Red Rock Resorts reported the second-highest second-quarter gaming revenue and profitability in company history on Tuesday during its second-quarter earnings call.
The parent company of Station Casinos’ net revenue of $510.3 million was down 3 percent, or $16 million, from last year’s record second quarter of $526.3 million. But the results exceeded Wall Street expectations despite ongoing construction disruptions at three of the company’s Southern Nevada properties.
“Our second-quarter results demonstrate that the company we have built over the past five decades is as strong as it’s ever been,” Red Rock Resorts President Scott Kreeger said, “even against the strongest operating quarter in the company’s history a year ago.”
Net income was $76.6 million in the second quarter, a decrease of 29.3 percent, or $31.7 million, from $108.3 million in the same period in 2025.
The record results from last year were fueled in large part by the success of the Durango property, which continues to excel in spite of construction impacts from a $385 million expansion. The massive project calls for an expanded casino floor with 400 additional slot machines, a 36-lane bowling facility, luxury movie theaters, new restaurant concepts and new entertainment venues.
“Our Durango property continued to perform exceptionally well despite ongoing construction impacts and has firmly established itself as a meaningful growth driver within the Las Vegas locals market,” Kreeger said. “Building on Durango’s continued momentum, construction of the Durango North expansion is progressing well and remains on schedule to open in the second half of 2027.”
Green Valley Ranch, Sunset Station projects
Renovation projects are still ongoing as well at Green Valley Ranch and Sunset Station.
“At Sunset Station, we continue to make excellent progress on our podium refresh. The recently reopened Gaudi Bar has been met with positive customer feedback, and we are very encouraged by its early financial performance,” Kreeger said. “In the coming weeks, we look forward to opening Stoney’s Rockin’ Country, a new country-western bar and nightclub, which will further expand the property’s entertainment offerings. The renovation remains on budget with the remaining amenities expected to come online throughout 2026.”
Kreeger added the company continues to execute the next phase of Sunset Station redevelopment with enhancements to the movie theaters, relocation of the temporary bingo operation into a permanent location and redevelopment of the former buffet space into a premium steakhouse and high-limit slot and table game area. He said construction remains on schedule for the $87 million project, which is expected to be completed throughout 2026 and into 2027.
Progress also continues on the $56 million hotel renovation at Green Valley Ranch.
“During the quarter, Green Valley Ranch hotel renovation reduced the available room night inventory by more than 21,000 room nights, impacting both revenue and profitability across both divisions,” Kreeger said. “Even with this temporary disruption, hotel performance remained solid, supported by higher occupancy across the portfolio.
“We look forward to once again offering our guests the full Green Valley Ranch hotel product beginning in late September.”
The company also continues to execute the next phase of Green Valley Ranch’s long-term redevelopment strategy with a comprehensive casino floor refresh, enhancements to its food and beverage offerings, and upgrading entertainment amenities. Construction is underway and expected to extend into 2027.
“We believe these temporary disruptions are more than offset by the long-term benefits of these investments,” Kreeger said.
Red Rock shares, traded on the Nasdaq exchange, closed at $64.27, down $1.34 (2.04 percent) from its previous close of $65.61.
$8 million brand campaign
The company will incur an $8 million brand marketing expense in the third quarter to celebrate the company’s 50th anniversary in Las Vegas.
“We’ve done a number of different brand campaigns in the past and we just felt it made sense to do it around the 50th anniversary. To reinforce our position in the locals market here — a market that was really created by our dad (Frank Fertitta Jr.),” Lorenzo Fertitta, vice chairman of the board of directors for Red Rock Resorts, told investors during the call. “They do cost money and it is a charge that’s going to hit the third quarter, but overall we think it’s the right thing to do for the long-term benefit of the business.”
Contact reporter Todd Dewey at tdewey@reviewjournal.com. Follow @tdewey33 on X.
