Hilton Grand Vacations reported lower timeshare contract sales in the third quarter, while posting $1.96 billion in revenue and $609 million in adjusted EBITDA attributable to stockholders. The company also cut its full-year adjusted EBITDA outlook, citing sales results that fell short of expectations and initiatives to improve sales execution that are taking longer to ramp up.
Quarterly results were materially affected by construction-related revenue and earnings recognition, which can make reported results differ from current sales activity. HGV also repurchased shares and promoted Mike Riley to lead sales and marketing.
Key details
-
Contract sales fell 11% year over year to $807 million. This is a measure of sales made to customers, distinct from revenue recognized in the quarter.
-
Total revenue was $1.961 billion. HGV said revenue was affected by $536 million in net construction recognition.
-
Net income attributable to stockholders was $291 million, or $3.70 per diluted share. On an adjusted basis, net income was $317 million and adjusted diluted earnings per share were $4.03. The company said net income and adjusted net income were affected by $296 million in net construction recognition, equivalent to $3.76 per share. Adjusted EBITDA attributable to stockholders was $609 million and was also affected by that recognition.
-
HGV lowered its 2026 adjusted EBITDA outlook, excluding deferrals and recognitions, to $1.165 billion–$1.180 billion. Its previous range was $1.225 billion–$1.265 billion. The company said sales results missed expectations and summer initiatives to improve execution are taking longer to ramp up than anticipated.
-
The provision for financing receivable losses was 12.5% of owned contract sales. HGV said the rate was driven primarily by changes made during the quarter to its methodology for estimating the allowance for financing receivable losses.
-
The company repurchased 2.4 million shares for $110 million during the quarter. As of October 22, it had $617 million of remaining availability under its share repurchase plans.
-
Mike Riley was promoted to executive vice president and chief sales and marketing officer.
The lower outlook is for adjusted EBITDA excluding construction-related deferrals and recognitions, while the reported quarterly revenue and earnings were affected by net construction recognition. The two sets of figures therefore reflect different treatments of those timing-related items.