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Red Rock Resorts recorded its second-highest second-quarter gaming revenue and profitability despite extensive construction across several Las Vegas properties. However, lower hotel availability and renovation disruption pulled total revenue and earnings below the record figures from a year earlier.
Good to Know
- Q2 net revenue fell 3% to $510.3 million.
- Durango North remains scheduled to open in the second half of 2027.
- Red Rock Resorts declared a quarterly dividend of $0.26 per share.
Renovation Work Cuts Into Q2 Earnings
Red Rock Resorts generated adjusted EBITDA of $208 million during Q2 2026, down 9.3% from $229.3 million in the prior-year period. Net income dropped 29.3% to $76.6 million.
Las Vegas operations remained the main revenue source, producing $503.2 million, a 2% decline. Adjusted EBITDA from the segment fell 5% to $227.5 million. Native American operations recorded sharper declines, with revenue down 62% and adjusted EBITDA down 72%.
“Our second-quarter results demonstrate that the company we have built over the past five decades is as strong as it’s ever been, even against the strongest operating quarter in the company’s history a year ago,” President Scott Kreeger said.
Green Valley Ranch lost more than 21,000 available room nights during the quarter as hotel renovations continued. The renewed hotel will open in late September, while further casino, restaurant and entertainment upgrades will continue into 2027.
“We believe these temporary disruptions are more than offset by the long-term benefits of these investments,” Kreeger said.
Durango Remains Central to Las Vegas Growth
Durango continued to perform well while Red Rock Resorts worked on a $385 million expansion. The project will add 400 slot machines, a 36-lane bowling center, luxury cinemas, restaurants and entertainment space.
“Our Durango property continued to perform exceptionally well despite ongoing construction impacts and has firmly established itself as a meaningful growth driver within the Las Vegas locals market,” Kreeger said.
Durango North remains on schedule for the second half of 2027. Red Rock Resorts also plans to complete different stages of the $87 million Sunset Station redevelopment through 2026 and 2027. Work includes upgraded cinemas, a permanent bingo room, a steakhouse and new high-limit gaming areas.
The operator closed the quarter with $136.5 million in cash and cash equivalents alongside $3.6 billion in debt. The board approved a $0.26 quarterly dividend payable September 30 to investors on record September 15.
Red Rock Resorts will also spend about $8 million on a third-quarter marketing campaign celebrating 50 years in Las Vegas.
“We’ve done a number of different brand campaigns in the past, and we just felt it made sense to do it around the 50th anniversary,” Vice Chairman Lorenzo Fertitta said. “They do cost money, and it is a charge that’s going to hit the third quarter, but overall we think it’s the right thing to do for the long-term benefit of the business.”
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