Marriott Vacations contract sales jump 29% to $565 million in third quarter
Key Facts
Marriott Vacations Worldwide reported growth in contract sales and adjusted operating profit in the third quarter of 2026 and raised its full-year guidance range, according to its published results. Contract sales were $565 million, up 29% year over year, while average sales per tour rose 30% to $4,822. Revenue was $1.367 billion, up 8% from the same period, but below the published estimate of $1.42 billion. Adjusted EBITDA rose to $216 million from $170 million a year earlier, an increase of 27%. Net income attributable to common shareholders was $82 million, compared with a loss of $2 million in the third quarter of 2025, while unadjusted diluted earnings per share were $2.24.
The quarterly figures reflect an improvement in vacation ownership sales metrics from the prior-year period, when average sales per tour fell 5% to $3,700 in the third quarter of 2025. In that quarter, the number of tours was 109,609, down 1% year over year. In the third quarter of 2026, average sales per tour were $4,822, while contract sales rose to $565 million. The company said a higher average transaction value and improved sales execution supported the increase in average sales per tour. It added that product and operational enhancements introduced in the second quarter also contributed to the improvement.
The comparison with the second quarter of 2026 shows contract sales continuing to grow: they rose 22% to $545 million, while average sales per tour increased 23% year over year. In the third quarter, contract sales growth accelerated to 29%, and average sales per tour rose 30%, according to the company’s figures. Adjusted EBITDA was also $215 million in the second quarter, compared with $203 million in the corresponding period of 2025. In the same period, adjusted diluted earnings per share rose 18% to $2.31, and adjusted net income attributable to common shareholders increased 9% to $84 million. The third-quarter results show that growth in contract sales and average sales per tour was accompanied by improved adjusted profitability, alongside a shift from a net loss to a profit on an unadjusted basis.
Revenue growth did not match the market estimate published before the announcement: revenue rose 8% to $1.367 billion, compared with an estimate of $1.42 billion. Meanwhile, adjusted EBITDA exceeded its level a year earlier, while net income attributable to common shareholders swung from a loss of $2 million to a profit of $82 million. The company attributed the increase in adjusted EBITDA primarily to higher contract sales and a lower average cost of vacation ownership products. The company did not link the improvement simply to the gap between revenue and the published estimate, but identified sales growth and lower costs as key factors. Reported revenue and the published estimate remain separate measures from adjusted EBITDA and unadjusted net income.
In an update to its fiscal 2026 guidance, the company raised its contract sales range to $2.12–$2.14 billion, from $2.08–$2.115 billion. It also raised its adjusted EBITDA range to $810–$830 million, from $805–$830 million. The company had announced annual guidance in August at the previous ranges for contract sales and adjusted EBITDA. The update raises both the low and high ends of the contract sales range, while the low end of the adjusted EBITDA range increased and the high end remained at $830 million. The company said its updated guidance includes an estimated negative impact of $16 million on adjusted EBITDA from Hurricane Lowell in Kauai during the second half of 2026.
The company ended the third quarter with liquidity of about $1.1 billion, including $229 million in cash and cash equivalents and $776 million in available capacity under its revolving credit facility. The figures include available cash and stated credit capacity at quarter-end, while the results did not detail specific future uses for this liquidity in this context. The company is scheduled to hold a call to discuss its third-quarter results on November 4, 2026, at 8:30 a.m. Eastern time. The call is scheduled after the results were published, as part of the company’s announced communications on its quarterly performance. The results cover Marriott Vacations Worldwide’s vacation ownership and resort businesses.