PAC — Grupo Aeroportuario del Pacífico, S.A.B. de C.V.

Summary of GAP's Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Passenger Traffic: Declined by 5.6% year-over-year.
• Revenue (excluding construction services): Increased by 4.9%.
• EBITDA: Grew by 8.4%, reaching MXN 6 billion, with an EBITDA margin of 69.3% (up 230 basis points).
• Aeronautical Revenues: Decreased by 3.2% due to lower passenger traffic and a 10.9% appreciation of the Mexican peso.
• Non-aeronautical Revenues: Increased by 23.9%, driven by growth in GAP-operated businesses and the consolidation of Cross Border Xpress (CBX).
• Operating Costs: Remained stable; however, costs increased by 3% when excluding certain effects.
• Cash Position: Strengthened with MXN 5.4 billion in cash and cash equivalents post-merger.

2. Strategic Updates and Business Highlights

• Diversification Strategy: GAP's commercial strategy is increasingly resilient, with significant growth in non-aeronautical revenues (e.g., advertising up 58%, hotel operations up 27%).
• CBX Performance: Generated MXN 168 million in revenue with over 626,000 passengers in May and June, indicating a strong pricing model.
• Operational Highlights: Guadalajara Airport successfully managed additional traffic during the FIFA World Cup, with a 6% increase in traffic, though this was offset by declines at other airports.

3. Forward Guidance and Outlook

• Passenger Traffic Guidance: Revised to a range between -3% and flat growth for 2026, indicating gradual improvement in the second half of the year.
• Aeronautical Revenues: Expected to grow by 1% to 4%.
• Non-aeronautical Revenues: Projected to increase by 21% to 24%.
• EBITDA Growth: Anticipated to be between 10% and 12%, with a target EBITDA margin of approximately 67%.
• CapEx: Expected to be around MXN 4 billion, focusing on airport capacity and infrastructure improvements.

4. Challenges and Points of Concern

• Traffic Decline: The 5.6% drop in passenger traffic is concerning, particularly due to external factors like rising jet fuel costs and security issues affecting international travel.
• Jamaica Operations: Ongoing recovery from Hurricane Melissa is slow, impacting traffic and hotel capacity.
• Economic Environment: Weak macroeconomic indicators in Mexico, including declining consumer spending, may hinder future growth.
• International Leisure Demand: Remains under pressure, particularly in regions affected by security concerns.

5. Notable Q&A Insights

• Traffic Recovery: Management acknowledged that June's weak performance was partly due to increased airfares during the World Cup, but they expect a rebound in July as domestic travelers return.
• FIBRA Listing: The approval process for incorporating FIBRA GAP is ongoing, with expectations for completion in Q3 2026. The tax implications post-transaction are expected to be minimal.
• Future Tariffs: Management indicated that while they will not offer general concessions to airlines, they may consider specific support for routes facing connectivity risks.
• 2027 Outlook: Early discussions suggest potential growth, but external factors like oil prices and airline mergers could impact forecasts.

This summary encapsulates the key points from GAP's Q2 2026 earnings call, reflecting both the company's resilience and the challenges it faces in a fluctuating economic landscape.