Corporacion America Airports Q3 2025 Earnings Report

Corporacion America Airports EPS Results

• Actual EPS: $0.34
• Consensus EPS: $0.53
• Beat/Miss: Missed by -$0.19
• One Year Ago EPS: $0.09

Corporacion America Airports Revenue Results

• Actual Revenue: $532.10 million
• Expected Revenue: $492.00 million
• Beat/Miss: Beat by +$40.10 million
• YoY Revenue Growth: N/A

Corporacion America Airports Announcement Details

• Quarter: Q3 2025
• Date: 11/24/2025
• Time: Before Market Opens
• Conference Call Date: Monday, November 24, 2025
• Conference Call Time: 10:00AM ET

Corporación América Airports S.A. (NYSE: CAAP) is a private airport operator that develops, manages and operates airport concessions and related aviation infrastructure. Its activities include passenger terminal operations, airfield and runway management, cargo services, retail and commercial concessions, parking, and other services connected with airport facilities.

The company operates a geographically diversified portfolio of airports through long-term concession agreements and other operating arrangements. Its network has included airports in Argentina, Italy, Ecuador, Armenia and Brazil, serving domestic and international travelers across Latin America and Europe. The portfolio includes airports of varying sizes, from major international gateways to regional facilities.

Corporación América Airports is part of the broader Corporación América group, an international business organization founded by Argentine entrepreneur Eduardo Eurnekian. Martín Eurnekian has served as the company’s chief executive officer. The company became publicly listed on the New York Stock Exchange in 2018.

Corporacion America Airports Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record profitability: Adjusted EBITDA rose 34% to $194 million with margin expansion of 5.2 percentage points to 41.2%, driven mainly by Argentina, Armenia, Brazil and Italy.
• Positive Sentiment: Network passenger traffic increased over 9% to 23.3 million passengers, with record performance in Argentina, Italy and Armenia, and cargo revenues up 20%.
• Positive Sentiment: Stronger balance sheet: liquidity rose to $661 million, net debt fell to $579 million and net leverage improved to 0.9x, supporting planned CAPEX and growth initiatives.
• Positive Sentiment: Progress on expansion and projects: Italy received an Environmental Impact Assessment decree for the Florence master plan, CAPEX approvals advancing in Armenia, and an award agreement was signed for the Baghdad airport opportunity, while other tenders (Angola, Montenegro) remain under review.
• Negative Sentiment: Operational and timing risks persist as Uruguay and Ecuador experienced traffic declines due to runway works and security issues, the Argentina concession rebalance timetable remains uncertain, and management expects more moderate domestic growth in Q4 without the easy comparisons that aided Q3.

Presentation

[Operator]

Good morning and welcome to the Corporación América Airports Third Quarter 2025 Conference Call. A slide presentation accompanies today's webcast and is available in the investor section of the company's website. As a reminder, all participants are in a listen-only mode. There will be an opportunity to ask questions at the end of the presentation. At this time, I would like to turn the call over to Patricio Iñaki Esnaola, Head of Investor Relations. Please go ahead, Patricio.

[Patricio Iñaki Esnaola, Head of Investor Relations at Corporación América Airports]

Thank you. Good morning, everyone, and thank you for joining us today. Speaking during today's call will be Martín Eurnekian, our Chief Executive Officer, and Jorge Arruda, our Chief Financial Officer. Before we proceed, I would like to make the following safe harbor statement. Today's call will contain forward-looking statements, and I refer you to the forward-looking statements section of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. Please note that throughout this call, all references to revenues, costs, adjusted EBITDA, and margin will refer to figures excluding IFRIC 12. Also, all comparisons discussed are year-over-year unless otherwise noted. I will now turn the call over to our CEO, Martín Eurnekian.

[Martín Eurnekian, CEO at Corporación América Airports]

Thank you, Iñaki. Good day, everyone, and thank you for joining us today. We delivered another very strong quarter at CAAP, with solid execution across the board. Passenger traffic was up more than 9%, supported by good momentum in other markets. Italy and Armenia reached historical records, and Argentina continued to perform exceptionally well, with double-digit growth in both international and domestic travel. Revenue growth once again outpaced traffic, rising 17% in the quarter. Aeronautical revenues posted solid double-digit gains, and commercial revenues were up 18%, driven by continued strength in cargo, fuel, VIP lounges, and other passenger-related services. We also continued to see healthy traction in revenue per passenger, which increased nearly 7%, reflecting the ongoing success of our commercial initiatives. This strong operating performance carried into profitability metrics.

[Martín Eurnekian, CEO at Corporación América Airports]

Adjusted EBITDA increased 34% to $194 million, marking a new record for the company, driven mainly by Argentina, Armenia, Brazil, and Italy. The margin expanded over 5 percentage points, with easier comparisons also contributing to the strong results in Argentina. We also maintained a solid financial position, providing us flexibility to continue moving forward with our investment plans and long-term growth strategy. On the investment side, CapEx program approvals are underway in Armenia and Italy. Last week, the Italian government issued the Environmental Impact Assessment Decree, representing an important milestone in connection with the approval process of the Florence Airport Master Plan. We also continue advancing our inorganic expansion projects as we evaluate opportunities across our key target markets. All in all, it was another quarter of strong performance and disciplined execution. We are very proud of our team of executives.

[Martín Eurnekian, CEO at Corporación América Airports]

Turning to passenger traffic on slide four, we delivered another quarter of healthy traffic growth across most markets. A total of 23.3 million passengers traveled across our airport network this quarter, up over 9%, supported by solid domestic and international trends. Domestic volumes increased just over 10%, driven primarily by Argentina and Brazil, with additional contributions from Italy. International traffic rose 8%, with growth in nearly all countries, led by strong performances in Argentina, Italy, and Brazil. Let me walk you through performance by country. Argentina continued to stand out, with total passenger traffic up nearly 13%, marking a third-quarter record. Domestic traffic grew nearly 11%, supported by sustained demand and incremental capacity, particularly from JetSMART and Aerolíneas Argentinas. International traffic increased 16%, reflecting strong connectivity gains, including new and resumed routes from LATAM, GOL, COPA, and JetSMART, among others.

[Martín Eurnekian, CEO at Corporación América Airports]

Operations were briefly disrupted by ATEPSA union strikes and adverse weather, but the overall momentum remained very solid. This strong performance continued into October, with domestic and international passenger traffic increasing by 10% and 15%, respectively. In Italy, traffic was up nearly 10%, reaching a record high. International traffic, which represents over 80% of the total, increased almost 7%, driven by strong results at Florence and Pisa. Pisa also supported domestic traffic, which rose nearly 6%. This positive trend continued into October, with domestic and international passenger traffic increasing by 2% and 8%, respectively. Brazil delivered a growth of over 8% in total traffic, with both domestic and international segments growing at double-digit rates, reflecting improved trends. Traffic in October remained solid, up 10% year-on-year.

[Martín Eurnekian, CEO at Corporación América Airports]

Uruguay saw a 5.3% decline in traffic, affected by several days of adverse weather, as well as a six-day planned closure of the main runway to complete the installation of a new precision instrument landing system. During the quarter, Azul launched a new route between Montevideo and Campinas, which should support traffic going forward. In October, however, traffic recovered, rising 6.9% versus the same month last year. Armenia continued to perform well, with traffic up just over 6%, reaching a record high. Traffic increase was supported by strong international demand and expanded connectivity from new airline entrants. Wizz Air also established a new base at Zvartnots, adding eight new European routes in October, further strengthening Armenia's positioning as a growing regional hub. As a result, traffic in October rose by a strong 15% against the same period last year.

[Martín Eurnekian, CEO at Corporación América Airports]

Lastly, Ecuador posted a slight 1% decline in total traffic, reflecting a still challenging security environment and a softer international demand. JetBlue and Avianca increased frequencies on several international routes, while domestic traffic was stable, although operations were temporarily affected by a two-day planned runway closure in September. In October, traffic increased by 1.2% compared to the same month last year. In summary, it was another quarter of broad-based traffic growth across most of our markets, underscoring the strength of our network and the depth of demand across our operations. Moving on to cargo on slide five, we delivered another strong quarter, with cargo revenues up 20% year-over-year, driven by a 23% increase in Argentina and a double-digit growth in both Brazil and Uruguay. This performance reflected improved pricing dynamics, including a new cargo business model implemented in mixed margin Argentina, which is performing as planned.

[Martín Eurnekian, CEO at Corporación América Airports]

Looking ahead, we will continue to build this momentum by enhancing our cargo capabilities and leveraging growth opportunities across our airports while maintaining a competitive and efficient cost structure. I will now turn the call over to Jorge, who will review our financial results. Please go ahead.

[Jorge Arruda, CFO at Corporación América Airports]

Thank you, Martín, and good day, everyone. Let's begin with our top line on slide six. Total revenues ex IFRIC 12 increased 16.6%, nearly doubling passenger traffic growth of 9.3%. This strong performance was driven by double-digit growth in both aeronautical and commercial revenues, supported by positive contributions across all countries of operations, with Argentina, Armenia, Brazil, and Italy each delivering double-digit revenue growth. Our revenue per passenger was up 6.7%, reaching $20.2, compared with $19 in the same quarter last year. Aeronautical revenues increased 15.2%, mainly driven by a strong performance in Argentina, complemented by broad-based increases across most countries, with the exceptions of Ecuador and Uruguay. Argentina was once again the key driver, with aeronautical revenues up 22.1%, mainly reflecting a 15.9% increase in international traffic volumes.

[Jorge Arruda, CFO at Corporación América Airports]

Strong momentum continued in Brazil and Armenia, each delivering double-digit growth, while Italy posted a 9.8% revenue increase, all consistent with passenger traffic trends. In contrast, Uruguay and Ecuador reported slight declines in aeronautical revenues due to a lower passenger traffic resulting from scheduled runway closures related to the installation of a new instrument landing system in Uruguay and runway repaving works in Ecuador. Commercial revenues were up 18%, well above the 9.3% increase in traffic, supported by higher contributions from cargo revenues and solid growth across VIP lounges, parking facilities, food and beverage services, as well as other passenger-related services. Food-related revenues, primarily in Armenia, also supported the increase. Overall, we saw solid performance across all markets.

[Jorge Arruda, CFO at Corporación América Airports]

Armenia and Argentina stood out, with commercial revenues up 22% and 19%, respectively, while Italy and Brazil also delivered double-digit growth, highlighting the continued strength of our commercial portfolio and our ability to drive value beyond the core aeronautical business. Turning to slide seven, total cost and expenses, excluding IFRIC 12, increased 7.9%, aligned with higher activity but remained well below revenue growth of nearly 17%. Cost of services were up 5%, largely due to a higher concession fee aligned with revenue growth, as well as higher fuel costs in Armenia, consistent with the growth in fuel revenues. This was partially offset by lower services and fees and maintenance expenses. SG&A increased 20%, mainly reflecting taxes and salaries in Argentina.

[Jorge Arruda, CFO at Corporación América Airports]

In Argentina, total cost and expenses were up 3.3%, benefiting from favorable comparisons as the same quarter last year had absorbed significant inflation-driven cost increases, along with continued focus on cost efficiency. The comparison was further supported by the faster pace of currency devaluation relative to inflation during the quarter, which diluted peso-denominated costs when translated into U.S. dollars. Moving on to profitability on slide eight, adjusted EBITDA ex IFRIC 12 was up 34%, reaching a record of $194 million, reflecting strong performance across all countries except Uruguay, with double-digit growth in Argentina, Armenia, and Brazil. Argentina delivered another outstanding quarter with adjusted EBITDA up 68%, supported by the aforementioned easier comparisons, solid top-line growth, strong passenger trends, and continued momentum in our commercial activities. Armenia also performed very well with adjusted EBITDA up 25%, driven by higher passenger traffic and improved fuel margins.

[Jorge Arruda, CFO at Corporación América Airports]

At Brazil Airport, adjusted EBITDA increased 19%, reflecting healthy traffic growth and strong performance across VIP lounges and cargo operations. Italy posted a 10% increase, or 18% when excluding construction service at Toscana Aeroporti Costruzioni. This increase was driven by higher passenger traffic and solid growth in duty-free VIP lounges, parking revenues. In Uruguay, results reflected temporary operational impacts, with adjusted EBITDA down 11%, following a six-day planned runway closure to install a new instrument landing system. Finally, Ecuador delivered a 4% increase in adjusted EBITDA, supported by stronger duty-free and retail revenues. Overall, adjusted EBITDA margin excess for 12 expanded 5.2 percentage points to 41.2%, driven by significant improvements in Argentina and continued operational efficiency across most markets. Notably, in Argentina, we delivered a 12 percentage point margin expansion, driven by easier comparison, strong revenue growth, and effective cost controls.

[Jorge Arruda, CFO at Corporación América Airports]

Turning to slide nine, supported by continued strong operating and financial performance, we ended the quarter with a total liquidity position of $661 million, up 26% from the $526 million recorded at year-end 2024. Importantly, all of our operating subsidiaries generated positive year-to-date cash flow from operating activities, underscoring the strength and consistency of our cash generation across markets. Cash used in financing activities mainly reflected debt repayments in Argentina and Ecuador, as well as dividends paid to non-controlling interest-in-cap subsidiaries. Moving on to the debt and maturity profile on slide ten. Total debt at quarter-end was $1.1 billion, while our net debt further decreased to $579 million from $718 million in December 2024. Our net leverage ratio also improved, reaching 0.9 times. To wrap up, we delivered another quarter of strong results, marked by strong execution and financial discipline.

[Jorge Arruda, CFO at Corporación América Airports]

Our balance sheet remains robust, providing the capacity to pursue new growth opportunities, both organic and inorganic, to continue creating value across our portfolio. I will now hand the call back to Martín, who will provide closing remarks and discuss our view for the remainder of the year.

[Martín Eurnekian, CEO at Corporación América Airports]

Thank you, Jorge. Let's turn to slide 12 to wrap up our presentation. This was another very strong quarter for CAAP, marked by solid performance across our portfolio. We delivered high profitability with further margin expansion, all while preserving a strong financial position. Overall, the quarter highlights the strength of our portfolio and the quality of our management team. We're also making good progress on initiatives that enhance the passenger experience and expand our commercial offering. In Argentina, we inaugurated a new centralized car rental hub and a new digital mobility platform. In Brazil, a Brazilian shopping mall is on track to open in the second quarter of 2026. Armenia opened a fully redesigned duty-free store, and Uruguay is moving ahead with expanding its duty-free and VIP lounge areas. Strategic priorities across our concessions continue to advance.

[Martín Eurnekian, CEO at Corporación América Airports]

We continue to make progress in both the AA2000 concession rebalance in Argentina, as well as the approval of the CapEx program in Armenia. In Italy, the government issued the Environmental Impact Assessment decree last week, marking an important milestone in connection with the approval process of the Florence Airport Master Plan. Turning to our inorganic expansion pipeline, we recently signed an award agreement for the Baghdad Airport project in Iraq, and the government process continued for the Angola tender. In Montenegro, the government's tenders commission announced the result and ranked CAAP in second place. We continue evaluating additional opportunities across other countries. Looking ahead, we anticipate positive traffic trends to continue into the fourth quarter, though with a more moderate pace of domestic traffic growth in Argentina. Overall, we anticipate solid results in the fourth quarter, although not benefiting from the easier comparisons that supported third-quarter performance in Argentina.

[Martín Eurnekian, CEO at Corporación América Airports]

In summary, our third-quarter performance reinforces the resilience of our business model, the quality of our assets, and the strong execution by our teams across all markets. Operator, please open the line for questions.

[Operator]

Thank you. Ladies and gentlemen, if you do have any questions, please press star followed by one on your touchstone phone. You will then hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two. If you're using a speakerphone, you will need to lift the hands up first before pressing any keys. Out of consideration for other callers on the line today and time allotted, we ask that you please limit yourself to one question, one follow-up. Thank you. Your first question will be from Guilherme Mendes at JPMorgan. Please go ahead.

[Guilherme Mendes, Analyst at JPMorgan]

Yes, thanks, guys. Good morning, Martín, Jorge, and Iñaki. My first question is on the rebalance in Argentina. Martín, you mentioned that discussions are progressing well, but can you share what are the main milestones that we could expect for the near term and the potential timing and the timing for the potential approval? A follow-up on the commercial revenues. First of all, congrats on the strong performance. What can we expect going forward? Is this a more normalized level, or can we still expect some kind of improvement on the commercial revenues perpecs? Thank you.

[Jorge Arruda, CFO at Corporación América Airports]

Hi, Guilherme. How are you? This is Jorge. Thanks for your question. In connection with Argentina, we continue to make progress at both a technical and political level. It's difficult for us in management to provide a timetable, but the message, again, is that we continue to make good progress in connection with the rebalance of the concession agreement. In connection with your second question, commercial revenues, commercial revenues in the quarter was up 8% versus last year. It's a very good performance. As we reported, there are a number of reasons, including VIP lounges, car rental, fueling, cargo, etc. We continue to see the same trend. I'm not sure that it is accelerating, but definitely, we continue to see the trend to continue.

[Guilherme Mendes, Analyst at JPMorgan]

Very clear, Jorge. Thank you.

[Operator]

Thank you. Next question will be from Andrés Cardona at Citigroup. Please go ahead.

[Andrés Cardona, Analyst at Citigroup]

Hi, good morning. My question is about any update you could share with us about the Armenia and Italy investment opportunities. If you have any update or visibility about the timeline to provide more details about the projects. Thank you.

[Jorge Arruda, CFO at Corporación América Airports]

Hi, Andrés. It's Jorge again here, and thanks for your questions. Let me start with the second one. In Italy, as Martín has mentioned, we have recently obtained the approval for the environmental assessment of the project. The next step formally is the so-called Conferenza di Servizi to take place, which is a kind of forum of various government entities led by the Ministry of Infrastructure. We expect that to commence towards the end of the first quarter. It is a process that should take approximately three months, after which we would basically be ready to start the works. That is the current timeline that we have been told. When we are dealing with the government, it is difficult for us in management to set up a precise timetable, but that is our best guess as of today, and we will continue to keep the market updated.

[Jorge Arruda, CFO at Corporación América Airports]

In connection with Armenia, we continue to make good progress in terms of discussions and in connection with discussions with the government and government officials in general. Again, it's difficult for us to provide a precise timetable, but again, we'll keep the market posted.

[Andrés Cardona, Analyst at Citigroup]

Thank you.

[Operator]

Thank you. Once again, ladies and gentlemen, if you do have any questions, please press star followed by one on your touchstone phone. The next question will be from Daniel Rojas at Bank of America. Please go ahead.

[Daniel Rojas, Analyst at Bank of America]

Good morning, gentlemen. Can you hear me?

[Operator]

Please go ahead, Daniel.

[Daniel Rojas, Analyst at Bank of America]

My question was regarding Baghdad Airport. Could you give us an idea of the size of the opportunity and what else can you share with us in terms of potential traffic in that airport? Thank you.

[Jorge Arruda, CFO at Corporación América Airports]

Hi, Daniel. It's Jorge again. Thank you very much. As we have announced, we signed an award agreement, which is a document that is non-binding in connection with the process. We are expecting to be called by the government to finalize the process and sign the concession agreement. Once that happens, we will inform the market and provide more details about our financial plan in many aspects, including debt, equity, CapEx, etc. What I wanted to anticipate is that we have a very constructive view in connection with the potential growth of traffic in that country and in that region in general.

[Daniel Rojas, Analyst at Bank of America]

Okay. That's Jorge. Thank you.

[Operator]

Thank you. At this time, we have no other questions registered. I would like to turn the call back over to Martín.

[Martín Eurnekian, CEO at Corporación América Airports]

I would just like to thank everybody for your time and participation and remind you that our team is always available to take any additional questions. Enjoy the rest of your day. Thank you very much.

[Operator]

Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. At this time, we do ask that you please disconnect your line.

Participants

Analysts

• Andrés Cardona, Analyst at Citigroup
• Martín Eurnekian, CEO at Corporación América Airports
• Jorge Arruda, CFO at Corporación América Airports
• Daniel Rojas, Analyst at Bank of America
• Patricio Iñaki Esnaola, Head of Investor Relations at Corporación América Airports
• Guilherme Mendes, Analyst at JPMorgan