Red Rock Resorts reported a strong Q3 2025 with Las Vegas operations achieving record third-quarter net revenue ($468.6M) and adjusted EBITDA ($209.4M), driving a consolidated net revenue of $475.6M and adjusted EBITDA of $190.9M. Adjusted EBITDA margin improved to 44.7% at Las Vegas ops and 40.1% consolidated. The company converted 67.3% of adjusted EBITDA to operating free cash flow ($128.5M; $1.21/share) and has returned ~$221M to shareholders year-to-date via dividends and buybacks. Net debt was $3.3B with net debt-to-EBITDA of 3.89x, and management expects to remain comfortable with leverage while funding development largely from free cash flow.
Key operational and strategic items:
- Durango: Near-term Phase (garage, high-limit slot room) on budget (~$120M) and due late December; a large next-phase expansion (podium north side) is planned to start Jan 2026 (~$385M, ~18 months, ~400 additional slots plus entertainment amenities). Management expects similar returns to the initial build and believes Durango will capture growing local demand.
- North Fork: Construction progressing to plan; early Q4 2026 opening targeted; all-in cost ~$750M, fully financed, GMAX contract. Company has been accruing a development fee and expects cash inflows and management fees upon opening/stabilization.
- Capital plan: Q3 capex $93.7M; 2025 capex guide narrowed to $325M–$350M (investment capex $235M–$250M; maintenance $90M–$100M). ~$175M of current project spend will push into 2026 due to timing.
- Capital allocation: Board extended and increased buyback authorization (+$300M) leaving ~$$573M remaining authorization; dividend raised to $0.26 per share (quarterly). Share count reduced materially since 2021.
- Taxes: Company does not expect cash tax payments near term and expects accelerated depreciation benefits under recent tax legislation for a meaningful portion of planned capex.
- Operations: Hotels, F&B, group & catering posted strong/near-record results despite renovation-related disruptions (notably Green Valley Ranch West Tower offline). Carded slot play and higher-value customer segments (regional, national, VIP) are growing; casino margins improved (mix and expense control). Management expects some disruption from ongoing projects (Green Valley ~ $8M impact in Q4; smaller impacts at Sunset and Durango during construction).
- New initiatives: Taverns rollout progressing (8 under contract; 2 open) showing encouraging early results and customer acquisition potential.
Overall, management emphasized the resilience of the locals-focused business model, continued deleveraging trends, disciplined capital allocation (development + returns to shareholders), and confidence in long-term growth from their development pipeline and real estate holdings.
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