Corporacion America Airports Q4 2025 Earnings Report

Corporacion America Airports EPS Results

• Actual EPS: $404.99
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Corporacion America Airports Revenue Results

• Actual Revenue: $562.61 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Corporacion America Airports Announcement Details

• Quarter: Q4 2025
• Date: 3/6/2026
• Time: Before Market Opens
• Conference Call Date: N/A
• Conference Call Time: N/A

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 Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Total passenger traffic reached a record 22.3 million in 2025 (Q4 traffic +9% YoY) while total revenues ex-IFRIC 12 grew 17%, with revenue per passenger rising ~8% to $20.8.
• Positive Sentiment: Adjusted EBITDA ex-IFRIC 12 increased nearly 40% to $211 million (including a $32.5m arbitration payment), and on an adjusted basis Adj. EBITDA ex SG&A rose ~33% with margin expansion to 38.3%.
• Positive Sentiment: The balance sheet strengthened materially with total liquidity of $750 million, net debt down to $502 million from $780 million, and net leverage improved to 0.7x, supporting financial flexibility for growth.
• Positive Sentiment: Strategic momentum accelerated—secured a 35-year Armenia concession extension (including a $425m investment program), a 6‑year Galapagos extension, and has been named preferred bidder for concessions in Baghdad and Luanda.
• Negative Sentiment: Operational risks remain—Armenia traffic has been partially affected by the Middle East conflict (~10–15% impact with recent traffic flat), and some markets showed pressure (Ecuador Adj. EBITDA -12%, Uruguay -2%, Italy mixed), which could weigh on near-term performance.

Presentation

[Operator]

Good morning, and welcome to Corporación América Airports fourth quarter 2025 conference call. A slide presentation accompanies today's webcast and is available in the Investors section of the company's website. As a reminder, all participants are in the 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. Patricio, you may go ahead.

[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 obligations 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, and Adjusted EBITDA 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, and good morning to everyone joining us today. We finished 2025 with a very solid performance. Across the business, we saw continued revenue momentum, strong profitability, and important progress on the strategic front. Passenger traffic remained robust in the fourth quarter, raising just over 9% year-over-year and reaching new heights for both the quarter and the full year, with Argentina, Armenia, Italy, and Uruguay setting annual traffic records. Equally important, this performance was broad-based with positive trends across our main markets, in particular, strong international growth in Argentina. Revenue growth once again outpaced traffic, supported by solid performance in both our aeronautical and commercial businesses, along with further improvement in revenue per passenger. Commercial revenues remained especially strong, with good contributions from cargo, fuel, and passenger-related services across the portfolio. This positive momentum also translated into strong profitability.

[Martín Eurnekian, CEO at Corporación América Airports]

We delivered strong Adjusted EBITDA growth in the quarter together with meaningful margin expansion as operating leverage and commercial execution continued to support results. At the same time, we ended the year with a healthy balance sheet, low leverage, and strong liquidity, providing significant financial flexibility. We also made meaningful strategic progress. In Armenia, we secured a 35-year extension of the concession, and in Galapagos, we obtained a six-year extension, both of which enhance the long-term visibility of our portfolio. We also have received concession awards and been declared preferred bidders on two new airport concessions, which I will discuss shortly. Moving on to passenger traffic on slide four. We ended the year with another quarter of solid growth across our operations. Total passenger traffic reached a record 22.3 million, supported by both domestic and international travel, with particularly strong momentum in the international segment.

[Martín Eurnekian, CEO at Corporación América Airports]

International traffic grew 12%, with every country in our portfolio posting year-over-year growth. Argentina was once again the main contributor, accounting for more than half of the total increase in traffic during the quarter, with solid contributions from Italy, Brazil, and Armenia. Domestic traffic increased nearly 7%, mainly driven by Argentina and Brazil, with Ecuador also contributing positively. Let me briefly go through the main markets. In Argentina, passenger traffic increased nearly 9%, a record for both the quarter and the full year. Domestic traffic was up 6%, supported by strong load factors and additional capacity across several routes. International traffic was up 15%, reflecting continued route reactivations and frequency increases. During the quarter, we saw positive contributions from airlines such as LATAM, Air Canada, Emirates, Delta, China Eastern, and ITA Airways, among others, which continue to strengthen connectivity and support demand.

[Martín Eurnekian, CEO at Corporación América Airports]

This strong performance continued into January and February, with passenger traffic growing 7.9% and 5.8% year-over-year, respectively. In Italy, traffic grew 8%, also reaching new heights for both the quarter and the full year. Growth was mainly driven by the international segment, which increased 11%, with solid performance across both Florence and Pisa. Domestic traffic declined modestly during the quarter, mainly reflecting some operational disruptions at certain airlines. This positive trend continued into January and February, with passenger traffic increasing 4% and 7.4% year-over-year, respectively. Brazil also posted a strong quarter, with total traffic up 12%. Domestic traffic remained solid, while international traffic also grew at a healthy pace. The improvement reflects a better environment among the main airlines operating in the country and stronger activity during the summer season, including additional frequencies on routes to the United States.

[Martín Eurnekian, CEO at Corporación América Airports]

This trend extended into January and February, when overall traffic increased by 16% and 8.2% year-over-year respectively. Uruguay returned to growth in the quarter, with traffic up 5% and reaching new heights for both the quarter and the full year. This performance reflects a recovery from the temporary disruption we saw in the third quarter related to planned runway closure. Traffic also benefited from stronger seasonal operations, new routes and added frequencies, particularly ahead of the summer season. Traffic in the first two months of the year performed well, with year-over-year increases of 1% and 2.4% in January and February, respectively. In Armenia, we saw a pickup in passenger traffic up nearly 14%, breaking another record for both the quarter and the full year. Growth was supported by sustained international demand and expanded connectivity.

[Martín Eurnekian, CEO at Corporación América Airports]

During the quarter, Wizz Air established a new base at Zvartnots and launched 10 new routes to Europe, which further strengthens the airport's position as an important regional hub. This strong performance continued into January and February, with passenger traffic increasing by 10% and 11.6% year-over-year, respectively. Finally, Ecuador returned to growth with traffic up 1%. While the environment remains challenging, performance improved versus the prior quarter, supported by a recovery following the runway works completed earlier in the year and modest growth in both domestic and international traffic. Traffic in the first two months of the year performed well with year-over-year increases of 5% and 8.6% in January and February, respectively. Overall, the fourth quarter contributed to a very strong year for passenger traffic, with healthy momentum across the portfolio and record levels in several of our key markets. Turning to cargo on slide five.

[Martín Eurnekian, CEO at Corporación América Airports]

We also delivered a strong quarter, with cargo revenues up 22% year-over-year, supported by solid contributions from Argentina, Uruguay and Brazil. On the volume side, results were mixed across the portfolio. Total cargo volume was slightly below last year, with growth in Argentina and Uruguay offset by softer trends in Brazil, Italy, Armenia and Ecuador. Even so, the strong overall revenue performance highlights our ability to capture value from the cargo business. Looking ahead, we remain focused on strengthening our cargo platform, improving our commercial capabilities, and contributing to capture growth opportunities across the network. I will now turn the call 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 17%, nearly doubling passenger traffic growth of 9%. This strong performance was driven by double-digit growth in both aeronautical and commercial revenues, supported by positive contributions across all countries of operation, with all countries but Ecuador delivering double-digit revenue growth. Revenue per passenger was up nearly 8%, reaching $20.8 compared to $19.4 in the same quarter last year. Aeronautical revenues increased 17%, mainly driven by strong results in Argentina and further supported by broad-based growth across the portfolio. Argentina remained the main contributor, with aeronautical revenues up 21%, largely reflecting a 15% increase in international traffic volumes.

[Jorge Arruda, CFO at Corporación América Airports]

The strong momentum continued in Brazil, Armenia and Italy, each delivering double-digit growth, all in line with passenger traffic trends. Commercial revenues were up 16%, well above the 9% increase in traffic. This was supported by higher contributions from cargo and fuel revenues and solid growth across VIP lounges, parking facilities and duty-free. Overall performance was consistent across the portfolio, with all countries except Ecuador achieving double-digit growth. Turning to slide seven. Total costs and expenses excluding IFRIC 12 increased nearly 11%, broadly in line with higher operating activity and well below revenue growth of 17%, resulting in positive operating leverage during the quarter. Cost of services were up 11%, largely due to higher concession fees in line with revenue growth, as well as higher fuel costs in Armenia, consistent with the expansion in fuel revenues and higher D&A expenses.

[Jorge Arruda, CFO at Corporación América Airports]

SG&A expenses increased 6%, mainly reflecting higher non-payroll and payroll expenses, particularly in Argentina. In Argentina, total costs and expenses increased just over 7% year-over-year, well below revenue growth of 18%, reflecting strong operating leverage, continued cost discipline and favorable currency fluctuation. Moving on to profitability on slide eight. Adjusted EBITDA ex-IFRIC 12 was up nearly 40% to $211 million, reflecting strong performance in Argentina and Armenia, as well as the $32.5 million positive impact on EBITDA related to the arbitration award payment received from the government of Peru. Argentina delivered another outstanding quarter with Adjusted EBITDA up 43% with margin expansion of 7.5 percentage points, supported by strong passenger trends, continued momentum in our commercial activities as well as effective cost controls.

[Jorge Arruda, CFO at Corporación América Airports]

Armenia also performed very well with Adjusted EBITDA up 15% driven by record passenger levels. Margin contraction during the quarter primarily reflected higher operating expenses and a greater contribution from the fueling business, which structurally carries lower margin than the core airport operations. At Brasilia Airport, Adjusted EBITDA year-on-year comparisons were impacted by the BRL 110 million COVID-related economic reequilibrium received in fourth quarter 2024. Excluding this item, Adjusted EBITDA increased 34% year-on-year with a margin expansion of 6.4 percentage points, reflecting healthy traffic growth and strong performance across VIP lounges and other passenger-related revenues. Italy posted an 11% decrease or 4% increase when excluding construction services at Toscana Aeroporti Costruzioni.

[Jorge Arruda, CFO at Corporación América Airports]

In Uruguay, Adjusted EBITDA was slightly down 2%, reflecting higher salaries and maintenance expenses, along with year-over-year appreciations of the Uruguayan peso, which also impacted margins. Finally, in Ecuador, Adjusted EBITDA declined 12%, mainly due to the higher maintenance expenses concentrated in the fourth quarter 2025. Overall, excluding the BRL 110 million COVID-related economic reequilibrium in Brazil in the fourth quarter 2024 and the $32.5 million arbitration award recognized in the fourth quarter of 2025, Adjusted EBITDA ex SG&A increased 33.3% year-over-year to $178 million with a margin expansion of 4.6 percentage points to 38.3%. Now turning to slide nine.

[Jorge Arruda, CFO at Corporación América Airports]

We closed the quarter with total liquidity of $750 million, representing a 36% increase versus the $526 million reported at year-end 2024. Notably, each of our operating subsidiaries delivered positive full-year operating cash flow, highlighting the resilience and diversification of our cash generation profile across geographies. Cash used in financing activities mainly reflected debt repayments in Argentina as well as dividends paid to non-controlling interest in CAAP subsidiaries. Moving on to the debt and maturity profile on slide 10. Total debt at year-end was $1.1 billion, while our net debt decreased further down to $502 million from $780 million in December 2024. As a result of lower net debt and continued strong financial performance, our net leverage ratio continued to improve, reaching 0.7 times at year-end.

[Jorge Arruda, CFO at Corporación América Airports]

To wrap up, our results reflect the great momentum of our portfolio and the quality of our management team. We closed the year with the strongest balance sheet in our history, giving us financial flexibility to advance our growth strategy through both organic initiatives and inorganic opportunities. I will now hand the call back to Martín, who will provide closing remarks and discuss our view for the year.

[Martín Eurnekian, CEO at Corporación América Airports]

Thank you, Jorge. Turning now to slide 12. I will briefly summarize the key takeaways from the last quarter and from 2025. 2025 was a record year for CAAP. We delivered record passenger traffic, strong revenue growth, meaningful EBITDA margin expansion, and closed the year with a very solid balance sheet. These results reflect the resilience and quality of our portfolio, the disciplined execution of our teams, and the benefits of our diversified geographic footprint. Beyond the strong operating and financial performance, we also made important progress in cementing the long-term visibility of our portfolio and advancing our expansion pipeline. In Armenia, we secured a 35-year extension of the concession through 2067, which includes a $425 million investment program and a significant expansion of our infrastructure. In Ecuador, we achieved a 6-year extension of the Galapagos concession.

[Martín Eurnekian, CEO at Corporación América Airports]

On the inorganic growth front, we have received concession awards and have been selected as preferred bidders for both Baghdad in Iraq and Luanda in Angola, while continuing to evaluate additional bidding processes and M&A opportunities across multiple regions. While these projects remain subject to the execution of the definitive concession agreement, both opportunities offer attractive long-term growth potential. At the same time, we remain disciplined in our capital allocation. This disciplined approach remains central to how we allocate capital and expand our portfolio. Our operating performance was also matched by strong industry recognition. During the year, Aeropuertos Argentina was named Best Airport Operator in South America. Brasília was ranked number two worldwide in punctuality among medium airports. Carrasco was recognized as Best Airport in Latin America and the Caribbean in its category, and Zvartnots was named Best Airport in Europe and Most Dedicated Staff in the segment.

[Martín Eurnekian, CEO at Corporación América Airports]

These recognitions reflect our continuous focus on operational excellence and customer experience. Looking ahead, we remain focused on execution and value creation. We expect continued positive momentum in passenger traffic across our key markets, supported in particular by strong international traffic trends in Argentina. At the same time, we will continue to prioritize commercial optimization and revenue per passenger growth across the portfolio. We are also closely monitoring the evolving geopolitical situation in the Middle East and remain attentive to any potential implications for international travel. I will now turn the call over for questions.

[Operator]

Thank you, sir. Ladies and gentlemen, if you do have any questions, please press star followed by one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to withdraw from the polling process, please press star followed by two. If you're using a speakerphone, you will need to lift the handset first before pressing any keys. Out of consideration to other callers on the line today, we ask that you please limit yourself to one question, one follow-up, and re-queue should you have additional. Thank you. Your first question will be from Alejandro Demichelis at Jefferies. Please go ahead.

[Alejandro Demichelis, Managing Director at Jefferies]

Good morning, gentlemen. Thank you very much for taking my questions. Martin, you mentioned the strong traffic growth that you expect for the rest of the year. We have seen an increase in profitability across the business. Should we assume that what we have seen in terms of margins profitability is like the new base for CAAP going forward? That's the first question. The follow-up is, have you actually seen any kind of impact from the war in terms of your operations in Armenia, please?

[Jorge Arruda, CFO at Corporación América Airports]

Hi, it's Jorge here. Thank you very much for your question. Regarding margins profitability, what we saw in the first two months of the year, you probably have seen our traffic numbers. We increased by approximately 8%, 7.8% more precisely overall, with international 14.5% and domestic 1.5%. We remain constructive for the next few months, and we expect our business to continue growing according to passengers and a bit over passengers, in fact. Margins in terms of EBITDA margins is stable for the time being. In terms of your second question, approximately 10%-15% of the traffic in Armenia has been affected by the war.

[Jorge Arruda, CFO at Corporación América Airports]

The first few months of the year were very positive, around 11% growth for the first two months. What we have observed since the war is flat, no growth, no decline, but you know, I think it's totally tied to the war, and when this war ends, traffic would resume very quickly. It's very difficult to say at this point in time, but also part of this traffic is connecting traffic in the Middle East that probably, at least some of them, should be going through other routes that are available in Armenia. Again, the impact that we saw in the first few days of the war is flat growth.

[Alejandro Demichelis, Managing Director at Jefferies]

Yes, very clear. Thank you.

[Operator]

Thank you. Next question will be from Andrés Cardona at Citigroup. Please go ahead. Please go ahead, Andrés. Can you unmute your line, please? No response. Please go ahead, Andrés.

[Andrés Cardona, Reporting and Financial Analyst at Citigroup]

I'm trying to ask. Can you hear me?

[Operator]

Yes, go ahead.

[Jorge Arruda, CFO at Corporación América Airports]

Yes, we can hear you.

[Andrés Cardona, Reporting and Financial Analyst at Citigroup]

Good morning. My two questions are about any update about the Argentina concession rebalance, anything you could share in terms of timing or expectations. Second, if you have also an update of the Italy investment opportunity. I also understand it hasn't been approved, but what are you expecting in terms of timing?

[Jorge Arruda, CFO at Corporación América Airports]

Okay. Thank you for your questions. It's Jorge Arruda again here. On Argentina, we are on the right track. However, it's very difficult for us to provide publicly a timing for the outcome of the economic reequilibrium given the political and bureaucracy dynamics associated with a process like this one. Again, we are on the right track. We are in very frequent discussions with the government, and we will keep the market updated as we receive concrete news from the government. In connection with Italy, it's also very difficult for us to provide a timetable as to when this will be finalized and we'll be able to begin construction. We are making progress. I think the approval that we got was environmental approval.

[Jorge Arruda, CFO at Corporación América Airports]

There's a few more processes to go before we are fully approved to begin construction. Again, we are on the right track, and again, we will keep the market posted as we receive concrete news. Thank you.

[Andrés Cardona, Reporting and Financial Analyst at Citigroup]

Thank you.

[Operator]

Once again, ladies and gentlemen, if you do have any questions, please press star followed by two. I'm sorry, followed by one on your touchtone phone. To remove yourself, press star two. Our next question will be from Julia Orsi at J.P. Morgan. Please go ahead.

[Julia Orsi, Equity Research Analyst at JPMorgan Chase & Co.]

Yes. Hello, everyone. Good morning. Thanks for taking the time. Can you comment a bit on your capital allocation strategy going forward? I know you mentioned a disciplined strategy, but can you comment a bit on what you're expecting in terms of new regions and concessions that you might be willing to invest? Second, what should we think of the commercial revenues growth going forward and the main drivers behind it? Thank you.

[Jorge Arruda, CFO at Corporación América Airports]

Thank you for your questions. In connection with capital allocation, as Martín have mentioned in the call, we have been awarded in Iraq and Angola. We are pursuing those opportunities. Obviously, with the situation in Iran and the war, et cetera, this process we expect to be delayed. In Angola, we are in frequent discussions with the government to try to move ahead and finalize this process. Besides that, we are looking at other opportunities in the Middle East, in Central Asia, in Africa, and in the Americas. As I reported in previous conference calls, we have significantly boosted our new business team and are actively looking at various opportunities. We believe that the best use of our liquidity is to grow the portfolio.

[Jorge Arruda, CFO at Corporación América Airports]

That's what we are working 24/7 to achieve. In connection with commercial revenues, we indeed saw a very good year in 2025, with growth across the board, particularly in VIP lounges, in parking, in fueling as well, in some markets on the cargo. What we are seeing the first few months of the year is a bit more of the same. Perhaps not as intense as we saw in 2025, but the portfolio is performing very well.

[Julia Orsi, Equity Research Analyst at JPMorgan Chase & Co.]

Perfect. Thank you.

[Operator]

Thank you. Next question will be from Pablo Riccardi at Itaú. Please go ahead, Pablo.

[Pablo Ricardi, Analyst at Itau]

Hi, good morning, Corporación América. Maybe can you follow up on the capital allocation, what are you thinking in terms of funding to do all these acquisitions outside of Argentina?

[Jorge Arruda, CFO at Corporación América Airports]

Can you hear me? Sorry. I think the targets that we are currently looking at, the funding would come primarily from cash at hand, given the size of the opportunity that we are looking at.

[Pablo Ricardi, Analyst at Itau]

Perfect. Thanks a lot.

[Operator]

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

[Martín Eurnekian, CEO at Corporación América Airports]

I wanted to thank everybody for joining us today and remind you that our investor relations team is available for any further questions. Have a very good rest of your day.

Participants

Analysts

• Alejandro Demichelis, Managing Director at Jefferies
• Andrés Cardona, Reporting and Financial Analyst at Citigroup
• Jorge Arruda, CFO at Corporación América Airports
• Julia Orsi, Equity Research Analyst at JPMorgan Chase & Co.
• Martín Eurnekian, CEO at Corporación América Airports
• Pablo Ricardi, Analyst at Itau
• Patricio Iñaki Esnaola, Head of Investor Relations at Corporación América Airports