Las Vegas Sands Corp. (LVS) Earnings

Management highlights

### Strategic Priorities & Three Core Pillars - Management maintains a clear, consistent strategy of disciplined investment focused on long-term shareholder value creation, built on three core pillars: people, product, and service. When optimized, these pillars drive high-value tourism and strong financial performance. ### Marina Bay Sands Singapore Updates - Post-significant product investment, Marina Bay Sands' structural earnings power has elevated. Management remains confident in continued long-term growth driven by market-leading product, service, and focus on high-value tourism. - The Marina Bay Sands expansion project, which will add premium suite capacity and a best-in-class Asia arena, remains on track for an early 2021 opening (subject to required government approvals). Long-term growth is supported by ongoing wealth creation across Southeast Asia. ### Macau Operational & Capital Updates - Management is encouraged by early progress from service and customer experience improvements: Sands China's gaming volume growth meaningfully outpaced the overall Macau market in Q2. - Macau market growth is primarily driven by the premium segment, where competition remains intense. Outstanding service and high-quality luxurious suite product are critical for success, and management remains singularly focused on meeting the demands of high-value, discerning customers. - Renovation of all 2,900 Venetian rooms and suites, which began in March 2026, is progressing on schedule for completion by Chinese New Year 2028. The project also includes new premium-focused gaming salons and amenities. Approximately 400 to 500 rooms will be out of inventory per quarter on average through 2027, and construction will not create meaningful operational disruption across the portfolio. - Over the past year, the company has increased operating expenses to add table operating hours, expand sales/marketing and customer service personnel, and elevate service levels. The large step change in these operating expense investments is largely complete, and expense growth will level off in H2 2026. - Reinvestment as a percentage of revenue increased in Q2 2026 due to business mix changes and lower hold; management intends to maintain a consistent reinvestment strategy and grow profitability alongside future revenue growth. ### Capital Return to Shareholders - The company repurchased $787 million of LVS stock in Q2 2026 and paid a recurring quarterly dividend of $0.30 per share. Over the last 11 quarters, the company has repurchased 16.3% of outstanding shares. - The board of directors recently increased the share repurchase authorization to $6 billion. Management views additional repurchases as meaningfully accretive to long-term shareholder value, and will continue an aggressive approach to repurchases given the perceived value of LVS and SEL equity. As of Q2 end, LVS ownership of SEL remained at 74.8%.

Guidance

- Management reaffirms its long-term target of reaching $700 million in quarterly EBITDA for Macau as investments are fully implemented and the Macau market grows, with no changes to this target despite Q2 2026's one-time headwinds. - Operating expense growth in Macau will slow significantly in the second half of 2026 after large step-change investments completed over the prior year. Management expects reinvestment efficiency to improve and EBITDA margins to expand as revenue grows. - Benefits from Macau's portfolio renovations will begin to accrue progressively through 2027, with full benefits realized by early 2028 after all renovations are complete. - The Marina Bay Sands expansion in Singapore remains on track for an early 2031 opening, subject to required government approvals.

Segment performance

1. Marina Bay Sands (Singapore): Reported Q2 2026 EBITDA of $689 million. Adjusting for an above-expected rolling hold, adjusted EBITDA would be $652 million. Mass gaming revenue grew 5% year-over-year despite seasonally softer tourism and lower high-value patron visitation during the World Cup in June. 2. Sands China (Macau): Reported Q2 2026 EBITDA of $430 million, negatively impacted by an exceptionally low 1.35% VIP rolling hold; adjusted EBITDA at expected hold would be $517 million. Year-over-year growth across all segments: rolling volume up 73%, non-rolling drop up 15%, slot/ETG handle up 30%. Mass gross gaming revenue (GGR) grew 8% year-over-year (twice the overall Macau market's 4% mass GGR growth), while total GGR grew 4% year-over-year (the overall Macau market total GGR was flat). At expected rolling hold, total GGR growth would have been 14% year-over-year. Sands China captured a market-leading 26% VIP rolling volume share in the quarter.

Risks & headwinds

- Q2 2026 results faced material one-time headwinds: seasonally softer tourism in both Singapore and Macau (2Q is historically the softest quarter for the company), and reduced high-value patron visitation in June driven by the World Cup tournament. - High-value VIP and premium mass segments are concentrated among a small number of large patrons, leading to potential quarterly hold volatility. The company recorded its largest ever hold disadvantage in Macau's history this quarter, though management notes volatility averages out over the long term. - Competition for premium segment market share and for top-tier entertainment content in Macau remains intense.

Analyst Q&A

• Q: How should we parse the drivers of Q2 2026 performance, separating macro impacts, World Cup effects, and execution outcomes? /

  A: Management confirms Q2 results do not reflect the true underlying earnings power of Sands properties, as results were dragged down by one-time lower hold and World Cup-related patron absence. Volume and visitation grew across all segments, with market share gains in every Macau gaming segment, signaling that the new service and product investment strategy is working. May 2026 set an all-time monthly mass GGR record for Sands China, with only June seeing material softness from the World Cup. Marina Bay Sands also saw underlying strength, with solid mass growth despite headwinds. / A: https://example.com (No, corrected below) A: Management confirms Q2 results do not reflect the true underlying earnings power of Sands properties, dragged down by one-time lower hold and World Cup-related patron absence. Volume and visitation grew across all segments, with market share gains in every Macau gaming segment, signaling the new service and product investment strategy is working. May 2026 set an all-time monthly mass GGR record for Sands China, with only June seeing material softness from the World Cup. Marina Bay Sands also saw underlying strength despite headwinds.

• Q: Has anything changed about the long-term $700 million quarterly EBITDA target for Macau after this quarter's soft adjusted result? /

  A: Management reaffirms the $700 million target remains unchanged. Q2 is always the company's seasonally softest quarter, and this quarter added extra one-time World Cup headwinds. The strong year-over-year volume growth and market share gains the company delivered despite these headwinds confirm the strategy is on track, and management remains confident in progressing toward the target over the next few years. /

• Q: Is elevated share repurchase activity expected to continue, or will it return to 2025 levels? /

  A: Management sees meaningful long-term value in both LVS and SEL equity at current prices, and will continue repurchasing at an aggressive pace. Share repurchases reduce share count and are accretive to earnings per share, and the newly approved $6 billion repurchase authorization gives the company capacity to continue this capital return strategy, which management views as a high-value use of capital. /

• Q: After a full year of the Marina Bay Sands renovation, how much growth runway remains for high-value customer development? /

  A: Management notes it is still early days for high-value tourism growth in Southeast Asia. The region is seeing strong wealth creation and new entrepreneurial success, with a growing pool of high-value patrons that have yet to visit Marina Bay Sands. Singapore's position as a leading trade, business, and tourism destination creates ongoing new patron demand from both MICE and leisure segments, so there remains substantial long-term growth opportunity for the property.