Boyd Gaming Corporation reported weaker-than-expected third-quarter earnings as declining visitor demand in Las Vegas and construction disruptions weighed on its Nevada operations, offsetting growth in its Midwest & South and online gaming businesses.
The casino operator, which owns 27 properties across 11 states, reported adjusted earnings of $1.67 per share for the quarter ended September 30, 2026, below analysts’ $1.70 estimate. Revenue declined 1.4% year over year to $990.5 million, missing the $1 billion consensus, while adjusted EBITDAR fell to $319.6 million from $321.8 million.
Shares declined 1.4% in after-hours trading Thursday. Boyd, listed on the NYSE under BYD, closed at $72.10, down 15% since the beginning of the year.
The Midwest & South segment recorded nearly 3% revenue growth and 2.5% adjusted EBITDAR growth after adjusting for property closures and sales. Online gaming delivered double-digit adjusted EBITDAR growth, supported by online casino activity.
Net income totaled $124.9 million, or $1.71 per share, compared with $1.4 billion, or $17.81 per share, a year earlier, when results included a $1.4 billion after-tax gain from selling Boyd’s FanDuel stake.
In Las Vegas, weaker destination traffic particularly affected the Orleans, while construction disrupted operations at the Suncoast. Other properties in the Las Vegas Locals portfolio nevertheless recorded 3% growth in both revenue and adjusted EBITDAR.
“In Las Vegas, play from local residents remained strong. However, this trend was offset by increased softness in destination business to Las Vegas, primarily at the Orleans, and construction disruption at the Suncoast,” President and CEO Keith Smith said during Thursday’s earnings call.
Downtown Las Vegas also experienced weaker destination demand. Smith cited storms in Hawaii during August and September, alongside sharply higher Hawaiian airfares in the latter half of the quarter.
“While airfares remain elevated today, they have started to moderate,” he said.
The operator has faced declining destination business for several quarters, with the traditionally slower summer period intensifying the impact.
“You’ve probably heard this conversation from us for the last three or four quarters,” Smith said. “Part of that is driven by the fact that in Las Vegas, as everyone knows, the third quarter, the summer quarter, is our weakest quarter. So these types of pressures get intensified during the quarter.”
Boyd completed renovations to Suncoast’s public areas during the quarter and began remodeling hotel rooms, with completion expected in the first quarter of 2027. The company also expects to complete renovations to 1,800 rooms at the Orleans in November, followed by 400 at Suncoast.
A modernization program at the Orleans is scheduled to begin in early 2027, initially targeting areas inaccessible to guests to minimize disruption. More than 300 rooms have remained unavailable daily at the property over the past year, with their reopening expected to support weekend demand.
Despite softer tourism demand, Smith cited Southern Nevada’s population exceeding 2.4 million, annual population growth twice the national average, nearly 6% wage growth and the second-highest job growth among the 30 largest U.S. metropolitan areas. He also pointed to the region’s competitive cost of living.
“In all, we remain encouraged by the continued strength of the Las Vegas economy and its prospects for our local segment,” Smith added.
Boyd repurchased $164 million in shares during the quarter and paid a $0.20-per-share dividend on October 15. As of September 30, it held $297.2 million in cash and $2.7 billion in total debt.