S&P Global Ratings revised its outlook on Marriott Vacations Worldwide (MVW) to positive from negative. The agency affirmed the company's 'B+' issuer credit rating.
Second-quarter contract sales, revenue, and EBITDA exceeded expectations. Contract sales increased by 22% compared to the previous year. MVW raised its financial guidance for the remainder of 2026 following these results.
S&P anticipates company leverage will decrease to approximately 5.5x in 2026. Leverage could potentially reach 4.5x by the end of 2027. Higher cash flow and a reduction in share repurchases will drive this deleveraging.
The new management team's strategies are delivering tangible improvements in closing efficiency. These initiatives also increased sales volume to existing owners.