Hilton Grand Vacations (NYSE:HGV) Issues Earnings Results, Misses Expectations By $0.17 EPS

Hilton Grand Vacations (NYSE:HGV) issued its quarterly earnings results on Thursday. The company reported $0.88 EPS for the quarter, missing the consensus estimate of $1.05 by ($0.17), FiscalAI reports. The company had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.38 billion. Hilton Grand Vacations had a return on equity of 11.54% and a net margin of 1.60%.Hilton Grand Vacations’s revenue was up 3.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.49 EPS.

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 Trading Down 4.3%

Shares of HGV stock traded down $2.01 on Friday, hitting $44.89. 1,221,377 shares of the stock traded hands, compared to its average volume of 846,440. The company has a debt-to-equity ratio of 4.67, a quick ratio of 3.12 and a current ratio of 5.02. Hilton Grand Vacations has a twelve month low of $30.59 and a twelve month high of $52.08. The firm’s 50-day moving average price is $46.27 and its two-hundred day moving average price is $44.40. The stock has a market capitalization of $3.84 billion, a PE ratio of 49.33, a PEG ratio of 1.01 and a beta of 1.48.

Hedge Funds Weigh In On Hilton Grand Vacations

Several institutional investors and hedge funds have recently bought and sold shares of the company. EverSource Wealth Advisors LLC grew its stake in shares of Hilton Grand Vacations by 743.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 641 shares of the company’s stock valued at $27,000 after buying an additional 565 shares during the period. Kestra Advisory Services LLC acquired a new position in Hilton Grand Vacations in the fourth quarter valued at approximately $44,000. Quarry LP purchased a new position in Hilton Grand Vacations in the third quarter worth approximately $44,000. Quadrant Capital Group LLC acquired a new stake in Hilton Grand Vacations during the third quarter worth $92,000. Finally, State of Wyoming increased its stake in Hilton Grand Vacations by 134.9% during the fourth quarter. State of Wyoming now owns 3,174 shares of the company’s stock worth $142,000 after acquiring an additional 1,823 shares during the last quarter. 97.23% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on HGV shares. Mizuho lowered their price objective on Hilton Grand Vacations from $73.00 to $69.00 and set an “outperform” rating on the stock in a report on Friday. Truist Financial decreased their target price on Hilton Grand Vacations from $62.00 to $59.00 and set a “buy” rating on the stock in a research report on Friday, November 14th. Zacks Research raised Hilton Grand Vacations from a “strong sell” rating to a “hold” rating in a research note on Monday, December 22nd. Wells Fargo & Company started coverage on Hilton Grand Vacations in a research note on Tuesday, November 18th. They issued an “equal weight” rating and a $42.00 price objective for the company. Finally, Morgan Stanley restated an “equal weight” rating and issued a $49.00 price objective on shares of Hilton Grand Vacations in a report on Friday, January 16th. Four analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Hilton Grand Vacations has a consensus rating of “Hold” and a consensus price target of $52.13.

Trending Headlines about Hilton Grand Vacations

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

• Positive Sentiment: Management set a firm adjusted‑EBITDA target for 2026 of $1.185B–$1.225B and emphasized strong capital returns (including buybacks), signaling management confidence in cash flow and shareholder returns. This is a near‑term catalyst that could support the stock if execution follows through. Hilton Grand Vacations outlines $1.185B–$1.225B adjusted EBITDA target for 2026 with strong capital returns focus
• Positive Sentiment: Analysts and commentators are highlighting buybacks as a meaningful equity-support mechanism; a Seeking Alpha upgrade argues buybacks could materially boost shareholder value if deployed. Watch buyback cadence and authorization details. Buybacks Can Power Hilton Grand Vacations Higher (Upgrade)
• Positive Sentiment: Mizuho trimmed its price target from $73 to $69 but kept an “Outperform” rating, indicating continued analyst conviction and implying significant upside from current levels despite the cut. That retained positive analyst stance can limit downside from the earnings miss. Benzinga
• Neutral Sentiment: Full earnings call transcript, slide deck and press release are available for detailed review—key for investors checking guidance details, segment performance and comps. Read the company transcript/summary to confirm guidance nuance and capital-return timing. Hilton Grand Vacations Inc. (HGV) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Q4 results missed Street expectations: EPS $0.88 vs. consensus $1.05 and revenue $1.33B vs. est. $1.38B. The miss is the primary driver of intraday weakness as investors reassess near‑term profitability and margin trends. Hilton Grand Vacations (HGV) Q4 Earnings and Revenues Lag Estimates
• Negative Sentiment: Valuation and leverage remain watchpoints: HGV trades at a high P/E and carries elevated debt-to-equity, increasing sensitivity to execution and cyclical pressure; misses like this can prompt multiple compression until confidence is restored. No link

Hilton Grand Vacations Company Profile

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.