Gaming and hospitality company Boyd Gaming (NYSE:BYD) reported Q1 CY2025 results beating Wall Street’s revenue expectations , with sales up 3.2% year on year to $991.6 million. Its non-GAAP profit of $1.62 per share was 6.2% above analysts’ consensus estimates.
Revenue: $991.6 million vs analyst estimates of $971.4 million (3.2% year-on-year growth, 2.1% beat)
Adjusted EPS: $1.62 vs analyst estimates of $1.52 (6.2% beat)
Adjusted EBITDA: $309.4 million vs analyst estimates of $300.6 million (31.2% margin, 2.9% beat)
Operating Margin: 20.2%, down from 22.8% in the same quarter last year
Free Cash Flow Margin: 8.7%, down from 16.8% in the same quarter last year
Market Capitalization: $5.85 billion
StockStory’s Take
Boyd Gaming’s first quarter results were shaped by stable customer trends across its core segments and ongoing investment in property enhancements. CEO Keith Smith pointed to consistent play from core customers and steady retail activity, even as the company navigated weather disruptions and calendar shifts like the Leap Year and Super Bowl timing. Management highlighted that, despite these factors, both company-wide revenue and EBITDA grew, supported by the resiliency of the customer base and continued property-level margin strength.
Looking forward, management remains focused on capital investment projects such as renovations and new property developments, while expressing caution around external economic uncertainty. CFO Josh Hirsberg addressed strategies to mitigate tariff impacts on new developments and emphasized flexibility in capital allocation. Smith noted, "We remain confident in our ability to manage through the current environment," while also flagging a more conservative approach to share buybacks above the $100 million per quarter commitment given recent volatility.
Key Insights from Management’s Remarks
Boyd Gaming’s first quarter performance reflected a mix of stable customer engagement and ongoing expansion initiatives, as management focused on operational consistency and strategic investments.
Customer Base Stability: Core customer play grew across most segments, with frequency and spend per visit both contributing. Management reported retail play remained flat, countering some competitor claims of softness in unrated segments.
Las Vegas Locals Dynamics: The Locals segment saw revenue nearly even with the prior year, with margin pressures concentrated at the Orleans property due to ongoing competitive and access challenges. Outside the Orleans, segment revenues grew modestly, with operating margins exceeding 50%.
Downtown Las Vegas Recovery: Downtown properties benefited from normalized Hawaiian visitation and solid pedestrian traffic, with management noting the prior year suffered from elevated airfares during the Super Bowl, creating an easier comparison this quarter.
Midwest & South Resilience: Despite a 28% increase in weather-impacted days, the segment delivered revenue and EBITDA growth, supported by core customer engagement and steady retail play. Management expects normalization as weather effects subside.
Growth in Online and Managed Segments: The Online segment, including Boyd Interactive and market-access agreements, delivered near double-digit EBITDA growth. The Sky River Casino’s expansion, including new gaming and hospitality amenities, is set to drive additional management fee income and market presence in Northern California.
Drivers of Future Performance
Management’s outlook for the remainder of the year centers on executing capital projects, maintaining cost discipline amid external pressures, and closely monitoring consumer trends as macroeconomic uncertainty persists.
Capex-Fueled Growth: Ongoing renovations (e.g., Suncoast, IP, Valley Forge) and new developments, such as Cadence Crossing in Las Vegas and the Norfolk resort in Virginia, are expected to drive future revenue growth and diversify the company’s geographic footprint.
Margin Management: The company is focused on mitigating tariff-related cost increases and leveraging operational efficiencies, especially in response to inflationary pressures and potential supply chain disruptions affecting capital projects.
Customer Resilience and Risks: Stable visitation and spend among core customers underpin the company’s guidance, but management remains alert to shifts in consumer behavior and competitive pressures, particularly in the Las Vegas Locals market.
Top Analyst Questions
Carlo Santarelli (Deutsche Bank): Asked about the prioritization of land-based development projects and the success of recent transitions from riverboat to land-based casinos. Management emphasized a disciplined approach, focusing on high-return projects, with expectations adjusted for market-specific dynamics.
Shaun Kelley (Bank of America): Questioned the timing and scale of recent share repurchases and the criteria for future buybacks. Management reiterated a commitment to balance buybacks with capital investments, citing increased caution given economic uncertainty.
David Katz (Jefferies): Inquired about Boyd’s appetite for mergers and acquisitions in the current environment. CEO Keith Smith highlighted a consistently cautious and disciplined M&A strategy, focused on strategic fit and financial return, unaffected by recent market volatility.
Steve Wieczynski (Stifel): Sought insight into spending trends across non-gaming amenities and whether customer behavior had shifted. Management reported that food, beverage, and hotel spending remained up on a cash basis, with no material change detected in customer spending patterns.
Brandt Montour (Barclays): Asked about evolving competitive dynamics in the Las Vegas Locals segment and the outlook for market share. Management noted narrowing market share losses at the Orleans and indicated that broader Locals segment performance outpaced the market excluding that property.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the progress and customer response to Boyd Gaming’s ongoing property renovations and new developments, (2) margin trends as management works to offset tariff and inflation-related cost pressures, and (3) continued stability in core customer play amid external economic uncertainty. Developments in the online gaming segment, as well as the pace of capital deployment, will also be important indicators of strategic execution.
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