What is Hilton Grand Vacations's gross profit margin?

What is the market's earnings forecast for Hilton Grand Vacations next quarter?

What were the key takeaways from Hilton Grand Vacations's earnings call?

What guidance did Hilton Grand Vacations's management provide for the next earnings period?

What is the revenue and EPS growth rate for Hilton Grand Vacations year over year?

What does Hilton Grand Vacations do and what are its main business segments?

Did Hilton Grand Vacations beat or miss consensus estimates last quarter?

What were the key takeaways from Hilton Grand Vacations’s earnings call?

- **Revenue Surge**: 17% contract sales growth, 15% VPG increase, and 250,000+ HGV Max members highlight execution strength.
- **Profitability**: $302 million adjusted EBITDA (24% margin), 59% financing margins, and 70% resort/club margins underscore operational efficiency.
- **Shareholder Returns**: $150 million Q3 buybacks, targeting $600 million for 2025, with free cash flow conversion of 65%-70%.
- **2026 Outlook**: Tour flow growth to exceed 2025, financing profit margin resilience, and rental EBITDA recovery through inventory reduction and rebranding.
- **Risk Management**: Stable delinquency rates (10.1% annualized), FICO <650 borrowers showing stability, and targeted marketing for mid/high-net-worth buyers.

**【CEO Summary Section】**
- **Revenue Growth**: Contract sales rose 17% YoY to $907 million, driven by 15% VPG growth and double-digit gains across all regions. New buyer mix remained stable at 27%.
- **Strategic Initiatives**: HGV Max membership surpassed 250,000, with 70,000 additions in the past year. Ka Haku and Bluegreen rebranding efforts are on track to deliver $100 million in cost synergies.
- **Execution Highlights**: Record package sales growth (17% YoY) and improved tour efficiency (2% YoY tours to $232,000). Vegas VPG growth offset market challenges.
- **Shareholder Returns**: $150 million in share repurchases Q3, with $497 million year-to-date, targeting $600 million for 2025.

**【CFO Financial Commentary】**
- **Financial Performance**: Adjusted EBITDA of $302 million (24% margin), up 17% YoY. Financing business profit of $75 million (59% margin) and resort/club profit of $135 million (70% margin).
- **Liquidity**: $215 million cash, $632 million revolver availability. Debt balance $7.2 billion, with $331 million remaining under repurchase plan.
- **Free Cash Flow**: Q3 $23 million, with expectations for $8-$9 per share annually, targeting 65%-70% conversion of EBITDA to free cash flow.
- **Rental Business**: Loss of $4 million driven by developer fees, with plans to reduce inventory spend and improve margins through recapture and rebranding.

**【Q&A Key Highlights】**
- **2026 Outlook**: Tour flow growth expected to exceed 2025, with VPG growth moderating. Financing profit margin expected to hold despite headwinds. Free cash flow conversion target of 65%-70%.
- **Financing Profit**: CFO notes margin resilience through securitization and Japanese market expansion, offsetting rate-related pressures.
- **Rental EBITDA Recovery**: Developer maintenance fees to decline as recaptured inventory reduces net owner growth. Hilton rebranding and operational efficiency improvements expected to drive margin expansion.
- **Consumer Trends**: Stable delinquency rates (10.1% annualized), with FICO <650 borrowers showing stability. Close rates for mid/high-net-worth buyers improved, aligning with targeted marketing efforts.
- **Inventory Management**: Hawaii inventory (Ka Haku, Maui, Big Island) expected to drive long-term growth. COP target of 2.5 years, currently over target but balanced for multi-year utilization.

Hilton Grand Vacations Inc. (HGV) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HGV

HGV fundamentals

You can ask Aime