Red Rock Resorts (RRR) Q4 2024 earnings summary

Executive summary

• Achieved record fourth quarter and full year net revenue and Adjusted EBITDA in Las Vegas operations, with near-record margins despite slight margin compression year-over-year.

• Fourth quarter 2024 net revenues rose 7.1% year-over-year to $495.7 million, while net income declined 19.5% to $87.7 million.

• Full year 2024 net revenues increased 12.5% to $1.94 billion, but net income fell 13.8% to $291.3 million.

• Durango Casino & Resort continues to ramp up, attracting new customers and delivering strong returns, with over 85,000 new sign-ups and a projected 16% return in 2024.

• Ongoing reinvestment in core properties and expansion projects, including Durango Phase 2, Green Valley Ranch, and Sunset Station, to drive long-term growth.

Financial highlights

• Q4 Las Vegas net revenue: $492.6M, up 7.2% year-over-year; Adjusted EBITDA: $223.9M, up 1.6%; margin: 45.4%, down 250 bps.

• Full year Las Vegas net revenue: $1.93B, up 12.6%; Adjusted EBITDA: $879.4M, up 7.4%; margin: 45.7%, down 222 bps.

• Consolidated Q4 net revenue: $495.7M, up 7.1%; Adjusted EBITDA: $202.4M, up 0.5%; margin: 40.8%, down 267 bps.

• Full year Adjusted EBITDA reached $795.9M, up 6.7%.

• Q4 operating income was $142.3M, down from $172.0M year-over-year; Q4 EPS (diluted) was $0.76, down from $0.95.

Outlook and guidance

• Expect 2025 capital spend of $375–$425M, with $285–$325M in investment capital and $90–$100M in maintenance.

• Anticipate up to $25M in disruption from property renovations in 2025, mainly in the second half.

• EBITDA typically increases 6.6% sequentially from Q4 to Q1; stable trends expected in core customer segments.

• Margin profile expected to remain strong, with labor and food costs as key watch items.