Marriott Vacations Worldwide Corporation

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Marriott Vacations Worldwide Third Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. Question and answer session will follow the formal presentation. Should you require operator assistance during the conference, please press star zero to signal an operator. Please note this conference is being recorded. I will now turn the conference over to your host, Neil Goldman, Vice President, Investor Relations for Marriott. Thank you. You may begin.

Thank you, and welcome to the Marriott Vacations Worldwide Third Quarter Earnings Call. I am joined today by John Geller, our President and Chief Executive Officer, and Jason Marino, our Executive Vice President and Chief Financial Officer. I need to remind everyone that many of our comments today are not historical facts and are considered forward-looking statements under federal securities laws. These statements are subject to numerous risks and uncertainties, which could cause future results to differ materially from those expressed in or implied by our comments. Vote-looking statements on the press release as well as comments on this call are effective only when made and will not be updated as actual events unfold. Throughout the call, we will make references to non-GAF financial information. You can find a reconciliation of non-GAF financial measures in the schedules attached to our press release and on our website. With that, it's now my pleasure to turn the call over to John Geller.

Thanks, Neil. Good morning, everyone, and thank you for joining our third quarter earnings call. As you saw in our release last night, third quarter contract sales declined 4% year over year, a couple of points below our expectations. The shortfall relative to our expectations was driven by weakness in Orlando and Maui, two of our largest markets. Excluding those two markets, system-wide contract sales were approximately flat year over year. We're not satisfied with these results and have recently implemented meaningful changes that we believe will drive return to growth. First, we've adjusted our sales and marketing incentive plans to better align with our long-term objectives. Second, we're working to curb third-party commercial rental activity by a small subset of owners, which has depressed owner arrivals at some of our most attractive destinations in recent years. By curbing this practice, we expect to make more inventory available for occupancy by our owners, which should drive higher owner satisfaction and incremental arrivals at our most productive sales centers, benefiting tours and VPG. Third, we have implemented FICO scoring data for marketing purposes, which should result in higher VPGs and improved credit metrics. With respect to our modernization program, we continue to make strong progress towards the $150 to $200 million in run rate EBITDA benefit by the end of 2026. One of the most impactful steps we've taken thus far occurred in August when we reorganized a portion of our HR and finance and accounting functions and transitioned work to third-party providers. This change will save us $20 million in annual costs that will fall to the bottom line going forward. In addition to these three operational changes I've already outlined, we're rolling out additional initiatives we expect to improve VPG as part of the modernization program. For example, we implemented initiatives to drive owner arrivals, offering owners Bonvoy points to arrive at select resorts within a two-month window. This will help us drive incremental owner tours at and above average VPG. Our new owner experience initiative, which helps reduce recisions and boost our tour pipeline, is creating excitement at the sales table by giving buyers a pre-planned vacation to look forward to after their presentation. And with over 270,000 packages in our pipeline at the end of Q3, the impacts of these changes will be realized over the course of the coming year. In the quarter, we also expanded our presence in Asia Pacific with the opening of a new Marriott Vacation Club resort in Katlok, Thailand, and we have other resorts and sales centers in development that we expect to contribute more than $80 million of annual contract sales within a few years after opening. We have updated our full year expectations based on our third quarter results. October BPGs were down less than they were in Q3, and we expect occupancy to remain strong. Keys on the books for the balance of the year are consistent with the same time a year ago, and we expect to drive tour capture rates for owners as we continue to roll out initiatives to drive future owner arrivals. We also have 270,000 packages in our pipeline, which is a good forward indicator, and loan delinquencies are down meaningfully year over year. In conclusion, despite our disappointing results this year, I still believe in the long-term growth potential of this business. And with the recent operational changes we've made and our continued modernization work, we have tremendous confidence in the future profitability growth. We will be hosting an investor day the morning of December 17th at the New York Stock Exchange, and I hope to see many of you there. It will also be webcast for those who won't be able to make it in person. With that, I'll turn the call over to Jason to discuss our results in more detail.