Marriott Vacations Worldwide Corporation

Good morning, ladies and gentlemen, and welcome to the Marriott Vacations Worldwide Second Quarter 2026 earnings call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press door zero for the operator. I would now like to turn the conference call over to Neal Goldner, Vice President, Investor Relations. Please go ahead.

Thank you, and welcome to the Marriott Vacations Worldwide Second Quarter Earnings Conference Call. I am joined today by Matt Avril, our Chief Executive Officer, by Flaskey, our President and Chief Operating 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 different materially from those expressed in or implied by our comments. Forward-looking statements in the press release as well as comments in 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 our website. With that, it's now my pleasure to turn Nicole over to Matt.

Thank you, Neal, and good morning, everyone, and thank you for joining us today. On our last call, I indicated that we would update you on the progress we are making and our outlook ahead, so let me start there. In the second quarter, we exceeded the high end of our guidance for both contract sales and adjusted EBITDA. Contract sales increased 22% over prior year, driven by our industry-leading VPGs of $4,477. Owner contract sales increased 41% compared to the prior year, driven by a 33% lift in owner VPG. On the strength of this performance, adjusted EBITDA grew to $215 million, $12 million over last year, and a $20 million increase over the midpoint of our second quarter guidance. As a result, we generated $87 million of adjusted pre-cash flow in the second quarter and $201 million to date compared to $22 million for the six months in 2025. In light of these results, I want to recognize the impactful efforts of our team across the MVW system. As we navigate this period of rapid change, we are executing with focus and discipline and our second quarter results are a good indication of the progress we are making. Earlier this year, we laid out our priorities. Return the company to revenue growth, drive increased profitability, Improve free cash flow and maintain disciplined capital allocation. Based on our second quarter results, it's fair to say that the execution of that plan has taken hold, and we are now focused on sustaining and furthering that momentum. First was returning the company to growth. Contract sales increased 22% year-over-year in the quarter, reflecting the benefits of our disciplined sales execution led by our tour logistics and product experience enhancements. Second, an increased emphasis on profitability and cash flow. We continue to manage the business with a clear focus on improving cash generation and maintaining disciplined capital allocation. As a result, we delivered $201 million of adjusted free cash flow in the first half of the year compared to $22 million over the same period last year. Third, we continue to make progress on the disposition of $200 million worth of non-core assets by the end of 2027, which Jason will discuss in more detail. We also right-sized our Asia Pacific business and are seeing the benefits of those actions in our cash flow. Our inventory spending in that region is expected to be down $35 million this year compared to last year, and it has reduced our required investment in related receivables. Mike will walk through our commercial initiatives we launched in the second quarter and the results we are already seeing. Let me take a moment to frame why these matter. The operating leverage in our business requires excellence in our sales and marketing capabilities. These are not isolated programs. Enhancing the owner benefit levels, our new event platform, New marketing tools and our tour logistics are all part of our disciplined model designed to strengthen engagement with our owners and create a more predictable path for revenue growth over time. Our owners consistently use and value the vacations they have purchased. In the second quarter, our resorts ran at 90% occupancy. providing us a strong platform for our in-house sales and consistent management fee business. As we look to the balance of the year, our focus remains on growing contract sales and translating that into stronger profitability, free cash flow, and adjusted EBITDA. The opportunity in front of us is substantial. We have industry-leading brands, A highly engaged owner base and meaningful opportunities to further improve our performance. And they are all within our control. In addition, we enjoy the strong consumer tailwinds driving upper upscale and luxury travel demand. Ultimately, our future is based on our ability to attract, develop, and retain top talent. reinforcing our position as the employer of choice in the industry. We have a motivated associate base that is seeing this year's earlier tough decisions yielding demonstrable results. We also have an engaged owner base of 700,000 owners that is seeing us reinvigorate their vacation experiences, strengthening our connection and driving utilization and higher levels of satisfaction. Delivering best-in-class hospitality experiences is what our owners expect of us and drives our associates to deliver. Combined, they all drive our results. The work underway is about driving consistent revenue growth, maintaining disciplined cost management, improving free cash flow, and positioning the company for sustaining performance. The second quarter was an important step on that journey. As a result of our performance and our current outlook, we are raising our guidance for adjusted EBITDA for the full year to $805 to $830 million, a $50 million increase over our previous guidance. Make no mistake, we are pleased with our progress. Yet there is much ahead for us to accomplish. We look forward to providing an update on our strategies and longer-term growth plans at an investor day we are planning for December 9th in New York City. With that, I'll turn the call over to Mike to discuss the operating initiatives in more detail.