Galaxy Eyes FY26 Growth on Strong Cash Position
Galaxy Entertainment Group is entering FY26 supported by a substantial net cash position and renewed operating momentum, as analysts adopt a more optimistic stance on the company’s outlook.
A recent research note from CBRE highlighted the group’s balance sheet strength, raising its price target and indicating that recent capital investments are expected to translate more visibly into earnings across FY26 and FY27, amid a stabilising environment in Macau.
As of 31 December 2025, Galaxy reported HK$36.3 billion in cash and liquid investments. After accounting for HK$1.3 billion in debt, the group’s net cash position stood at approximately HK$35 billion. This liquidity has enabled continued large-scale capital expenditure while maintaining shareholder returns. For the 2025 financial year, the company paid two dividends totalling HK$1.20 per share and proposed a final dividend of HK$0.80 per share, scheduled for payment in June 2026.
Operationally, the fourth quarter of 2025 marked a significant milestone. Adjusted EBITDA reached HK$4.3 billion, up 33% year on year and equivalent to 106% of the level recorded in Q4 2019, surpassing pre-pandemic benchmarks. Results were supported in part by HK$731 million in favourable VIP hold.
At Galaxy Macau, revenue increased 29% year on year to HK$11.8 billion, while adjusted EBITDA rose 41% to HK$4 billion. Even excluding hold-related effects, EBITDA at the property advanced 15%. Mass gross gaming revenue grew 17% to HK$8.7 billion, driven by 10% volume growth and improved hold. VIP GGR surged 103% to HK$3.1 billion, reflecting higher volumes and stronger win rates.
Non-gaming activities also contributed to performance. During FY25, Galaxy hosted 350 events, with non-gaming revenue reaching 125% of 2019 levels. Looking ahead, the company plans to maintain an active events calendar in FY26, including UFC Fight Nights and a renewed three-year partnership with Alibaba’s Damai Entertainment, aimed at sustaining visitor traffic beyond peak holiday periods.
In February 2026, Galaxy officially opened the ultra-luxury Capella hotel tower at Galaxy Macau, comprising 95 suites and villas targeted at high-end mass customers. According to CBRE analysts John DeCree and Max Marsh, early feedback has been positive, with expectations that the property will support growth in the super-premium mass segment.
While trading in early Q1 2026 was softer around Chinese New Year, activity improved from the third day of the holiday period. Galaxy currently holds approximately 22% market share and remains focused on EBITDA growth without signalling increased reinvestment pressure in the competitive premium mass segment.
Development plans continue with Phase 4 of Galaxy Macau, scheduled to open in FY27. The expansion will add hotel rooms, amenities and entertainment capacity, reinforcing the group’s long-term positioning in Cotai. Backed by a strong net cash profile and performance now exceeding 2019 benchmarks, Galaxy appears positioned to pursue the next phase of growth as Macau’s recovery progresses.
