Boyd Gaming Corporation (BYD) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary reflects a generally positive outlook. The company has increased guidance for its Online segment and has several expansion projects underway, indicating growth potential. The shareholder return plan, with significant share repurchases and dividends, is also favorable. The Q&A section reveals confidence in managing disruptions and potential growth in iGaming. While there are some uncertainties, such as the impact of construction at Suncoast and the destination business recovery, the overall sentiment is positive due to strong financial metrics, strategic expansions, and shareholder returns.
Key Financial Performance
Full Year EBITDAR Approximately $1.4 billion, consistent with last year's performance. This was supported by diversified operations, growth in play from core customers, and operational discipline.
Property Level Margins 40%, consistent with last year's performance. This reflects operational discipline and cost controls.
Cash Proceeds from FanDuel Ownership Interest Nearly $1.8 billion. Proceeds were used to reduce leverage below 2x, strengthening the balance sheet.
Capital Returned to Shareholders More than $800 million in 2025, reducing total share count by 11%. This was supported by robust free cash flow.
Fourth Quarter Revenues $1.1 billion. Reflects continued growth in gaming revenues driven by strong play from core customers.
Fourth Quarter EBITDAR $337 million. Year-over-year comparisons were impacted by $40 million due to changes in the online segment and severe winter weather in December.
Las Vegas Locals Segment EBITDAR Growth Nearly 2.5% excluding The Orleans, with margins exceeding 50%. Growth was driven by strong demand from Southern Nevada residents.
Downtown Las Vegas Segment Pedestrian Traffic Declined approximately 10% on Fremont Street Experience, reflecting weaker destination business.
Midwest and South Segment EBITDAR Impacted by $4 million due to severe winter weather and the closure of Sam's Town Tunica. Adjusted EBITDAR grew by roughly 2% year-over-year.
Online Segment EBITDAR $63 million for the full year, driven by Boyd Interactive and third-party market access agreements.
Managed and Other Business EBITDAR Projected to generate $110 million to $114 million in 2026, supported by Sky River Casino's expansion.
Capital Expenditures $588 million for the full year 2025, with $148 million spent in the fourth quarter. Investments focused on customer experience and growth projects.
Share Repurchases 10.1 million shares repurchased in 2025 at an average price of $76.91 per share, reducing share count by 11% from 2024.
Dividends Paid $58 million in 2025, with $14 million paid in the fourth quarter as a regular dividend of $0.18 per share.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Cadence Crossing Casino: Opening in late March 2026, enhancing Las Vegas Locals presence with a modern gaming entertainment facility.
Sun Coast Modernization: Completion expected by Q3 2026, with nearly half of the casino floor already complete.
Paradise Gaming Facility: $160 million investment in East Peoria, construction to begin in 2027, completion in 2028.
Norfolk Resort Development: $750 million project in Virginia, permanent resort completion expected in late 2027.
Las Vegas Locals Segment: Growth driven by new investments like Cadence Crossing and Sun Coast modernization, supported by tax legislation benefits.
Midwest and South Segment: Incremental growth expected from hotel renovations and expanded meeting/convention space at Ameristar St. Charles.
Online Segment: Projected EBITDAR of $30-$35 million in 2026, driven by Boyd Interactive and changes in revenue share agreements.
Record Revenues: Achieved record company-wide revenues in 2025, with EBITDAR of $1.4 billion and property margins at 40%.
Operational Discipline: Maintained cost controls and operational efficiencies, even with challenges like severe winter weather.
Capital Investments: $588 million spent in 2025, with $650-$700 million planned for 2026, focusing on customer experience and growth projects.
FanDuel Transaction: Generated $1.8 billion in cash proceeds, reducing leverage below 2x and strengthening the balance sheet.
Shareholder Returns: Returned $836 million to shareholders in 2025, reducing share count by 11%.
Future Growth Investments: Focused on reinvesting in properties and new developments, including Cadence Crossing, Paradise, and Norfolk Resort.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Las Vegas Locals Segment: Weakness in destination business resulted in a decline of nearly $6 million in cash hotel revenues in Q4, primarily at The Orleans. This softness in destination business could impact overall revenue growth.
Downtown Las Vegas Segment: Decline in pedestrian traffic on Fremont Street by approximately 10% and lower cash hotel revenues due to weaker destination business in the Las Vegas market.
Midwest and South Segment: Severe winter weather in December and the permanent closure of Sam's Town Tunica negatively impacted EBITDAR by approximately $4 million in Q4.
Online Segment: Projected EBITDAR for 2026 is lower ($30 million to $35 million) due to changes in revenue share agreements related to the FanDuel transaction.
Capital Investments: High capital expenditure plans for 2026 ($650 million to $700 million) could strain financial resources, especially with $250 million to $300 million allocated to the Virginia project and $75 million for additional hotel rooms.
Tax Obligations: A $340 million tax credit payment related to the FanDuel transaction in Q1 2026 will increase leverage to approximately 2.5x, potentially impacting financial flexibility.
Economic Sensitivity: The company's reliance on consumer spending, particularly in Southern Nevada, makes it vulnerable to economic downturns or changes in consumer behavior.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Las Vegas Locals Segment: The company expects benefits from the opening of the Cadence Crossing facility in late Q1 2026 and the completion of the Sun Coast modernization project in Q3 2026. Consumer spending is anticipated to increase due to last year's tax legislation, particularly in Southern Nevada.
Midwest and South Segment: The company anticipates growth from recent investments in non-gaming amenities, including hotel room renovations and the expanded meeting and convention center at Ameristar St. Charles. Consumer spending is expected to be supported by economic benefits from last year's tax legislation.
Online Segment: Projected EBITDA for 2026 is $30 million to $35 million, driven by growth from Boyd Interactive and changes in revenue share agreements related to the FanDuel transaction.
Managed and Other Business: The first phase of Sky River Casino's expansion, including 400 slots and a parking garage, is expected to open in February 2026. Phase 2, including a hotel and entertainment center, is scheduled for completion in late 2027. Projected EBITDAR for 2026 is $110 million to $114 million.
Capital Expenditures: Planned capital expenditures for 2026 are $650 million to $700 million, including $250 million for maintenance, $75 million for Cadence Crossing and Paradise, $250 million to $300 million for the Virginia project, and $75 million for additional hotel rooms.
Cadence Crossing Casino: Scheduled to open in late March 2026, targeting a rapidly growing residential area with potential for future expansion.
Paradise Gaming Facility: A $160 million facility in East Peoria is planned, pending regulatory approval, with construction expected to start in 2027 and completion in 2028.
Norfolk, Virginia Resort: A $750 million resort is under construction, with completion expected in late 2027. The resort will feature a casino, hotel, dining options, and entertainment amenities.
Shareholder Returns: The company plans to repurchase $150 million in shares per quarter in 2026, supplemented by quarterly dividends, equating to over $650 million annually.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Dividend Payments in 2025: $58 million in dividends were paid in 2025, with $14 million paid in the fourth quarter as a regular dividend of $0.18 per share.
Future Dividend Plans: The company plans to continue its regular quarterly dividend payments, supplementing share repurchases.
Share Repurchases in 2025: Boyd Gaming repurchased $778 million worth of shares in 2025, reducing the total share count by 11%.
Future Share Repurchase Plans: The company expects to maintain share repurchases of approximately $150 million per quarter, equating to more than $650 million per year.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Could you bifurcate between real Locals play and destination Locals play? How have each trended in Q4 and into the new year?
A:Las Vegas Locals market showed strong play from local residents in Q4 and Q3. However, there was weakness in destination play, leading to a $6 million decline in hotel revenue at The Orleans in Q4, slightly higher than the $5 million decline in Q3. This weakness also impacted gaming revenue and F&B, particularly at larger hotel products like IP in the Midwest and South.
Q:Could you share any updated thoughts on the M&A pipeline or overall environment on whole assets or opcos?
A:The company remains interested in M&A with a disciplined approach, focusing on the right asset, market, and price. While no acquisitions have been made recently, the company has the capability to make acquisitions due to a strong balance sheet. However, they will only proceed if the opportunity is right. Meanwhile, they focus on operating efficiently, reinvesting in their portfolio, and returning capital to shareholders.
Q:Can you shed more light on the right market, right price, and right characteristics for M&A? What are your views on holdco versus opco structures?
A:The company prefers holdco assets but is willing to accept opco structures for the right asset, market, and price. They believe structure should not deter acquisitions and are open to investing in properties to improve their competitive position and EBITDA.
Q:Can you clarify if operating improvements or capital investment in a target are on the table for M&A?
A:Yes, the company has historically improved EBITDA through better execution and invested additional capital in acquired properties to enhance growth and competitive position, as seen with Ameristar St. Charles.
Q:Can you remind us if 40% of your customer base being 65 and older applies to the overall company or just Nevada? How do you view the impact of the One Big Beautiful Bill on your Midwest and South customers?
A:The 40% figure applies company-wide. The One Big Beautiful Bill is expected to benefit both Nevada and Midwest customers, with Southern Nevada likely seeing an outsized benefit due to its demographics. The impact on consumer spending is expected to be positive, but the exact effect is too early to determine.
Q:Are you concerned about SNAP changes impacting your customer cohorts?
A:No, the company is not concerned about SNAP changes impacting their customer cohorts.
Q:Can you quantify the Q4 impact to margins or EBITDA from the Suncoast disruption?
A:The impact of construction at Suncoast has been minimal, with the property maintaining or growing year-over-year performance despite the disruption. The exact impact is difficult to quantify, but the management team has managed well through the disruption.
Q:Can you provide updated expectations for the temporary facility in Virginia? Can it make money before the permanent facility opens?
A:The temporary facility in Virginia is expected to break even, with revenues not significant enough to move the dial. This expectation remains until the permanent facility opens in late 2027.
Q:How do you approach new state launches for iGaming?
A:The company supports iGaming expansion as long as the legislation is fair. They see iGaming as complementary to their business and are paying attention to states considering legalization, such as Virginia. Boyd Interactive has been a growth driver and will grow faster as more states legalize iGaming.
Q:Can you provide high-level thoughts on the Locals market, downtown, Midwest, and South for the year? Are there growth opportunities or margin improvements?
A:The Las Vegas Locals market is strong, with growth in revenue and margins above 50%. Destination business remains uncertain, particularly at The Orleans. Midwest and South markets are performing well, with growth potential in areas like Ameristar St. Charles meeting space. Weather has impacted Q1 performance, similar to last year. Core customer trends remain positive, but destination business needs to recover for stronger performance.
Q:How material was the weather impact in January on the Midwest and South?
A:The weather impact in January was similar to last year, with an approximate $5 million impact.
Q:Is the weaker destination play across larger properties a newer trend?
A:The weaker destination play has been observed for the past six months, particularly at The Orleans in Las Vegas and the IP in Biloxi. Other properties with smaller room counts have not been impacted.
Q:Should we think of the 2.5x lease-adjusted leverage in 2026 as a year-end target?
A:The 2.5x leverage mentioned refers to traditional leverage, not lease-adjusted. Lease-adjusted leverage would be slightly under 3x. The 2.5x traditional leverage is a year-end estimate for 2026.
Q:Why is the company supportive of iGaming in Virginia despite building a large property there?
A:The company views iGaming as complementary to their business, broadening the customer base without being detrimental. They support iGaming legislation if it includes fair elements, such as tax rates and other factors. Their experience in states like Pennsylvania and New Jersey has shown iGaming's benefits.
Q:Are you concerned about demand for the strip bleeding into the Locals business?
A:No, the Locals market is driven by Southern Nevada residents who do not typically play on the strip. The company has not observed any impact from strip demand on the Locals market and expects discretionary income to increase due to tax legislation.
Q:Review of Unclear Management Responses
A:Management avoided providing specific details on the potential impact of construction disruption at Suncoast, stating it was difficult to quantify. They also did not provide a clear outlook on when the destination business might recover, citing a lack of visibility. Additionally, they refrained from commenting on the chances of iGaming legislation passing in Virginia, emphasizing that the details of the bill would determine their support.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
FanDuel transaction
Las Vegas
Norfolk Virginia
Orleans
Sun Coast
Tunica
Vegas Locals
Vegas segment
achievement
cash hotel
center opening
closure
completion Sun
completion phase
consumer spending
contribution
core trend
decline cash
demand
discipline
end completion
experience
floor expansion
focus
foundation
gaming revenue
home
hotel revenue
modernization
opening facility
proceeds
renovation IP
revenue EBITDAR
revenue play
room renovation
softness destination
tax legislation
term value
winter weather
BYD Transcript
Boyd Gaming Corporation (BYD) Q4 2025 Earnings Call Transcript
Positive2-6
The earnings call summary reflects a generally positive outlook. The company has increased guidance for its Online segment and has several expansion projects underway, indicating growth potential. The shareholder return plan, with significant share repurchases and dividends, is also favorable. The Q&A section reveals confidence in managing disruptions and potential growth in iGaming. While there are some uncertainties, such as the impact of construction at Suncoast and the destination business recovery, the overall sentiment is positive due to strong financial metrics, strategic expansions, and shareholder returns.
Boyd Gaming Corporation (BYD) Q3 2025 Earnings Call Transcript
Positive10-23
The earnings call reveals strong financial maneuvers, such as the FanDuel transaction improving leverage and financial flexibility. The expansion plans in Nevada and Virginia, alongside increased shareholder returns, show growth and confidence. The Q&A section highlights steady performance and strategic partnerships, with some minor uncertainties, but overall, the optimistic guidance and proactive strategies suggest a positive outlook for the stock.
Boyd Gaming Corporation (BYD) Q2 2025 Earnings Call Transcript
Positive7-24
The earnings call reflects strong financial performance with $1 billion in revenue and $338 million EBITDA, maintaining a 40% margin. The company is in excellent financial health, with robust free cash flow and no near-term maturities. Shareholder returns are substantial, with $105 million in stock repurchased and a $15 million dividend paid in Q2 2025. The Q&A section reveals a stable promotional environment and disciplined cost management. Although management avoided specifics on tax changes, overall sentiment remains positive, with strategic focus on growth and capital allocation.
Earnings call transcript: Boyd Gaming beats Q1 2025 forecasts, stock rises
Positive4-24
The earnings call highlights strong financial performance with record revenue and growing EBITDAR, a stable leverage ratio, and a commitment to shareholder returns through dividends and buybacks. Despite competitive pressures and some weather impacts, the company shows resilience and strategic planning. The Q&A section indicates management's confidence in growth and risk mitigation strategies. The increase in dividends and share repurchases signals a positive outlook, leading to a likely positive stock price movement in the short term.
BYD Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
