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Wynn Resorts (WYNN) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Consumer Discretionary· May 7, 2026

Source: earnings call transcript

Executive summary

Wynn Resorts Q1 FY26 — Strong Performance Across Segments, UAE Project Faces Modest Delay

Wynn Resorts delivered a strong first quarter, driven by robust performance in Las Vegas and Macau, with significant growth in key metrics. The company announced a major new investment in Macau with the Enclave at Wynn Palace, while the Wynn Al Marjan project in the UAE faces a modest delay due to regional logistical challenges. Management remains confident in the long-term strategic value of the UAE project and continues to focus on operational efficiency and shareholder returns across its global portfolio.

Highlights

5

  • Wynn Las Vegas adjusted EBITDA grew 5% to $235 million, inclusive of a record March.

  • Wynn Las Vegas RevPAR was up nearly 10% year-on-year on a 12% increase in rate.

  • Macau operations delivered adjusted property EBITDA of $296 million (VIP hold adjusted), with Mass drop up 19% and Handle up 32% year-on-year.

  • Company-wide liquidity remains strong with global cash and revolver availability of $4.4 billion.

  • Wynn Macau Board recommended an increase in the final dividend for 2025 to $150 million, up from $125 million.

Concerns

5

  • Wynn Al Marjan project expects a modest delay in opening timeline due to logistical and shipping challenges in the region.

  • Lower-than-expected VIP hold negatively impacted Macau EBITDA by $17 million.

  • Wage pressures remain a challenge at Encore Boston Harbor, though operating expenses were tightly managed.

  • OpEx per day in Las Vegas was up 6.8% due to higher business volumes, wage increases, and new outlet staffing.

  • Shipping rates for the UAE project have gone up, and carrying costs for the on-ground team will be incremental.

Guidance & targets

CategoryTargetConfidence
Wynn Al Marjan opening timeline
Modest delay
high materiality
Medium
Wynn Al Marjan opening year
2027
high materiality
High
Macau expansionary CapEx
$400M-$450M
medium materiality
High
Encore Tower remodel completion
Very early 2027
low materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Wynn Las Vegas
Strong performance driven by new venue openings and ongoing team efforts. Favorable hold negatively impacted EBITDA by just over $2 million. Momentum carried into Q2 with positive trends in drop, handle, and ADR.
RevPAR: up nearly 10% YoYADR: up 12% YoYCasino revenues: up over 9%Drop: up YoYHandle: up YoYOpEx per day (excluding gaming tax): $4.55M (up 6.8% YoY)
$661.9M——$232.5M adjusted property EBITDA (5.1% EBITDA margin)
Encore Boston Harbor
Maintained discipline on the cost side despite challenging weather and continued gaming expansion in New Hampshire. Team is mitigating union-related payroll increases with identified cost efficiencies. Q2 is off to a steady start with drop and handle ahead of last year.
Slot revenues: grew 2% YoYOpEx per day: $1.22M (up 3.9% YoY)
$205.7M——$50.5M adjusted property EBITDAR (24.6% EBITDA margin)
Macau Operations
Strong quarter driven by premium demand. Lower-than-normal VIP hold negatively impacted EBITDA. Momentum persisted into Q2 with Mass Drop running ahead of last year. Newly expanded Chairman's Club opened to strong customer reception.
VIP hold adjusted EBITDA: $296MMass drop: up 19% YoYMass handle: up 32% YoYVIP hold impact: negatively impacted EBITDA by $17MOpEx per day (excluding gaming tax): $2.9M (up 9.9% YoY)
$989.2M——$279.4M adjusted property EBITDA (28.2% EBITDA margin)

WYNN operating KPIs by quarter

WYNN operating KPIs stated on its earnings calls, by fiscal quarter
KPIThis call Mar 2026 Q1 FY26 Jun 2026 Q2 FY26Change vs prior quarter
Development pipeline rooms The Enclave at Wynn Palace
432 The Enclave at Wynn Palace, a 432 all-suite hotel will sit directly adjacent to and connect into the east entrance of Wynn Palace. Source: earnings call transcript
432 Last quarter, we announced Enclave, a new 432 all-suite hotel and expect to commence construction on that tower before the end of the year. Source: earnings call transcript
0%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

ProductTypeDetails
Zero Bondlaunch
Sartiano's Italian steakhouselaunch
Chairman's Club expansionexpansion
The Enclave at Wynn Palacelaunch
Encore Tower remodelupdate

Risks & headwinds

Logistical and shipping challenges in UAE Quantification expected in coming months.

Modest delay in opening timeline for Wynn Al Marjan project.

Mitigation:Rerouting shipments and sourcing alternative materials where needed. Supply chains are becoming flexible.

Lower-than-expected VIP hold Q1 FY26

Negatively impacted Macau EBITDA by $17M.

Wage pressures Q1 FY26 and ongoing

OpEx per day at Encore Boston Harbor up 3.9% YoY to $1.22M.

Mitigation:Actively working to address. Team is mitigating union-related payroll increases with identified cost efficiencies that do not impact guest experience.

Increased operating expenses in Las Vegas Q1 FY26

OpEx per day (excluding gaming tax) up 6.8% YoY to $4.55M.

Increased operating expenses in Macau Q1 FY26

OpEx (excluding gaming tax) up 9.9% YoY to $2.9M per day.

Geopolitical risk in UAE Ongoing

Logistical challenges today, potential for more depending on situation evolution.

Mitigation:UAE's demonstrated ability to manage through conflicts and emerge stronger. Company underwrote the project with geopolitical risk in mind.

Increased shipping rates for Al Marjan project Ongoing

Likely a rounding error on total budget.

Incremental preopening budget for Al Marjan project Ongoing until opening

Cost of carrying on-ground team for slightly longer.

Food and beverage COGS pressure Q1 FY26 and ongoing

Not quantified, but noted as a pressure point.

Mitigation:Watching closely; will make price moves if necessary, but avoids adjusting portion sizes to prevent brand/value impacts.

What to watch in Q2 FY26

Wynn Al Marjan opening delay quantification

coming months
Current Modest delay expected
Target Quantified delay in months/quarters

Why it matters

The precise impact on project timeline and budget is crucial for valuation and future revenue projections.

We do expect a modest [indiscernible] in our opening time line, and I expect that we will quantify that in the coming months.

Find out whether WYNN delivers this. Inve re-checks your case every morning.

Q&A highlights

What specific actions are being taken to keep the Al Marjan project on track given regional challenges, and what are the impacts of supply chain constraints?

Construction continues with 22,000 workers on site. The team is resilient, rerouting shipments and sourcing alternative materials. Logistical challenges are manageable, leading to a modest delay, but the project is advancing. The UAE's response to the conflict has reinforced its security credibility.

“Construction continues. We're making do just fine, and we will carry on.”

asked by Daniel Politzer · answered by Craig Billings

2 min read 5 chapters

Detailed narrative

Wynn Al Marjan Project Update

Construction on the Wynn Al Marjan project in the UAE continues with over 22,000 workers on site. The project has faced logistical and shipping challenges due to regional conflict, leading to a modest expected delay in the opening timeline, which will be quantified in coming months. Despite this, management remains highly confident in the long-term tourism fundamentals of the UAE, citing its world-class infrastructure, strong policy framework, and demonstrated ability to manage geopolitical risks. The company is not revisiting its initial EBITDA estimates for the project.

Las Vegas Performance and Luxury Consumer Resilience

Wynn Las Vegas delivered strong Q1 FY26 results, with adjusted EBITDA up 5% to $235 million, including a record March. RevPAR increased nearly 10% year-on-year, driven by a 12% increase in rate. This momentum has carried into Q2, with positive trends in drop, handle, and ADR. Management attributes this to specific strategies, strong gaming market share, retail sales, and the resilience of the luxury consumer, noting that the property did not experience a slowdown in 2025 like the broader market. The Encore Tower remodel is set to begin shortly.

Macau Market Strength and Strategic Investment

Macau operations generated $296 million in VIP hold adjusted EBITDA. Mass drop was exceptionally strong, up 19%, and handle increased 32% year-on-year, with positive trends continuing into Q2. To capitalize on premium demand and high occupancy rates at Wynn Palace, the company announced a significant new investment: The Enclave at Wynn Palace. This $900 million to $950 million all-suite hotel will add 432 rooms, increasing Wynn Palace's room count by 25% and suite count by 50%, driving more foot traffic to existing gaming and F&B facilities. The project is expected to generate $150 million to $175 million in incremental EBITDA.

Capital Allocation and Shareholder Returns

Wynn Resorts maintains a strong liquidity position with $4.4 billion in global cash and revolver availability. The company's consolidated net leverage ratio stands at just over 4.4x. The Wynn Macau Board recommended increasing the final dividend for 2025 to $150 million, up from $125 million. Additionally, the Wynn Resorts Board approved a cash dividend of $0.25 per share. The company repurchased 528,000 shares for $53.8 million in Q1 and an additional $30.6 million in Q2, demonstrating confidence in operations and commitment to returning capital.

Operational Efficiency and Cost Management

Encore Boston Harbor generated $51 million in EBITDAR with a 24.6% EBITDA margin, maintaining cost discipline despite wage pressures. OpEx per day was $1.22 million, up 3.9% year-on-year, with the team mitigating union-related payroll increases through identified cost efficiencies. In Las Vegas, OpEx per day was $4.55 million, up 6.8%, driven by higher business volumes, contractual wage increases, and staffing for new outlets. Macau OpEx, excluding gaming tax, was $2.9 million per day, up 9.9%, due to higher business volumes, new facility openings, and cost of living adjustments.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.