- 2025 Adjusted EBITDA Growth Achieved $1.15 billion, a 4% increase from the previous year.
- Contract Sales Progress Rose to $3.4 billion (10% growth), driven by a 2% Q4 increase to $852 million.
- Shareholder Returns Returned $600 million in capital, meeting annual targets through buybacks and dividends.
- Cost Synergy Milestone Exceeded $100 million in annualized savings from the Bluegreen acquisition, ahead of schedule.
- 2026 Guidance Projects low single-digit contract sales growth and mid-single-digit EBITDA growth, with EBITDA range of $1.185–$1.225 billion.
Financial Performance Highlights
The company's financial performance was characterized by a strong growth in contract sales, driven by a 9% increase in tours in Q4 2025. The adjusted EBITDA margin remained consistent, reflecting the company's focus on operational excellence. The return of $600 million of capital to shareholders in 2025 demonstrates the company's commitment to returning value to its investors.
Guidance and Outlook
HGV provided guidance for 2026, expecting adjusted EBITDA before deferrals to be between $1.185 billion and $1.225 billion. The company expects low single-digit contract sales growth, driven by tour flow, and VPG to be down slightly. The guidance assumes that the company will maintain adjusted EBITDA margins consistent with 2025 due to efficiency initiatives. The quarterly cadence expectation is for contract sales and EBITDA in Q1 to be flat to slightly down, then improving sequentially in each successive quarter.
Valuation and Liquidity
The company's valuation metrics indicate a reasonable pricing. The P/E Ratio is 17.11, and the EV/EBITDA is 2.93, suggesting that the company's earnings and cash flow are reasonably valued. The liquidity position is strong, with over $1 billion in liquidity, consisting of $239 million of unrestricted cash and $809 million of availability under the revolving credit facility. The debt balance is $4.5 billion corporate debt and $2.7 billion nonrecourse debt.
Strategic Priorities
HGV's strategic priorities include attracting new customers, enhancing the lifetime value of their member base, product evolution and innovation, and driving operational excellence. The company achieved a $100 million run rate cost synergy target from the Bluegreen acquisition, several months ahead of schedule. The buyback program will continue at $150 million per quarter, demonstrating the company's commitment to returning value to its investors.