Q2 2026 Seaport Entertainment Group Inc Earnings Call Transcript
Key Points
- Seaport Entertainment Group Inc (SEG) achieved positive operating EBITDA and positive non-GAAP adjusted net income for the first time in company history, marking a significant financial milestone.
- The company has successfully reduced its trailing 12-month general and administrative costs by over 20% in the past nine months, from $34 million to less than $27 million.
- Leasing activity is strong, with available space at the Seaport reduced from roughly 150,000 square feet to less than 50,000 square feet, representing just over 10% of total space.
- The rooftop concert series at Pier 17 performed well, hosting 22 shows with a 91% sell-through rate and strong demand for premium upsell offerings.
- The Las Vegas Aviators secured a playoff spot, and the ballpark hosted record-breaking events, including a sold-out six-game series with The Athletics and Banana Ball, driving record food and beverage and merchandise sales.
- The company's first internally developed restaurant concept, Sadie's, generated positive operating EBITDA in its first full quarter, exceeding expectations.
- Management anticipates more than $20 million in incremental annualized operating EBITDA from over 194,000 square feet of non-income producing space opening in the next 18 months.
- The company's legacy full-service restaurants have faced softer top-line sales, requiring ongoing evaluation of menu optimization and marketing strategies.
- Entertainment segment operating EBITDA declined 23% year-over-year due to increased repair and maintenance expenses and decreased sponsorship revenue following the non-renewal of a legacy sponsor (Chase).
- Equity in earnings from unconsolidated ventures declined 61% year-over-year, reflecting lower EBITDA from Lawn Club and reduced earnings from the John George Restaurant Group.
- The company expects quarterly variability due to tenant opening timing, event scheduling, and seasonality, and does not expect the same level of per-share performance in the next three quarters.
- Leasing timelines for the remaining vacant spaces are expected to take longer as the company seeks the right tenants and deal structures for smaller footprints.
- The company recorded an additional $1.4 million loss on the sale of 250 Water Street related to estimated post-closing obligations.
Greetings. Welcome to the Steveport Entertainment Group Second Quarter 2026 Earnings Call.
(Operator Instructions)
Jason Wilk, Senior Vice President of Finance.
Thank you, operator, and good morning, everyone. With me today is our President and Chief Executive Officer, Matt Partridge, and our Chief Financial Officer and Treasurer, Lena Eliwat. Before we begin, I'd like to remind everyone that many of our comments today are considered forward-looking statements under federal securities law. The company's actual future results may differ significantly from the matters discussed in these forward-looking statements and we undertake no duty to update these statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company's Form 10-K, Form 10-Q, and other SEC filings. You can find our SEC reports, earnings release. Quarterly supplemental information and our most recent
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