Red Rock Resorts posts record quarterly revenue, flags construction impact

Red Rock Resorts reported record first-quarter revenue, driven by strong play in its Las Vegas operations, even as profit and core earnings edged lower and the company warned of near-term disruption from construction activity.

Net revenue rose 1.9% to $507.3 million, while net income fell 3.8% to $82.7 million. Adjusted EBITDA declined 1.2% to $212.6 million, although the company reported its second-highest adjusted earnings and near-record margins of 46.5% in Las Vegas.

Revenue from Las Vegas operations increased 0.9% to $499.5 million, supported by strong carded slot play and higher spend per visit, but adjusted EBITDA from the segment slipped 1.5% to $232.4 million. Core slot and table trends remained stable across the market.

Non-gaming segments, including hotel and food and beverage, delivered near-record revenue and profitability, while Native American operations generated $4.7 million in revenue and $2.9 million in adjusted EBITDA.

Chief Financial Officer Stephen Cootey said the company’s Durango property continues to support growth in the Las Vegas locals market, with recent and planned expansions aimed at boosting capacity and customer spend.

The company is expanding the property by 275,000 square feet, adding gaming and entertainment amenities, with completion expected in 2027 at a cost of $385 million.

For the full year, Red Rock expects to spend between $375 million and $425 million on capital investments, including upgrades at Sunset Station, where renovations are underway to enhance the casino floor, dining, and entertainment offerings.

“We are building on the next phase of Sunset Station, designed to further strengthen the property’s competitive position and broaden its customer appeal to capitalize on the continued growth in Henderson, particularly from the master planned communities of Ascaya and Cadence,” Cootey said.

The company expects construction at several properties, including Durango, Green Valley Ranch, and Sunset Station, to lead to millions of dollars in disruption in the second quarter.

Red Rock ended the quarter with $134.0 million in cash and cash equivalents and total debt of $3.6 billion. Its board declared a dividend of $0.26 per share for the second quarter.

Board member Lorenzo Fertitta said the company is also evaluating new development opportunities.

“We’re working on two new greenfield projects, going through the process, working on the plans, scale, and pricing,” Fertitta said. “We’re making progress, and we don’t have anything to announce now or in the very near future. As we turn the corner into next year, we will have more visibility into what the development plans are going to look like.”