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    BYD
    Earnings call· Mar 2026(Q1 FY26)

    BOYD GAMING Q1 FY26 earnings call BYD

    Apr 23, 2026 Source

    Executive summary

    Boyd Gaming Q1 FY26 — Diversified Portfolio Drives Strong Midwest & South Performance Amidst Las Vegas Headwinds

    Boyd Gaming delivered a mixed Q1 FY26, with strong performance in its diversified Midwest and South segment driven by capital investments and operating efficiencies. This was partially offset by persistent softness in Las Vegas destination business and construction-related disruptions at Suncoast, which are expected to persist through Q3. The company continues to balance strategic capital investments in its portfolio and development pipeline with a robust capital return program, maintaining a strong balance sheet.

    Highlights

    5

    • Company-wide revenues reached nearly $1 billion, with EBITDAR of $317 million in Q1 FY26.

    • Property margins exceeded 39% company-wide, demonstrating continued operating efficiencies.

    • Midwest and South segment revenues grew 4% and EBITDAR grew 5%, with margins improving to nearly 37%.

    • Returned nearly $170 million to shareholders in Q1 FY26, comprising $155 million in share repurchases and $14 million in dividends.

    • Maintained a strong balance sheet with traditional leverage of 1.8x and lease-adjusted leverage of 2.4x at quarter-end.

    Concerns

    4

    • Continued softness in destination business in Las Vegas, particularly impacting the Orleans and Downtown segments, with an estimated $5 million-$6 million EBITDAR impact per quarter.

    • Significant construction disruption at the Suncoast property, which impacted Q1 Locals EBITDAR by approximately $1.5 million and is expected to continue until late Q3 FY26.

    • Corporate expense was higher than usual by approximately $6 million in Q1 FY26 due to one-time items, including charitable contributions.

    • Fremont Street Experience pedestrian traffic declined 11% year-over-year in Q1 FY26, reflecting weaker business throughout Downtown Las Vegas.

    Guidance & targets

    13
    CategoryTargetConfidence
    Online segment EBITDAR
    $30 million to $35 million
    medium materiality
    High
    Managed & Other segment EBITDAR
    $110 million to $114 million
    medium materiality
    High
    Virginia resort opening
    late 2027
    high materiality
    High
    Par-A-Dice casino modernization completion
    late 2028
    medium materiality
    High
    Orleans hotel room renovation completion
    later this year
    low materiality
    High
    Suncoast hotel renovation start
    this summer
    low materiality
    High
    Orleans modernization project start
    2027
    medium materiality
    High
    Share repurchases pace
    $150 million per quarter
    high materiality
    High
    Total capital return (buyback + dividend)
    more than $650 million per year or approximately $9 per share in value
    high materiality
    High
    Capital expenditures
    $650 million to $700 million
    high materiality
    High
    Next debt maturity refinancing
    later this year or in the first half of 2027
    medium materiality
    High
    Remaining tax credits payment
    $290 million
    medium materiality
    High
    Cash tax benefit
    about $45 million to $50 million
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Midwest and South
    Achieved broad-based revenue and EBITDAR growth, driven by customers staying closer to home, milder winter weather, and capital investments. Gaming revenues grew from increased core and retail customer play. Margins improved.
    EBITDAR growth: 5%
    		4% growth4%—nearly 37%
    Las Vegas Locals
    Results reflected continued softness in destination business (largest impact at Orleans) and significant construction disruption at Suncoast. Excluding Orleans and Suncoast, revenues and EBITDAR were in line with the prior year.
    EBITDAR shortfall: $6.5 million YoYDestination impact on EBITDAR: ~$5 millionSuncoast disruption impact on EBITDAR: ~$1.5 millionOperating margins (excluding Orleans and Suncoast): >50%Core customer play (overall segment): in line with prior year
    		————
    Downtown Las Vegas
    Trends similar to recent quarters, with stable play from Hawaiian guests and core customers, offset by weaker business throughout Las Vegas.
    Hawaiian guests and core customers play: stableFremont Street Experience pedestrian traffic: 11% YoY decline
    		————

    Operational metrics

    39
    Company-wide revenues
    $1 billion
    Q1 FY26

    Reached nearly $1 billion.

    Company-wide EBITDAR
    $317 million
    Q1 FY26

    Overall company-wide EBITDAR.

    Property margins
    >39%
    Q1 FY26

    Successfully maintained operating efficiencies.

    Share repurchases
    $155 million
    Q1 FY26

    Part of capital return program.

    Shares repurchased
    1.8 million
    Q1 FY26

    At an average price of $83.94 per share.

    Average repurchase price
    $83.94
    Q1 FY26

    For shares repurchased in Q1 FY26.

    Dividends paid
    $14 million
    Q1 FY26

    Part of capital return program.

    Total capital returned to shareholders
    $170 million
    Q1 FY26

    Sum of share repurchases and dividends.

    Share repurchase authorization remaining
    $700 million
    Q1 FY26

    Includes an additional $500 million authorized by the Board.

    Additional share repurchase authorization
    $500 million
    April 2026

    Authorized by the Board earlier this month.

    Total capital returned over 4.5 years
    $2.9 billion
    Last 4.5 years

    Since the beginning of the capital return program.

    Share count reduction over 4.5 years
    >33%
    Last 4.5 years

    Cumulative reduction in share count.

    Actual share count
    74.8 million
    End of Q1 FY26

    At the end of the first quarter.

    Traditional leverage
    1.8x
    End of Q1 FY26

    Finished the first quarter with traditional leverage.

    Lease-adjusted leverage
    2.4x
    End of Q1 FY26

    Finished the first quarter with lease-adjusted leverage.

    Corporate expense one-time items
    $6 million
    Q1 FY26

    Higher than usual due to timing of charitable contributions.

    Las Vegas Locals EBITDAR shortfall
    $6.5 millionYoY
    Q1 FY26

    Off year-over-year.

    Destination impact on Locals EBITDAR
    $5 million
    Q1 FY26

    Attributed to destination business softness.

    Suncoast disruption impact on Locals EBITDAR
    $1.5 million
    Q1 FY26

    Attributed to construction disruption, partial quarter impact.

    Suncoast disruption estimated impact
    $2.5 million to $3 million
    Q2 FY26

    Estimated full-quarter impact for Q2 FY26.

    Suncoast disruption estimated impact
    $2 million to $2.5 million
    Q3 FY26

    Estimated impact for Q3 FY26, until project completion.

    Southern Nevada population
    2.4 millionup 16% over last decade
    Last year

    Growth rate more than twice the national average.

    Southern Nevada non-hospitality job growth
    90%
    Last 10 years

    Percentage of jobs created outside the hospitality industry.

    Southern Nevada per capita income growth
    >5%average annual basis
    Last 10 years

    Average annual growth over the same 10-year period.

    Southern Nevada total personal income growth
    nearly doubled
    Last 10 years

    Over the same 10-year period.

    Virginia resort cost
    $750 million
    Project total

    Total cost of the upscale resort project.

    Virginia resort casino size
    65,000
    Project total

    Size of the casino floor.

    Virginia resort hotel rooms
    200
    Project total

    Number of hotel rooms in the resort.

    Sky River Casino parking garage capacity
    1,600
    Opened March 2026

    Opened at the end of March.

    Sky River Casino planned hotel rooms
    300
    Early 2028 completion

    Part of the ongoing development.

    Cadence master planned community homes
    >12,000
    Upon full build-out

    Planned homes in the community adjacent to Cadence Crossing.

    Capital expenditures
    $155 million
    Q1 FY26

    Invested during the quarter.

    Recurring maintenance capital
    $250 million
    FY26

    Expected for the full year.

    Incremental hotel capital (Orleans)
    $75 million
    FY26

    Focused on the Orleans hotel remodel.

    Growth capital (Cadence, Par-A-Dice design)
    $50 million
    FY26

    Primarily related to completing Cadence Crossing and Par-A-Dice design/preconstruction.

    Virginia project capital
    $300 million
    FY26

    Related to the Virginia resort project.

    Tax credits payment (remaining)
    $290 million
    Q2 FY26

    Expected payment for FanDuel transaction tax credits.

    Las Vegas Locals market growth (historical)
    3% to 5%
    Historical

    Traditional growth rate for the Locals market.

    Treasure Chest returns after tax
    >25%
    Projected

    Returns on investment for the Treasure Chest project.

    Industry KPIs

    2
    MetricValueDetails
    Comparable sales comps11% decline%
    Net unit growth development pipeline200 roomsrooms

    Product announcements

    7
    ProductTypeDetails
    Cadence Crossing Casinolaunch
    Sky River Casino floor expansionexpansion
    Sky River Casino parking garageexpansion
    Treasure Chest new high-limit roomlaunch
    New restaurant concepts at Gold Coastlaunch
    Additional restaurant concepts at Fremont, Aliante, Sam's Townroadmap
    Sky River Casino hotel, F&B, spa, event centerroadmap

    Risks & headwinds

    4
    Softness in Las Vegas destination businessOngoing, expected to continue through Q2 FY26, then 'less bad' in Q3/Q4 FY26, potential growth H1 FY27

    Estimated $5 million to $6 million EBITDAR impact per quarter

    Mitigation: Anticipates easier year-over-year comparisons in the second half of 2026; long-term fundamentals of Southern Nevada economy remain strong.

    Construction disruption at SuncoastExpected to continue until late Q3 FY26

    Q1 FY26 Locals EBITDAR impact of ~$1.5 million; estimated $2.5 million-$3 million for Q2 FY26; estimated $2 million-$2.5 million for Q3 FY26

    Mitigation: Project completion towards the end of Q3 FY26, after which the renovated property is expected to contribute positively.

    Increased gas pricesCurrent

    Impact on drive-in/fly-in traffic

    Mitigation: Trends stable so far; higher tax refunds may offset the impact; monitoring airfares for Hawaiian business.

    Competition from BGTs (Video Gaming Terminals) in IllinoisOngoing

    Significant number of BGTs compete with Par-A-Dice product

    Mitigation: Modernization project for Par-A-Dice casino to transform it into a single-level entertainment facility with enhanced amenities, positioning it for future growth.

    What to watch in Q2 FY26

    5

    Suncoast renovation completion and impact

    late Q3 FY26
    CurrentQ1 Locals EBITDAR impacted by ~$1.5 million; Q2 estimated impact $2.5M-$3M
    TargetCompletion of renovation and positive contribution to Locals segment

    Why it matters

    The completion of the Suncoast modernization project is expected to remove a significant headwind and contribute to the recovery of the Las Vegas Locals segment.

    We anticipate this disruption will continue until we complete our renovation project late in the third quarter.

    Q&A highlights

    6

    When might the soft destination business in Las Vegas inflect, especially with rising fuel prices impacting travel?

    Management expects the destination business impact to continue at a consistent level ($5M-$6M EBITDAR per quarter) through Q2, then become "less bad" in Q3 and Q4 due to easier year-over-year comparisons. Potential for growth is anticipated in the first half of 2027. Rising fuel prices are noted, but current trends are stable, potentially offset by higher tax refunds.

    “I don't think we expect it to flip on a dime and start to become positive all of a sudden. But I think we would think it would be kind of continuing to be down less bad, but down year-over-year in Q3 and gradually improved Q4 and then maybe in the first half of next year, start to see some overall and growth out of that segment.”

    asked by Steven Wieczynski · answered by Josh Hirsberg

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 Performance Overview

    Boyd Gaming reported Q1 FY26 company-wide revenues of nearly $1 billion and EBITDAR of $317 million, reflecting the benefits of its diversified business and focus on operating efficiencies. Property margins exceeded 39% across the company. Gaming revenues continued to grow, driven by increased play from both core and retail customers, a trend that has continued into April.

    02

    Midwest and South Segment Strength

    The Midwest and South segment, the company's largest, achieved broad-based revenue and EBITDAR growth, with revenues up 4% and EBITDAR up 5%, leading to margins of nearly 37%. This strong performance was attributed to customers staying closer to home, milder winter weather, and successful capital investments, including hotel remodels at IP Biloxi and Valley Forge, and new convention space at Ameristar St. Charles. The Treasure Chest property also continued its year-over-year growth.

    03

    Las Vegas Locals & Downtown Headwinds

    Results in the Las Vegas Locals segment were impacted by continued softness in destination business, particularly at the Orleans, and significant construction disruption at the Suncoast property. Excluding these two properties, the remainder of the segment saw revenues and EBITDAR in line with the prior year, with operating margins exceeding 50%. Downtown Las Vegas experienced stable play from Hawaiian and core customers but was offset by an 11% year-over-year decline in pedestrian traffic on the Fremont Street Experience.

    04

    Strategic Capital Investments & Development Pipeline

    The company is actively investing in its portfolio, including the recent opening of Cadence Crossing Casino on March 25, which has received an enthusiastic guest response. The Suncoast modernization project, transforming the casino floor and enhancing amenities, is on track for completion in late Q3. Future projects include hotel renovations at the Orleans (completing this year) and Suncoast (starting this summer), new restaurant concepts, and a major modernization at the Orleans in 2027. The $750 million Virginia resort remains on track for a late 2027 opening, and the Par-A-Dice casino modernization is approved for late 2028 completion.

    05

    Capital Allocation and Balance Sheet Strength

    Boyd Gaming returned nearly $170 million to shareholders in Q1, consisting of $155 million in share repurchases (1.8 million shares at an average price of $83.94) and $14 million in dividends. The company plans to maintain repurchases at $150 million per quarter, aiming for over $650 million in total capital return for FY26. The balance sheet remains strong, with traditional leverage of 1.8x and lease-adjusted leverage of 2.4x, and approximately $700 million remaining under the share repurchase authorization.

    06

    Online and Managed Segments Performance

    The Online segment, Boyd Interactive, continued to grow, with contributions from third-party market access agreements remaining consistent. The Managed & Other segment also achieved revenue and EBITDAR growth. Sky River Casino saw its casino floor expansion open in late February and a 1,600-space parking garage in late March. Development for a 300-room hotel, new food and beverage outlets, and a spa at Sky River is underway, expected to complete in early 2028.

    AI-generated summary of the company’s earnings call. Not investment advice.