CAAP — Corporación América Airports S.A.

Summary of Corporación América Airports S.A. Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Passenger Traffic: Increased by over 9%, totaling 23.3 million passengers.
• Revenue Growth: Total revenues (excluding IFRIC 12) rose 17% year-over-year, driven by strong aeronautical (up 15.2%) and commercial revenues (up 18%).
• Adjusted EBITDA: Reached a record $194 million, a 34% increase, with a margin expansion of 5.2 percentage points to 41.2%.
• Revenue per Passenger: Increased to $20.2, up 6.7% from $19 in the previous year.
• Liquidity Position: Improved to $661 million, a 26% increase from year-end 2024.
• Total Debt: Stood at $1.1 billion, with net debt decreasing to $579 million.

2. Strategic Updates and Business Highlights

• Strong Performance by Country:
  • Argentina: Passenger traffic up nearly 13%, with domestic traffic growing almost 11% and international traffic up 16%.
  • Italy: Traffic increased nearly 10%, with international traffic growth of almost 7%.
  • Brazil: Total traffic grew over 8%.
  • Armenia: Continued strong performance with over 6% traffic growth.
• Investment Initiatives: CapEx programs are advancing in Armenia and Italy, with the Italian government issuing an Environmental Impact Assessment Decree for the Florence Airport master plan.
• Cargo Revenues: Increased by 20%, driven by a 23% rise in Argentina, reflecting improved pricing dynamics.

3. Forward Guidance and Outlook

• Traffic Trends: Anticipated to remain positive into Q4, though with a more moderate pace of growth in Argentina.
• Commercial Revenue Outlook: Expected to maintain current levels, with no significant acceleration anticipated.
• Strategic Projects: Progressing on the Baghdad Airport project and evaluating additional opportunities in various markets.

4. Bad News, Challenges, or Points of Concern

• Operational Disruptions: Argentina faced operational disruptions due to union strikes and adverse weather, which could impact future performance.
• Ecuador and Uruguay: Both countries reported slight declines in aeronautical revenues due to lower passenger traffic from scheduled runway closures.
• Moderate Growth Expectations: While overall traffic is expected to grow, the pace may slow down, particularly in Argentina.

5. Notable Q&A Insights

• Argentina Rebalancing: Management indicated ongoing progress in discussions regarding the rebalancing of the concession agreement, though specific timelines remain uncertain.
• Investment in Italy and Armenia: The timeline for the Florence Airport project is expected to progress with a government forum starting in Q1 2026, while discussions in Armenia are also advancing.
• Baghdad Airport Opportunity: Management expressed a constructive view on the potential traffic growth in the region but noted that further details would be provided once the concession agreement is finalized.

Overall, CAAP reported a robust performance in Q3 2025, marked by significant revenue and EBITDA growth, while also navigating operational challenges and strategic investments for future expansion.