Boyd Gaming has announced its revenue for the second quarter of 2026, totaling $1.034 billion, which is nearly the same as last year’s $1.035 billion. However, the company's net income saw a decrease, dropping to $131.2 million or $1.75 per share, down from $151.5 million.
The company’s total Adjusted EBITDAR fell to $350.5 million from $357.9 million, while adjusted earnings also declined to $144.4 million from $154.2 million. On a positive note, adjusted earnings per share increased to $1.93 from $1.87.
When comparing figures without considering the previous year's FanDuel transaction and tax pass-through amounts related to market-access agreements, Boyd Gaming experienced a 3% rise in revenue and a 2% increase in EBITDA. The property operating margins remained steady at 40%.
Keith Smith, President and CEO, commented on the quarter's performance, highlighting the advantages of their diversified business model with notable contributions from operations in the Midwest and South, as well as the online segment and managed business.
Smith noted that the results reflect growth in both revenue and adjusted EBITDAR, maintaining property operating margins at 40%, a consistent achievement over recent years. This success is attributed to robust customer engagement across their portfolio, bolstered by recent capital investments.
The Midwest and South segment was a key driver of growth, with a 3% increase in revenue and a 4% rise in EBITDA. Property margins reached nearly 38%, marking their highest point in almost two years. Smith observed that guests are increasingly choosing to stay and spend locally, citing improvements in hotel amenities and new dining options at Treasure Chest and Ameristar St. Charles.
Smith acknowledged that factors such as airfare, inflation, fuel prices, tax refunds, and stock market performance might be influencing customer behavior, but confirmed ongoing growth among core and retail customers.
In the Las Vegas Locals segment, results were impacted by a decline in destination business, particularly at the Orleans, alongside construction disruptions at Suncoast. While gaming revenue remained stable, excluding these two properties, the segment saw a 4% increase in revenue and a 3% rise in EBITDA, with margins exceeding 50%, indicating strong local customer support.
Smith remarked that while the Las Vegas locals segment faced challenges due to a sluggish destination business and ongoing construction at Suncoast, the rest of the segment managed to grow revenue and adjusted EBITDAR compared to the previous year, with property margins above 50%.
In downtown Las Vegas, customer engagement from both core and Hawaiian patrons remained consistent with previous quarters; however, the area continued to experience a decline in destination business.
Chief Financial Officer Josh Hirsberg estimated that the weaker destination business reduced EBITDAR by approximately $5 million, while the construction at Suncoast had an impact of around $3 million. He anticipates that the destination business effect will improve, estimating a reduction to about $3 million for both the third and fourth quarters.
Renovations at Suncoast are expected to conclude by the end of the third quarter, with no disruptions anticipated for 2027. Boyd also plans to refresh the Orleans in the first half of next year, alongside other projects in Las Vegas, including hotel renovations, new dining establishments, and sportsbook enhancements.
By early next year, Boyd aims to have renovated over 70% of its hotel rooms in Las Vegas and introduced 17 new food and beverage concepts.
The online segment showed revenue and EBITDA growth, aided by Boyd Interactive and market-access agreements. The full-year online revenue guidance has been increased by $5 million, now projected between $35 million and $40 million.
Managed-business EBITDA rose by 18%, supported by higher fees from Sky River Casino. Boyd has also raised its full-year managed-business guidance by $3 million, now estimating between $113 million and $117 million.
“The strong revenue and adjusted EBITDAR growth in our managed business was driven by increased management fees from Sky River Casino,” Smith concluded.