- Record EBITDAR in Macau Achieved 4Q and full-year EBITDAR records in Macau, contributing to consolidated net revenue growth of 6% in 2025.
- BetMGM EBITDA Turnaround North America segment turned annual EBITDA around by nearly $470 million, exceeding 2025 guidance.
- Las Vegas Stabilization EBITDAR stabilized in 4Q 2025, with RevPAR declines moderating and casino revenue up amid premium customer growth.
- Regional Growth Drivers Regional operations achieved record 4Q slot wins, with future projects like Maryland’s Sphere expected to add 2 million annual visitors.
- Share Buybacks and Capital Allocation Increased share repurchases in Q4, leveraging $650M in annual cash flow from operations and BetMGM distributions for Osaka investment and buybacks.
Segment Performance
The regional operations delivered solid results, with record fourth-quarter slot win and best-ever annual slot win performance for 2025. MGM China remains a strong outperformer, ending the year with a record high quarterly and full-year segment adjustment in EBITDAR. BetMGM North America beat 2025 guidance, turning annual EBITDA around by nearly $470 million. As Bill Hornbuckle, CEO, noted, "We exited 2025 with Las Vegas showing signs of stabilization and an improving trajectory."
Outlook for 2026
The outlook for 2026 is encouraging, with a more constructive backdrop and stabilizing environment. MGM Resorts is optimistic about growth in Las Vegas, driven by the return of the MGM Grand room inventory and improvements in the group and convention channel. The company is also identifying opportunities to operate more efficiently and make further progress on AI and technology initiatives.
Valuation
With a P/E Ratio of 48.7 and an EV/EBITDA of 32.48, the stock appears to be priced for significant growth. However, the company's ROE of 7.53% and ROIC of -0.43% suggest that there is still room for improvement in terms of profitability. The Net Debt / EBITDA ratio of 22.66 is a concern, but the company's cash flow generation and share buybacks are helping to mitigate this issue.
Conclusion on Growth Prospects
The company's growth pipeline includes digital growth in the near to medium term and the significant opportunity presented by MGM Osaka, set to open in 2030. Analysts estimate revenue growth of 1.5% for the next year, but the company's diversified portfolio and improving trajectory in Las Vegas suggest that this could be a conservative estimate. With a Free Cash Flow Yield of 13.36%, the stock presents an attractive investment opportunity for those looking for value in the hospitality and gaming sector.