Hilton Grand Vacations (NYSE:HGV) Posts Quarterly Earnings Results, Misses Estimates By $0.17 EPS

Hilton Grand Vacations (NYSE:HGV) posted its earnings results on Thursday. The company reported $0.88 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.05 by ($0.17), FiscalAI reports. Hilton Grand Vacations had a net margin of 1.06% and a return on equity of 9.52%. The business had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.38 billion. During the same period last year, the firm posted $0.49 earnings per share. Hilton Grand Vacations’s quarterly revenue was up 3.8% on a year-over-year basis.

Here are the key takeaways from Hilton Grand Vacations’ conference call:

• Strong 2025 performance and capital returns: Contract sales grew ~10% for the year, Adjusted EBITDA was about $1.15 billion (Q4 Adjusted EBITDA to shareholders was $324M, +12%), the company hit its $100M cost synergy target ahead of schedule and returned $600M to shareholders in 2025 (over $1B returned in the past two years).
• HGV Max driving member value: HGV Max memberships grew ~35% to 266,000, with Max members showing >20% higher lifetime value vs. non?Max members and driving new-buyer and upgrade demand.
• Financing optimization improving liquidity but has near-term costs: The company securitized ~73% of receivables and introduced timeshare ABS in Japan to lower funding costs and boost cash flow (Adjusted FCF $756M for the year), while acknowledging the program raises consumer interest expense in 2025–2026.
• 2026 outlook and cadence: Guidance calls for Adjusted EBITDA before deferrals of $1.185–1.225B with low single?digit contract sales growth, an expected Q1 trough/flat EBITDA then sequential improvement, and adjusted free cash flow conversion targeting the 55%–65% long?term range (lower half in 2026).
• Resort/rental headwinds and inventory review: Rental/ancillary results were pressured by excess inventory and developer maintenance fees (reported a $8M loss), and management is evaluating organic and inorganic options to reduce inventory and optimize the portfolio, which could weigh on near?term segment profitability.

Hilton Grand Vacations Stock Down 3.4%

NYSE:HGV traded down $1.60 on Friday, reaching $45.30. 435,824 shares of the stock traded hands, compared to its average volume of 788,969. The company’s fifty day simple moving average is $46.29 and its 200 day simple moving average is $44.39. The company has a market capitalization of $3.88 billion, a price-to-earnings ratio of 82.37, a PEG ratio of 1.05 and a beta of 1.48. Hilton Grand Vacations has a 12 month low of $30.59 and a 12 month high of $52.08. The company has a current ratio of 5.02, a quick ratio of 3.12 and a debt-to-equity ratio of 4.67.

Trending Headlines about Hilton Grand Vacations

Here are the key news stories impacting Hilton Grand Vacations this week:

• Positive Sentiment: Management set a 2026 adjusted-EBITDA target of $1.185B–$1.225B and reiterated a strong focus on capital returns, which supports future cash returns to shareholders. Hilton Grand Vacations outlines EBITDA target
• Positive Sentiment: Analyst coverage upgrade highlights buybacks as a potential catalyst to lift the stock if management executes on share repurchases and capital-return plans. Buybacks Can Power HGV Higher (Upgrade)
• Neutral Sentiment: Q4 results show year-over-year gains: EPS rose to $0.88 from $0.49 and revenue increased ~3.8%, indicating operational recovery even as near-term execution lagged estimates. HGV Q4 key metrics analysis
• Neutral Sentiment: The earnings call / transcript provides management commentary and slides that investors should review for details on margin drivers, timing of buybacks, and cadence toward the 2026 EBITDA target. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Q4 EPS and revenue missed consensus (EPS $0.88 vs. $1.05 est.; revenue $1.33B vs. $1.38B est.), triggering investor disappointment and downward pressure on the share price. Earnings and revenues lag estimates
• Negative Sentiment: Multiple outlets note sales and EPS came in below analyst expectations, which, combined with a relatively high valuation, likely explains the stock decline as investors await clearer proof of buyback execution and margin improvement. HGV reports sales below analyst estimates

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the stock. Truist Financial lowered their price objective on shares of Hilton Grand Vacations from $62.00 to $59.00 and set a “buy” rating for the company in a report on Friday, November 14th. Zacks Research upgraded Hilton Grand Vacations from a “strong sell” rating to a “hold” rating in a research note on Monday, December 22nd. Morgan Stanley restated an “equal weight” rating and set a $49.00 price target on shares of Hilton Grand Vacations in a research report on Friday, January 16th. Weiss Ratings raised Hilton Grand Vacations from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, February 17th. Finally, Wells Fargo & Company began coverage on Hilton Grand Vacations in a research report on Tuesday, November 18th. They set an “equal weight” rating and a $42.00 price objective for the company. Four analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $52.13.

Hedge Funds Weigh In On Hilton Grand Vacations

A number of hedge funds have recently added to or reduced their stakes in HGV. EverSource Wealth Advisors LLC raised its stake in shares of Hilton Grand Vacations by 743.4% in the second quarter. EverSource Wealth Advisors LLC now owns 641 shares of the company’s stock worth $27,000 after purchasing an additional 565 shares during the last quarter. Kestra Advisory Services LLC purchased a new position in Hilton Grand Vacations in the 4th quarter worth about $44,000. Quarry LP purchased a new position in Hilton Grand Vacations in the 3rd quarter worth about $44,000. Quadrant Capital Group LLC bought a new position in Hilton Grand Vacations during the 3rd quarter valued at about $92,000. Finally, State of Wyoming boosted its holdings in shares of Hilton Grand Vacations by 134.9% during the 4th quarter. State of Wyoming now owns 3,174 shares of the company’s stock valued at $142,000 after acquiring an additional 1,823 shares during the last quarter. 97.23% of the stock is currently owned by hedge funds and other institutional investors.

About Hilton Grand Vacations

Hilton Grand Vacations Inc is a leading developer and marketer of premium vacation ownership resorts. The company specializes in selling timeshare interests in vacation properties under the Hilton Grand Vacations brand, enabling members to purchase deeded real estate interests and utilize a points-based system for booking stays. Alongside new sales, the company provides ongoing management services for its portfolio of resorts, ensuring high standards of guest services, resort maintenance, and member engagement through its proprietary technology platform.

In addition to vacation ownership sales, Hilton Grand Vacations offers a comprehensive suite of membership benefits.