Wynn Macau’s capital expenditure is expected to rise to between $700 million and $750 million in 2027, exceeding the casino operator’s free cash flow generation in any single year from 2023 to 2025, according to CreditSights.
In a note published on July 23rd, the credit research firm said Wynn Macau should continue to generate positive free cash flow in 2026, although the amount is expected to decline year-on-year due to higher capital spending.
Wynn Macau generated approximately $358 million in free cash flow in 2023, $511 million in 2024 and $377 million in 2025. CreditSights estimated that the operator generated around $91 million in 1Q26.
Management expects capital expenditure of between $400 million and $450 million in 2026, in addition to maintenance spending of between $70 million and $80 million.
The higher spending comes as Wynn Macau proceeds with the expansion of Wynn Palace in Cotai following approval from the Macau government. The development will include a new five-star hotel, a theater with a resident show and an event and entertainment center.
The hotel is The Enclave, a $900 million to $950 million project comprising 432 all-suite rooms next to the east entrance of Wynn Palace. It is expected to increase the property’s total room inventory by 25 percent and its suite count by 50 percent.
Construction is expected to begin in 2H26 and take about two and a half years. Spending this year will largely be limited to piling and early development work, indicating a heavier capital expenditure burden from 2027.
CreditSights did not provide a free cash flow forecast for 2027. However, it said Wynn Macau’s approximately $1.35 billion undrawn revolving credit facility as of March offered a potential source of financing should free cash flow fall short.
Drawing on the facility would likely place further pressure on the operator’s leverage metrics, which remain above pre-pandemic levels.
CreditSights said ‘deleveraging has become a lower priority’ for the operator, with management appearing ‘more focused on driving incremental EBITDA’ to preserve or improve margins.
Wynn Macau must also pay the government a one-time additional land premium of MOP652.3 million ($80.8 million) through its wholly owned subsidiary, Palo Real Estate Co Ltd.
CreditSights expects the payment to be met from available cash. Wynn Macau held $851 million in cash and cash equivalents as of March. Palo must also pay additional annual rent of MOP9.5 million ($1.2 million) for the new facilities.
Parent company Wynn Resorts reports its 2Q26 results on August 4th.
