Marriott Vacations Worldwide Reports Revenue Growth and Increased Net Income in Q2 2025

Marriott Vacations Worldwide Corporation (MVW) reported a significant increase in financial performance for the second quarter and first half of 2025, with total revenues reaching $1.246 billion, up from $1.140 billion in the same period of 2024. The company’s net income attributable to common stockholders also saw a notable rise, increasing to $69 million, or $1.98 per share, compared to $37 million, or $1.04 per share, in the prior year. For the first half of 2025, total revenues amounted to $2.446 billion, a 4.8% increase from $2.335 billion in the first half of 2024, while net income rose to $125 million from $84 million.

The company attributed its improved performance to a 19.7% increase in the sale of vacation ownership products, which generated $370 million in the second quarter, compared to $309 million in the same quarter of 2024. Additionally, management and exchange revenues increased slightly to $219 million, while rental revenues rose to $160 million. The overall increase in revenues was partially offset by higher expenses, which totaled $1.134 billion in the second quarter, up from $1.038 billion in the previous year, driven by increased marketing and sales costs.

In terms of strategic developments, MVW completed the acquisition of 52 vacation ownership units in Khao Lak, Thailand, for $50 million during the second quarter. This acquisition is part of the company's ongoing efforts to expand its geographic footprint and enhance its vacation ownership offerings. The company also reported a restructuring initiative aimed at improving operational efficiencies, which incurred $34 million in charges during the second quarter. This initiative is expected to yield annualized benefits of $150 million to $200 million by the end of 2026.

Operationally, MVW reported a slight decline in total contract sales, which fell to $449 million in the second quarter, down from $452 million in the same period last year. The company noted a decrease in volume per guest (VPG) by 3%, attributed to a higher mix of first-time buyers and international tours, which typically yield lower VPG. The total active members in the Exchange & Third-Party Management segment decreased by 2% to 1.507 million, reflecting a broader trend in the market.

Looking ahead, MVW remains focused on reducing its corporate debt-to-Adjusted EBITDA ratio, which stood at 3.9 as of June 30, 2025, above its target range of 2.5 to 3.0. The company anticipates continued growth in vacation ownership sales and is committed to optimizing its inventory management and sales processes. MVW's management expressed confidence in the company's ability to navigate the current economic landscape and capitalize on growth opportunities while maintaining a disciplined approach to capital expenditures and operational efficiency.