Boyd Gaming (NYSE:BYD) executives emphasized steady operating performance and significant capital returns during the company’s fourth-quarter and full-year 2025 earnings call, while also highlighting ongoing softness in “destination” travel that weighed on certain hotel-driven businesses.
Full-year 2025 results and major balance sheet actions
President and CEO Keith Smith said 2025 delivered record company-wide revenues and approximately $1.4 billion of EBITDA, with property-level margins of 40%, consistent with the prior year. Smith and CFO Josh Hirsberg both pointed to continued growth from core customers and ongoing operating discipline as key drivers of results.
During the first quarter of 2026, Hirsberg said Boyd expects to pay approximately $340 million for tax credits that will satisfy tax obligations tied to the FanDuel transaction. He said the company anticipates leverage will approach roughly 2.5x in 2026 (traditional leverage), reflecting the tax credit payment, capital investments, and the ongoing capital return program. On a follow-up question, Hirsberg clarified that his 2.5x comment referred to traditional leverage and that lease-adjusted leverage would be “just under three,” based on his estimate.
Fourth-quarter performance and factors affecting comparisons
For the fourth quarter, Smith reported company-wide revenue of $1.1 billion and EBITDA of $337 million. He said results reflected continued growth in gaming revenues driven by strong core customer play.
Smith said year-over-year EBITDA comparisons were impacted by approximately $40 million, primarily due to changes in the Online segment and severe winter weather in December. Excluding those items, he said company-wide EBITDA was even with the prior year, citing cost controls and operating discipline.
Segment commentary: locals strength, destination softness
In Las Vegas Locals, management described a consistent pattern: strong play from Southern Nevada residents alongside weakness tied to destination visitation. Smith said gaming revenue growth was driven by core local customers, but that the softness in destination business pressured cash hotel revenue. He quantified a decline of nearly $6 million in cash hotel revenue versus the prior year, with most of the decline at The Orleans, consistent with the third quarter.
Smith said that excluding The Orleans, the Las Vegas locals business delivered nearly 2.5% EBITDAR growth, with margins again exceeding 50%. In Q&A, executives reiterated that the “core Las Vegas locals market is strong,” and characterized the weakness as concentrated in destination play, primarily reflected in hotel revenue but also affecting gaming and food and beverage.
In Downtown Las Vegas, Smith said play from Hawaiian guests and core customers was stable, but trends were offset by an approximately 10% decline in pedestrian traffic on the Fremont Street Experience and lower cash hotel revenues—factors he tied to weaker destination business in the broader Las Vegas market.
In the Midwest and South segment, Smith said the company saw continued growth in play from both core and retail customers. However, year-over-year revenue and EBITDAR were impacted by severe winter weather in December and by the permanent closure of Sam’s Town Tunica in November. Smith said the combined EBITDAR impact from weather and the Tunica closure was approximately $4 million in the quarter. Adjusting for those items, he said segment EBITDAR grew roughly 2%, in line with third-quarter results.
During Q&A, management also noted the largest hotel outside Las Vegas—IP Biloxi—has seen some similar destination-related softness over roughly the last six months, but said other Midwest and South properties with smaller hotel footprints were not seeing the same dynamic.
Online and managed businesses: 2026 outlook shaped by contract changes and expansion
Smith said the Online segment generated full-year EBITDAR of $63 million, driven by Boyd Interactive and contributions from third-party market access agreements. For 2026, he projected Online EBITDAR of $30 million to $35 million, reflecting continued growth from Boyd Interactive but also changes in revenue share agreements tied to the FanDuel transaction.
In managed and other, Smith said management fees from Sky River Casino continued to grow. He said the first phase of Sky River’s expansion is expected to come online at the end of February, adding about 400 slots and a 1,600-space parking garage. A second phase, slated for completion in late 2027, is expected to add a 300-room hotel and additional amenities. With the casino floor expansion, Boyd projected 2026 managed and other EBITDAR of $110 million to $114 million.
Capital spending, development pipeline, and shareholder returns
Hirsberg said fourth-quarter capital expenditures were $148 million, bringing full-year 2025 capex to $588 million. For 2026, he guided to capital expenditures of approximately $650 million to $700 million, including:
- $250 million in recurring maintenance capital
- $75 million in growth capital related to Cadence Crossing and Par-A-Dice
- $250 million to $300 million related to the Virginia project
- $75 million for additional hotel room renovations
Hirsberg said 2026 should be the last year of incremental hotel capital spending beyond recurring maintenance budgets.
Smith and Hirsberg also detailed ongoing and upcoming projects. Boyd expects to open Cadence Crossing Casino in late March, and management discussed continued work on a planned $160 million new gaming facility at Par-A-Dice in East Peoria, with construction anticipated to begin in 2027 following Illinois Gaming Board approval and completion expected in 2028. In Virginia, Smith said construction is “going vertical” on the company’s $750 million Norfolk resort, which is expected to open in late 2027. A transitional casino opened in November; management reiterated that they expect the temporary facility to run at roughly break-even until the permanent resort opens.
On capital returns, Hirsberg said Boyd returned $836 million to shareholders in 2025, including $58 million in dividends and $778 million in share repurchases. The company repurchased 10.1 million shares at an average price of $76.91, ending 2025 with 76.4 million shares outstanding—an 11% reduction versus year-end 2024. In the fourth quarter alone, Boyd paid $0.18 per share in dividends (about $14 million) and repurchased $185 million of stock (about 2.3 million shares at an average of $81.18). Looking ahead, management said it plans to continue repurchasing about $150 million in shares per quarter, supplemented by a quarterly dividend.
On M&A, Smith said the company remains open and continues to review opportunities with a disciplined approach, preferring a HoldCo structure but willing to accept OpCo if it is the right asset at the right price and terms.
About Boyd Gaming (NYSE:BYD)
Boyd Gaming Corporation (NYSE: BYD) is a diversified hospitality and gaming company headquartered in Las Vegas, Nevada. The company develops, owns and operates a portfolio of branded gaming and entertainment properties, including casinos, hotels, restaurants and meeting facilities. Boyd Gaming’s offerings range from slot machines and table games to live entertainment, dining concepts and convention space, designed to appeal to both regional and destination visitors.
Founded in 1975 by its namesake, William S.
