Previous Investor Calls/Reports
2025 Q1 Earnings Call
2024 Q4/Annual Earnings Call
2024 Q3 Earnings Call
2024 Q2 Earnings Call
2024 Q1 Investor Call
2023 Q4/Annual Earnings Call
2023 Q3 Earnings Call
2023 Q2 Earnings Call
2023 Q1 Earnings Call
2022 Q3 Earnings Call
2022 Q1 Earnings Call
2021 Q3 Earnings Call
Second Quarter of 2025 highlights1
- Total contract sales were $834 million, an increase of 10.2% compared to the second quarter of 2024.
- Total revenues were $1.266 billion.
- Total revenues were affected by a net deferral of $82 million.
- Net income attributable to stockholders was $25 million and diluted EPS was $0.25.
- Adjusted net income attributable to stockholders was $50 million and adjusted diluted EPS was $0.54.
- Net income and Adjusted Net Income attributable to stockholders were affected by a net deferral of $45 million, or $(0.49) per share.
- Adjusted EBITDA attributable to stockholders was $233 million.
- Adjusted EBITDA attributable to stockholders was affected by a net deferral of $45 million.
- During the second quarter, the Company repurchased 4.1 million shares of common stock for $150 million.
- From July 1 through July 24, 2025, the Company repurchased approximately 626,000 shares for $29 million and currently has $98 million of remaining availability under the 2024 Repurchase Plan.
- On July 29, 2025, HGV’s Board of Directors approved a new share repurchase program authorizing the Company to repurchase up to an aggregate of $600 million of its outstanding shares of common stock over a two-year period (the “2025 Repurchase Plan”), which is in addition to the amount remaining under the 2024 Repurchase Plan.
- The Company is reiterating its prior guidance for the full year 2025 Adjusted EBITDA, excluding deferrals and recognitions, of $1.125 billion to $1.165 billion.
Positives and Negatives from Yahoo Finance:
Positive Points
- Hilton Grand Vacations Inc (NYSE:HGV) reported a 10% increase in contract sales, reaching $834 million for the quarter.
- Adjusted EBITDA was $278 million with margins excluding reimbursements at 23%, indicating strong financial performance.
- The company successfully closed a JPY9.5 billion timeshare securitization in Japan, marking a significant milestone as the first of its kind for a US operator.
- HGV added over 20,000 packages to its pipeline, more than doubling the additions from the first quarter, indicating strong demand.
- The company returned $300 million to shareholders this year, including $150 million for the quarter, demonstrating a commitment to shareholder returns.
Negative Points
- Tours were slightly lower in Q2 as the company focused on efficiency initiatives, which could impact future sales growth.
- There was softness in the Las Vegas market due to lower international and convention business, affecting rental performance.
- The fee for service mix was higher in Q2, which while profitable, results in lower flow-through compared to owned inventory sales.
- The company anticipates a provision rate increase for bad debt in the coming quarters, which could impact financial performance.
- Despite strong sales, the company faces a volatile policy landscape and must closely monitor consumer trends to mitigate risks.
My observations and thoughts
My overall impression of the quarter was it’s, again, a mixed bag. Reading the transcript linked below, the HGV reps, including CEO Mark Wang really try to make a meh quarter look promising (that’s part of their job). They list several factors that point to reasons why we should invest in them. From deferred revenue from the sales at the properties still under construction in Honolulu and Kyoto Japan to their pre-screening of tour candidates (tours were down, but VPG was up), they were really trying to give as many examples of why they fell short of expectations by $92 million (EPS $0.47). Contract sales were up, but there was a lot of talk on fee-for-service sales. Mark Wang specifically mentioned the South Carolina partner for having a very strong quarter and mentioned the new Myrtle Beach property. He also mentioned that 3rd party sales brings in revenue, it’s limited to just commissions. (I’m assuming this is just sales because they also get fees for managing the resorts).
Side note - With Strand Capitol performing well, this keeps my speck of hope that they will build another Hilton Head resort or 2 and expand into other parts of the SE.
Observations on the membership and BlueGreen integration front - Seems like they are moving forward with the BlueGreen rebranding starting in a month or two. They have rebranded all the Bass Pro Shops kiosks and are continuing with the Choice Hotels sales centers. The membership is at 725,000 members and ~260,000 Max members with 21,000 of them coming from BlueGreen.
Not sure what the JPY 9.5 billion loan means. Are they going to build more? It’s not a lot of cash flow in a business sense (~$6.5 million), but they said it was the first of its kind. They talked about servicing their Japanese members better so I’m not sure what to make of it. I have always believed that they want a greater presence in Asia. Before the DRI merger was even brought up, there were rumors of HGVC expanding into the Chinese market. While I don’t think that will happen, they still talk about the Japanese market almost every report. I wonder if they will expand into Asia. Whether it is new properties, purchasing existing properties or purchasing systems, I think they will expand slowly into the Asian market.
Lately, it struck me how important Las Vegas is to HGV. The lack of international conventions and tourists to Vegas is seen as one of the reasons for HGV not meeting it’s expectations. From less tours and packages to the reduced amount of rentals, Vegas seems like it’s a big part of their portfolio. Again, it could just be exaggerated to make not meeting expectations look like an anomaly. With 10 properties (including 2 in the Elara building), a downturn in Vegas would hurt tour and package sales.
If you have anything to add or correct anything I have written above, please do so. I am not a finance expert and I am learning as I do these investor calls. I originally started these to learn more about where HGVC might be expanding to so I have no background what so ever in the financial aspect of the business.
do you mean advisors or the CEO/CFO or both. I was on CEO/CFO calls as early as 1993. I used to ask questions before it became basically a dog&pony show for "sell-siders". I spent, idk, 20 hrs/wk talking to CEOs and CFOs for a dozen years. Point: CEOs/CFOs will always always ALWAYS try to deflect attention from the real issues to the recent headlines. Always. Being willing to not accept that (after internalizing that that was what was going on) was a key point of talent in the business.
