Boyd Gaming Q1 Earnings Call Highlights

Key Points

• Q1 results: Boyd reported nearly $1 billion in revenue and $317 million of EBITDA, with property-level revenue and EBITDA up year over year and company-wide operating margins above 39% as core and retail customer play continued to grow.
• Regional divergence: The Midwest & South led growth (revenue +4%, EBITDA +5%, margins ~37%), while Las Vegas locals were pressured by destination softness and Suncoast construction, trimming locals EBITDA by about $6.5 million (roughly $5M destination, $1.5M Suncoast) with disruption expected into late Q3.
• Capital allocation and returns: Boyd expects 2026 capex of $650–700 million (including ~ $300M for the Virginia project), is on track for a $750M Virginia resort opening late 2027, returned nearly $170M to shareholders in Q1 (including $155M buybacks) and ended the quarter with leverage around 1.8x and about $700M of repurchase authorization remaining.

Boyd Gaming NYSE: BYD reported first-quarter 2026 results that executives said reflected the benefits of a diversified portfolio, sustained operating efficiencies, and continued capital investment across the business. President and CEO Keith Smith said company-wide revenue reached “nearly $1 billion” and EBITDA totaled $317 million, while property-level revenue and EBITDA increased year over year, led by growth in gaming revenue.

Smith said property operating margins again exceeded 39%, attributing the performance to strength in the Midwest & South segment, partially offset by softer destination-related business in Las Vegas and construction disruption at Suncoast. He added that play from both core and retail customers continued to grow during the quarter, consistent with trends seen in 2025, and said those customer trends “have continued into April.”

Midwest & South leads quarter as gaming revenue grows

Smith said Boyd’s Midwest & South segment delivered “broad-based revenue and EBITDA growth” in the quarter, with revenue up 4% and EBITDA up 5%. Segment margins improved to nearly 37%, driven by higher gaming play from both core and retail customers.

Management pointed to customers “staying closer to home,” milder winter weather, and returns from capital investments as tailwinds. Smith cited recent hotel remodels at IP Biloxi and Valley Forge, new convention space at Ameristar St. Charles, and food-and-beverage enhancements across the segment. He also said the Treasure Chest property continued to post year-over-year growth, and that the company expects to open a new high-limit room there “early next year.”

In response to analyst questions, Smith described Midwest & South performance as “generally broad-based,” saying Boyd saw growth across geographies and demographics and gained market share where published data is available.

Las Vegas pressured by destination softness and Suncoast disruption

In Nevada, Smith said results in the Las Vegas Locals segment continued to reflect softness in destination business, with “the largest impact at The Orleans,” and more significant construction disruption at Suncoast tied to its modernization project. Smith said renovation work moved into the “most popular part” of Suncoast’s casino floor during the quarter, creating a more material impact. He expects disruption to continue until late in the third quarter when the project is slated for completion.

Excluding The Orleans and Suncoast, Smith said the remainder of the Las Vegas Locals segment was in line with the prior year and produced operating margins above 50%. He added that core customer play in the Las Vegas Locals segment was in line with the prior year even with the Orleans and Suncoast impacts.

During the Q&A, CFO Josh Hirsberg quantified the year-over-year EBITDA decline in the locals business at about $6.5 million, attributing roughly $5 million to destination impacts and about $1.5 million to Suncoast disruption in the first quarter. He said the Suncoast impact was only partial in the first quarter and estimated a larger impact in coming quarters, while emphasizing the disruption is temporary.

On the trajectory of destination-related pressures, Hirsberg said the effect has been “about $5 million, $6 million of EBITDAR each quarter” since the third quarter of last year and that the company expects a similar impact in the second quarter. He said he does not expect destination to “flip on a dime,” but expects it to become “less bad” later in 2026 and gradually improve into 2027.

Smith also discussed longer-term Las Vegas fundamentals, citing population growth to 2.4 million people and a more diversified economy, along with per capita income growth and cost-of-living advantages.

Downtown Las Vegas stable in core and Hawaiian play, but traffic down

Smith said downtown Las Vegas trends were consistent with recent quarters, with stable play from Hawaiian guests and core customers, offset by weaker destination business across Las Vegas. He pointed to an 11% year-over-year decline in pedestrian traffic “under the canopy” on the Fremont Street Experience during the quarter, a decline he said was similar to the fourth quarter.

In April, Smith said Hawaiian business remained stable through the first part of the month despite rising airfares, noting that a large portion of Hawaiian visitation comes through packaged offerings.

Online and managed segments reiterate EBITDA outlook; Sky River expansion progresses

Smith said Boyd Interactive continued to grow, while contributions from third-party market-access agreements were consistent with the second half of 2025. He reiterated full-year online segment EBITDA guidance of $30 million to $35 million.

In the managed and other segment, Smith said Sky River Casino opened its casino floor expansion in late February and a 1,600-space parking garage at the end of March, and that the company is encouraged by continued growth following the expansion. He said the next phase includes a 300-room hotel, three new food-and-beverage outlets, a full-service spa, and an entertainment and event center, with completion targeted for early 2028. Boyd reiterated expectations for $110 million to $114 million in EBITDA from the managed and other segment this year.

Capital spending plans and shareholder returns remain central

Hirsberg said Boyd invested $155 million in capital expenditures in the first quarter and expects full-year capital spending of $650 million to $700 million. He broke the outlook into key components:

• ~$250 million in recurring maintenance capital
• $75 million in incremental hotel capital focused on The Orleans remodel (expected to be completed by the end of 2026)
• $50 million in growth capital, primarily to complete Cadence Crossing and support design and pre-construction for the Par-A-Dice modernization
• ~$300 million related to the Virginia project

Smith described the company’s largest development initiative as a $750 million resort in Virginia that remains on track for a late 2027 opening. He said foundation work is complete and construction is “starting to go vertical.” Smith also said Boyd expects to receive final approval from the Illinois Gaming Board in late February for the expansion and modernization of Par-A-Dice, a project expected to complete in late 2028.

On capital returns, Smith said Boyd returned nearly $170 million to shareholders in the quarter, including $155 million in repurchases and $14 million in dividends. Hirsberg said the company repurchased 1.8 million shares at an average price of $83.94, ending the quarter with 74.8 million shares outstanding. He said Boyd has about $700 million remaining under repurchase authorizations, including an additional $500 million approved by the board earlier in the month, and reiterated the company’s intention to maintain repurchases at roughly $150 million per quarter alongside its dividend.

Hirsberg also highlighted balance sheet metrics, saying traditional leverage ended the quarter at 1.8x and lease-adjusted leverage at 2.4x, with ample capacity under the credit facility. He noted the next debt maturity is in December 2027 and said the company intends to refinance “later this year or in the first half of 2027.”

In additional financial items discussed on the call, Hirsberg said corporate expense was higher than usual due to about $6 million of one-time items, including charitable contributions recorded in the period paid. He also said the company expects to pay remaining tax-credit-related obligations tied to the FanDuel transaction—about $290 million—during the second quarter. On cash taxes, he cited an estimated $45 million to $50 million benefit in 2026 tied to accelerated depreciation, emphasizing it is a timing difference rather than a refund.

Addressing strategy questions, Smith said Boyd remains open to M&A but will stay disciplined, looking for opportunities that are strategic and meet return criteria. He also said the company would be supportive of iGaming expansion and would expect to participate through Boyd Interactive if Virginia legalizes iGaming.

About Boyd Gaming NYSE: BYD

Boyd Gaming Corporation NYSE: BYD is a diversified hospitality and gaming company headquartered in Las Vegas, Nevada. The company develops, owns and operates a portfolio of branded gaming and entertainment properties, including casinos, hotels, restaurants and meeting facilities. Boyd Gaming's offerings range from slot machines and table games to live entertainment, dining concepts and convention space, designed to appeal to both regional and destination visitors.

Founded in 1975 by its namesake, William S.

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