Grupo Aeroportuario del Centro Norte Q1 Earnings Call Highlights

Key Points

• Passenger traffic reached 6.7 million in 1Q (+4.7% YoY) as domestic travel grew 5.7%—driven largely by Monterrey routes that added ~265,000 passengers—while international traffic fell 0.5%.
• Revenues and profitability showed modest gains with aeronautical revenue up 4.3% (domestic +9%, international -11% due to MXN strength) and adjusted EBITDA rising 2.1% to MXN 2.4 billion, but net income fell 4.1% as costs rose ~20% (notably minor maintenance +54.2% and contracted services +20.8%).
• Balance sheet and strategic actions: OMA ended the quarter with MXN 3.7 billion in cash and 1.0x net leverage, shareholders approved a MXN 4.9 billion dividend, tariffs were increased ~6.9% in April, and management confirmed a pipeline of 19 new routes including Madrid (Iberia) and a new Paris connection.

Grupo Aeroportuario del Centro Norte NASDAQ: OMAB reported higher first-quarter 2026 passenger traffic and modest gains in revenue and profitability, supported by domestic demand and continued growth in commercial businesses, while foreign-exchange movements pressured international-related revenue lines.

Traffic rose 4.7% as domestic demand outweighed softer international trends

CEO Ricardo Dueñas said total passenger traffic reached 6.7 million in the first quarter, up 4.7% year over year, alongside a 3.9% increase in seat capacity. Domestic traffic grew 5.7%, driven primarily by Monterrey Airport, while international passenger traffic fell 0.5%.

Dueñas attributed most domestic growth to a set of routes out of Monterrey, including service to the Mexico City metropolitan area (mainly Toluca and Mexico City airports), Bajío, Puerto Vallarta, Mérida, and Cancún. He said those routes added more than 265,000 passengers and represented 87% of total domestic passenger growth during the quarter.

International declines were led by lower volumes in Monterrey on routes to San Francisco, Chicago, and Los Angeles, and in Mazatlán on routes to Minneapolis, Dallas, and Los Angeles. Management said those declines were partially offset by stronger performance in San Luis Potosí, with higher activity on routes to Dallas, San Antonio, and Houston.

By airline, Dueñas said Volaris—representing 25% of total passenger traffic—posted a 15% increase in passengers versus 1Q 2025, while Viva, which accounted for 48% of traffic, recorded a 3% increase.

Revenue growth led by domestic aeronautical fees and commercial businesses

OMA said aeronautical revenues increased 4.3% year over year. Dueñas stated domestic passenger charges revenue rose 9%, supported by passenger growth, while international passenger charges revenue declined 11%, “mostly due to the appreciation of the Mexican peso against the dollar.” CFO Ruffo Pérez Pliego similarly cited a 10.5% decrease in international passenger revenues linked to the peso’s strength.

Non-aeronautical revenue increased 3.8%, with commercial revenue up 4.9%. Dueñas said commercial revenue per passenger was MXN 66.4, and the occupancy rate for commercial space ended the quarter at 93%.

Pérez Pliego highlighted the commercial line items with the strongest growth:

• Parking revenue increased 8.5%, driven by higher passenger traffic and higher tariffs.
• Retail rose 8.9%, supported by traffic, penetration, and outlet openings or replacements.
• Restaurants grew 5.0% for similar reasons.
• OMA Premium Lounges increased 8.1% on a higher capture rate.

Pérez Pliego said OMA opened a new VIP lounge in March at its Torreón airport and now operates OMA Premium Lounges in 11 of its 13 airports.

Diversification revenue dipped on hotels and prior-year one-time effects, while cargo grew

Diversification revenues decreased 1.1% year over year, reflecting what Dueñas described as “a mixed performance across our portfolios.” He said hotel services declined 7.8%, primarily due to results at the Hilton Garden Inn, impacted by peso appreciation and lower occupancy. Pérez Pliego also noted that “other services” fell by MXN 13 million due to a one-time industrial park-related effect in 1Q 2025 that did not repeat.

These headwinds were partially offset by growth in cargo and industrial services. Dueñas said OMA Cargo revenue rose 8%, supported by a more than threefold increase in operations at the company’s Chihuahua warehouses as the business scaled. He also said industrial services grew 19%, driven by a higher number of leased square meters. In response to an analyst question, Pérez Pliego said Chihuahua warehouse performance was the main driver of first-quarter cargo growth, while adding the company “still see[s] a lot of potential in the Monterrey airport” for cargo.

Costs rose, pressuring net income, while cash and leverage remained conservative

Total aeronautical and non-aeronautical revenues increased 4.1% to MXN 3.3 billion, with construction revenues of MXN 519 million. On profitability, adjusted EBITDA increased 2.1% to MXN 2.4 billion, with an adjusted EBITDA margin of 73.4%, according to both Dueñas and Pérez Pliego.

However, Pérez Pliego said cost of airport services and G&A expenses rose 20.0%, driven by several items:

• Minor maintenance increased 54.2%, which management attributed to timing of works performed.
• Contracted services increased 20.8%, mainly from higher security and cleaning costs following prior contract renewals, reflecting inflationary pressures and tight labor conditions.
• Other costs and expenses rose by MXN 24 million, primarily due to higher transportation, retirement provisions, and other items.

Major maintenance provision rose to MXN 109 million from MXN 53.4 million in 1Q 2025, which Pérez Pliego said reflected a reassessment of maintenance requirements aligned with investments in the 2026–2030 development plan and was consistent with prior guidance. He emphasized it is a non-cash item.

Financing expense decreased 0.6% to MXN 310 million, while consolidated net income was MXN 1.2 billion, down 4.1% year over year.

OMA generated MXN 1.7 billion in operating cash flow during the quarter. Investing and financing activities used MXN 791 million and MXN 376 million, respectively, ending the quarter with MXN 3.7 billion in cash. Total debt was MXN 13.6 billion, and net leverage stood at 1.0x net debt to adjusted EBITDA.

Tariffs, route pipeline, and shareholder actions

On tariffs, management discussed an increase implemented in April. Dueñas said regulated tariffs rose 6.9% “across the board” for domestic and international items effective April 10. Pérez Pliego said the company was at about 91%–92% of maximum tariff compliance in the first quarter and expected to end the year near 95%. He added there is no additional step-up contemplated for the rest of the year, with any further increase to be considered next year.

On route development, Pérez Pliego said OMA had 19 confirmed routes for the rest of the year, “most of them opening in June,” primarily with Viva Aerobus and Volaris, plus “one confirmed route to Madrid with Iberia.” He also said OMA is positioning Monterrey as a long-haul connecting point and noted a direct flight to Paris began “as of last week.” He added the company sees a recovery in the Canadian market for winter, “especially in Mazatlán.”

Management also addressed jet fuel, with Pérez Pliego saying OMA is not seeing jet fuel shortages in Mexico and that discussions with FAA authorities showed “no sign that there is a problem of shortage,” though he noted oil prices could be impacting the industry broadly.

In corporate updates, Dueñas said OMA agreed with Mexico City International Airport to extend the lease term of the NH Collection Hotel at Terminal 2 by five years, from its original 2029 maturity to April 2034, under the same terms and conditions. He also said shareholders approved a MXN 4.9 billion cash dividend at the company’s annual meeting held April 24.

Looking to traffic for the full year, Pérez Pliego said the company still views its low- to mid-single-digit growth estimate as valid despite uncertainty around seat supply after the summer, and that domestic demand is expected to perform better than international demand. He said U.S. demand was soft in the first quarter but was offset by stronger dynamics tied to Monterrey’s industrial market.

About Grupo Aeroportuario del Centro Norte NASDAQ: OMAB

Grupo Aeroportuario del Centro Norte, SAB. de C.V. (OMAB) is a Mexican airport operator that develops, manages and operates airports under long‐term concessions granted by the Federal Government of Mexico. The company's core business covers all aspects of airport operations, including passenger processing, airfield services, security, ground handling, cargo handling and commercial activities such as retail, food and beverage, and parking.

OMA currently holds concession contracts for 13 airports in central and northern Mexico, serving key markets such as Monterrey, Ciudad Juárez, Culiacán, Hermosillo and Torreón.

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