This article first appeared on GuruFocus.
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Revenue: Exceeded $1 billion for the third quarter.
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EBITDAR: $322 million for the quarter.
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Overall Margins: Consistent with the prior year at 37%.
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Las Vegas Locals Segment Revenue: $211 million.
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Las Vegas Locals Segment EBITDAR: $92 million.
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Las Vegas Locals Segment Margins: Consistent with the prior year at 47%.
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Midwest and South Segment Revenue: Increased 3% to $539 million.
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Midwest and South Segment EBITDAR: Grew to $202 million, more than 2% over the prior year.
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Midwest and South Segment Margins: Exceeded 37%.
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Online Segment EBITDAR Guidance: Increased to $60 million for the year.
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Capital Expenditures: $146 million in the third quarter; year-to-date total $440 million.
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Share Repurchases: $160 million in stock repurchased during the third quarter.
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Dividends Paid: $15 million in the third quarter.
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Total Shareholder Returns: $637 million returned to shareholders so far this year.
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Total Leverage Ratio: Declined from 2.8 times to 1.5 times by the end of the third quarter.
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Lease Adjusted Leverage: Declined from 3.2 times to 2.0 times.
Release Date: October 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Boyd Gaming Corp (NYSE:BYD) reported another quarter of growth with revenues exceeding $1 billion and EBITDAR reaching $322 million.
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The Las Vegas Locals segment posted strong results with revenues of $211 million and EBITDAR of $92 million, driven by strong demand from local customers.
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The Midwest and South segment achieved its strongest third-quarter revenue and EBITDAR performance in three years, with revenues rising 3% to $539 million.
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The company is making significant capital investments, including a $750 million resort development in Norfolk, Virginia, and a new Las Vegas Locals property, Cadence Crossing.
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Boyd Gaming Corp (NYSE:BYD) continues to return substantial capital to shareholders, with $160 million in stock repurchases and $15 million in dividends during the third quarter.
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The destination business showed weakness, particularly impacting the Orleans property in Las Vegas.
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Downtown Las Vegas segment faced softness in destination business, including lower hotel revenues and reduced pedestrian traffic.
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The company is dealing with ongoing construction disruptions at properties like Suncoast, which could impact short-term performance.
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The closure of the Tunica property is expected to have a negligible impact, but it reflects challenges in maintaining certain assets.
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Despite strong wage growth in Southern Nevada, the gap between wage growth and gaming revenue growth remains a concern.
Q: Can you discuss the main drivers of the weakness in the destination business in Las Vegas and how it might affect the non-destination business? A: Keith Smith, President and CEO, explained that the weakness in the destination business is primarily affecting the Orleans property. However, the local customer base remains strong, with core customers showing growth. The 90-day booking outlook has improved, suggesting potential recovery, although it remains soft.
Q: What are your thoughts on the current M&A environment and potential opportunities for Boyd Gaming? A: Keith Smith stated that Boyd Gaming has a disciplined approach to M&A, focusing on the right asset, market, and price. While they are monitoring opportunities, there hasn’t been a significant increase in potential deals crossing their desk.
Q: How did the Midwest and South properties perform, and were there specific areas of strength? A: Keith Smith noted that the performance was generally broad-based across the portfolio, with strong results. Treasure Chest was highlighted for its continued growth even after its anniversary. Overall, the segment showed solid performance.
Q: Can you provide insights into the capital investments in the Las Vegas Locals market and their expected returns? A: Josh Hirsberg, CFO, mentioned that Boyd Gaming targets a 15% to 20% cash-on-cash return for their investments. Projects like Treasure Chest and Ameristar St. Charles have met or exceeded these expectations. The company is also investing in renovations at Suncoast and Orleans to maintain competitiveness.
Q: How is the promotional environment in the Midwest and South regions, and has there been any change in competitor behavior? A: Keith Smith observed that some competitors have increased marketing spend, but Boyd Gaming remains disciplined, maintaining consistent margins. Their marketing efforts are more focused on addressing declines in destination business rather than responding to competitors.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
