Las Vegas Sands Q4 Results Highlight Singapore Strength, Macao Pressure

Las Vegas Sands Corp. (NYSE: LVS) disclosed fourth-quarter 2025 financial results on Wednesday, reporting top-line figures that surpassed equity analyst projections. While the company achieved a double-beat on revenue and earnings per share, the market response was tempered by a focus on shifting profitability dynamics within the Macao portfolio.

Financial Summary and Shareholder Returns

For the quarter ended December 31, 2025, the casino operator reported adjusted earnings per share (EPS) of $0.85, exceeding the $0.77 consensus estimate. Quarterly revenue reached $3.65 billion, representing a 26% year-over-year increase and outperforming the $3.33 billion anticipated by Wall Street. Net income for the period rose to $448 million, up from $324 million in the prior-year quarter.

On an annual basis, 2025 revenue totaled approximately $12.7 billion. This performance reflects the broader normalization of Asian tourism and leisure travel following the multi-year impact of regional health restrictions.

The company utilized its cash flow to return capital to shareholders, executing $500 million in stock repurchases during the quarter. Additionally, the Board of Directors signaled a positive outlook for free cash flow by authorizing a 20% increase in the recurring annual dividend for 2026, raising it to $1.20 per share.

Regional Operational Performance

The consolidated results were primarily driven by a record performance at Marina Bay Sands (MBS) in Singapore. The property reported an adjusted property EBITDA of $806 million, a 50% increase year-over-year and its highest quarterly total to date. The Singapore operations maintained an EBITDA margin of 50.3%, supported by growth in mass-market gaming win and premium segments. Results also benefited from a favorable “hold” on rolling play, which contributed roughly $45 million to the property’s EBITDA.

In Macao, Sands China Ltd. experienced a more constrained recovery. Revenue for the region rose to $2.05 billion; however, adjusted property EBITDA was stagnant at $608 million. While visitation levels remained healthy, analysts attributed the flat EBITDA to higher operating costs, specifically increased marketing expenses and reinvestment programs aimed at securing “premium mass” customers.

Capital Structure and Development Pipeline

Management’s long-term strategy remains centered on high-capital-intensity projects in Asia. The company is currently executing the “Phase II” renovation of The Londoner Macao, with completion slated for 2026. This initiative is designed to realign the property’s inventory toward higher-margin premium hospitality segments.

In Singapore, the company is moving forward with an $8 billion expansion of Marina Bay Sands. The project includes the development of a fourth hotel tower and a 15,000-seat entertainment arena.

As of year-end 2025, Las Vegas Sands maintained a total debt load of $15.63 billion. The company’s liquidity remained stable, with $3.84 billion in unrestricted cash and $4.46 billion in revolving credit facilities. The weighted average borrowing cost saw improvement during the year, closing at 4.5%.

Industry and Macroeconomic Context

The LVS results underscore a growing divergence in the Asian gaming sector. Singapore has emerged as a resilient, high-margin jurisdiction, whereas Macao has transitioned into a more competitive environment. With the traditional VIP junket model largely diminished, operators are now required to deploy more aggressive promotional capital to attract the premium mass segment. Furthermore, rising labor costs and the transition to non-gaming revenue streams continue to influence margin trajectories across the Pearl River Delta.

Reasons to Pass on LVS

• Flat Macao EBITDA: Profit in Macao was unchanged year over year despite revenue growth, indicating margin pressure.
• Higher operating costs: Marketing, reinvestment, and labor expenses continue to weigh on Macao profitability.
• Earnings concentration risk: Quarterly EBITDA growth was largely driven by Marina Bay Sands in Singapore.
• Non-recurring benefit: Singapore results were boosted by favorable rolling-play hold, which may not persist.
• Heavy capital spending: The company is undertaking large projects, including an $8 billion Singapore expansion and Macao renovations.
• Elevated leverage: Total debt stood at $15.63 billion at year-end.
• Market reaction: Shares fell more than 7% in after-hours trading following the earnings release.
• Competitive Macao environment: The shift away from VIP junkets has increased promotional intensity and pressured margins.
• Regional exposure: Earnings remain concentrated in Asian gaming markets, increasing sensitivity to regional demand and regulatory conditions.