Hilton Grand Vacations Cuts 2026 Earnings Range to $1.165–$1.180 Billion
Key Facts
On October 29, Hilton Grand Vacations lowered its 2026 forecast for adjusted EBITDA, excluding deferrals and construction recognitions, to $1.165–$1.180 billion from $1.225–$1.265 billion. The company reported third-quarter results, with contract sales down $100 million to $807 million from the same period in 2025. Sales came in below management’s prior expectation, which assumed a mid-single-digit percentage decline. CEO Mark Wang said the sales execution improvement initiatives the company launched over the summer “are taking longer than expected to scale.” The guidance cut puts weak sales and execution at the center of the company’s results, while activity indicators were mixed, with tour flow rising and its value declining.
Operating indicators showed tour flow rose 1.7% year over year in the third quarter, while the value of points generated per tour fell 12.5%. The company said its measures aim to improve sales execution, while Wang said it would accelerate the implementation of existing initiatives and add measures to raise conversion rates. The share of contract sales presented with a service fee declined to 11.5% of total sales, compared with 17.2% in the third quarter of 2025. These figures show a divergence between growth in tour flow and a decline in the value of points per tour, alongside falling contract sales. Wang identified the near-term priority as “raising conversion rates and returning the company to consistent, profitable growth.”
By contrast, third-quarter revenue rose to $1.961 billion from $1.300 billion a year earlier, and revenue from the real estate sales and financing segment increased $629 million year over year to $1.418 billion. But the quarter’s results included a net construction recognition of $296 million related to a project in Hawaii. For comparison, third-quarter 2025 results included a net construction deferral of $57 million for projects in Hawaii and Japan. Net income attributable to shareholders was $291 million, compared with $25 million a year earlier, while adjusted EBITDA attributable to shareholders was $609 million, compared with $245 million. Both current figures included the $296 million construction recognition, while the prior-year comparison was affected by the $57 million deferral.
The provision for financing losses also changed during the quarter, falling $37 million from a year earlier, while a change in accounting estimate reduced the loss provision on owned timeshare financing by $55 million. Free cash flow rose to $52 million from negative $4 million in the comparable period of 2025. Cash and cash equivalents totaled $227 million on September 30, with net corporate debt of $4.9 billion and a weighted-average interest rate of 5.751%. Liquidity included $227 million in unrestricted cash and $457 million in remaining borrowing capacity under the revolving facility. These figures provide a picture of cash and financing alongside quarterly results and the annual guidance cut.
On capital allocation, the company repurchased 2.4 million shares for $110 million during the third quarter. Remaining capacity under its repurchase plans was $617 million on October 22, 2026. The stock closed at $35.71 on October 29, compared with a close of $35.89 on October 23. The company had reported higher quarterly revenue and earnings than in the comparable period, while cutting its annual earnings forecast and reporting a decline in contract sales. Wang said its near-term operating priority remains raising conversion rates and returning to consistent, profitable growth.