Boyd Reports Marginal Revenue Growth Despite Decline In Profits

Boyd Gaming reported Q1 revenue of $997.4m, slightly ahead of the $991.6m recorded a year earlier. Net income attributable to the company fell to $105.5m from $111.4m, while operating income dropped more sharply to $164.0m from $199.9m. Adjusted figures followed the same direction. EBITDAR declined to $317.4m from $337.5m, and EBITDA came in at $288.8m compared to $309.4m last year.

Adjusted earnings reached $123.1m, while adjusted diluted EPS edged down to $1.60 from $1.62. Reported diluted EPS rose to $1.37 from $1.31, but the increase reflects a reduced share count following buybacks rather than stronger operating performance.

Midwest and South drive growth as Las Vegas softens

The Midwest and South division delivered the strongest performance in the quarter. Revenue in the segment rose to $525.1m from $504.6m, while adjusted EBITDAR increased to $192.6m from $183.2m.

Growth was supported by stronger play from core customers, favourable comparisons against weather disruptions in early 2025 and returns from recent capital investments across properties in the region. The segment has become the company’s primary earnings driver.

Las Vegas operations moved in the opposite direction. The Locals segment generated $217.1m in revenue, down from $222.8m, with adjusted EBITDAR falling to $100.0m from $106.5m. Softer destination demand and ongoing construction at Suncoast weighed on results, with management indicating these pressures may continue in the near term.

Downtown Las Vegas also declined. Revenue slipped to $54.9m from $57.3m, and adjusted EBITDAR fell to $18.9m from $20.9m. Visitor traffic weakened during the period, though play from Hawaiian customers remained relatively stable.

Online segment and rising costs pressure margins

The Online division recorded the steepest drop in performance. Revenue declined to $161.7m from $169.6m, while adjusted EBITDAR fell sharply to $8.4m from $23.3m.

Other segments showed limited movement. Managed and other operations generated $38.5m in revenue, slightly above $37.3m last year, supported by management fees from assets such as Sky River Casino in California.

Cost pressures increased across the business. Total operating expenses rose to $833.4m from $791.7m, driven by higher corporate costs, depreciation and project development spending. Corporate expenses increased to $36.8m from $30m.

Project development and related costs reached $20.3m, compared to a $1.5m benefit in the prior year. Depreciation and amortisation rose to $95m from $68.2m. Interest expense declined to $28.5m from $48.4m, offering some relief, but income before taxes still fell to $137m from $152.2m.

Capital returns and development pipeline remain active

Boyd returned approximately $170m to shareholders during the quarter, including $155m in share repurchases and a dividend of $0.20 per share, up from $0.18. The board authorised an additional $500m for buybacks, leaving $707m available under the programme.

The company ended the quarter with $372.7m in cash and $2.3bn in total debt, placing net leverage at around 1.5 times. Management has indicated this remains below its long-term target range.

Development activity continued across multiple projects. Cadence Crossing Casino opened in Las Vegas, expanding the company’s presence in the local market. Construction progressed on a $750m resort project in Virginia, while regulators approved the expansion of Par-A-Dice in Illinois, with construction expected to begin next year.

Analysts highlight mixed outlook despite solid fundamentals

Analysts at Stifel described the results as steady but reflective of a challenging operating environment. They pointed to solid performance in the Midwest and South, but noted that weakness in Las Vegas is likely to weigh on investor sentiment.

They also highlighted the company’s preference for share buybacks over acquisitions, indicating limited appetite for dealmaking. While Boyd maintains a strong balance sheet and diversified portfolio, analysts expect muted trends in regional gaming and macroeconomic pressure to shape performance through the rest of 2026.

Boyd shares closed at $89.15 on the New York Stock Exchange on 23 April.

Boyd Gaming has reported a slight increase in revenue for the first quarter of 2026. While its Midwest and South division yielded the highest revenue, other segments didn’t perform to expectations. Overall, the company claimed lesser profit margins despite the positive revenue outcome.