Marriott Vacations Worldwide Corporation: More with Less: 2Q26 Strong on VPG-Led Momentum; Maintain Overweight

Research evidence excerpt

J P M O R G A N

North America Credit Research

06 August 2026

Marriott Vacations Worldwide

Corporation

More with Less: 2Q26 Strong on VPG-Led Momentum;

Maintain Overweight

VAC reported strong 2Q26 earnings: Revenue was $1,320m (+6% y/y) vs

our $1,260m est, underpinned by ~113k tours (-1.5% y/y), but more

importantly VPG grew 23% y/y to $4,477, with contract sales up ~22%.

Vacation Ownership was the clear standout: revenues were $853m (+10% y/y),

and Adj EBITDA was $246m ( +7% y/y). Exchange & Third Party

Management revenues were $50m (-2% y/y) and genereated $22m (-7% y/y)

of Adj EBITDA. Total Adjusted EBITDA was $215m (+6% y/y). Management

tied the VPG step-up to higher average transaction size driven by operational

enhancements and new programs. Momentum also improved as the quarter

progressed; April contract sales were up ~8%, implying 29% growth in May/

June, and management noted July trends were largely consistent with May/

June. We are constructive on the VPG/Contract Sales inflection on flattish

tours y/y, as it reads as improved operating discipline and sales efficiency rather

than a volume-driven move. Management noted the loan-loss provision (as a

% of contract sales) was up 20bps y/y and that sub-120 day delinquencies

improved by 54bps. We note the step-up in propensity to finance at 66% (vs

64% in 2Q25), but are OK with this given the average FICO score increased

y/y and q/q to 756.

Guidance was also a clear positive: VAC raised FY26 guidance, now

expecting Adj EBITDA of $805m - $830m vs prior $755m - $780m, and

contract sales of $2,080m to $2,115m vs prior guide of $1,815m to $1,885m.

Management positioned newer commercial initiatives (such as Premier

Vacations and the Inner Circle experiential platform launched late in 2Q), as

incremental drivers into 2H26 and beyond, with early indicators characterized

as above expectations. Overall, the guidance raise is both quantitatively and

qualitatively constructive, reinforcing that the operational turnaround is

translating into higher quality (VPG-led) growth and a better EBITDA

trajectory.

Balance Sheet: The company ended Q2 with $211m of unrestricted cash and

$650m in available RCF.…