Management View

CEO Craig Scott Billings highlighted: Wynn Las Vegas continued to be an outstanding performer on the strip, and we were pleased that EBITDAR in Las Vegas grew to a new second quarter record, up 2% year-over-year to nearly $235 million." He pointed to a 14.5% increase in total casino revenues and noted, "demand was healthy throughout the quarter with impressive increases in both drop and handle driving" market share gains. He added, "we saw continued strength in retail" and "our group and convention business looks strong heading into the fourth quarter and 2026. 2026 is shaping up to be a record year for both group room nights and revenues."
 

On capital projects, Billings shared, "we revised our sourcing and procurement plan for the Encore Tower Remodel in Vegas. And I now expect we will kick off that renovation in spring 2026." He also announced, “we have recently initiated 2 key capital projects, an expansion of the Chairman's Club gaming area at Wynn Palace and a refresh of our Wynn Tower rooms at Wynn Macau.”

Addressing the UAE development, he stated, "Wynn Al Marjan Island continues to progress rapidly. We are pouring the 61st floor and on track to top out the tower later this year... We remain on track for our targeted opening date of Wynn Al Marjan Island."

• CFO Julie Mireille Cameron-Doe reported, "at Wynn Las Vegas, we generated $234.8 million in adjusted property EBITDAR on $638.6 million of operating revenue during the quarter, delivering an EBITDAR margin of 36.8%." She explained, "OpEx, excluding gaming tax per day, was $4.2 million in the quarter, up 1% compared to the prior year due to normal wage inflation." She further shared, "our liquidity position remains very strong with global cash and revolver availability of $3.6 billion as of June 30."

Outlook

• Billings stated, "we remain positive about the business in Las Vegas" and noted, "our group and convention business looks strong heading into the fourth quarter and 2026. 2026 is shaping up to be a record year for both group room nights and revenues."
• The company expects the Encore Tower Remodel in Vegas to begin in spring 2026, with an estimated spend of $330 million and minor disruptions during the renovation period.
• For Macau, management indicated ongoing investment with "an expansion of the Chairman's Club gaming area at Wynn Palace and a refresh of our Wynn Tower rooms at Wynn Macau," with total CapEx spend in 2025 expected to be between $200 million to $250 million.
• Regarding Wynn Al Marjan Island, Billings reiterated, "we remain on track for our targeted opening date."

Financial Results

• Las Vegas delivered $234.8 million in adjusted property EBITDAR and $638.6 million of operating revenue, with an EBITDAR margin of 36.8%. Low hold negatively impacted EBITDAR by $11.4 million.
• Encore Boston Harbor produced $63.9 million of adjusted property EBITDAR on revenue of $215.7 million and a 29.6% margin. Casino revenues grew 5.2% year-over-year.
• Macau reported $253.7 million in adjusted property EBITDAR on $883.5 million of operating revenue, with a 28.7% margin. Lower-than-normal VIP hold impacted EBITDAR by nearly $13 million.
• The company repurchased 2 million shares for $158 million and declared a $0.25 per share dividend, payable on August 29, 2025.
• CapEx for the quarter totaled approximately $165 million, with an additional $58.2 million equity contributed to Wynn Al Marjan Island.

Q&A

• Daniel Brian Politzer, JPMorgan: Asked about Las Vegas outperformance and expectations for H2. Billings responded, "being at the luxury end of the market helps and our premium positioning absolutely helps... we've grown a couple of hundred basis points of gaming share over that period." Brian Gullbrants added, "booking pace continues to look actually quite good. July, we saw some of the best bookings we've seen all year."
• Politzer, JPMorgan: Inquired about Macau's recent performance. Billings replied, "it's a little bit of everything. Certainly, entertainment... has played a role. But even subsequent to those concerts... we've seen strength in the market in July."
• Steven Donald Pizzella, Deutsche Bank: Asked about CapEx impacts from the Big Beautiful Bill. Cameron-Doe replied, "there are certainly some corporate tax provisions in the bill that will benefit us... but that's really for us, it's going to be primarily in 2028 and beyond."
• Elizabeth Dove, Goldman Sachs: Sought details on consumer trends in Las Vegas. Billings explained, "we haven't seen any diminishment in the willingness to spend at the tables and the slots. We've been able to hold rate... in a market where rates have dropped."
• Stephen White Grambling, Morgan Stanley: Queried expense management. Cameron-Doe answered, "the teams across the globe really focus on that... we have a great flexible approach... able to dial things up and dial things down in line with volume."
• David Brian Katz, Jefferies: Asked about Macau promotions and credit. Billings stated, "it is absolutely daily hand-to-hand combat for market share there... reinvestment has actually been pretty stable over the course of the past several quarters."
• Additional questions explored Wynn Al Marjan Island strategy and pipeline development, with Billings outlining coordinated efforts in branding and player awareness across the region.

Sentiment Analysis

• Analyst tone was neutral to slightly positive, focused on operational discipline, booking trends, and development pipeline, with an emphasis on near-term and long-term outlook questions.
• Management maintained a confident and upbeat tone throughout, with Billings stating, "as I have said before, our future is bright" and consistently referencing positive booking trends and market share gains. In Q&A, management remained detailed and responded thoroughly, reinforcing discipline and flexibility.
• Compared to last quarter, management appeared slightly more confident regarding forward booking trends and development milestones, while analysts maintained a similar tone, probing for clarity on strategy and market dynamics.

Quarter-over-Quarter Comparison

• The current quarter saw management reinstate timing for the Encore Tower Remodel, now set for spring 2026, whereas last quarter's call indicated delays due to tariff uncertainty.
• There was a larger emphasis on group and convention bookings as a growth driver for 2026, with management now projecting a record year, compared to more cautious forward-looking language previously.
• Macau's capital project activity advanced, with new initiatives underway as opposed to mostly planning stages last quarter.
• Analysts continued to focus on market share, CapEx timing, and consumer trends, but there was less focus on macro tariff impacts and more on execution and pipeline.
• Management’s confidence in the UAE project was reiterated, with continued progress and strong regional brand-building efforts.

Risks and Concerns

• Management acknowledged "macroeconomic uncertainty, including tariffs," as a continuing consideration, particularly for Las Vegas operations and CapEx planning.
• VIP hold volatility impacted Macau EBITDAR by nearly $13 million.
• Labor cost pressures in Boston were noted, but the team "has continued to do a great job of mitigating union-related payroll increases with cost efficiencies."
• Ongoing competitive intensity in Macau was described as "daily hand-to-hand combat for market share," with reinvestment levels stable but requiring continuous attention.

Final Takeaway

Wynn Resorts’ second quarter report underscores continued strength at its flagship properties, with Las Vegas setting a new second quarter EBITDAR record and Macau maintaining robust mass and VIP volumes despite hold volatility. Management expects 2026 to be a record year for group business, supported by ongoing capital projects and resilient premium positioning. The company advances its landmark Wynn Al Marjan Island development and maintains a strong liquidity profile, while demonstrating operational discipline and a clear strategy for growth in both established and emerging markets.

Read the full Earnings Call Transcript