Boyd Gaming's Q3 Success: A Tale of Resilience and Strategic Growth
Boyd Gaming, a leading gaming and hospitality company, recently reported its third-quarter 2026 earnings, showcasing a resilient performance amidst industry challenges. The company's diversified business model, coupled with strategic investments across its portfolio, drove growth in key segments.
In the Midwest and South region, Boyd Gaming delivered a solid quarter, with revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) growth reflecting the strength of this segment. The company's focus on enhancing gaming floors, introducing new food and beverage offerings, renovating hotel rooms, and completing growth projects has yielded significant returns, contributing to continued growth in play from core and retail customers.
Adjusted operating margins for the quarter were 38%, consistent with recent years, demonstrating Boyd Gaming's ability to maintain operating efficiencies. The company's online segment, Boyd Interactive, also contributed double-digit revenue and EBITDA growth, driven by the strong performance of Sky River Casino, which generated increased management fees in its managed business.
However, the Las Vegas Locals segment was impacted by increased softness in destination business to Las Vegas, primarily affecting the Orleans and Suncoast properties. Despite this, excluding these two properties, the remainder of the Las Vegas Locals portfolio grew both revenues and EBITDA 3%, driven by gaming revenue growth of 3.5% from core and retail customers, as well as strong growth in unrated play.
Boyd Gaming's President and Chief Executive Officer, Keith Smith, highlighted the company's diversified business model and strategic investments as key drivers of its success. "Our third quarter performance reflects the benefits of our diversified business model, the ongoing strength of our core customer, and the appeal of the property investments we've been making across our portfolio," he stated.
The company's CFO, Josh Hirsberg, noted that Boyd Gaming's results were impacted by several unusual items this year, including the permanent closure of Sam's Town Tunica in November 2025, the sale of Sam's Town Shreveport on August 1st, higher property taxes at Kansas Star, and a reduction in tax pass-through amounts. After adjusting for these items, company-wide revenue grew 2%, while EBITDA was up 1%, providing a more accurate reflection of the company's performance.
Overall, Boyd Gaming's Q3 results demonstrate the company's resilience and strategic growth, driven by its diversified business model and commitment to investing in its properties. As the gaming industry continues to evolve, Boyd Gaming's focus on innovation and customer satisfaction will likely remain key drivers of its success.
