Hilton Worldwide Touts Strong Growth Pipeline But Outlook Falls Short

Hilton Worldwide Holdings Inc. (NYSE:HLT) shares are trading lower on Wednesday after the company’s third-quarter outlook fell short of the consensus despite beating second-quarter earnings and revenue estimates.

The company reported second-quarter adjusted earnings per share of $2.20, beating the analyst consensus estimate of $2.01. Quarterly sales of $3.137 billion outpaced the Street view of $3.096 billion.

Hilton said it approved 36,200 new rooms for development during the second quarter, bringing our development pipeline to a record 510,600 rooms as of June 30, up 4% year over year.

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“On the development side, we achieved the largest pipeline in our history, and we remain confident in our ability to deliver net unit growth between 6.0 percent and 7.0 percent for the next several years,” said CEO Christopher J. Nassetta.

Net income for the quarter ended June 30, 2025, was $442 million, up from $422 million a year earlier. Net income margin contracted to 14.1% from 14.3% in the year-ago period.

Adjusted EBITDA rose to $1.008 billion, compared to $917 million in the same period of 2024. Adjusted EBITDA margin expanded to 75.2% from 72.2% in the year-ago period.

In the second quarter, the firm opened 221 hotels, totaling 26,100 rooms, resulting in 22,600 net room additions.

Total cash and cash equivalents were $448 million as of June 30, including $77 million of restricted cash and cash equivalents.

Dividend

In July, the firm authorized a regular quarterly cash dividend of $0.15 per share of common stock to be paid on September 30 to holders of record of our common stock as of the close of business on August 29.

Outlook

Hilton projects third-quarter adjusted earnings per share of $1.98 to $2.04, missing the $2.14 consensus. It expects GAAP earnings per share of $1.89 to $1.95 versus the $2.08 estimate.

The company raised its full-year 2025 adjusted EPS outlook from $7.76-$7.94 to $7.83–$8.00, versus the $7.90 estimate. However, it cut its GAAP earnings per share outlook from $7.04-$7.22 to $6.82-$6.99 versus the $7.24 estimate.

Price Action: HLT shares are trading lower by 1.74% to $270.12 at last check Wednesday.

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