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Red Rock Resorts posted record first-quarter revenue, helped by steady Las Vegas casino play and strong non-gaming spend, even as profit and adjusted earnings slipped.
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Red Rock Resorts continues to invest heavily in the Las Vegas locals market, with Durango, Sunset Station and Green Valley Ranch all part of the near-term construction pipeline.
The company warned that those works will create several million dollars of disruption in the second quarter. However, management still pointed to customer demand, carded slot activity and higher spend per visit as key reasons Las Vegas revenue kept rising.
Las Vegas operations generated $499.5 million in revenue, up 0.9%. Adjusted EBITDA from the segment fell 1.5% to $232.4 million, though Red Rock still reported its second-highest adjusted earnings and near-record Las Vegas margins of 46.5%.
Core slot and table trends stayed stable. Non-gaming areas, including hotel, food and beverage, also delivered near-record revenue and profitability. Native American operations added $4.7 million in revenue and $2.9 million in adjusted EBITDA.
Durango remains a major growth focus. Red Rock is adding 275,000 square feet to the property, with more gaming and entertainment space due in 2027. The project carries a $385 million cost.
Sunset Station is also getting upgraded across the casino floor, dining and entertainment areas. Chief Financial Officer Stephen Cootey said the work should help the property better serve Henderson growth.
“We are building on the next phase of Sunset Station, designed to further strengthen the property’s competitive position and broaden its customer appeal to capitalize on the continued growth in Henderson, particularly from the master planned communities of Ascaya and Cadence,” Cootey said.
At group level, adjusted EBITDA declined 1.2% to $212.6 million. Red Rock ended the quarter with $134.0 million in cash and cash equivalents, while total debt stood at $3.6 billion. The board also declared a second-quarter dividend of $0.26 per share.
New sites remain under review, though no announcement appears close. Board member Lorenzo Fertitta said Red Rock is still working through plans for future projects.
“We’re working on two new greenfield projects, going through the process, working on the plans, scale, and pricing,” Fertitta said. “We’re making progress, and we don’t have anything to announce now or in the very near future. As we turn the corner into next year, we will have more visibility into what the development plans are going to look like.”