Wynn (WYNN) Q4 2025 Earnings Call Transcript

Image source: The Motley Fool.

Date

Thursday, Feb. 12, 2026 at 4:30 p.m. ET

Call participants

• Chief Executive Officer — Craig Scott Billings
• Chief Financial Officer — Julie Mireille Cameron-Doe
• President — Brian Gullbrants

Takeaways

• Las Vegas adjusted property EBITDA -- $240.8 million on $688.1 million of revenue, with a 35% margin, aided by over $8 million from hold.
• Las Vegas operating expense -- $4.6 million per day in the quarter, above the $4.3 million-$4.5 million target range due to a heavy event calendar and wage inflation, but not altering future OpEx guidance.
• Encore Boston Harbor adjusted property EBITDA -- $57 million on $210.2 million revenue with a 27.1% margin, and record slot revenues up more than 2% year over year.
• Encore Boston Harbor daily operating expense -- $1.18 million per day, up less than 1% from fiscal Q4 2024 despite labor pressure, with further efficiencies offsetting union payroll increases.
• Macau adjusted property EBITDA -- $270.9 million on $967.7 million of revenue, representing a 28% EBITDA margin, reduced by VIP and mass low holds.
• Macau VIP turnover -- Increased 48%, with mass drop up 18% year over year; low VIP hold reduced EBITDA by just over $16 million.
• Macau mass hold -- Roughly 250 basis points below prior year, negatively impacting overall margin.
• Macau operating expense -- $2.85 million per day, with increases driven by Gourmet Pavilion, cost of living, and higher business volumes; 2026 guidance reaffirmed for $2.7 million-$2.9 million.
• Liquidity position -- Global cash and revolver availability of $4.7 billion at Dec. 31, 2025, with $2.9 billion in Macau and $1.8 billion in the U.S.
• Net leverage -- Consolidated net leverage ratio just over 4.4 times, with $2.2 billion+ in annual adjusted property EBITDA generated across global assets.
• Quarterly dividend -- $0.25 per share declared, payable Mar. 4, 2026, to shareholders of record as of Feb. 23, 2026.
• Fiscal Q4 capital expenditures -- $171.2 million primarily for renovations and maintenance; $79.2 million equity contributed to Buenos Aires Island, now totaling $914.2 million.
• Al Marjan construction -- Tower topped out at 70 floors during fiscal Q4 2025, with exterior glass 80% complete and all rooms in fit out phase; remaining equity needed for Marjan and new projects estimated at $450 million-$550 million.
• Chairman’s Club expansion (Wynn Palace) -- Triples space to nearly 100,000 square feet, opening for Chinese New Year after final government approval.
• 2026 CapEx guidance -- $400 million-$450 million, with additional concession-related projects pending approval.
• Encore Tower remodel (Las Vegas) -- Project will remove roughly 80,000 room nights in 2026, beginning mid-May and continuing into 2027; management expects partial offset from higher room rates.
• Revenue diversification strategy -- With the opening of Wynn Al Marjan and Buenos Aires Islands, management expects over 55% of revenues to be generated in non-U.S. dollar denominated markets in coming years.
• Boston land development -- An MOU was entered with the City of Everett to facilitate development on 16 acres adjacent to Encore, with the company acting as land lessor.

Need a quote from a Motley Fool analyst? Email pr@fool.com

Risks

• Management cited the Encore Tower remodel as a "slight headwind" for the year, removing about 80,000 room nights in 2026, with potential EBITDA impact noted.
• Lower-than-normal VIP and mass hold in Macau negatively affected margins, with low VIP hold cutting fiscal Q4 2025 EBITDA by just over $16 million, and mass hold about 250 basis points below last year.

Summary

Wynn Resorts (NASDAQ:WYNN) reported fiscal Q4 2025 results showing continued momentum in Las Vegas and Macau, with strong EBITDA contributions from both regions, despite lower win rates suppressing Macau margins. Cash and liquidity remain robust, supporting both capital return via dividends and major international development projects. Upcoming expansions, such as the opening of the expanded Chairman’s Club in Macau and progress on Wynn Al Marjan, underpin management's focus on premium segments and geographic revenue diversification.

• The company will transition to a new CFO before the next earnings call, following Julie Mireille Cameron-Doe's announced retirement.
• First quarter 2026 has begun with encouraging trends in casino volumes and hotel RevPAR, aided by strong advance group and convention bookings in Las Vegas.
• Macau’s premium segment is described as leading the market, with the expanded Chairman’s Club and Wynn Tower refresh targeted to strengthen share further.
• Al Marjan’s opening is expected to drive a free cash flow inflection, and room sales are forecasted to begin late Q3 or early Q4 2026.
• The Boston adjacent development strategy focuses on land leasing, not capital-intensive hotel construction, as part of broader collaboration with local government and infrastructure improvements.

Industry glossary

• Hold: The percentage of total wagers retained by the casino, representing gaming win rate.
• VIP turnover: Total value of wagers placed in the VIP table games segment during a defined period.
• RevPAR: Revenue per available room, a key metric in hotel operations.
• Drop: Amount of cash and markers exchanged for chips by patrons at table games; a key measure of table games volume.
• Adjusted property EBITDA: Property-level earnings before interest, taxes, depreciation, amortization, and other items, used by the company as a core profitability metric.
• Concession: Government-issued license or right granted to operate gaming activities in Macau.
• OpEx: Operating expenses, excluding gaming tax.
• MOU: Memorandum of understanding, a formal agreement indicating intent between parties before a final contract is signed.

Full Conference Call Transcript

Craig Scott Billings: Good afternoon, and as always, thank you for joining us. I would like to start today's call by taking a step back and taking a broader multiyear view of our business and talk about how the company is positioned relative to some of the broader forces shaping the world and our target customer base. We are now a little more than a year out from a meaningful milestone, the opening of Buenos Aires Islands. This development is significant for many reasons, but over the long term, its importance as a step forward in our geographic diversification stands out, especially in the context of an increasingly multipolar world.

Recent actions in geopolitics, currencies, metals reinforce our view that multipolarity is not a transient trend. With it comes meaningful shifts in historical patterns of travel, trade, technology diffusion, and capital flows. Increasingly, those patterns are coalescing around a small number of global hubs, notably, the U.S., China, and portions of the Middle East. We see this in financial markets, and we see it in the travel patterns of our international customers. At the same time, we are approaching a period of significant change driven by technology and artificial intelligence. Anticipation of those changes is already fueling substantial business formation and wealth creation centered again in the U.S., China, and portions of the Middle East.

That expanding wealth creation will continue to drive demand for what Wynn Resorts, Limited has always delivered: exceptional product and service for the world's most discerning customers. This brings me to two related capabilities that position us well for the long term: our relentless focus on our core customer segment, and our proven ability to develop and operate world-class assets in diverse geographies, thereby allowing us to meet the affluent customer wherever they choose to be. With the opening of Wynn Al Marjan, we are introducing a significant into a new and dynamic market.

More broadly, we are moving toward a portfolio where we expect over 55% of our revenues will be generated in non-U.S. dollar denominated markets from assets we developed and operate, each meticulously designed around the most valuable consumers in these key markets. So as we begin 2026, Wynn Resorts, Limited is on track to become one of the most globally diversified companies in our industry. That diversification, combined with our brand, customer focus, and proven operating capabilities, leaves us exceptionally well positioned for the longer term. Now turning to the fourth quarter, Wynn Las Vegas delivered another robust quarter with EBITDA of $241,000,000.

It is important to note that the comparable quarter of 2024 benefited from nearly 31% hold, and thus, when normalizing both periods, EBITDA in Q4 2025 was just above the prior-year comp. Demand for our product in Las Vegas remained healthy across the board with drop, handle, and ADR all up year-on-year. While RevPAR was slightly below last year, the overall results reflect our ability to balance stronger ADRs with modestly lower occupancy in order to optimize the performance of the building. We remain well positioned to do this given our strong competitive positioning and our customer base. More recently, performance in the first quarter has been encouraging with casino volumes and RevPAR both holding up well.

Looking further out, we feel good about the business in 2026. The visibility that we have into forward demand is largely due to our group and convention business which continues to look strong, on pace to grow both room nights and rate relative to 2025. As I mentioned last quarter, we will begin the Encore Tower remodel in the second quarter and expect to lose about 80,000 room nights in 2026. We expect to recapture some of that impact in rate, but the remodel will nonetheless present a slight headwind for the year.

Turning to Boston, Encore generated $57,000,000 of EBITDAR during the quarter with lower-than-normal table hold masking what was otherwise strong fundamental performance with RevPAR, table drop, and slot handle all up year-on-year, along with tightly controlled OpEx. More recently, demand in Boston has remained healthy into February, aside from specific days impacted by poor weather. Shifting to Macau, this quarter was all about significant volume growth but unusually low hold in both VIP and mass. The team delivered $271,000,000 in EBITDA with low VIP hold costing us a little over $16,000,000 in EBITDA. Volumes in the quarter were strong, with VIP turnover up 48% and mass drop up 18%, both year-on-year.

While we do not quantify the impact of unusual mass hold, mass hold in the quarter was below our expectations. And like Las Vegas, Macau also held higher in the prior-year quarter, skewing year-over-year comparability. Momentum in Macau has persisted into the first quarter with volumes in January just above those we saw in Q4. We are also very excited about the upcoming opening of the new Chairman's Club floor at Wynn Palace, a 63,000 square foot addition dedicated to our highest value customers, featuring gaming alongside a suite of bespoke amenities. We expect to be welcoming guests into the space for Chinese New Year.

Looking ahead to the rest of 2026, following sustained double-digit market-wide GGR growth in 2025, we remain optimistic about the future of Macau. The premium segment continues to lead the market, and that is a segment where we are always well positioned. The expansion of the Chairman's Club at Wynn Palace along with the refresh of the Wynn Tower rooms at Wynn Macau further strengthen our ability to capture this demand in 2026 and beyond. Turning to Wynn on Marjan Island. I would like to thank those of you who made the trip to join us for our Investor Day in the UAE in December.

We hope the visit provided you with a clearer sense of both the scale of the opportunity and the broader dynamics of the region. During the fourth quarter, we reached a significant construction milestone when we topped out the tower at the 70th floor. Construction continues to progress rapidly with interior fit out underway in all guest rooms and our iconic exterior glass about 80% complete. The opening of Wynn Al Marjan and the free cash flow inflection that it will bring reinforces our confidence that our best days lie ahead. Before turning the call over to Julie, I would like to address one final item.

As we announced a few weeks ago, Julie will be retiring before the next earnings call. On behalf of the company, I would like to acknowledge her accomplishments as CFO and thank her for her leadership and significant contributions over the past four years. Over to you, Julie.

Julie Mireille Cameron-Doe: Thank you, Craig. It has been such an honor to serve as CFO here at Wynn. We are known for our beautiful buildings and five-star service, but what sets this company apart from all the others are its people, at all levels and across the globe. It is extremely rare to work somewhere where everyone is bringing their A-game every day. That is exactly how it is at Wynn. It is incredibly special. So before I get into the quarter, I would like to thank each and every one of our employees in Vegas, Boston, Macau, Marjan, and London for all you do to make Wynn the best in the business. Turning to the numbers.

At Wynn Las Vegas, we generated $240,800,000 in adjusted property EBITDA on $688,100,000 of operating revenue during the quarter, delivering an EBITDA margin of 35%. Hold positively impacted EBITDA in the quarter by just over $8,000,000. OpEx, excluding gaming tax per day, was $4,600,000 in the quarter, up 4.1% compared to the prior year, largely due to incremental costs related to payroll, higher repair costs, and bad debt expense. Turning to Boston. We generated adjusted property EBITDA of $57,000,000 on revenue of $210,200,000 with an EBITDA margin of 27.1%. As Craig mentioned, low hold negatively impacted the quarter's results, while casino volumes and RevPAR were strong. Slot revenues were strong, up over 2%, setting a new record for Boston.

We maintained our discipline on the cost side with OpEx per day of $1,180,000, up less than 1% compared to Q4 2024 despite continued labor cost pressures in the market. The Boston team has continued to do a great job of mitigating union-related payroll with cost efficiencies in areas of the business that do not impact the guest experience. Our Macau operations delivered adjusted property EBITDA of $270,900,000 in the quarter, on $967,700,000 of operating revenue, resulting in an EBITDA margin of 28%. Lower-than-normal VIP hold impacted EBITDA by just over $16,000,000 in the quarter.

And though we do not report EBITDA normalized for mass hold, our mass hold in Q4 was about 250 basis points lower than the prior-year quarter, impacting our overall EBITDA margin. OpEx excluding gaming tax was approximately $2,850,000 per day in Q4, with the increase from Q4 2024 driven primarily by a full quarter of Gourmet Pavilion related costs, normal cost of living expenses, and variable costs driven by healthy business volumes. In terms of CapEx in Macau, back in Q2, we initiated two projects as Craig mentioned: an expansion of the Chairman's Club gaming area at Wynn Palace and the refresh of our Wynn Tower rooms at Wynn Macau. The impact of those projects on CapEx continues into 2026.

For the full year 2026, we expect to spend a total of $400 to $450,000,000, with several concession-related projects awaiting government approval. Moving on to the balance sheet. Our liquidity position remains very strong, with global cash and revolver availability of $4,700,000,000 as of December 31. This was comprised of $2,900,000,000 of total cash and available liquidity in Macau and $1,800,000,000 in the U.S. The combination of strong performance in each of our markets globally, with our properties generating over $2,200,000,000 of adjusted property EBITDA together with our robust cash position, creates a very healthy consolidated net leverage ratio just over 4.4 times. Our strong free cash flow and liquidity profile also allow us to continue returning capital to shareholders.

To that end, the Wynn Resorts, Limited Board has approved a quarterly cash dividend of $0.25 per share payable on 03/04/2026 to stockholders of record as of February 23. Our recurring dividend highlights our focus on and continued commitment to prudently returning capital to shareholders. In terms of CapEx, we spent approximately $171,200,000 in the quarter, primarily related to the Fairway Villa renovations, Zero Bond and Sartiano’s in Las Vegas, the new Chairman's floor at Wynn Palace, the hotel tower refurbishment at Wynn Macau, and normal course maintenance across the business. In addition to that figure, we contributed $79,200,000 of equity to the Buenos Aires Island project during the quarter, bringing our total equity contribution to date to $914,200,000.

We also continue to draw on the Marjan construction loan with a drawn amount to date of $769,600,000. We estimate our remaining share of the required equity, including the new-to-new project, is approximately $450,000,000 to $550,000,000. With that, we will now open up the call to Q&A.

Craig Scott Billings: Thank you.

Operator: To ask a question, unmute your phone, record your name clearly after the prompt, and I will introduce you. Please limit yourself to one question and one follow-up question. To withdraw your question, press 2. Question comes from Daniel Brian Politzer with JPMorgan. Your line is open, sir.

Craig Scott Billings: Hey, good afternoon, everyone. And Julie, congratulations on the retirement, and thanks for all the help these past few years. First question on Vegas. Some of your peers have been fairly upbeat on the path for higher-end luxury properties to grow in 2026. And I recognize, Craig, you mentioned the limited booking window and visibility outside of group and convention, as well as the Encore Tower disruption. But I guess, as we think about those puts and takes and your level of confidence in this high-end customer, the strength retaining or maintaining here, how do you think about the path to growing in Vegas in 2026? Sure.

It is kind of funny because I feel like we have spent the past few years trying to convince people that we were not going to decelerate. And, you know, we have continued to hold up very, very well. If you look at the drivers in 2026, I noted the headwind of the rooms that will be out of service. Certainly, I expect that will impact us. Again, we will try to pick up some of that in rate, but the group business is doing really, really well, which, of course, in turn allows us to yield in the other segments.

And so as long as the group pace plays out as we expect it will, strongly expect it will, we feel good about our ability to continue to price rooms. Gaming volumes, you can see gaming volumes in the quarter, and that gives you a sense for how tables and slots are holding up. So we feel good about our ability to perform really, really well in 2026. I mean, by any kind of historical standards, Wynn Las Vegas is absolutely crushing it. So, you know, we do not see anything at the moment that would change our view on our ability to continue to do so. Brian, would you add anything to that? No.

I would say so far, our key business indicators are all positive. But as mentioned, the out-of-order rooms will certainly be a challenge in the latter half of the year. It. That makes sense. And then just in terms of the OpEx, Julie, I think touched on Macau ticking a little bit higher. In Vegas, I think there has been a little bit of increase there too. Is there any kind of parameters to which to think about the OpEx growth in Vegas as well as Macau for 2026?

Operator: Yeah. I mean, I will start with I will start with Vegas and move on to Macau.

Julie Mireille Cameron-Doe: So, I mean, the team in Vegas remains incredibly disciplined on OpEx. And we did raise our outlook last quarter to $4,300,000 to $4,500,000 outside of major event periods. We ended up slightly above that range at $4,600,000 in Q4. It is a very heavy event period with Formula One, Concours, New Year’s, and a busy convention calendar. You know, we also continue to see normal wage inflation in union and nonunion areas of the business. But otherwise, we are managing OpEx very tightly. And in terms of the outlook, we are not changing our expectation for OpEx to be in that $4,300,000 to $4,500,000 range outside of major event periods.

If I move on to Macau, Macau, obviously, as we said on the call, we got a full quarter in of the Gourmet Pavilion. And we have had some, you know, obviously, some cost of living increases going on in there as well. We once again saw the variable impact of higher business volumes in the quarter because we had very strong volumes in the quarter. We raised our OpEx per day expectations last quarter to be in the range of $2,700,000 to $2,900,000, and, you know, we are aligned with that number.

Craig Scott Billings: Got it. Thanks so much.

Operator: Thank you. Our next caller is Elizabeth Dove with Goldman Sachs. Your line is open.

Elizabeth Dove: Hey, thanks for taking my question. I will echo congratulations and thanks to you, Julie. Really appreciate all the help and, you know, wish you the best going forward. Sticking with Vegas, first of all, I guess, similarly kind of on that OpEx side of things. Just thinking about the margins, I think margins in Vegas are obviously up a lot versus 2019 that you have just seen such incredible strength there. And, you know, there has been a bit of a giveback over the couple of years, maybe a bit of a return to normal, whatever you want to call it.

But just thinking about really a bit longer term, not just 2026, but how you think about just margin expansion, whether that is possible at some point in Vegas or if there is still a bit of a kind of normalization to go there.

Craig Scott Billings: Sure. We have always been pretty explicit about the fact that we do not really manage to margin per se. Right? What we do is try to absolutely top-tick revenue, which is about taking market share in gaming and driving ADRs, pushing the right customers into the building for retail tenants, and then being absolutely judicious about managing OpEx. And we are doing both of those things. So we do not really give margin guidance, and we do not look forward in terms of margin. But philosophically, that is really how we approach it. And I think you saw that this quarter.

Elizabeth Dove: Got it. And then just on the Encore renovation, you know, it is helpful to call that out. And, you know, on my math at least, the 80,000 room nights could be maybe $50,000,000 of EBITDA impact, you know, assuming that you do not get any recapturing on the rate, which you did mention. Anything that you could share there and just how you are thinking about it, particularly in the second half when you kind of fully start the renovations and also typical kind of IRR on the longer-term basis of projects like this.

Craig Scott Billings: Yeah. That sounds a little bit high to me. But the way to think about it is we stage and stagger the renovations as taking out floors such that they occur in the lowest demand periods. So that is one of the ways that we mitigate the impact of those renovations, thereby allowing us to pick up the highest-rate periods. And then I think as you pointed out, we expect that we will pick up some of that in rate. Beyond that, it kind of is what it is. You know, we need to do the renovation, and it is important to the building and the brand. Brian, what would you add?

Brian Gullbrants: We are starting in mid-May. So as far as impact, it starts in mid-May, and it will consume about six floors as we go through the building. But it is a twelve-month process, so this is going to linger into 2027 as well. Yeah. That is a good point as well.

Craig Scott Billings: It is really split between two years.

Elizabeth Dove: Got it. Thank you.

Craig Scott Billings: Yep.

Operator: Thank you. Our next caller is Shaun Kelley with Bank of America. Your line is open.

Shaun Kelley: Good afternoon, everyone. Thank you for taking my question.

Shaun Kelley: First of all, Julie, for all of your time and attention and, of course, the hospitality on the UAE trip. It was spectacular, so you will be missed. And, you know, if I could, I wanted two questions on Macau. Maybe first, Craig, if we could lead off with a little bit of color on there is concerns both about promotions in the market and competition. And then specifically, we have got some questions, just mix shift between VIP and premium mass. I know you kind of specialize in both these segments.

So just kind of wanted your thought on the overall environment and then again, are you seeing any sort of notable shifts between business lines that may be impacting or changing margins in that segment?

Brian Gullbrants: Sure. Thanks, Shaun.

Craig Scott Billings: Yeah. Both of your questions kind of lead to margin. I guess, first of all, with respect to margins overall, margins in the quarter were really affected by three things: the significant jump in VIP volumes, but low hold; unusually low hold in mass, which we mentioned a couple times in the prepared remarks; and remember, we generally accrue reinvestment on theoretical, not actual, so that obviously suppresses margins; and then the incremental OpEx that was previously discussed from cost adjustments and a full quarter of the Gourmet Pavilion. There was not really, beyond everything that I mentioned, there was not really a fundamental shift in the business. As you know, VIP can be incredibly lumpy.

It is just the nature of the business. I would not be proclaiming a market-wide shift, or at least a Wynn shift, in the sources of business. With respect to reinvestment, and again, as we have discussed on prior calls, look, it is a very short booking window in Macau. And so it is daily hand-to-hand combat, as I have said before, for customers. And we will adjust reinvestment up or down in any given period to make sure that we achieve our business goals. I cannot say that our quarter was unusually impacted by a significant jump in reinvestment.

Shaun Kelley: Very clear. And then as my follow-up, you mentioned in the prepared remarks as well the excitement around the new Chairman's Club space. So just wondering if you could give us a little bit more color and detail there? I think timing sounded like open by Chinese New Year, but if you could talk about the kind of scope and scale there, what you have been investing, and potential impacts for both 1Q and maybe the full year?

Brian Gullbrants: Yeah. Sure.

Craig Scott Billings: Thank you for asking about it. We are waiting on, I think, one final government approval. Maybe we got it yesterday, actually. So we do expect we will be open by Chinese New Year. This is significant. We did it in record time. Amazing that the development team was able to do it. But this is a significant expansion of the Chairman's Club. So the Chairman's Club, for those of you that are not aware, is an area within Wynn Palace that is the space that is dedicated to our highest value customers. This expansion actually triples the size of the Chairman's Club to nearly 100,000 square feet.

The space includes gaming areas along with a whole bunch of amenities, including several boutique food and beverage outlets, entertainment areas, cigar lounge, a bar. We honestly believe it will set a new standard for premium gaming space in Macau, in an area that already feels very, very comfortable to our best customers. So we feel great about it opening up. The impact on Q1, we will see. We are hoping to get into Chinese New Year. And, obviously, the rest of the year, we do not provide any forward guidance.

Julie Mireille Cameron-Doe: Just confirming that we have the approval for opening today. Thank you.

Craig Scott Billings: Yeah. So we are good to go. You can strike the word “expect” from the prepared remarks.

Shaun Kelley: Thanks, everyone.

Operator: Thanks, Shaun. Thank you. Our next caller is Robin Margaret Farley with UBS. Your line is open. Sorry. One moment, please. Robin? We will go to the next caller. John G. DeCree with CBRE. Your line is open.

John G. DeCree: Hi, Craig, Julie. I will pile on to the congratulations and gratitude. It has been a pleasure working with you. Good luck on what is next for you. Maybe to stick with Las Vegas, kind of ask the consumer question a couple of different ways. With lower occupancy, obviously, rate was up, but I think it is impressive gaming volumes are up. We saw higher food and beverage revenue. And so, Craig, if you could talk about are you getting more foot traffic in the door from other properties not staying at Wynn, or is it really just a higher price?

Anything you could say about gaming volumes and F&B revenues being up, you know, despite a little bit of lower occupancy in the hotel?

Craig Scott Billings: Yeah. Thank you. First, driving rate over occupancy is an incredibly intentional strategy. It is not a strategy that we are doing because it is being hoisted upon us. Right? When we drive rate over occupancy, we can change our restaurant opening hours. We can staff the building differently, and we can really push EBITDA. On the gaming volume point, it is definitely not the mass customer that is wandering in the door and driving our incremental gaming volume.

We set out, geez, three years ago now, and changed a tremendous number of things in the business, from our hosting strategies to our underlying technology to aspects of our rewards program and our reinvestment, and that has resulted in a pretty significant shift in market share in our favor. And this was another quarter where you saw the benefit of that. Brian, anything you would add?

Brian Gullbrants: I would say the ops team continues to crush it on optimizing RevPAR, focused on keeping the restaurants full, and still tightly controlling OpEx. So all of those are key in our future.

Craig Scott Billings: Very helpful. I think I have piled two questions in there, so I will step out of the queue. Thanks all.

Julie Mireille Cameron-Doe: Thanks.

Operator: Thank you. Our next caller is Brandt Montour with Barclays. Your line is open, sir.

Brandt Montour: Good afternoon, everyone. Thanks for taking my question.

Operator: Can you guys—

Brandt Montour: I do not think you guys have talked about this yet, but the sort of the convention calendar for you guys for the year by quarter, you know, any sort of what should we think about in terms of year-over-year comparisons and what stands out to you when you look out over the year in terms of group?

Craig Scott Billings: Brian, you want to take that? Sure. I think if you look at—

Brian Gullbrants: Some of the citywides, and it does not impact us as much, but there is some significant change this year over last year. Q1 seems to be higher than last year. Q2, a little bit more challenged because April, you have got Passover, Easter, and then we layer in pretty nicely. There is a couple holes in the summer. We have plenty of prospects. Team is doing a great job in filling those holes and pacing nicely right now. So we will see how it goes.

Operator: Okay. Great. Thanks for that. And this is a follow-up on Macau.

Brandt Montour: You know, you guys already talked about margins and sort of the effect of VIP mix. But when we look at just the VIP volumes, they look incredibly strong, and you are not the only ones that have seen this. Can you just help us understand what is driving that? Are you guys doing more direct lending as part of that roll and ship business? What are sort of the supply and demand things to keep in mind when we are trying to understand those trends?

Craig Scott Billings: We definitely have not changed any component of how we think about credit.

Brian Gullbrants: So—

Craig Scott Billings: We are not driving volumes on the back of incremental credit. As you know, in VIP, a very small number of players can drive a very large amount of turnover. So we have been making very specific investments in our VIP hosting teams and in our VIP player development, and we saw the benefit of that this quarter.

Brian Gullbrants: Great. Thanks, everybody.

Elizabeth Dove: Sure.

Operator: Thank you. Our next caller is David Brian Katz with Jefferies. Your line is open, sir.

David Brian Katz: Hi. Good afternoon, everybody.

Brandt Montour: Julie, congrats and all the best. I wanted—

Craig Scott Billings: To just get an updated comment on Las Vegas broadly.

Brandt Montour: And—

Craig Scott Billings: You know, how do we think about the opportunity for your assets to continue to grow—

Brian Gullbrants: Either top line—

David Brian Katz: Or bottom line. Is it—what I understand that the refurbs are necessary and helpful, you know. But how do we sort of think about your presence there growing longer term?

Craig Scott Billings: Yeah. Look, the way I think about it is Vegas, if you look at Vegas over the course of the past—really since the emergence from COVID—Vegas has become a more multifaceted destination than it has ever been. And, you know, and we have talked about this before, Vegas has a long history of tacking on incremental sources of demand. The Raiders are an example of that. The Sphere is an example of that. And, really, the business is more diversified—the total business here in Vegas is more diversified than it has ever been.

David Brian Katz: That—

Craig Scott Billings: Next maturation of the market tends to appeal to customers that are in our customer segment. And during that same period, I would humbly say that we have continued to distance ourselves in the market and provide the best option for those high-value customers. You have seen those high-value customers hold up, even as, you know, perhaps folks who are in a different income strata have not. And I think that we have been a real beneficiary of that. So from an organic same-store-sales basis, I feel very good about our business and our position in Vegas. I mean, look at the EBITDA numbers and the return on invested capital that we are delivering out of this building.

It is tremendous.

David Brian Katz: Then—

Craig Scott Billings: Beyond that, of course, we have a pretty significant land bank here. You have to choose the right time to flex that land bank. If you look at the last two openings in the market, they have had to be share takers because the market visitation did not change with those two openings. But over the very longer term, you know, particularly as, again, as I was saying in my prepared remarks, you have incremental wealth creation, everything that is going on in technology and AI. We think that demand for our products will allow us to take advantage of that expansion. It is just a question of when.

So, again, I do not really think—candidly, I do not really think “will 2026 be greater than 2025?” I think “where will we be in 2030 and 2032?” And what will our business look like? And I feel very good about it. Okey doke.

David Brian Katz: Thank you. Sure.

Operator: Thank you. Our next caller is Chad Beynon with—your line is open, sir.

Benjamin Nicolas Chaiken: Hi, good afternoon. Thanks for taking my question. And—

David Brian Katz: Julie, congrats on all your accomplishments as well. Wanted to ask unfortunately, maybe more of a near-term question, just around 2026. I know a lot of the lodging companies and event centers are talking about the World Cup impact. I know it is making its way through Boston for a couple weeks and then obviously in Los Angeles and other cities, where international customers could be here and maybe frequent your properties. I guess my question is, do you think there could be an impact or maybe a spark that we have not seen from maybe some international customers coming back into the market and then frequenting your properties? Thanks.

Craig Scott Billings: Sure. It is a good question. In Boston, for sure, the direct impact there I would expect would be on ADR. In Vegas, we have an entire strategy that we have developed to take advantage of the proximity of the World Cup. That is a very targeted strategy because, you know, we do not need kind of the mass volume to make their way here. And so, certainly, we will take advantage of that and make sure that we are able to ghost on the event, if you will. Does it impact how we think about 2026? Maybe on the margin. But I do not think I would be calling it out as a specific driver of the year.

David Brian Katz: Okay. Thanks, Craig. And then as it relates to AI, you talked about just the wealth effect that could improve your customers’ wealth over the next couple of years and then drive business to your properties. But what about internally in terms of tech that you guys are using, either in-house or with certain vendors to help whether it is, you know, search or content, kind of product on the floor? Do you think we will see an improvement in 2026 versus 2025 that could either help on the revenue or margin side?

Craig Scott Billings: Great question. How much time do we have left on the call? Okay. So first of all, we are already seeing the effect of that wealth creation. We already have customers that are spending time with us that have had wealth created through everything that is going on with artificial intelligence. So this is not something that I am just kind of forecasting out of my head. I mean, we can see it. And in the long run, I do not anticipate that it will just be here. I anticipate that it will be in Wynn on Marjan Island, where you have the UAE being extremely aggressive in terms of AI infrastructure and AI model development.

And so I think that will benefit us there as well, and I think it will benefit us in Macau as a new generation of wealth is created in China. On the internal side, our approach to date—we worked under the presumption initially that anything that was focused on OpEx efficiency would be packaged up and sold to us because that is where everybody was going to head first. And I was kind of proven to be the case. I think with respect to that, look, anybody who watches CNBC, particularly today, is going to tell you that there is a general feeling that we are finally at a tipping point with respect to the models.

And I believe that to be true. And so I think from an OpEx efficiency perspective you will start to see gains over the course of the next several years. What I think is underappreciated in the enterprise is the amount of plumbing that goes into how all the systems that we utilize, the data, the databases that we utilize are connected. So that plumbing does not change overnight, and so that takes time. But I am certain that will happen. So if we were not focused on the OpEx side, what were we focused on? We were focused really on customer delight. And so that really comes down to personalization, where we have rolled out several things.

I will not get into the details on this call for competitive reasons, but we have rolled out several things that have had a meaningful impact, we believe, on retention. We focused on improving the underlying machine learning and modeling for our reinvestment. That is true here and in Macau. And that has certainly had an impact. I believe you can see that showing up in gaming volumes. So, you know, it is a little bit of everything.

Oh, and then the last piece I would say, I think if you are watching the markets, you may have seen TripAdvisor trading off heavily today, citing the impact of what is called GEO, generative engine optimization, on a business that is very SEO, search engine optimization, dependent. So we have been on that for probably about a year now, making sure that our discoverability—that is from a hotel sales perspective, primarily food and beverage as well, but mostly hotel sales—that our discoverability would be absolutely top notch as GEO starts to take over SEO. So there is really—there is a hundred things that will ultimately come out of all of this.

I am not going to put us in a position where we are talking about impact on—well, never put us in a position where we are talking about impact on margins. But it certainly will show up.

Brian Gullbrants: Thanks, Craig. Appreciate it. You got it.

Operator: Thank you. Our next caller is Steven Moyer Wieczynski with Stifel. Your line is open, sir.

Steven Moyer Wieczynski: Hey, guys. Excuse me. Good afternoon. And congrats, Julie. Hope you have a great retirement. Not sure if I missed this or not, Craig or Julie, but, you know, if we think about Macau margins in the fourth quarter on a more normalized basis, meaning hold normal in VIP and mass, OpEx is—

Operator: Based on our quick math, is it safe to say those margins would have been pretty close to the 31.5% margin that was posted in 2024? Am I kind of thinking about that the right way? You are a little above where we would put them. We would probably put them somewhere around 30. Okay. 30.5. Yep. Okay. Thanks, Craig. And then I am not sure how much you will say, Craig, or not, given we are kind of in the first quarter, but Chinese New Year obviously starting up in the next couple days.

Would you give any kind of high-level view on where you guys are booked at this point or what you think demand is going to look like? Yeah. Booking pace is good.

Julie Mireille Cameron-Doe: We feel very, very good about where we are. And with the opening of Chairman's Club at Palace, we feel like we have something new and shiny that will delight our best customers. So we are feeling good about Chinese New Year. We do—and we call this out, I think, kind of ad nauseam now—but we do run into capacity constraints around these peak periods based on table count. That does not affect our best customers, obviously. But on the more base mass side, we do. But we feel great.

Operator: Okay. Gotcha. Thanks, Craig. Appreciate it. Sure.

Craig Scott Billings: Thank you. Our next caller is Trey Bowers with Wells Fargo. Your line is open.

Julie Mireille Cameron-Doe: Hey, guys. Thanks for the question. Great to see you on the trip a couple months ago. I guess I will be the first to ask an Al Marjan question, but as we progress through the year, could you guys just give us any kind of signposts to think about? Be it even when the rooms will go on sale as we look towards just strength of the opening. And then a second part of that question would be one question I get is just it feels like the only hindrance in that market is supply constraint.

And can you just give us a sense for when you look around the property, how long it is going to take for that area to kind of be fully built out and how necessary that is to hit some of the targets that you guys are looking for? Thanks so much.

Julie Mireille Cameron-Doe: Sure.

Elizabeth Dove: The signposts along the way, we will release them in press releases. I mean, we put out construction updates every now and again, and then we update folks on this call. With respect to when rooms will go on sale, that is the subject of discussion right now. But if I had to spitball it at this point, it would be late Q3, early Q4.

Elizabeth Dove: You are correct that it would be great to have a bunch of incremental room capacity. We are not dependent on that incremental room capacity to meet our base case. I want to be very, very clear about that. What we said when we were in the UAE was that meeting the outperformance numbers or beyond would certainly require incremental hotel capacity. Those of you that were there saw that construction happening. So the construction is absolutely happening. I do not expect a material uptick in the room count prior to our opening. I mean, we are but a year and a few months out at this point. But shortly thereafter, I would expect incremental rooms to come online.

Our strategy to deal with that in the short run and ultimately the long run is to have a very, very strong transportation program and effectively utilize adjacent cities as a source of day-to-day visitation. And so we are being very, very thoughtful on the transportation side. So just to reiterate, base case unaffected, but we certainly would like incremental hotel rooms to come up, and they are coming up.

Elizabeth Dove: Great. Thanks. And I guess just a quick follow-up just to ask about my town. We saw in some of the trade rags that maybe a hotel expansion here in Boston was back on track. I did not see anything in the slide deck in reference to anything planned for Boston, but could you guys just walk through any expectations around anything you want to do in this market?

Julie Mireille Cameron-Doe: Thanks. Sure. Thank you for that. Yeah. There was a bit of misreporting in a number of those articles, so let me clarify. We are not developing hotels on our balance sheet. Rather, we own some 16 acres of land adjacent to Encore, and we are contemplating providing a portion of that land under what is effectively a land lease. So to that end, we entered into an MOU with the City of Everett outlining certain things that we would each do to facilitate that development. And, really, this is part of a broader vision for the neighborhood, including a potential rail stop and, of course, a possible Major League Soccer stadium very, very close to Encore Boston Harbor.

So to be clear, we are not developing those hotels. We would be a land-lease lessor. The hotels themselves would drive benefit to Encore Boston Harbor, and we would be excited about that. But that is what we are up to. Thanks, guys.

Craig Scott Billings: Thank you. Our next caller is Ben Chaiken with Mizuho. Your line is open, sir.

Benjamin Chaiken: Hey, thanks for taking my questions. And just wanted to echo the previous comments.

Benjamin Chaiken: Maybe just follow-up on UAE. Recognizing you have provided us with a high-level financial framework, can you give us your latest thoughts on the mix of F&B, entertainment versus gaming? And then some of the swing factors as you see it today? Thanks.

Operator: Sure.

Julie Mireille Cameron-Doe: I mean, we have outlined our expectations for the market in a base, low, and upside case. Beyond that, obviously, on the gaming side, the market is extremely supply constrained. We are kind of it for quite some time. I think we have said in the past we expect that market to have many attributes that are consistent with Las Vegas, which is very, very strong nongaming demand. So the balance there really is how we utilize our room base.

You know, Vegas, where the vast majority of our revenue is nongaming; Macau, where the vast majority of our revenue is gaming; I would not expect it to be at either of those poles, but it will really come down to the tension of how we utilize those rooms.

Elizabeth Dove: So—

Julie Mireille Cameron-Doe: You will see in the numbers that we provided very healthy gaming revenues, representing the productivity of the casino and also supply-constrained nature of the market, but you will also see a healthy balance of nongaming revenues reflecting substantial ADRs and a substantial willingness to spend in that market for food and beverage. Helpful. Thank you.

Craig Scott Billings: Thank you. Our next caller is Steven Donald Pizzella with Deutsche Bank. Your line is open, sir.

Steven Donald Pizzella: Hey, good evening, and thank you for taking our question. And also wanted to say congrats to Julie.

Brian Gullbrants: Maybe just following up on Al Marjan as we get closer to the opening. Can you share how your database continues to shape up and the efforts to build the pipeline to get the right people to the property when it opens?

Elizabeth Dove: Sure. On the hosting side—

Julie Mireille Cameron-Doe: We started building our hosting infrastructure a year and change ago when we started bringing on very senior folks with regional experience. So the kind of one-to-one relationship marketing has been well underway. And I would say that general awareness among high-value players regionally is extremely high. I mean, we have been getting approached by people in pretty far-flung places asking when the property will be open.

Elizabeth Dove: On the mass market side, we have begun, primarily through digital, building a database and creating awareness. We are communicating with those folks regularly in anticipation of the opening. And I think that will be additive. Honestly, so we are doing a lot, long story short, to build the database. But the awareness among people who are both gaming customers and nongaming customers in the market—the unaided awareness—is actually quite high. So I do not want to be flippant about it and say, you know, we do not need to build a database because we absolutely, positively do. But we are feeling pretty good about people showing up the day we open doors.

Brian Gullbrants: Okay. Great. Thank you.

Craig Scott Billings: Operator, the next question will be the last. Thank you. Robin Margaret Farley with UBS. Your line is open.

Robin Margaret Farley: Great. Hopefully, you guys can hear me. I wanted to circle back to your comment about Macau and reinvestment. I know you said there was not a significant jump, I think that was in your reinvestment spend. Can you talk a little bit more broadly about what you are seeing in the environment? Others are talking about, you know, how much more competitive it has gotten. Are you seeing that stabilize in terms of what others are doing even if your own reinvestment rate has not had a jump? Thanks.

Elizabeth Dove: Sure.

Julie Mireille Cameron-Doe: I mean, I will not specifically comment on others’ perception of others’ reinvestment rates. I would say that there has been at least one operator in the market who has publicly stated that they are driving incremental reinvestment. I think you naturally get responses to that. I think you are really talking about a band market-wide. You are talking about a band of 200 basis points in reinvestment, you know, when you talk about reinvestment moving up and down. So as we have said before, I do not view the market as being in some all-out promotional war by any means.

But like I said in my prepared—or in a response actually to another question—it is a short booking window, and it is a competitive market. And that is the way it is. So all I can really do is speak to what we do, and that is move reinvestment up, down, do what we need to do in order to drive EBITDA-positive incremental visits.

And lastly, as I mentioned on prior calls, we have a to-the-basis-point, day-by-day view of what our reinvestment is, and so we are able to modulate it on the fly far better than we ever have, which really relates to some human capital and technology improvements that we made several years ago so that we can really bring it up, bring it down, and do whatever we need to do at any given moment.

Craig Scott Billings: Okay. Thank you.

Robin Margaret Farley: And then just a quick follow-up on Vegas. Craig, in your comments when you were sort of talking longer term about demand and growth in 2030 and all of that, you kind of wrapped it up by saying you were making the point that you think about growth longer term. But you made a comment about, you know, 2026 maybe not being greater than 2025, and I did not know if that was just like a theoretical making the point that you were not as focused near term. And I know you do not guide, but is the expectation, given the room remodel disruption, it would be reasonable to think that EBITDA would be down year-over-year?

Is that sort of a takeaway that we should have from that comment?

Julie Mireille Cameron-Doe: My comment was purely theoretical. I am simply pointing out that, look, we do not—this is true in Macau, this is true in Vegas—right? We do not control the market. We control our share of it. And so everything we do every day is designed to be a share taker, hold share and be a share taker. That manifests itself in two ways: gaming volumes and ADR. And by all measures, I think we have shown that we are very successful in that strategy. And so opining on 2026 for us is actually opining on the market. And I am not going to opine on the market.

In fact, you all spend a lot more time analyzing market-level trends, quite frankly, than we do per se, because we are thinking about how to deliver the absolute best product so that we can top tick our own EBITDA. But my comment was purely designed to illustrate the fact that we are thinking about an arc that is, you know, five to seven years out.

Robin Margaret Farley: Okay. Great. Understood. Thanks.

Operator: Sure. Well, thank you for joining the Wynn Resorts, Limited Q4 earnings call, and thank you for all the kind words. We appreciate your interest in the company, and the team looks forward to talking to you again next quarter. Thank you, everybody.

Craig Scott Billings: And thank you for participating on today's conference call. You may disconnect. Have a nice—

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Parts of this article were created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.