Vacations Worldwide sells vacation-ownership interests, manages resorts and operates exchange and third-party management services. It also finances customer purchases, linking sales growth to receivable funding and collections.
- Ticker
- VAC
- Exchange
- XNYS
- SEC CIK
- 0001524358
Quarterly results
| Measure | 2026 | 2025 |
|---|---|---|
| Revenue | $1,367 | $1,263 |
| Contract sales | $565 | $439 |
| Net income attributable to common stockholders | $82 | -$2 |
| Adjusted net income | $98 | $66 |
| Adjusted EBITDA | $216 | $170 |
Adjusted profit excludes specified transaction, restructuring, impairment and other items. The current annual outlook calls for contract sales of $2.120 billion to $2.140 billion, adjusted EBITDA of $810 million to $830 million and adjusted free cash flow of $410 million to $430 million.
Completed portfolio transactions
The company sold its Cancun hotel entity for $50 million in the first quarter. In the third quarter, it acquired completed Bali vacation-ownership units for $17 million, including $11 million of current cash payments and $6 million of earlier deposits. After September 30, it completed the purchase of the remaining Waikiki units for $41 million.
Cash generation and financing
For the first nine months, operating cash flow was $204 million, company-defined free cash flow $435 million and adjusted free cash flow $449 million. Capital spending was $34 million. Free cash flow also includes net securitization borrowing, fees and other items, so the company measure goes beyond operating cash flow less capital spending.
At September 30, cash and cash equivalents were $229 million and restricted cash $304 million. Corporate debt had a carrying value of $2.977 billion, including finance leases. Securitized debt, which is nonrecourse, had a separate $2.422 billion carrying value.
The company had $776 million available on its corporate revolving facility. During the third quarter, it issued $66 million of notes backed by Asia-Pacific customer loans that had not qualified for its traditional securitizations. The current quarterly report also describes a post-quarter securitization that issued $460 million of notes at a weighted-average coupon of 5.91%.
What the forecast tests
The detailed cash forecast shows a larger working-capital and other outflow, partially offset by lower taxes and capital spending. Financing's forecast contribution is slightly higher. Delivery of the cash target therefore depends on more than the level of reported earnings.
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