Boyd Gaming Corp (BYD) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Moves

• Revenue Growth: Increased by 4% excluding tax pass-through amounts.

• EBITDAR: Increased by 4% to $358 million.

• Property Level Margins: Exceeded 40% consistently since 2021.

• Las Vegas Locals Segment: Revenue and EBITDAR growth with segment margins nearly 50%.

• Midwest and South Segment: Revenue and EBITDAR gains of more than 3%.

• Online Segment: Revenue and EBITDAR increased.

• Capital Expenditures: $124 million in Q2, with a full-year projection of $600 million to $650 million.

• Share Repurchases: $105 million in stock repurchased, increasing target to $150 million per quarter.

• Dividends: Paid $15 million in dividends during the second quarter.

• FanDuel Transaction: Expected proceeds of $1.755 billion, reducing leverage below two times.

• Interest Expense Savings: Estimated $85 million annually due to reduced debt balances.

• Shareholder Capital Return Program: Nearly $2.4 billion returned since 2021.

• Warning! GuruFocus has detected 4 Warning Signs with SCHL.

Release Date: July 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Boyd Gaming Corp (NYSE:BYD) announced a significant transaction to sell its 5% equity interest in FanDuel for $1.755 billion, which will be used to reduce debt and strengthen the balance sheet.

• The company reported a 4% increase in both revenues and EBITDAR for the second quarter, driven by broad-based growth across its operating segments.

• The Las Vegas locals segment experienced its first year-over-year revenue and EBITDAR growth in over two years, maintaining strong segment margins.

• Boyd Gaming Corp (NYSE:BYD) is actively investing in property enhancements and expansions, including the Sky River Casino and Cadence Crossing Casino, to drive long-term growth.

• The company plans to increase its share repurchase program from $100 million to $150 million per quarter, reflecting a commitment to returning capital to shareholders.

• The Las Vegas Strip has seen softer demand trends, impacting out-of-town customer play, although local economic indicators remain strong.

• The company faced challenges in the Midwest and South segment due to flood-related closures and the shift of Easter into April, affecting operations.

• Boyd Gaming Corp (NYSE:BYD) is experiencing some softness in destination business, particularly impacting properties like the Orleans with significant room inventory.

• The promotional environment remains stable, but there is ongoing competitive pressure in certain markets, requiring disciplined marketing strategies.

• The company is cautious about the sustainability of recent improvements in unrated play and retail customer trends, indicating potential volatility in future quarters.