Wynn Q2: Macau Momentum Masks Six-Month UAE Delay and $600m Cost Rise

Wynn Resorts beat analyst expectations for the second quarter of 2026, reporting revenue of $1.86 billion, up 6.9% year-on-year and ahead of the $1.83 billion consensus. Adjusted earnings per share of $1.24 came in 26.4% above estimates, while net income more than doubled to $140.1 million from $66.2 million a year earlier. Group adjusted EBITDA rose roughly 3% to $568.3 million. The results, released Tuesday, were led by Macau and Las Vegas, though the company's UAE project dominated the narrative.

UAE delay and cost overrun

Wynn Al Marjan Island, the operator's UAE integrated resort, has been pushed back by six months, with the opening now expected in September 2027. The project's budget has risen by $600 million as a result of regional conflicts and supply chain disruptions. CFO Craig Fullalove said the company still believes it will be “the most exciting integrated resort opening globally in over a decade,” while cautioning that geopolitical risks and construction cost pressures remain. Management also pointed to ongoing demand in the region and confidence in long-term returns.

Macau does the heavy lifting

Macau was the standout segment, with Wynn Palace revenue rising 21% year-on-year to $653.4 million and adjusted EBITDAR up 28% to $201.5 million. Growth was driven by the mass market, where table game win increased 37%, while VIP turnover and VIP table game win fell 32% and 29% respectively. Management attributed the VIP softness partly to seasonality and the World Cup, and said the Chairman's Club expansion has helped gain premium mass share. CEO Craig Billings said the company is “very focused on one particular customer type” and will “continue to double down.”

Macau expansion pipeline

Wynn confirmed it will begin construction on The Enclave, a 432-suite hotel tower at Wynn Palace, before the end of the year. The project is budgeted at $900 million to $950 million. The long-planned event centre and theatre at Wynn Palace will start “in the coming weeks,” with the event centre scheduled to open in 2028 and The Enclave in 2029. These non-gaming investments align with Macau concession requirements and diversify revenue, according to management.

Las Vegas: flat revenue, rising competition

Las Vegas total revenue was essentially flat at $643.2 million, though casino revenue grew and management cited RevPAR and retail leasing gains. Segment-adjusted EBITDAR fell 8% to $215.2 million. CFO Craig Fullalove said the strategy is to “continually raise the bar” for high-value customers. Wynn faces intensified competition in the market: MGM is posting Q2 gains, while Caesars is set to be taken private by Fertitta Entertainment. On a potential NBA franchise, Billings said Wynn would welcome a team, though the league's 41-game home schedule does not drive the same tourism as the NFL's eight or nine games. Wynn owns a 38-acre Strip plot that could host an arena; MGM is a part owner of T-Mobile Arena, and Caesars is reportedly working with VICI Properties on its own pitch.

Boston: mixed results and an HHR threat

Encore Boston Harbor saw revenue drop 3% to $209.2 million and adjusted EBITDAR fall 12% to $56 million, with casino revenue down about 6%. The property still posted second-quarter records for RevPAR and hotel revenue, and management said slot handle is running slightly ahead of last year. Boston's team has identified efficiencies to offset contractual wage increases. A potential competitive threat is emerging in Massachusetts, where language legalising historical horse racing machines at racetracks passed the House in early July as part of an economic bill and now sits before the Senate. Suffolk Downs, located five miles from Encore, would be a likely beneficiary.

Balance sheet and analyst view

Wynn ended the quarter with $1.5 billion in cash and $10.7 billion in debt. It repurchased $75 million of shares during the quarter and retains $326 million in buyback authority. Shares closed up 3% at $101.15 on Wednesday but remain down about 17% since the start of the year. Macquarie analyst Chad Beynon maintained an outperform rating and a $143 target price, arguing the market is “underappreciating the durability of Las Vegas and Macau earnings” and that Wynn should benefit from Macau growth, its luxury Las Vegas assets, a UAE launch that may not face competition for several years, and its capital allocation strategy.