Hilton Grand Vacations | 8-K: FY2026 Q2 Revenue: USD 1.358 B

Revenue: As of FY2026 Q2, the actual value is USD 1.358 B.

EPS: As of FY2026 Q2, the actual value is USD 0.15, missing the estimate of USD 0.7607.

EBIT: As of FY2026 Q2, the actual value is USD 93 M.

Overall Performance

Total revenues were $1.358 billion for the second quarter of 2026, compared to $1.266 billion in the second quarter of 2025, affected by a net construction deferral of $54 million.
Net income attributable to stockholders was $12 million for the second quarter of 2026, compared to $25 million in the second quarter of 2025, affected by a net construction deferral of $28 million.
Adjusted net income attributable to stockholders was $72 million for the second quarter of 2026, compared to $50 million in the second quarter of 2025.
Adjusted EBITDA attributable to stockholders was $265 million for the second quarter of 2026, compared to $233 million in the second quarter of 2025, affected by a net construction deferral of $28 million.

Share Repurchases

During the second quarter of 2026, Hilton Grand Vacations Inc. repurchased 3.1 million shares of common stock for $150 million.
From July 1 through July 23, 2026, the company repurchased approximately 488,000 shares for $25 million.
Hilton Grand Vacations Inc. has $103 million of remaining availability under its 2025 Repurchase Plan.

Real Estate Sales and Financing Segment

Revenues for the Real Estate Sales and Financing segment were $809 million for the second quarter of 2026, an increase of $49 million compared to $760 million in the second quarter of 2025.
Adjusted EBITDA for this segment was $211 million for the second quarter of 2026, compared to $176 million in the second quarter of 2025.
The segment’s Adjusted EBITDA profit margin was 26.1% for the second quarter of 2026, an increase from 23.2% in the second quarter of 2025.
The revenue increase was driven by a $38 million increase in Sales of VOI, net, and an $18 million increase in financing revenue, partially offset by a $7 million decrease in fee-for-service commissions, package sales, and other fees.
The segment’s Adjusted EBITDA was affected by a net construction deferral of $28 million in the second quarter of 2026, compared to a $45 million net construction deferral in the second quarter of 2025.
Total contract sales decreased by $24 million to $810 million for the second quarter of 2026, compared to $834 million in the second quarter of 2025.
Tours increased by 6.1%, while Volume Per Guest (VPG) decreased by 8.6% compared to the second quarter of 2025.
Fee-for-service contract sales represented 12.8% of total contract sales, down from 17.0% in the second quarter of 2025.
Financing revenues increased by $18 million, primarily due to an increase in the average outstanding balance of the timeshare financing receivables portfolio and a - $4 million decrease in the premium amortization of acquired timeshare financing receivables.

Resort Operations and Club Management Segment

Revenues for the Resort Operations and Club Management segment were $430 million for the second quarter of 2026, an increase of $25 million compared to $405 million in the second quarter of 2025.
Adjusted EBITDA for this segment was $154 million for the second quarter of 2026, compared to $149 million in the second quarter of 2025.
The segment’s Adjusted EBITDA profit margin was 35.8% for the second quarter of 2026, compared to 36.8% in the second quarter of 2025.
The revenue increase was primarily due to a $14 million increase in rental revenue and a $6 million increase in resort and club management revenue.
Total members were 721,896 as of June 30, 2026, compared to 724,306 as of June 30, 2025.

Balance Sheet and Liquidity (as of June 30, 2026)

Total cash and cash equivalents were $272 million.
Total restricted cash was $296 million.
The Company had $4.9 billion of corporate debt, net outstanding, with a weighted average interest rate of 5.626%.
Non-recourse debt, net outstanding, was $2.9 billion, with a weighted average interest rate of 5.035%.
The liquidity position consisted of $272 million of unrestricted cash and $463 million remaining borrowing capacity under the revolving facility.
The Company had $755 million remaining borrowing capacity under the Timeshare Facility.
$1.3 billion of notes were current on payments but not securitized, with approximately $719 million monetizable and $372 million anticipated to be eligible following certain milestones.

Cash Flow

Free cash flow was $113 million for the second quarter of 2026, compared to $28 million for the same period in the prior year.
Adjusted free cash flow was $180 million for the second quarter of 2026, compared to $135 million for the same period in the prior year.
Adjusted free cash flow for Q2 2026 and 2025 included add-backs of $25 million and $53 million, respectively, for acquisition and integration-related costs.
The Company’s total net leverage on a trailing 12-month basis was approximately 3.8x as of June 30, 2026.

Outlook

Hilton Grand Vacations Inc. is reiterating its prior guidance for the full year 2026 Adjusted EBITDA, excluding deferrals and recognitions, to be between $1.225 billion and $1.265 billion.