Hilton Grand Vacations 2025 Q2 Earnings Misses Targets as Net Income Surges 600%

Hilton Grand Vacations (HGV) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. Hilton Grand Vacations posted a strong earnings performance, with net income surging 600% year-over-year to $28 million, although it missed Wall Street expectations with a GAAP EPS of $0.26. The company reaffirmed its full-year 2025 Adjusted EBITDA guidance, projecting between $1.125 billion and $1.165 billion, reflecting confidence in its growth prospects and strategic initiatives.

Revenue

Earnings/Net Income
Hilton Grand Vacations's EPS rose 1200.0% to $0.26 in 2025 Q2 from $0.02 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $28 million in 2025 Q2, marking 600.0% growth from $4 million in 2024 Q2. The substantial EPS increase signals a positive financial performance.

Price Action
The stock price of Hilton Grand Vacations has tumbled 8.34% during the latest trading day, has tumbled 10.79% during the most recent full trading week, and has climbed 7.92% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Hilton Grand Vacations shares 30 days after its earnings release, following a quarter-over-quarter revenue increase over the past three years, delivered moderate returns but underperformed the benchmark. The strategy's compound annual growth rate was 3.57%, trailing the benchmark by 82.37 percentage points. Despite indicating a low-risk profile with a maximum drawdown of 0.00% and a Sharpe ratio of 0.41, the strategy experienced higher than expected short-term fluctuations, as evidenced by its 8.65% volatility. This demonstrates that while the strategy has potential, it has not been able to match the broader market's performance, requiring a careful reassessment of its risk-return dynamics.

CEO Commentary
"I'm pleased with our performance in the second quarter, highlighted by double-digit contract sales growth driven by improved execution," said Mark Wang, CEO of Hilton Grand Vacations. He noted that the team's dedicated efforts advanced initiatives that produced solid operating results, with strong adjusted free cash flow generation facilitated by Financing Business Optimization. Wang emphasized the momentum built throughout the quarter, stating that the value proposition of HGV Max membership continues to resonate with members and guests. He expressed ongoing confidence in the business and the significant value creation opportunities ahead.

Guidance
The Company is reiterating its prior guidance for full year 2025 Adjusted EBITDA, excluding deferrals and recognitions, of $1.125 billion to $1.165 billion. This guidance reflects the Company's confidence in its business outlook and the anticipated value creation opportunities moving forward.

Additional News
Hilton Grand Vacations has authorized a new share repurchase program amounting to $600 million over a two-year period, as approved by its Board of Directors on July 29, 2025. This program supplements the remaining funds under the 2024 Repurchase Plan, emphasizing the company's commitment to enhancing shareholder value. In the second quarter, HGV repurchased 4.1 million shares for $150 million, and an additional 626,000 shares for $29 million between July 1 and July 24, 2025. The repurchase activity signals confidence in the company's intrinsic value and strategic direction, bolstering its financial resilience and shareholder returns.