CAAP — Corporación América Airports S.A.

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

1. Key Financial Results and Metrics

• Total Revenues: Increased by 17% year-over-year, significantly outpacing passenger traffic growth of 9%.
• Adjusted EBITDA: Rose nearly 40% to $211 million, with a margin expansion of 7.5 percentage points, largely driven by strong performance in Argentina and Armenia.
• Revenue per Passenger: Increased to $20.8 from $19.4, reflecting improved commercial performance.
• Total Liquidity: Reached $750 million, a 36% increase from the previous year.
• Net Debt: Decreased to $502 million from $780 million, resulting in a net leverage ratio of 0.7x.

2. Strategic Updates and Business Highlights

• Passenger Traffic: Reached a record 22.3 million for the year, with Argentina, Armenia, Italy, and Uruguay achieving annual traffic records.
• Concession Extensions: Secured a 35-year extension in Armenia and a six-year extension in Galapagos, enhancing long-term visibility.
• New Concessions: Awarded preferred status for new airport concessions in Baghdad, Iraq, and Luanda, Angola.
• Cargo Revenues: Increased by 22%, although total cargo volume was slightly below last year.

3. Forward Guidance and Outlook

• Traffic Growth: Expected to continue, particularly in Argentina, with January and February showing positive trends (7.9% and 5.8% growth, respectively).
• Commercial Optimization: Focus on enhancing revenue per passenger and improving commercial capabilities.
• Geopolitical Monitoring: Keeping an eye on the evolving situation in the Middle East, which may impact international travel.

4. Bad News, Challenges, or Points of Concern

• Impact of War in Armenia: Approximately 10-15% of traffic in Armenia has been affected by the ongoing conflict, leading to flat growth in recent months.
• Operational Disruptions: Some operational issues in Italy affected domestic traffic, though international traffic remained strong.
• Ecuador's Performance: Continued challenges with a 12% decline in adjusted EBITDA due to high maintenance costs.

5. Notable Q&A Insights

• Profitability Expectations: Management indicated that current margins may be a new baseline, with expectations for continued growth in profitability.
• Argentina Concession Rebalance: Discussions with the government are ongoing, but timing for resolution remains uncertain due to political dynamics.
• Capital Allocation Strategy: Focused on using cash on hand for potential acquisitions, with active exploration of opportunities in various regions, including the Middle East and Africa.

Overall, Corporación América Airports S.A. demonstrated strong financial performance and strategic growth initiatives in Q4 2025, while also facing challenges related to geopolitical issues and operational disruptions in certain markets.