Las Vegas Tourism Weakens, Boyd Gaming Misses Q3 Estimates

Boyd Gaming reported third-quarter revenue of $990.5 million and adjusted earnings of $1.67 per share, missing forecasts as weaker Las Vegas visitor demand and renovation work outweighed growth elsewhere.

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Good To Know

• Revenue fell 1.4%, while analysts expected $1 billion and earnings of $1.70 per share.
• Online gaming delivered double-digit adjusted EBITDAR growth.
• Boyd expects to finish renovations to 1,800 Orleans rooms in November.

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Local Players Hold Up As Visitors Pull Back

Local customers continued spending at Boyd properties, but tourists proved harder to attract. Excluding the Orleans and Suncoast, the Las Vegas Locals portfolio increased both revenue and adjusted EBITDAR by 3%.

The Orleans faced weaker destination business, while construction affected Suncoast operations. Downtown properties also felt the decline in visitor demand.

“In Las Vegas, play from local residents remained strong. However, this trend was offset by increased softness in destination business to Las Vegas, primarily at the Orleans, and construction disruption at the Suncoast,” President and CEO Keith Smith said during the earnings call.

Boyd is now working toward reopening rooms that could help it capture more weekend business. More than 300 Orleans rooms have remained unavailable each day over the past year. The company expects to complete its 1,800-room renovation in November before starting a broader modernization program in early 2027.

That next phase will initially focus on areas guests cannot access, limiting disruption. Meanwhile, Boyd finished upgrading public areas at Suncoast during the quarter and began renovating its 400 hotel rooms, with completion expected in early 2027.

Beyond Nevada, performance offered some relief. The Midwest & South segment increased revenue by nearly 3% and adjusted EBITDAR by 2.5% after adjustments for property closures and sales. Online casino activity helped the online gaming business deliver double-digit adjusted EBITDAR growth.

Across the company, adjusted EBITDAR slipped to $319.6 million from $321.8 million. Net income reached $124.9 million, or $1.71 per share, compared with $1.4 billion, or $17.81 per share, a year earlier.

The profit comparison needs context: the previous year included a $1.4 billion after-tax gain from selling the FanDuel stake. Adjusted earnings therefore provide a more useful comparison of underlying performance than the headline net income decline.

Smith also linked weaker downtown demand to storms in Hawaii during August and September and sharply higher Hawaiian airfares later in the quarter.

“While airfares remain elevated today, they have started to moderate,” he said.

The tourism slowdown has persisted for several quarters, and summer made it more difficult.

“You’ve probably heard this conversation from us for the last three or four quarters,” Smith said. “Part of that is driven by the fact that in Las Vegas, as everyone knows, the third quarter, the summer quarter, is our weakest quarter. So these types of pressures get intensified during the quarter.”

Still, Smith cited Southern Nevada population growth at twice the national average, nearly 6% wage growth and strong job creation as support for local casino demand.

“In all, we remain encouraged by the continued strength of the Las Vegas economy and its prospects for our local segment,” Smith added.

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