International Game Technology Misses Q1 Earnings During Margin Pressure; Trims Outlook On Weaker Jackpot Sales, Macroeconomic Headwinds

International Game Technology (NYSE:IGT) shares are trading lower on Tuesday, after the company reported first-quarter results.

The company reported quarterly adjusted earnings per share of nine cents, missing the analyst consensus estimate of 11 cents. Quarterly sales of $583 million (down 12% year over year) missed the street view of $627.84 million.

Instant ticket and draw-based revenue was affected by calendar shifts. Normalized global same-store sales rose 1.4%, adjusting for leap year and scheduling differences across key regions.

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Adjusted EBITDA fell 24% on a year-over-year basis to $250 million, while adjusted EBITDA margin contracted to 42.8% from 49.5% a year ago.

Adjusted EBITDA declined due to the absence of strong profit flow-through from elevated U.S. multi-state jackpot sales and related incentives seen last year.

Additional pressure came from new growth investments, rebranding costs tied to separating Lottery from Gaming & Digital, and adverse foreign currency translation.

Operating income slumped 37% year-over-year to $138 million, while operating margin contracted to 23.7% from 33.1% in the year-ago period.

Operating income declined, mainly due to factors impacting adjusted EBITDA. A foreign exchange loss replaced last year's gain, driven by EUR/USD debt fluctuations.

As of March 31, 2025, total liquidity stood at $2.2 billion. This included $600 million in unrestricted cash and $1.5 billion in available credit capacity.

Dividend: The company declared a quarterly cash dividend of 20 cents per common share. The dividend will be paid on June 12 to shareholders of record as of May 29.

Outlook: International Game Technology narrowed its FY2025 sales guidance to $2.55 billion, down from the previous range of $2.55 billion to $2.65 billion, and compared with the $2.57 billion estimate.

“Given lower U.S. multi-state jackpot activity and the current worsening macroeconomic environment, we believe it is likely we will be at the low end of the full-year revenue and Adjusted EBITDA guidance provided in February,” said Max Chiara, CFO of IGT.

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