Six Flags Entertainment: The fun is just getting started – Initiate at Overweight

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Six Flags Entertainment: The fun is just getting started – Initiate at Overweight

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Six Flags Entertainment

The fun is just getting started – Initiate at

Overweight

Initial Opinion - Credit

Initiating coverage at Overweight 15 June 2026

We are initiating coverage on Six Flags Entertainment Corp. (FUN) with an Overweight High Yield Credit

recommendation. We have a favorable view on FUN based on 1) its high-quality owned United States

real estate portfolio; 2) scale and valuable brands; 3) earnings upside potential from Leisure

execution and integration; and 4) potential for deleveraging. James Kayler, CFA

Research Analyst

These credit strengths are tempered by risks: 1) sensitivity to consumer confidence and BofAS

discretionary spending; 2) weather and other event risks; 3) execution missteps; and 4) +1james.f.kayler@bofa.com646 855 9223

current high leverage, modest free cash flow and upcoming partnership park options. Drew Thompson

Financial outlook BofAS+1 646 855 8205

For 2026, we estimate that FUN will generate revenues of $3.06 billion, down 1.2% andrew.thompson2@bofa.com

from $3.10 billion in 2025. Underlying our estimates, we expect core attendance growth

of ~5% driven by an easy weather comp, lapping the impact of Liberation Day and the Six Flags Entertainment (FUN)

reintroduction of some historical operating days that were eliminated in 2025, offset by Key Data 2024A 2025A 2026E

the loss of 4.5 million visits from divested parks. We are modeling a 4% increase in per Operating (US$ mm)

capita spending to $64.20, driven by improved execution, enhanced food, beverage and Revenues 2,709 3,100 3,063

retail contributions, and better mix with the divestiture of 7 underperforming parks. EBITDA 875 792 876

We project 2026 Adj.