Boyd Q2: Midwest Gains Offset Las Vegas Softness

Boyd Gaming reported results for the quarter ended June 30, with net revenue of $1.03 billion, effectively flat year‑over‑year and about 1.3% below the $1.048 billion consensus. Adjusted earnings per share were $1.93 versus a $1.89 analyst forecast. Adjusted EBITDAR was $350.5 million, down 2.1% from a year earlier, and GAAP net income fell to $131.2 million, or $1.75 per diluted share, from $151.5 million ($1.84) in Q2 2025. Property operating margins remained near 40%.

The Midwest & South division led the quarter. That segment generated $556.9 million in revenue, up 3.1% from a year ago, and posted adjusted EBITDAR of $208.7 million, a 3.6% increase. Management attributed the gains to higher gaming revenue and returns from food and beverage investments, with segment margins near 38%.

Boyd’s Las Vegas Locals portfolio produced $225.9 million in revenue, down from $229.1 million a year earlier, and adjusted EBITDAR of $106.4 million versus $112.7 million. Downtown Las Vegas revenue declined to $52.1 million from $55.3 million, with EBITDAR falling to $16.9 million from $19.4 million. Company executives highlighted concentrated weakness at the Orleans and planned disruptions at Suncoast tied to a casino-floor renovation.

CFO Josh Hirsberg estimated the Orleans shortfall at roughly $5 million of EBITDAR and said the company’s best estimate for the impact in Q3 is about $3 million. He also estimated Suncoast’s construction disruption cost about $3 million in Q2 and expects a similar effect in the third quarter.

Other operating areas showed mixed results. The Managed & Other segment recorded $41.3 million in revenue and $30.7 million of EBITDAR, an 18.1% increase driven by higher management fees from the expanded Sky River Casino. The Online segment reported $158.2 million in revenue and $10.6 million in EBITDAR, down from $173.1 million and $22.2 million a year earlier; Boyd attributed the decline primarily to amended economics in market-access agreements with FanDuel rather than performance at its owned Boyd Interactive platform.

Hirsberg raised full-year guidance for the Online segment by $5 million to a range of $35 million to $40 million, and lifted Managed business guidance by $3 million to $113 million to $117 million for full-year 2026. Boyd reiterated a capital spending plan of $650 million to $700 million for 2026, citing projects that include an Orleans hotel remodel, work at Cadence Crossing, design activity at Par‑A‑Dice in Illinois, and a $300 million investment this year in a $750 million resort under construction in Norfolk, Virginia, scheduled to open in late 2027.

At quarter-end the company held $322.7 million in cash and $2.6 billion in total debt. Boyd repurchased $156 million of stock in Q2, leaving $551 million available under its repurchase authorization, and paid a $0.20 per share dividend on July 15. Management reaffirmed a target of returning roughly $150 million per quarter to shareholders, tracking toward about $650 million for the year.

Shares were largely unchanged in after-hours trading, reflecting investor focus on steady margins, the EPS beat and the narrowed guidance changes for digital and managed operations.

CEO Keith Smith noted, “Our second-quarter results demonstrated the benefits of our diversified business model, with strong performances from our Midwest & South operations, Online segment, and Managed business.” CFO Josh Hirsberg added that the raised guidance reflects Boyd Interactive’s performance and Sky River’s recent expansion.