Credit and market research provider CreditSights Inc says gross leverage at casino firm Wynn Macau Ltd “improved thanks to better” earnings before interest, taxation, depreciation, amortisation, and rent (EBITDAR) during the period.
The institution said in a Monday memo that it calculated the casino firm’s free cash flow to “have remained positive”.
Wynn Macau Ltd operates the Wynn Palace resort on Cotai, and also runs the Wynn Macau resort (pictured) on the city’s peninsula.
The group recorded third-quarter adjusted EBITDAR of nearly US$308.3 million, 17.3-percent higher than in the prior-year period. That was on operating revenues of US$1.00 billion in the three months to September 30, a 14.8-percent increase from a year earlier.
“We think EBITDAR margins are likely to remain stable, amid management’s continued focus on boosting margins coupled with its recently improved market share,” wrote analysts Nicholas Chen and David Bussey.
They added: “We note Wynn Macau [Ltd] possesses decent liquidity and continues to generate positive free cash flow, which gives it room to deleverage further, though we have not seen any material debt reductions in recent quarters.”
The casino concessionaire completed in September the early redemption of its US$1.0-billion principal remaining outstanding senior notes priced at 5.500 percent which were due in 2026. The exercise was fully refinanced with a US$1.0 billion of 6.750-percent senior notes, due in 2034, as it had been announced in August.
“As such, Wynn Macau [Ltd’s] total debt remained largely flat at US$5.85 billion as of September 2025 … following the full refinancing of its 2026 bond with the new 2034 bond,” stated the CreditSights team.
“We calculate Wynn Macau [Ltd] to have generated around US$162 million of free cash flow in third-quarter 2025, based on the disclosed quarterly capex of circa US$46 million, and our preliminary calculation of the company’s interest expenses during the quarter (about US$101 million),” said the credit research firm.
“As such, we estimate the EBITDAR to interest cover to be adequate at circa 3.0 times in third-quarter 2025,” added the institution.
The analysts also said that the Macau concessionaire maintained its previous capital expenditure guidance for 2025 at between US$200 million to US$250 million, and US$70 million to US$80 million of maintenance capex, “which implies around US$90 million to US$150 million of capex for fourth-quarter 2025”.
“Wynn Macau expects some minor disruptions from the ongoing expansion of its Chairman’s Club gaming area and refreshing the Wynn Tower rooms at Wynn Macau – initiated last quarter – towards year-end 2025, which may marginally impact the company’s topline in fourth-quarter 2025,” wrote Mr Chen and Mr Bussey.
