Hilton Grand Vacations Inc.

Total revenue before cost reimbursements grew 3% to $1.3 billion. Adjusted EBITDA to shareholders was $293 million, up 5%, with margins excluding reimbursements of 23%, up 40 basis points year over year. Contract sales were $810 million, down 3%; tours were 239,000, up 6%; VPG declined 9% to approximately $3,400; real estate profit rose 7% to $173 million with margins of 28%, up 220 basis points; financing revenue was $144 million with profit of $86 million and financing margins of 62%; resort and club revenue was $189 million with profit of $128 million and margins of 68%; rental and ancillary revenue was $210 million, up 8%; adjusted free cash flow was $180 million, and liquidity was $735 million as of June 30. Management reiterated 2026 adjusted EBITDA before deferrals of $1.225 billion-$1.265 billion. For sales, it now expects tour growth to be positive low- to mid-single digits for the year, VPG to decline low- to mid-single digits, and contract sales to be flat to down slightly versus prior year; Q3 guidance is low single-digit tour growth, high single-digit VPG decline, and contract sales down mid-single digits. The company also said it expects the full-year free cash flow conversion rate to remain in the lower half of its 55%-65% long-term target range.

Mark Wang framed the quarter as a mix of underlying strength and fixable execution problems. He emphasized healthy demand, sustained tour growth, strong member engagement, and continued progress from HGV Max and Ultimate Access, while saying the sales softness was not demand-related. His tone was confident but corrective: management is taking decisive action on sales execution, especially in Bluegreen markets like Orlando and Myrtle Beach, and expects improvement in the back half and into Q4.

Dan Mathewes highlighted that EBITDA was in line with target thanks to cost discipline and efficiency initiatives, even as sales missed expectations. He pointed to $293 million of adjusted EBITDA to shareholders, $180 million of adjusted free cash flow, $58 million of inventory spend, and $150 million of share repurchases in the quarter; he also noted $103 million of remaining buyback authorization as of July 23 and net leverage of 3.8x. On credit quality, he said the 17% provision was at the high end of the mid-teens range because of higher borrowing propensity and a richer mix of trust and new-buyer sales, but he expects the full year to stay in the mid-teens and the back half to improve as higher-equity loans season. He also said the asset disposition should reduce fee burden by $10 million-$12 million on a run-rate basis and that the company remains committed to capital returns.

Analysts focused on why the loan-loss provision jumped and whether the higher level still fits the mid-teens full-year outlook; Dan Mathewes said the increase was driven mainly by product mix and higher borrowing propensity, not portfolio deterioration, and reiterated confidence in a mid-teens provision for the year. The other main topic was the VPG miss, especially in Bluegreen: management said the pressure came from moderation after last year’s very strong Max launch, a higher mix of trust and new-buyer sales, and execution problems in Orlando and Myrtle Beach. Mark Wang said leadership changes and added recruiting/training investments are already helping, and he expects performance to improve in Q3 and normalize by Q4. Analysts also asked about future asset streamlining, and management said no additional deals are expected to be announced in 2026.