Red Rock Resorts showed the dichotomy in the Las Vegas casino industry of neighborhood casinos versus the Strip by posting record revenue and adjusted earnings for the fourth quarter, and indicated that stability is continuing in 2026.
This marked the ninth consecutive record quarter for net revenue and adjusted earnings, Red Rock announced Tuesday during a fourth-quarter earnings call.
“For the full year, our Las Vegas operations delivered their strongest performance on record, achieving all-time highs in net revenue and adjusted EBITDA, including producing more than $900 million in adjusted EBITDA for the first time in our 50-year history, while maintaining near-record adjusted EBITDA margins,” said Chief Financial Officer Stephen Cootey. “These results mark the second consecutive year of record net revenue and the fifth consecutive year of record adjusted EBITDA, underscoring the strength, consistency, and long-term earning power of our operating platform.”
Cootey put the Durango Casino & Resort, which opened in December 2023, at the top of his mentions for what it has delivered for the operator. It continues to expand the Las Vegas locals market and drive incremental play from existing customers. Coming off the addition of 25,000 square feet of new casino space in December, Red Rock launched a 275,000-square-foot expansion at the property in January, counting on 6,000 new households in a three-mile radius. The $385 million project will take another 17 months to complete.
Cootey said in the fourth quarter, they saw increased carded slot play across their database, including regional and national customers.
“With the fourth quarter behind us, the strong momentum for 2025 has carried into the current year, reinforcing our confidence, strength, and resilience of our business,” Cootey said. “Durango continues to validate our long-term growth strategy and underscore the value of our development pipeline and real estate bank.”
Red Rock President Scott Kreeger said from the perspective of daily room rates, occupancy, and revenue, the operator did better than the Strip. When it comes to gaming, regional and national properties are strong, with a focus on high-limit rooms and higher-net-worth customers, as well as the quality of assets and offerings.
Despite a report that Nevada saw a slower Super Bowl Sunday, Red Rock stated its properties were buzzing, though it didn’t disclose a hold impact on the first quarter.
“I had the pleasure of touring the properties on Sunday, walking with general managers, and I can tell you that there’s no better place to be on Super Bowl weekend than at a Station property,” Kreeger said. “We had decent results from the Super Bowl from a betting perspective and even better results from slots and food and beverage. If there was any slowdown anywhere, it wasn’t at our properties.”
For non-gaming, food and beverage had near- and profitability in the fourth quarter and the hotel segment generated near-record results, despite towers being offline at Green Valley Ranch in Henderson for renovations.
Cootey said they’re seeing positive momentum for 2026 in the hotel segment and stability in slots to start the year.
In 2026, Cootey said they expect to spend $375 million and $425 million for capital projects, including for Sunset Station in Henderson and Green Valley Ranch, in addition to Durango.
Cootey announced the next phase at Sunset Station to further enhance its appeal to the nearby Cadence master plan in east Henderson. The casino will be refreshed, movie theaters expanded, and bingo relocated. The former buffet space will be converted into a high-end steakhouse and high-limit room. The construction will start in the second quarter and extend into early 2027 at a cost of $87 million.
Cootey said they don’t rely on tourism, conventions, or hotel-driven revenue, focusing on locals, with 50% of guests coming more than eight times a month.
Barry Jonas with Truist Securities released a note to investors, reiterating a Buy on Red Rock stock, saying it posted a 4% beat to expectations for adjusted earnings, even with continuing construction across its healthy Las Vegas locals portfolio.
“We continue to favor Red Rock Resorts with expected One Beautiful Bill (federal tax cuts) tailwinds and positive population dynamics for its high-quality locals properties, plus continued capital returns,” Jonas said. “We make modest tweaks to estimates and move our price target to $80 (from $75).”
Red Rock closed at $66.79 on Tuesday.
Jonas noted that construction continues at North Fork, the tribal casino in northern California, with the $750 million project remaining on track for a fourth-quarter opening. Regarding an unfavorable Fresno appellate court ruling in December, management stated it will likely not interfere with the tribe’s ability to conduct gaming on federal land.
