Boyd Gaming recorded its Q2 2026 revenue at $1.034 billion, slightly down from $1.035 billion the previous year. However, net income saw a decrease to $131.2 million, or $1.75 per share, compared to $151.5 million from last year.
Total Adjusted EBITDAR dropped to $350.5 million from $357.9 million, while adjusted earnings also fell to $144.4 million from $154.2 million. Despite this, adjusted earnings per share improved to $1.93 from $1.87.
When viewed on a comparable basis that excludes the impacts of last year’s FanDuel deal and tax pass-throughs linked to market-access agreements, overall revenue rose by 3% and EBITDA by 2%. Property operating margins remained steady at 40%.
“The results from this quarter highlight the strengths of our diversified business model, showing positive outcomes from our Midwest & South sectors, online operations, and managed services,” commented President and CEO Keith Smith.
“On a comparable basis, we are witnessing growth in both revenue and adjusted EBITDAR, while maintaining property operating margins at 40%, a figure we’ve consistently achieved over the years. This success has been bolstered by strong engagement from our core and retail customer base across the spectrum, in addition to gains from recent capital investments.”
President and Chief Executive Officer Keith Smith
Growth was primarily driven by the Midwest and South segment, which saw revenue climb 3% and EBITDA rise 4%. Property margins achieved nearly 38%, marking their highest in close to two years. Smith noted that guests are increasingly choosing to spend their leisure time nearby, highlighting hotel renovations, new dining options, and investments at Treasure Chest and Ameristar St. Charles.
Smith indicated that various factors such as airline rates, inflation, fuel prices, tax refunds, and stock market performance may influence customer behavior. However, Boyd remains focused on the ongoing growth of its core and retail clientele.
Results from the Las Vegas Locals segment were hindered by a decline in destination business, particularly at the Orleans, alongside construction delays at Suncoast. Gaming revenue held steady, but when excluding the aforementioned properties, the segment reported a 4% revenue increase, a 3% growth in EBITDA, and margins exceeding 50%, showcasing “the resilient performance from our local clientele.”
“While Las Vegas locals’ results were impacted by ongoing challenges in destination business, especially at the Orleans, and construction delays at Suncoast, the remainder of the segment saw revenue and adjusted EBITDAR growth over the last year, with property margins surpassing 50%,” stated Smith.
“In our downtown Las Vegas sector, play from our core customers and Hawaiian visitors remained consistent with previous quarters, although results were still dampened by ongoing softness particularly affecting destination business in the downtown area.”
Chief Financial Officer Josh Hirsberg estimated that the reduced destination business extracted approximately $5 million from EBITDAR, and that the construction at Suncoast had an additional impact estimated at about $3 million. He anticipates that the destination business impact will become “less severe,” anticipating around $3 million each in Q3 and Q4.
Suncoast, Las Vegas
The Suncoast renovations are expected to be finalized by the end of the third quarter, without any anticipated disruption during 2027. Boyd also intends to initiate a refresh of the Orleans in the first half of next year. Future Las Vegas projects will include hotel renovations, new dining venues, and sportsbook improvements.
By early next year, Boyd aims to have upgraded over 70% of its Las Vegas hotel rooms and launched 17 new food and beverage concepts.
The online operations experienced both revenue and EBITDA growth, largely due to the contributions from Boyd Interactive and market-access agreements. Full-year online projections have been increased by $5 million to a range of $35 million to $40 million.
Managed business EBITDA saw an impressive 18% increase, attributed to higher fees from Sky River Casino. Boyd has raised its full-year managed business guidance by $3 million, projecting between $113 million and $117 million.
“The notable growth in revenue and adjusted EBITDAR from our managed business can be attributed to increased management fees from Sky River Casino following its recent expansion,” said Smith.
The upcoming phase at Sky River will introduce a 300-room hotel, three dining outlets, a spa, and an entertainment complex, with completion projected for early 2028. Boyd allocated $142 million for capital projects this quarter and a combined $297 million in the first half of the year. Total spending for the year is still estimated at $650 million to $700 million, including $300 million dedicated to the Norfolk, Virginia, resort slated for late 2027.
Sky River
The company returned over $170 million to its shareholders, incorporating $15 million in dividends and $156 million in share buybacks. A quarterly dividend of $0.20 per share was paid on July 15, while there remains $551 million under its repurchase authority.
Boyd ended June with $322.7 million in cash and $2.6 billion in debt, reflecting a traditional leverage ratio of 2.2 times and lease-adjusted leverage of 2.7 times. The company expects to refinance its December 2027 debt maturity within this year or in the first half of 2027 and to finalize the sale of its Shreveport property by the end of July.