Boyd Gaming generated $990.5 million in revenue in the third quarter of 2026, down from $1 billion in the third quarter of 2025, and revenue also was down year over year for its Las Vegas locals and downtown Las Vegas properties.

“In Las Vegas, play from local residents remained strong. However, this trend was offset by increased softness in destination business to Las Vegas, primarily at the Orleans, and construction disruption at the Suncoast,” Boyd President and CEO Keith Smith said Thursday during the company’s third-quarter earnings call with investors.

Smith said revenue in downtown Las Vegas also reflect increased softness in destination business in Southern Nevada.

He cited the impact of several storms in Hawaii during August and September, as well as a significant increase in Hawaiian airfares in the second half of the quarter. “While airfares remain elevated today, they have started to moderate,” he said.

Las Vegas-based Boyd, which has 27 casinos in 11 states, has been dealing with increased softness in destination business in Southern Nevada for the past year.

“You’ve probably heard this conversation from us for the last three or four quarters,” Smith said. “Part of that is driven by the fact that in Las Vegas, as everyone knows, the third quarter, the summer quarter, is our weakest quarter. So these types of pressures get intensified during the quarter.”

Multiyear modernization project

The third-quarter results also reflected the final phases of Boyd’s major multiyear modernization project.

“At the end of the quarter, we completed our project to renovate and upgrade all of the public spaces at the Suncoast. Our guests are responding enthusiastically to the improvements, further strengthening our confidence in the long-term potential of the Suncoast,” Smith said. “The final phase of the Suncoast project is the remodel of our hotel rooms, which started late in the third quarter. The project should be completed by the first quarter of next year.”

Boyd is preparing for a similar modernization project at the Orleans that will start in early 2027, with minimal disruption expected as the initial phases will be in areas not accessible to the public.

Smith said Boyd expects to complete the remodel of 1,800 hotel rooms at the Orleans in November, followed by 400 rooms at Suncoast.

“We look at the fourth quarter having hotel rooms back at the Orleans. We’ve had more than 300 rooms out of service every day for the last year,” he said. “Do we need those rooms on weekdays? The reality is no. Do we need those rooms on weekends? The answer is yes. So that will support us, and we think that just the general trends will soften the impact of the weakness in destination as we look at Q4 and next year.”

‘Remains an appealing destination’

Smith pointed to strong underlying fundamentals of the Southern Nevada economy that give Boyd confidence in the future.

“These fundamentals include Southern Nevada’s population surpassing 2.4 million residents, driven by an annual growth rate that is twice the national average. This population growth is driven by a local economy that continues to add jobs at a healthy pace, leading almost every major metro area in the country,” he said. “Over the last 12 months, Las Vegas has reported the second-highest job growth rate among the nation’s 30 largest metro areas. Local wage growth also continues to outpace the national average, increasing nearly 6 percent over the past 12 months. And Southern Nevada remains an appealing destination for new residents, offering one of the most competitive cost of living environments in the western US.

“In all, we remain encouraged by the continued strength of the Las Vegas economy and its prospects for our local segment.”

The company reported net income of $124.9 million, or $1.71 per share, in the third quarter of 2026, compared to $1.4 billion, or $17.81 per share, for the third quarter last year. Boyd’s net income for the third quarter of 2025 benefited from a $1.4 billion after tax gain from the sale of the company’s equity interest in FanDuel.

Boyd shares, traded on the New York Stock Exchange, closed at $72.10, a decrease of 15 percent since the beginning of the year.

Contact reporter Todd Dewey at tdewey@reviewjournal.com. Follow @tdewey33 on X.