- Wynn Resorts is delaying $375M in planned US capital expenditures, mainly tied to a major remodel of the Encore Tower in Las Vegas, due to the impact of tariffs on material costs.
- The timing for resuming these projects remains uncertain as Wynn awaits more stability in tariff rates, reflecting broader market caution amid shifting trade policies.
- First-quarter earnings for Wynn missed expectations, with Q1 operating revenues falling 8.7% year-over-year to $1.7B.
A Reaction To Tariffs
Las Vegas-based Wynn Resorts is halting $375M in US capital projects in response to tariffs, reports Bisnow. CEO Craig Billings blamed tariff uncertainty and rising material costs for the pause in US capital projects.
Focus On Encore
Most delayed spending targeted an Encore Tower remodel in Las Vegas, projected at over $200M. Billings said other paused projects will resume once market conditions stabilize.
Waiting For Clarity
Meanwhile, Wynn executives emphasized that although the $375M expenditure is expected eventually, current market volatility prevents committing to a revised timeline. Billings said, “The pace of change at the moment is just too significant to commit to revised timing on that capex.”
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The Tariff Backdrop
The Trump administration imposed steep tariffs: 145% on Chinese goods, 10% on other imports, and 25% on metals. US and Chinese officials will meet for talks this week, a move that could shape upcoming decisions on tariffs.
Financial Performance
Wynn Resorts reported Q1 earnings of $1.07 per share, missing analyst projections of $1.22. Operating revenues came in at $1.7B, falling short of the $1.73B expectation and marking an 8.7% decline year-over-year.
Looking Ahead
Wynn owns resorts in Las Vegas, Boston, Macau, and is building a new property on Al Marjan Island, opening 2027. Island in 2027. For now, the company remains flexible and cautious, awaiting tariff stability before eventually resuming its paused capital initiatives.
