Hilton Grand Vacations revenue reaches $1.961 billion as it cuts 2026 earnings guidance
Key Facts
Hilton Grand Vacations reported revenue of $1.961 billion in the third quarter ended September 30, 2026, compared with $1.300 billion in the same period a year earlier. Net income attributable to shareholders was $291 million, while diluted earnings per share were $3.70. Adjusted net income attributable to shareholders was $317 million, and adjusted diluted earnings per share were $4.03. According to consensus estimates cited by Investing.com, adjusted earnings per share exceeded the $1.08 estimate, while revenue topped the $1.39 billion estimate. However, the reported growth in revenue and earnings came amid a significant accounting impact from construction recognition, making it more difficult to assess underlying business performance.
The company said revenue was affected by net construction recognition of $536 million during the quarter. Diluted earnings per share rose from $0.28 in the third quarter of 2025 to $3.70 in the current quarter, while adjusted EBITDA attributable to shareholders increased to $609 million from $245 million a year earlier. The company said construction recognition helped lift its 2026 results, so the year-over-year jump alone does not reflect a comparable improvement in sales performance. By contrast, contract sales fell $100 million year over year to $807 million. The sales volume per guest measure declined 12.5%, despite a 1.7% increase in tour flow, a divergence between more tours and weaker value generated from them.
CEO Mark Wang linked weaker contract sales to difficulties executing operational initiatives the company launched during the summer. He said, "Our sales results came in below our expectations, as the initiatives we put in place during the summer to improve execution are taking longer than expected to scale." The comments follow the company's decision to maintain its annual adjusted EBITDA guidance of $1.225 billion to $1.265 billion in its second-quarter results. In that quarter, it reported revenue of $1.358 billion and contract sales of $810 million, with revenue affected by net construction deferrals of $54 million. The subsequent decline in contract sales, alongside third-quarter recognitions, highlights the different factors affecting revenue in the two periods.
The company cut its 2026 adjusted EBITDA guidance, excluding construction deferrals and recognitions, to $1.165–$1.180 billion from $1.225–$1.265 billion previously. The reduction follows management's statement that sales execution improvement initiatives need more time to scale, while sales came in below its expectations. The results showed the company repurchased 2.4 million shares for $110 million during the quarter. As of October 22, $617 million remained available under its share repurchase plans. Cash and cash equivalents totaled $227 million on September 30, alongside $275 million in restricted cash, while liquidity included $457 million of remaining borrowing capacity under the revolving facility.
The market reaction was negative despite the earnings and revenue beats, with the company's shares falling 1.89% in premarket trading on October 29 following the announcement. The stock had closed at $35.53 in the October 28 session, according to EL7 data. The decline reflects investors' focus on the lower annual guidance and weaker contract sales, as well as scrutiny of how much construction recognitions contributed to reported results. The company had scheduled a call to discuss its third-quarter results for October 29, 2026, at 9 a.m. Eastern time. Management is expected to discuss the results on the call, including sales performance and the reduced outlook for the year.