Hilton Grand Vacations Q2: Net Income Falls to $12M on $48M Impairment; Elara Acquisition Closes
HGV sits 26% above its 52-week low of $36.79.
Summary
Hilton Grand Vacations' Q2 2026 net income dropped to $12M from $25M a year ago due to a $48M impairment charge, but Adjusted EBITDA rose 14% to $265M. The Elara acquisition closed, and the company repurchased $300M in shares.
Key Events · Earnings and Guidance · HGV
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Q2 Earnings Decline on Impairment
Net income attributable to stockholders fell to $12M ($0.15 diluted EPS) from $25M ($0.25 diluted EPS) in Q2 2025, weighed down by a $48M loss on sale and impairment of certain resort properties.
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Adjusted EBITDA Growth
Adjusted EBITDA attributable to stockholders rose 14% to $265M in Q2 2026, and 24% to $514M for the first half, reflecting strong operational performance.
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Elara Acquisition Completed
On April 29, 2026, the remaining 75% of Elara was acquired for $131M cash, adding $411M in timeshare financing receivables and expanding the resort portfolio.
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Aggressive Share Repurchases
During H1 2026, 6M shares were repurchased for $300M under the $600M 2025 Repurchase Plan; as of July 23, 2026, $103M in authorization remained.
Analysis · HGV · Real Estate & Construction
A $48 million loss on the disposition of certain resort properties drove net income attributable to stockholders down to $12 million from $25 million a year ago, even as the core timeshare business strengthened. Adjusted EBITDA attributable to stockholders climbed 14% to $265 million, underscoring robust operational momentum. The period also saw the close of the Elara acquisition, which added $411 million in timeshare receivables, and continued aggressive capital returns with $300 million in share repurchases during the first half. The quarter reflects a company generating strong cash flow while absorbing a one-time hit from portfolio pruning.
At the time of this filing, HGV was trading at $46.18 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $3.6B. The 52-week trading range was $36.79 to $55.40. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.