CAAP — Corporación América Airports S.A.

Summary of Corporación América Airports S.A. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Revenue Growth: Total revenues (excluding IFRIC 12) increased by 17%, significantly outpacing passenger traffic growth of 9%.
• Adjusted EBITDA: Grew nearly 40% year-over-year to $211 million, with a margin expansion of 4.6 percentage points to 38.3%.
• Passenger Traffic: Reached a record 22.3 million, with international traffic up 12% and domestic traffic up nearly 7%.
• Revenue per Passenger: Increased to $20.8 from $19.4 year-over-year, reflecting improved commercial performance.
• Net Debt: Decreased to $502 million from $780 million, resulting in a net leverage ratio of 0.7x.

2. Strategic Updates and Business Highlights

• Concession Extensions: Secured a 35-year extension for the Armenia concession and a six-year extension for the Galapagos concession, enhancing long-term visibility.
• New Concessions: Awarded concessions in Baghdad, Iraq, and Luanda, Angola, while evaluating additional opportunities in various regions.
• Cargo Performance: Cargo revenues rose 22% year-over-year, despite mixed volume trends across regions.

3. Forward Guidance and Outlook

• Passenger Traffic: Expected to continue growing, particularly in Argentina, with January and February 2026 showing positive trends (7.9% and 5.8% growth respectively).
• Commercial Optimization: Plans to focus on improving revenue per passenger and commercial capabilities.
• Geopolitical Monitoring: Cautious about the potential impact of geopolitical tensions in the Middle East on international travel.

4. Bad News, Challenges, or Points of Concern

• Impact of War: Approximately 10% to 15% of traffic in Armenia has been affected by ongoing conflict, leading to flat growth in that region.
• Operational Disruptions: Italy experienced a modest decline in domestic traffic due to airline operational issues.
• Uncertain Timelines: Challenges in providing timelines for the Argentina concession rebalance and Italy investment opportunities due to political and bureaucratic factors.

5. Notable Q&A Insights

• Profitability Expectations: Management indicated that current margins may represent a new baseline, with stable EBITDA margins expected moving forward.
• Capital Allocation Strategy: Emphasis on using cash reserves for funding acquisitions, with a focus on expanding the portfolio in various regions despite geopolitical uncertainties.
• Commercial Revenue Growth: Anticipated to continue but at a potentially slower pace than in 2025, with strong contributions from VIP lounges, parking, and fueling services.

This summary encapsulates the key takeaways from the earnings call, highlighting CAAP's strong performance in 2025, strategic initiatives, and the challenges faced in certain regions.