CAAP — Corporación América Airports S.A.

Summary of Corporación América Airports (CAAP) Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Passenger Traffic: Increased by 7% year-over-year, with international traffic up 14%. Argentina saw a notable 19% increase in international traffic.
• Total Revenues: Rose by 19%, significantly outpacing passenger traffic growth. Argentina's revenues grew by 16%, Armenia by 31%, and Brazil by 39%.
• Revenue per Passenger: Increased to $22.70, up 11% from $20.50 in Q1 2025.
• Adjusted EBITDA: Increased by 26% to $196 million, with margins expanding by 2.3 percentage points.
• Net Debt: Decreased to $419 million, with a net leverage ratio of 0.5x.
• Liquidity: Total liquidity reached $772 million, up 8% from the end of 2025.

2. Strategic Updates and Business Highlights

• Geographic Performance: Strong growth in Argentina, Armenia, Brazil, and Ecuador, with international demand being a key driver.
• Cargo Business: Cargo revenues increased by 16% year-over-year, although total cargo volume rose only 1.7%.
• Concession Extension: Secured a 35-year extension for the Armenian concession, along with a $425 million investment program to enhance infrastructure.
• Market Expansion: Ongoing discussions for new opportunities in Iraq and Angola, with no significant equity contributions expected.

3. Forward Guidance and Outlook

• Demand Trends: Strong demand anticipated, particularly in international markets. The company is considering implementing a dividend policy to enhance shareholder returns while maintaining investment flexibility.
• Infrastructure Investments: Continued focus on upgrading infrastructure and improving passenger experience across operations.

4. Bad News, Challenges, or Points of Concern

• Operational Disruptions: Domestic traffic in Argentina faced challenges due to a nationwide strike and airline capacity constraints.
• Geopolitical Risks: The regional geopolitical situation in Armenia and the Middle East conflict impacted traffic, particularly with Middle Eastern routes.
• Cost Pressures: Rising fuel costs and inflation in Argentina are ongoing concerns, although the company has managed to maintain cost discipline.

5. Notable Q&A Insights

• Impact of Fuel Prices: No significant demand impact observed across the portfolio due to higher fuel prices, as most airlines are hedged.
• Dividend Policy: The company is in discussions regarding a potential dividend policy, with plans to communicate details to the market soon.
• Negotiations in Argentina and Italy: Progress is being made in negotiations, with expectations to finalize agreements by year-end for Italy, enabling construction to begin.
• Future Auctions: CAAP is exploring several new business opportunities with manageable equity contributions, expected to enhance the portfolio's value.

Overall, CAAP demonstrated strong financial performance and operational resilience in Q1 2026, with positive growth trends and strategic advancements, despite facing some operational challenges and geopolitical risks.