Despite a significant fall in quarterly profits, Wynn Resorts is pressing ahead with a capital expenditure programme of between $350 million and $400 million in Macau across full-year 2026.
The bulk of that investment is directed at development works for the Enclave Tower and a new event centre at Wynn Palace, with construction activity beginning during the third quarter.
The Enclave is a 432-key all-suite hotel tower positioned beside the eastern entrance of Wynn Palace, representing one of the most ambitious additions to the property in recent years.
The expansion commitment comes against a backdrop of falling revenues, with Wynn Resorts posting group operating revenues of $1.69 billion for Q3 2026, down $144.7 million from $1.83 billion in the same period of 2025.
Net income collapsed from $88.3 million to just $17.3 million year-on-year, while diluted earnings per share dropped from $0.85 to $0.17, well below analyst consensus expectations of 68 cents per share.
Adjusted property EBITDAR across the group came in at $464.2 million, compared with $570.1 million a year earlier, as both the Macau and US operations faced distinct headwinds.
In Macau, combined revenues from Wynn Palace and Wynn Macau fell 8.2 percent year-on-year to $919 million, with EBITDAR margins compressing from 30.8 percent to 27.8 percent over the same period.
VIP was the most troubled segment, with Wynn Palace recording a 53.9 percent collapse in VIP turnover, a decline that reflects broader pressure on high-roller volumes being felt across competing Macau operators.
Mass-market performance was somewhat more resilient, with a 12.9 percent drop in table drop at Wynn Palace offset by a stronger win rate, limiting the actual fall in mass table win to just 0.6 percent.
At the peninsula property Wynn Macau, revenues slipped 8.2 percent to $335.4 million, while casino-specific revenues declined 9.0 percent to $286.1 million during the quarter.
CFO Craig Fullalove disclosed during the earnings call that daily operating expenses, excluding gaming taxes, climbed 5 percent to approximately $2.9 million, citing the Chairman’s Club expansion and standard cost-of-living adjustments as key drivers.
On the US side, Las Vegas table games produced a win percentage of 18.9 percent, falling short of the property’s expected range of 22 to 26 percent and the 23.0 percent recorded in the prior year period.
Encore Boston Harbor also underperformed, with adjusted property EBITDAR declining to $50.1 million from $58.4 million, after a labour strike disrupted operations from early September onwards.
CEO Craig Billings acknowledged the quarter was mixed in Macau, pointing to a particularly soft September, but framed the company’s outlook around a longer horizon, saying Wynn prefers to focus on “long-term fundamentals” rather than “whether the market is up 2% or down 2% in a given month.”
Management also noted that October data showed a sequential recovery in both gaming and hotel metrics, providing some near-term reassurance alongside the broader Macau construction push.
Wynn Resorts shares slipped 1 percent in after-hours trading following the results, as investors weighed the earnings miss against the confidence signalled by the ongoing capital expansion.
