Boyd Gaming Corp. reported third-quarter net income of $1.44 billion, up from $131.1 million in the same period last year, primarily due to a $1.4 billion after-tax gain from the sale of its 5 percent stake in FanDuel to Flutter Entertainment, per Las Vegas Review Journal. The company’s earnings per share rose to $17.81 from $1.43.
Boyd’s adjusted net income, which exceeded analyst expectations, stayed consistent at $139.1 million, or $1.72 per share, after deducting this one-time gain and other non-recurring items.
Key Takeaways:
- Boyd Gaming reports a $1.44 billion net income boost from FanDuel stake sale
- Company maintains stable local market performance amid downtown challenges
- Strategic investments and debt reduction underscore strong financial position
Total revenue increased to $1 billion from $961.2 million, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $353.5 million.
Local Market Strength Offsets Downtown Softness
The Las Vegas locals market, a core segment for Boyd, generated $211 million in revenue and $92 million in EBITDA. Gaming revenue grew year-over-year, supported by demand from local customers and improved retail play.
Boyd CEO Keith Smith attributed the rise to ongoing wage growth and economic diversification in Southern Nevada in the earnings call. However, the company’s Orleans casino saw weaker results, linked mostly to fewer out-of-town visitors rather than a decline in local business.
Downtown properties, including California, Fremont and Main Street Station casinos, posted stable results but encountered headwinds from lower hotel occupancy rates and reduced foot traffic on Fremont Street. Smith noted steadiness in play from Hawaiian visitors but said softness in destination business impacted overall results.
Growth and Balance Sheet Gains from FanDuel Stake Sale
During the quarter, Boyd invested $146 million in capital projects. Funds were allocated to renovations at The Orleans, Suncoast and Sam’s Town. The company continued construction on Cadence Crossing, a new locals-focused casino in Henderson, Nevada, planned to open in the second quarter of 2026.
Outside Nevada, construction remains underway on a casino resort in Norfolk, Virginia, with an expected opening in 2027. Expansion efforts also continue at Sky River Casino in Northern California.
Boyd used proceeds from the FanDuel sale to reduce its debt, lowering its leverage ratio from 2.8 times to 1.5 times. Chief Financial Officer Josh Hirsberg described the financial position as the “strongest balance sheet in our company’s history.”
