Six Flags Stock Takes a Stomach-Churning Drop. Why the Theme-Park Giant Isn’t Having Much Fun This Summer.

Rides sit idle at Six Flags Discovery Kingdom in Vallejo, California. (Justin Sullivan/Getty Images)

It isn’t all fun and games this summer at Six Flags Entertainment .

Six Flags stock closed down 21%, its largest drop and lowest close in five years, according to Dow Jones Market Data. The decline came after the company reported second-quarter earnings detailing a guidance cut for the rest of the year. A separate press release announced leadership changes.

The company said CEO Richard Zimmerman, who has led the corporation since last year’s merger with Cedar Fair, will step down by the end of 2025 but will await the naming of a successor before he exits. Six Flags said its board of directors has started to search for the next CEO.

Aside from leadership changes, Six Flags has ridden a wild roller coaster in recent months, with management citing lower attendance and “unfavorable weather patterns” like prolonged rain periods, heat and severe storms—particularly in the Midwest—as key concerns in a press release. Second-quarter attendance totaled 14.2 million visitors, down 9% compared with the year-ago quarter.

The theme-park giant said Wednesday that it anticipates generating between $860 and $910 million in adjusted earnings before interest, taxes, depreciation, and amortization, worse than management’s previous expectations for a range of $1.08 billion to $1.12 billion. Analysts now forecast $1.02 billion for the year, according to FactSet.

Six Flags said it lowered estimates because of soft first-half performance, fewer customers buying season passes for the second half of the year, and ongoing economic volatility.

As the colder months approach, the company expects 500,000 fewer visits attributable to the removal of winter events this year at four of its parks. Six Flags also expects spending per attendee to drop 3%, which management cited as an “impact of promotional offers and attendance mix” in a press release. On the earnings call Wednesday morning, management said extreme weather reduced demand for one-day tickets, increasing pressure on per capita spending.

In an effort to cut costs, Six Flags is in the process of selling one Maryland park and excess land in Virginia. Zimmerman said the company will explore more sales of land and other non-core assets.

The company said it also intends to reassess its long-term outlook after the release of this fiscal year’s results, next February.

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