Boyd Gaming Corporation

Boyd said second-quarter companywide revenues increased 3% and EBITDA grew 2% on a comparable basis, with property operating margins at 40%. Midwest and South revenue rose 3% and EBITDA rose 4%, while Las Vegas locals excluding Orleans and Suncoast saw revenue up 4%, EBITDAR up 3%, and margins above 50%. Josh Hirsberg said Q2 capex was $142 million, year-to-date capex was $297 million, and full-year capex remains on track for $650 million-$700 million. Full-year 2026 online guidance was raised to $35 million-$40 million, and managed business guidance was raised to $113 million-$117 million. Management also said Q2 shareholder returns totaled over $170 million, including $156 million of buybacks at an average price of $83.60 per share and $15 million of dividends; the company expects to return more than $650 million this year, or about $9 a share.

Keith Smith framed the quarter as proof that Boyd's diversified model and ongoing property investments are working, highlighting broad-based play growth and efficiencies across the portfolio. He said the company is seeing guests spend closer to home, which is helping Midwest and South and also supporting the local customer in Las Vegas. His tone was constructive and confident, especially on the long-term outlook for locals, capital projects, and the development pipeline.

Josh Hirsberg focused on the financial outperformance in Midwest and South, the strength of online and managed, and the continued margin discipline across the business. He cited $142 million of Q2 capex, a $650 million-$700 million full-year capex plan, 2.2x traditional leverage and 2.7x lease-adjusted leverage, plus $267 million of tax credit payments tied to last year's FanDuel transaction. He also emphasized capital returns, including $156 million of share repurchases in the quarter, a plan to keep buying back about $150 million per quarter, and a balance sheet with ample credit capacity and the next debt maturity in December 2027.

Analysts pressed on the drivers of Midwest/South strength, with management pointing to guests staying closer to home, stable promotional activity, and better flow-through after resetting benefit-related costs. Questions on Las Vegas locals centered on the drag from Orleans destination softness and Suncoast construction; management said the destination impact has been roughly $5 million of EBITDAR and Suncoast construction about $3 million in Q2, with both expected to become less of a drag later in the year. Management also said there will be no construction disruption at Suncoast or Orleans in 2027, and that the locals portfolio should start seeing flat-to-growth in Q4 as Suncoast reopens and Cadence ramps.