Churchill Downs (CHDN) Q4 2024 earnings summary

Executive summary

• Achieved record net revenue and Adjusted EBITDA in 2024, up 11% and 13% year-over-year, with all business segments delivering record results.

• Net income attributable to CDI was $71.7M for Q4 (up 24%) and $426.8M for the year (up 2%).

• Major milestones included the Paddock Project, opening of Terre Haute Casino Resort, Rose Gaming Resort, and Owensboro property.

• Kentucky Derby and HRM businesses in Virginia and Kentucky were key growth drivers, with Derby ticket revenue pacing ahead for the 151st event and the 150th Derby setting all-time records for handle and Derby Week Adjusted EBITDA.

• Maintained a strong balance sheet and conservative leverage, supporting ongoing and future growth investments.

Financial highlights

• Net revenue grew 11% and Adjusted EBITDA rose 13% year-over-year, both reaching all-time highs; Q4 net revenue was $624.2M and full-year $2.7B.

• Adjusted EBITDA reached $236.6M in Q4 and $1.2B for the year.

• Free cash flow reached $688M ($9.22 per share), up nearly 33% per share from the prior year.

• Q4 diluted EPS was $0.95 (up from $0.76); full-year diluted EPS was $5.68 (up from $5.49).

• Returned $218M to shareholders via share repurchases and dividends in 2024.

Outlook and guidance

• Expect continued strong Adjusted EBITDA growth in 2025, driven by new Derby projects and HRM expansions.

• Maintenance capital projected at $100–110M and project capital at $350–400M for 2025, funded by operating cash flow and revolving credit facility.

• Major projects include Churchill Downs Racetrack upgrades and new HRM venues in Virginia and Kentucky.

• Bank Covenant Net Leverage expected to decrease below 4.0x in 2025 and further in 2026 as new investments ramp.