Churchill Downs Approves $750 Million Buyback After Record $696 Million Quarter

Churchill Downs Incorporated (CDI) authorized a $750 million share repurchase program and increased its annual dividend after reporting record third-quarter revenue of $696 million. The company also outlined plans for a larger Virginia gaming venue and an expanded 2027 racing series.

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Good to know

• The buyback authorization includes $306 million remaining under the previous program.
• CDI plans to replace its 37-machine Collinsville venue with a facility offering 150 historical racing machines.
• The expanded Thoroughbred Championship Series will feature 10 races and more than $22 million in purses and prizes.

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Shareholders will receive an annual dividend of $0.469 per share, up 7%. The payment falls on January 5, 2027, for shareholders of record on December 4, 2026.

The repurchase authorization replaces the previous program rather than adding $750 million to the outstanding balance. CDI also repurchased $48 million of shares during the third quarter.

Virginia Relocation Would Increase Racing Machines to 150

CDI has secured a special use permit from the Henry County Board of Zoning Appeals for a new historical racing machine entertainment venue.

The proposed location sits north of the U.S. 58 Bypass and east of Old Greensboro Road, near Martinsville Speedway. Plans include 150 HRMs, simulcast racing and food and beverage options.

The facility would replace Rosie’s Game Room in Collinsville, which currently operates 37 machines. CDI is still finalizing the design and development plans.

The project fits within the three businesses CEO Bill Carstanjen identified as central to future growth: Churchill Downs racetrack and the Kentucky Derby, historical racing operations, and TwinSpires.

“Each combines strong cash generation, durable competitive advantages, and attractive opportunities for profitable growth,” Carstanjen told investors.

NYRA Partnership Adds Races and Extends Tote Agreement

CDI and the New York Racing Association will broaden their Thoroughbred Championship Series before its first season begins in 2027.

The partners initially announced a six-race competition for 3-year-old thoroughbreds. Around two-and-a-half months later, they added plans for separate Derby and Oaks divisions.

Together, the divisions will offer 10 races with more than $22 million in purses and prizes. NBC or FOX networks will televise every race nationally.

The relationship also extends beyond the track. CDI completed its acquisition of a 49% stake in United Tote Company from NYRA and extended the tote services agreement with NYRA through 2035.

Carstanjen described the racing business as central to the portfolio.

“Churchill Downs racetrack and the Kentucky Derby, increasingly all of Derby Week, is the crown jewel of our portfolio.”

Revenue and Earnings Set Third Quarter Records

CDI increased quarterly revenue by $13 million, or 2%, to $696 million. Adjusted EBITDA reached $264 million, up $2 million, or 1%.

Net income attributable to CDI climbed to $80 million from $38 million a year earlier. All three measures set third-quarter records.

The company also entered into a new $500 million Term Loan B due in 2033. It amended and extended its revolving credit facility and Term Loan A at rates it described as favorable.

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