Wynn Resorts (NASDAQ:WYNN) reported a mixed third quarter as unfavorable casino hold and a softer summer market weighed on its Las Vegas property, while a labor strike affected its Boston operation and Macau experienced a soft September.
CEO Craig Billings said on the company’s earnings call that the quarter brought “more headwinds than tailwinds,” but pointed to stronger October results in Las Vegas and progress on major development projects in Macau and the United Arab Emirates.
Las Vegas outlook improves after summer headwinds
Wynn Las Vegas generated $158.8 million in adjusted property EBITDA on $575.2 million in operating revenue, for a 27.6% margin. Unfavorable casino hold reduced EBITDA by just under $24 million, CFO Craig Fullalove said.
Despite the summer slowdown, revenue per available room and average daily rate both rose 3%, while retail lease revenue increased 8%, Billings said. In October, casino drop, average daily rate, revenue per available room and retail tenant sales were all up year over year.
Billings said the remainder of the fourth quarter looked healthy, supported by Formula 1, conventions and the NFL season. Formula 1 weekend was pacing ahead of the prior year in both room rates and occupancy, he said. Group and convention bookings for 2027 were also pacing ahead of where bookings for 2026 and 2025 stood at the same point.
COO Brian Gullbrants said the company has focused on balancing room rates and occupancy to maximize EBITDA rather than cutting rates to fill rooms during slower periods. Billings declined to provide a fourth-quarter EBITDA forecast, noting that comparisons with past performance remain difficult.
The Encore Tower remodel remains on track for completion in the first half of 2027. Fullalove said Wynn expects Las Vegas operating expenses, excluding gaming tax, to run between $4.4 million and $4.7 million per day going forward, depending on volumes and the event calendar.
Boston labor vote pending; Macau construction begins
Encore Boston Harbor generated $50.1 million in adjusted property EBITDA on $194.7 million in revenue. A strike that kept 1,300 workers out throughout September was a modest headwind, Billings said.
Wynn recently reached a framework for a resolution with union leadership, which recommended the agreement to members, according to Billings. A ratification vote was scheduled to begin later on the day of the call. Billings said the company would provide more detail on the agreement’s financial implications on its next call.
Wynn’s Macau operations generated $255.3 million in adjusted property EBITDA on $919.2 million in operating revenue. Above-theoretical VIP hold added just under $12.3 million to EBITDA, Fullalove said.
Billings described the quarter as mixed, with a soft September. Golden Week drop, handle and retail sales in October were in line with the prior year, he said, though volumes declined toward the end of the month.
Construction began during the quarter on the previously announced theater, event center and Enclave tower at Wynn Palace. The theater and event center remain on track to open in 2028, followed by the Enclave in early 2029. The tower will add 432 suites. Fullalove said the projects will be funded with Macau free cash flow, and Wynn continues to expect $350 million to $400 million in Macau expansionary capital spending for full-year 2026.
UAE resort remains on schedule
Wynn Al Marjan Island remains scheduled to open in September 2027, Billings said, with guest-room fit-out, hiring and operational planning underway. The company expects to begin handing completed areas to the operations team shortly after the new year and give it full control of the property in late July.
Billings acknowledged uncertainty related to the conflict in the region but said Wynn can draw guests from several markets, including residents of the UAE and international visitors. He said the company expects to decide around February on the format of the resort’s opening.
The company contributed $62.2 million of equity to the project during the quarter, bringing its cumulative contribution to just over $1.12 billion. It had drawn $1.76 billion on the construction loan. Fullalove estimated Wynn’s remaining required equity contribution, including the Janu project, at $465 million to $590 million.
Liquidity and shareholder returns
Wynn had approximately $4 billion in global cash and revolver availability as of September 30, including roughly $2.5 billion in Macau and $1.5 billion in the U.S., Fullalove said.
The company repurchased $58.1 million of stock during the quarter. Its board also approved a dividend of $0.25 per share, payable November 30 to shareholders of record on November 16. Separately, the Wynn Macau board approved a $150 million interim dividend for 2026, up from $125 million in the prior year.
Billings said Wynn considers its shares undervalued but is balancing repurchases against capital commitments, particularly for Al Marjan and Las Vegas. Fullalove said the company has bought back more than 14% of its shares since 2022.
About Wynn Resorts (NASDAQ:WYNN)
Wynn Resorts, Ltd. is a developer and operator of luxury integrated resorts, with a focus on destination casinos, hotels, restaurants, entertainment venues, retail, and convention facilities. Its properties are designed to combine gaming with premium hospitality and leisure experiences.
The company operates Wynn Las Vegas and Encore Las Vegas in Nevada, Encore Boston Harbor in Massachusetts, and Wynn Macau and Wynn Palace in Macau. These resorts serve visitors in the United States and international markets, offering accommodations, casino gaming, dining, nightlife, retail, spas, entertainment, and meeting and convention services.
Wynn Resorts was founded in 2002 by casino executive Steve Wynn.
