Marriott Vacations’ second quarter results exceeded Wall Street’s revenue and profit expectations, but the market responded negatively, reflecting ongoing concerns about softening guest volumes and persistent macroeconomic uncertainty. Management highlighted strong resort occupancy in key leisure markets such as Maui and Coastal Florida, and pointed to a sequential improvement in contract sales as the quarter progressed. CEO John Geller acknowledged that, while owner sales declined due to lower per-guest spending, the company’s efforts to increase first-time buyer sales—now a larger share of total activity—are beginning to offset this trend. Geller also noted, “The first half of the year was certainly interesting, yet despite all the external noise, leisure customers continue to prioritize vacation and our team focused on what it could control.”
Is now the time to buy VAC? Find out in our full research report (it’s free).
Marriott Vacations (VAC) Q2 CY2025 Highlights:
- Revenue: $1.25 billion vs analyst estimates of $1.22 billion (9.3% year-on-year growth, 2.4% beat)
- Adjusted EPS: $1.96 vs analyst estimates of $1.73 (13.2% beat)
- Adjusted EBITDA: $203 million vs analyst estimates of $191.3 million (16.3% margin, 6.1% beat)
- Management reiterated its full-year Adjusted EPS guidance of $6.75 at the midpoint
- EBITDA guidance for the full year is $765 million at the midpoint, above analyst estimates of $758 million
- Operating Margin: 9%, in line with the same quarter last year
- Guests: 1.51 million, down 22,949 year on year
- Market Capitalization: $2.55 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Marriott Vacations’s Q2 Earnings Call
- Benjamin Chaiken (Mizuho): Asked about the sequential improvement in contract sales and whether July continued June’s positive trend. CEO John Geller confirmed July sales were up slightly and attributed acceleration to easier prior-year comparisons and new buyer strategies.
- Patrick Scholes (Truist Securities): Inquired about the expanded ability for owners to use points at Marriott hotels and whether this would boost EBITDA. Geller clarified it enhances owner flexibility but is not expected to meaningfully impact earnings.
- Brandt Montour (Barclays): Queried the rationale behind maintaining conservative contract sales guidance despite positive sales trends. Geller explained ongoing macro uncertainty justifies a cautious approach to annual targets.
- Stephen Grambling (Morgan Stanley): Probed implications of inventory management on cost of goods sold. CFO Jason Marino noted a gradual increase in inventory costs due to new projects in Asia and Waikiki, but said efficiency gains remain a priority.
- David Katz (Jefferies): Sought clarity on the higher loan loss provision despite improving delinquency rates. Geller and Marino pointed to regional defaults and a preference for prudence given remaining uncertainties.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will be closely watching (1) the pace of first-time buyer sales growth and the impact of new marketing initiatives, (2) the realization of cost savings and revenue gains from the modernization program, and (3) ongoing trends in credit quality, especially as the company expands in Asia. Progress on asset divestitures and the deployment of advanced analytics will also be key performance drivers.
Marriott Vacations currently trades at $73.62, down from $74.54 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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