Boyd Gaming (NYSE:BYD) said its third-quarter performance reflected continued strength among core customers, growth in its Midwest and South operations, and double-digit gains from its online business, though reported company-wide revenue and EBITDA each declined about 1% amid property sales, closures and softer destination travel to Las Vegas.
President and Chief Executive Officer Keith Smith said reported results were affected by the prior closure of Sam’s Town Tunica, the August sale of Sam’s Town Shreveport, higher property taxes at Kansas Star and lower tax pass-through amounts. Excluding those items, Smith said revenue increased 2% and EBITDA rose 1% from the prior-year period.
Midwest and South segment posts growth
In the Midwest and South segment, adjusted revenue rose nearly 3%, gaming revenue increased more than 2%, and EBITDA grew nearly $5 million, or about 2.5%, Smith said. The company attributed the results to continued play from core and retail customers, including growth in unrated play.
Adjusted operating margins in the segment were 38%, consistent with third-quarter levels in recent years. Smith said Boyd has continued to invest across the portfolio through gaming-floor enhancements, new food and beverage offerings, hotel-room renovations and growth projects.
Chief Financial Officer Josh Hirsberg said the company expects the Midwest and South business to maintain growth levels similar to those seen in 2026 as it enters 2027, based on customer trends and the performance of its investments.
Las Vegas locals growth offset by destination softness
Boyd said its Las Vegas Locals segment was affected by softer destination business, particularly at The Orleans, as well as renovation-related disruption at Suncoast. Excluding those two properties, revenue and EBITDA in the Las Vegas Locals portfolio each grew 3%, while gaming revenue rose 3.5%.
Hirsberg said margins excluding The Orleans and Suncoast were 47% in the third quarter, matching the same period in each of the prior two years. Management said it remains comfortable with the potential for roughly 50% margins in the segment as Suncoast work is completed and hotel rooms return to service.
Smith said destination weakness intensified during the third quarter, particularly in August, though September improved from August. Management does not expect destination trends in the fourth quarter to remain as weak as they were during the third quarter, but it did not project a return to flat or positive destination-business growth.
The company completed renovations of Suncoast’s public spaces by the end of the quarter and began remodeling its hotel rooms late in the period. The hotel project is expected to finish in the first quarter of 2027. Boyd also plans a broader renovation at The Orleans, with initial work beginning in early 2027 in areas not accessible to the public. Smith described the upgrade as a needed long-term refresh for a property that is approximately 30 years old.
Boyd expects hotel rooms at The Orleans to return during the fourth quarter, while Suncoast rooms will remain out of service during portions of the fourth quarter and first quarter of 2027. Hirsberg said Suncoast should begin making a more meaningful contribution in late first quarter and the second quarter.
Online and managed businesses continue to expand
Smith said Boyd Interactive again delivered double-digit revenue and EBITDA growth. The third quarter was the first comparable year-over-year period following the prior-year FanDuel transaction, providing what management called a clearer comparison of online performance.
Hirsberg said prior guidance for Boyd’s online and Managed & Other businesses remains in place, though he directed investors toward the high end of the ranges previously provided. The Managed & Other business benefited from higher management fees at Sky River Casino in Northern California.
Sky River recently added 400 slot machines and a 1,600-space multilevel parking structure. Work is continuing on a further expansion that will include a 300-room hotel, three food and beverage outlets, a spa and an entertainment and event center. Boyd expects the project to be completed in 2028.
Management also said it supports properly regulated and taxed iGaming legalization, including potentially in Virginia. Smith said the company views online gaming as complementary to its broader business rather than harmful to its land-based operations.
Capital spending, development pipeline and shareholder returns
Boyd invested $159 million in capital expenditures during the third quarter, bringing year-to-date spending to $456 million. Hirsberg said the company now expects approximately $650 million of capital expenditures for the full year, including:
- $250 million of maintenance capital;
- $75 million of incremental hotel capital tied to The Orleans hotel remodel;
- $50 million of growth capital, primarily for Cadence and planning for the Par-A-Dice project; and
- $275 million for the Virginia casino resort development.
The company’s Norfolk, Virginia, resort remains on time and on budget for a November 2027 opening, according to Smith. The project is expected to include a 65,000-square-foot casino, 200-room hotel, eight food and beverage outlets, live entertainment and an outdoor amenity deck.
Boyd also expects to begin construction on its redesigned Par-A-Dice Casino project in Illinois late next year. Separately, it is designing a plan to move Amelia Belle in Louisiana to a land-based facility, with construction targeted for late 2027 pending regulatory approvals.
During the third quarter, Boyd returned about $180 million to shareholders, including $164 million in share repurchases and $15 million in dividends. The company repurchased 2 million shares and ended the quarter with 71.2 million shares outstanding, down 9.4% from a year earlier.
Management said it intends to target approximately $150 million in quarterly share repurchases, supplemented by dividends, and expects to return more than $680 million to shareholders this year. Boyd ended the quarter with traditional leverage of 2.2 times and lease-adjusted leverage of 2.7 times. The company said it expects to refinance its next debt maturity, due in December 2027, later this year or in the first half of 2027.
About Boyd Gaming (NYSE:BYD)
Boyd Gaming Corporation is a gaming and hospitality company headquartered in Las Vegas, Nevada. The company owns and operates casinos, hotels, restaurants, entertainment venues and related amenities under brands including Sam’s Town, The Orleans, Gold Coast, Suncoast and Fremont.
Boyd Gaming serves customers across several U.S. states, with a significant presence in Nevada as well as properties in the Midwest and South. Its portfolio includes destination resorts, regional casinos and racetracks offering slot machines, table games, poker, sports betting and other gaming experiences.
The company also operates online gaming and sports-wagering businesses in selected markets, including through partnerships and digital platforms.
