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DATE
Thursday, April 23, 2026 at 5 p.m. ET
CALL PARTICIPANTS
- President and Chief Executive Officer — Keith Smith
- Chief Financial Officer — Josh Hirsberg
- Vice President of Corporate Communications — David Straub
TAKEAWAYS
- Company-wide revenue — Nearly $1 billion, with property-level revenues and EBITDAR up year over year due to higher gaming revenues.
- EBITDAR — $317 million for the quarter, supported by operating efficiencies and continued capital investments.
- Property-level margins — Exceeded 39% for the quarter, reflecting effective cost management.
- Midwest and South segment revenue growth — 4% revenue growth and 5% EBITDAR growth, with segment EBITDAR margins rising to nearly 37%.
- Las Vegas Locals segment operating margins — Margins exceeded 50% for the portion of the segment excluding Orleans and Suncoast properties.
- Construction disruption charge at Suncoast — Impacted results in the quarter, with management attributing $1.5 million impact in the first quarter and guiding to $2.5 million to $3 million impact in Q2; full disruption expected to continue through part of Q3.
- Downtown Las Vegas visitation — 11% year-over-year decline in pedestrian traffic on the Fremont Street Experience was explicitly noted.
- Online segment EBITDAR guidance — Management reiterated outlook of $30 million to $35 million in EBITDAR for the online segment for the year.
- Managed and Other segment outlook — Full-year EBITDAR expected at $110 million to $114 million.
- Capital expenditures — $155 million invested in the quarter, with full-year spending targeted at $650 million to $700 million; includes $250 million recurring maintenance, $75 million Orleans hotel remodel, $50 million growth capital (Cadence Crossing and Paradise), and $300 million for the Virginia project.
- Shareholder returns — $170 million returned in the quarter: $155 million in share repurchases (1.8 million shares at $83.94 average) and $14 million in dividends.
- Share repurchase authorization — $700 million currently authorized, with $500 million added earlier in April.
- Leverage — Ended quarter with traditional leverage at 1.8x and lease-adjusted leverage at 2.4x; next debt maturity in December 2027.
- Tax credits payment timing — Of the initially expected $340 million in related FanDuel tax credits, $290 million is to be paid in the second quarter.
- One-time corporate expense — Corporate expense was elevated by $6 million from one-time items, predominantly timing of charitable contributions.
- Cadence Crossing Casino opening — Opened March 25, with management noting “enthusiastic response” from guests and initial strong top-line performance.
- Virginia resort project — Remains on track with $750 million budget and late 2027 targeted opening; construction has commenced on the first floor.
- Paradise Casino expansion — Illinois Gaming Board approved modernization and expansion; project scheduled to complete late 2028.
- Sky River Casino expansion — First phase completed in Q1; ongoing development includes a 300-room hotel and entertainment facilities targeting early 2028 completion.
- Actual share count — 74.8 million shares at quarter end.
- Regular capital return pace — Management intends to maintain $150 million in repurchases per quarter plus quarterly dividends, equivalent to $9 per share for 2026.
- Cash tax benefit — Management stated a $45 million to $50 million incremental tax benefit for 2026 from accelerated depreciation.
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RISKS
- “results in our Las Vegas Locals segment reflected continued softness in destination business,” with management attributing a $5 million EBITDAR impact in the quarter and guiding for year-over-year destination business to remain “down, less bad but down” through Q3 before potential stabilization.
- Suncoast renovation project has created “a more material impact from disruption,” with $1.5 million EBITDAR impact in the first quarter and full disruption expected to continue through part of Q3.
- Downtown Las Vegas faces an explicitly cited “11% year-over-year decline in pedestrian traffic on the Fremont Street Experience” that mirrors similar declines in prior quarters.
- Management cautioned that last year’s benefits cost increases in the Midwest and South segment could recur if participation or program usage rises this year, stating “It is early, and we have taken steps to mitigate it.”
SUMMARY
Boyd Gaming Corporation (BYD +3.48%) reported higher company-wide revenues and EBITDAR, driven by strong Midwest and South segment results, while highlighting construction disruption at Suncoast and persistent softness in the destination business within Las Vegas as explicit drags. Shareholder capital returns remained active, with $170 million distributed and plans to maintain a $150 million per quarter repurchase pace, supported by added repurchase authorization. The Virginia resort and Paradise Casino expansion projects remain on schedule, while the corporate tax benefit from accelerated depreciation is projected to add $45 million to $50 million this year.
- Management reiterated full-year EBITDAR guidance of $30 million to $35 million for the online segment and $110 million to $114 million for the Managed and Other segment.
- Cadence Crossing Casino had “enthusiastic” early guest reception, yet management indicated “any EBITDA contribution,” in the first quarter given only a few operating days.
- Capital expenditures for the year are guided at $650 million to $700 million, split across maintenance, major remodels, new property development, and the ongoing Virginia project.
- The company ended the quarter with a 1.8x traditional and 2.4x lease-adjusted leverage ratio, noting its “strongest balance sheet” and ample capacity under its credit facility.
- Management addressed a $340 million FanDuel tax credits liability, specifying $290 million will be paid in the upcoming quarter after a partial payment in Q1.
INDUSTRY GLOSSARY
- EBITDAR: Earnings before interest, taxes, depreciation, amortization, and rent — a key profitability measure in the gaming and hospitality industry.
- VGT (Video Gaming Terminal): Electronic gaming devices commonly found in certain regional U.S. markets, providing slot-like experiences outside traditional casinos.
Full Conference Call Transcript
David Straub: And welcome to Boyd Gaming Corporation First Quarter 2026 Earnings Conference Call. This is David Straub, Vice President of Corporate Communications for Boyd Gaming Corporation. I will be the moderator for today’s call, which we are hosting on Thursday, April 23, 2026. At this time, all lines are in listen-only mode. Following our remarks, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star then 0 for the operator. Our speakers for today’s call are Keith Smith, President and Chief Executive Officer, and Josh Hirsberg, Chief Financial Officer. Comments today will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act.
All forward-looking statements in our comments are as of today’s date, and we undertake no obligation to update or revise the forward-looking statements. Actual results may differ materially from those projected in any forward-looking statement. There are certain risks and uncertainties, including those disclosed in our filings with the SEC, that may impact our results. During our call today, we will make reference to non-GAAP financial measures. For a complete reconciliation of historical non-GAAP to GAAP financial measures, please refer to our earnings press release and our Form 8-Ks furnished to the SEC today, both of which are available at investors.boydgaming.com.
We do not provide a reconciliation of forward-looking non-GAAP financial measures due to our inability to project special charges and certain expenses. Today’s call is being webcast live at boygaming.com, and will be available for replay in the Investor Relations section of our website shortly after the completion of this call. With that, I would now like to turn the call over to Keith Smith. Keith?
Keith Smith: Thank you, David, and good afternoon, everyone. Our first quarter results once again demonstrated the benefits of our diversified business, our continued focus on operating efficiencies, and our ongoing capital investment program. Overall, company-wide revenues reached nearly $1 billion while EBITDAR was $317 million. On a property-level basis, first quarter revenues and EBITDAR grew year over year, led by continued growth in gaming revenues. We successfully maintained operating efficiencies throughout our business, with property margins again exceeding 39%. These results were driven by broad-based strength in our Midwest and South segment, partially offset by the continued impact of softer destination business in Las Vegas and construction disruption at Suncoast.
On a company-wide basis, play from both core customers and retail customers continued to grow during the first quarter, consistent with the trends we saw in 2025, and we are encouraged that the customer trends from the first quarter have continued into April. Now turning to segment results. Starting with our largest segment, our Midwest and South business achieved broad-based revenue and EBITDAR growth during the quarter. Overall, revenues grew 4% in the quarter, while EBITDAR grew 5%, and margins improved to nearly 37%. We also delivered continued growth in gaming revenues in the quarter, driven by increased play from both core and retail customers.
These positive results were supported by the ongoing trend of customers staying closer to home, as well as benefits from milder winter weather this year and strong returns from our capital investments throughout the segment. These investments include our recent hotel remodels at IP Biloxi and Valley Forge, our new convention space at Ameristar St. Charles, and additional food and beverage enhancements across the segment. In addition, our Treasure Chest property continues to deliver year-over-year growth. We plan to build on this strong performance with the addition of a new high limit room, which we expect to open early next year.
Moving to our Nevada operations, results in our Las Vegas Locals segment reflected continued softness in destination business, with the largest impact at the Orleans. We also experienced more significant construction disruption at the Suncoast during the quarter related to the modernization project currently underway. While the Suncoast management team has done a great job mitigating construction disruption thus far, our renovation work moved into the most popular part of our casino floor during the quarter, creating a more material impact from disruption. We anticipate this disruption will continue until we complete our renovation project late in the third quarter.
Excluding Orleans and Suncoast, revenues and EBITDAR for the remainder of the segment were in line with the prior year and operating margins exceeded 50%. Even with the impacts from Orleans and Suncoast, play from our core customers during the quarter was in line with the prior year in our Las Vegas Locals segment. Similar to our Midwest and South segment, we are actively investing in our Las Vegas Locals portfolio to drive continued growth. These investments include the recent opening of our newest Locals property, Cadence Crossing Casino, on March 25. While it is still early, this property has received an enthusiastic response from our guests. Another example of our investments is the modernization of our Suncoast property.
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