Boyd Gaming Posts Strong Q3 Results, Citing Core Customer Growth

The strong performance was driven by consistent growth among the company’s core customer base across all operating segments. Despite some weakness in the destination business, the casino operator maintained a powerful balance sheet and continued its capital return program.

Operational Strength and Margins

Boyd Gaming’s total revenue for the quarter reached $\$1$ billion, surpassing projections by nearly 15%. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) hit $\$322$ million. Operational efficiency remained a key factor, with operating margins holding firm at 37%, consistent with the previous year.

CEO Keith Smith confirmed the positive trend in customer activity. “Across the country, we continue to see strengthening play from our core customers,” Smith said. This customer strength drove healthy gaming revenue growth. This rise successfully balanced softer results in the tourism-dependent side of the business.

Segment Performance Analysis

The company’s three main segments showed varied, but generally positive, results:

• Midwest and South: This portfolio of 17 properties delivered its strongest revenue and EBITDA performance in three years, growing revenue by $3$%. CFO Josh Hirsberg noted the solid results were broad-based across the region.
• Las Vegas Locals: Gaming revenues increased, but overall revenue and EBITDA growth for the segment was limited to $2$% year-over-year. This was due to weakness concentrated at The Orleans hotel. Hirsberg stated that the entire EBITDA decline for the segment was traceable to that single property’s performance.
• Downtown Las Vegas: Results remained consistent with the prior year.

The company also saw improved activity from retail customers, including both low-rated and unrated players. Hirsberg noted that the unrated segment has been a surprisingly large and consistent driver of the improving retail component throughout the year.

Capital Structure and Shareholder Returns

Boyd Gaming strengthened its financial position dramatically during the third quarter. Following the sale of a $5$% interest in FanDuel, the total leverage ratio dropped from $2.8$x at the end of Q2 to a record low of $1.5$x. Hirsberg confirmed the company now holds “the strongest balance sheet in our company’s history.”

The strong financial flexibility allowed the company to continue its aggressive capital return strategy. Boyd repurchased $1.9$ million shares for $\$160$ million at an average price of $\$84.05$ per share. The company also paid $\$15$ million in dividends. The firm intends to maintain a share repurchase pace of approximately $\$150$ million per quarter, in addition to its regular quarterly dividend. As a result, the actual share count is now $11$% lower than in the previous year.

Future Investments and Expansions

Capital expenditure (CapEx) for 2025 is forecast to total around $\$600$ million, with $\$146$ million spent in Q3. Major projects underway include:

• Norfolk, Virginia: The company is weeks away from opening a temporary casino, with the permanent $\$750$million resort still scheduled to open in November 2027.
• Las Vegas Property Updates: A major overhaul of the Suncoast Casino floor is underway, expected to finish by mid-2026. Renovations at The Orleans hotel rooms are set to begin next month.
• New Developments: Construction of the new Cadence Crossing property is progressing, with an anticipated opening in the second quarter of 2026. Additionally, the company recently completed a conference center expansion at Ameristar St. Charles, which is already booking strongly for the coming periods.

Boyd Gaming also finalized its partnership with Fanatics for Missouri sports betting, covering its Ameristar Kansas City and Ameristar St. Charles properties, ahead of Missouri’s expected December launch.