Analysis
Wynn Resorts experienced a bifurcated impact from the U.S. tariffs introduced in April 2025, with management choosing to prioritize capital preservation over absorbing elevated project costs. The primary consequence was the suspension of approximately $375M in planned U.S. capital expenditures, including the major Encore Tower room renovation in Las Vegas. Management attributed this decision to the "significant pace of change" in tariff rates, which made it difficult to commit to revised project timings or resource furniture, fixtures, and equipment that were most severely affected by the new levies.
In contrast, the impact on operating expenses (OpEx) was characterized as low and entirely manageable. The most direct pressure was felt in the food and beverage segment, where the company actively worked through alternative sourcing to mitigate higher input costs for impactful items. This proactive supply chain management allowed Wynn to maintain robust EBITDA margins in Las Vegas and Boston, even as wage inflation and other macroeconomic pressures persisted.
The company's international growth pipeline remained largely insulated from the domestic tariff regime. The multi-billion dollar Wynn Al Marjan Island project in the UAE was unaffected because a substantial portion of the required materials had already been "bought out" prior to the tariff introduction. This geographic diversification is a key strategic pillar for the company, as it expects over 55% of its revenues to eventually be generated in non-U.S. dollar-denominated markets, providing a natural hedge against U.S.-specific trade policies.
Wynn's overall financial performance during the tariff period showed resilience, with full-year 2025 revenue remaining flat compared to 2024. While consolidated adjusted property EBITDA declined by approximately $145M for the full year, the vast majority of this headwind ($114M) occurred in the first quarter, prior to the implementation of the April 2025 tariffs. This suggests that the net impact of tariffs on the company's operating profitability during the subsequent nine months was relatively minor, reflecting successful mitigation through pricing and sourcing strategies.
Data
Wynn Resorts Financial Performance Summary
($M)
| Metric | FY2024A | FY2025A | YoY Change |
|---|---|---|---|
| Total Operating Revenue | $7,128 | $7,138 | 0.1% |
| Adjusted Property EBITDA | 2,369 | 2,224 | (6.1%) |
| EBITDA Margin | 33.2% | 31.2% | (200)bps |
($M, by Quarter)
| Metric | 1Q2025A | 2Q-4Q2025A¹ | Total FY2025 |
|---|---|---|---|
| Operating Revenue | $1,700 | $5,438 | $7,138 |
| Adjusted Property EBITDA | 424 | 1,800 | 2,224 |
¹ Calculated as the difference between full-year actuals and 1Q2025 results.
Source: FY-2025 Earnings Transcript, 1Q-2025 Earnings Transcript, Marvin Labs
Sources
We expect the direct impact of tariffs on OPEX to be low and entirely manageable with most of the impact in the U.S. stemming from food and beverage, where we are actively working through alternative sourcing for the most impactful items.
The current tariff rates have driven us to delay about $375mn of CAPEX projects, including the Encore Tower remodel... While we're staying nimble, the pace of change at the moment is just too significant to commit to revised timing on that CAPEX.
The tariffs aren’t impacting Wynn’s $5.1 billion UAE resort project on Al Marjan Island, where a substantial portion is already bought out.