Marriott Vacations raises 2026 outlook after adjusted earnings rise 27% to $216 million
Key Facts
Marriott Vacations Worldwide raised its 2026 financial outlook after adjusted operating income before interest, taxes, depreciation and amortization rose 27% to $216 million in the third quarter, from $170 million a year earlier. The company said in its results statement that net income attributable to common shareholders was $82 million, compared with a loss of $2 million in the year-earlier period. Diluted earnings per share were $2.24, following a diluted loss per share of $0.07 a year earlier. On a separate adjusted basis, net income rose 47% to $98 million, and adjusted diluted earnings per share increased 56% to $2.64. The company reported third-quarter results on November 4, 2026, alongside the higher annual outlook ranges.
Revenue totaled $1.367 billion, up 8% from $1.263 billion in the third quarter of 2025. Revenue growth accompanied an improvement in adjusted profitability, with adjusted operating income rising to $216 million from $170 million. Adjusted net income increased to $98 million, while net income attributable to common shareholders was $82 million. The company reports adjusted diluted earnings per share of $2.64 separately from diluted earnings per share of $2.24. The distinction reflects the different basis used to calculate the adjusted result compared with the reported result, according to the figures cited in the statement.
The improvement in average sales per tour reflected operating factors identified by the company, including a higher average transaction value and better sales execution. The company said product and process improvements implemented in the second quarter also supported the increase. These factors follow a weaker comparison period: in the third quarter of 2025, contract sales were $439 million, down 4% from a year earlier. The company attributed that decline at the time to a 1% decrease in tours and a 5% fall in average sales per tour. This comparison puts the latest operating performance in the context of a prior year in which both metrics that the company said weighed on contract sales had declined.
The higher annual outlook followed an improvement in second-quarter 2026 metrics, when contract sales rose 22% to $545 million and average sales per tour increased 23% year over year. The company said at the time that it had raised its annual outlook for contract sales, adjusted operating income and adjusted free cash flow. In the update announced with third-quarter results, it raised its 2026 contract sales range to $2.12–$2.14 billion, from $2.08–$2.115 billion. It also raised its adjusted operating income range to $810–$830 million, compared with the previous range of $805–$830 million. The bottom end of both ranges increased, as did the top end of the contract sales outlook, while the top end of the adjusted operating income outlook remained at $830 million.
The company included in its updated outlook an estimated negative impact of about $16 million on adjusted operating income from the hurricane. The estimate specifies an earnings impact within the higher annual guidance ranges, alongside the announced increase in contract sales expectations. The new annual figures are based on a contract sales range of $2.12 billion to $2.14 billion and an adjusted operating income range of $810 million to $830 million. The previous ranges were $2.08 billion to $2.115 billion for sales and $805 million to $830 million for adjusted operating income. The update sets out the company’s estimate of the hurricane’s negative impact in 2026, without changing the reported third-quarter figures.