Core Insights - Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) reported a total passenger traffic of 5.7 million in May 2025, reflecting a year-on-year decrease of 2.2% compared to May 2024 [1][2][4] Passenger Traffic Summary - Passenger traffic in Puerto Rico increased by 1.3%, driven by a 10.5% rise in international traffic and a 0.2% increase in domestic traffic [2][4] - In Mexico, passenger traffic decreased by 3.0%, with international traffic down by 5.6% and domestic traffic down by 0.4% [2][4] - Colombia experienced a 3.4% decline in total passenger traffic, with a 6.7% increase in international traffic offset by a 6.1% decrease in domestic traffic [2][4] Detailed Traffic Data - For Mexico, total passenger traffic in May 2025 was 3,241,572, down from 3,341,200 in May 2024, with year-to-date figures showing a decrease of 3.5% [4][6] - San Juan, Puerto Rico, saw total passenger traffic of 1,151,279 in May 2025, up from 1,136,672 in May 2024, with year-to-date growth of 9.2% [4][6] - Colombia's total passenger traffic for May 2025 was 1,324,870, down from 1,371,343 in May 2024, with year-to-date figures showing an increase of 4.0% [4][6] Company Overview - ASUR operates 16 airports across the Americas, including nine in southeast Mexico and six in northern Colombia, with a significant presence in the Caribbean and Latin America [7] - The company is a 60% joint venture partner in Aerostar Airport Holdings, which operates Luis Muñoz Marín International Airport in San Juan, Puerto Rico [7]

Core Viewpoint - DHL Group Sponsored ADR (DHLGY) is currently positioned as a more attractive investment option compared to Grupo Aeroportuario del Sureste (ASR) based on valuation metrics and earnings outlook [1][7]. Valuation Metrics - DHLGY has a forward P/E ratio of 12.18, while ASR has a forward P/E of 14.48, indicating that DHLGY may be undervalued relative to ASR [5]. - The PEG ratio for DHLGY is 1.30, suggesting a favorable earnings growth outlook compared to ASR's PEG ratio of 8.37, which indicates less favorable growth expectations [5]. - DHLGY's P/B ratio stands at 1.92, compared to ASR's P/B of 3.04, further supporting the notion that DHLGY is undervalued [6]. Earnings Outlook - DHLGY is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, suggesting a positive trend in earnings estimates [3][7].

Company Overview - Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE: ASR) has reported several strong quarters of earnings since the last analysis [1]. Investment Philosophy - The investment approach emphasizes finding strategies that align with personality and analytical strengths, focusing on value investing principles rather than complex trading strategies [1]. - The company maintains a significant portion of its portfolio in index funds while actively seeking carefully selected investment opportunities [1]. Market Focus and Strategy - The focus is on identifying value opportunities, particularly in small and mid-cap sectors where market inefficiencies are prevalent [1]. - The strategy includes looking for industry leaders in out-of-favor sectors, quality companies facing temporary setbacks, and businesses with strong balance sheets and robust cash generation [1]. Analytical Approach - The analytical framework prioritizes balance sheet strength from a credit perspective, near-term cash flow generation, next twelve-month earnings forecasts, and book value analysis, especially for financial sector investments [1]. Professional Background - The investment approach is supported by over 10 years of experience in financial sector consulting, specifically with banks, insurance companies, and payment firms, which aids in identifying overlooked opportunities [1].

Core Points - Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) held its General Ordinary Shareholders' Meeting on April 23, 2025, where several key resolutions were approved regarding the company's operations and financials [1][3]. Financial Resolutions - The shareholders approved the audited individual and consolidated financial statements for the fiscal year ended December 31, 2024 [3]. - An ordinary cash dividend of Ps. 50.00 per share and two extraordinary cash dividends of Ps. 15.00 each per share were approved, to be paid in May, September, and November 2025 [3][9]. - Ps. 6.00 will be set aside from the accumulated net profits to increase the legal reserve of the company [3]. Board of Directors and Management - The report submitted by the Chief Executive Officer and the independent auditor's report for the fiscal year ended December 31, 2024, was approved [3]. - The resignation of Mr. Ricardo Guajardo Touché from the Board of Directors was accepted, and Ms. Isabel Prieto Prieto was appointed as an independent member [9]. - Compensation for board members was approved, with each member receiving Ps. 100,000.00 per meeting attended, and members of the Audit and Corporate Practices Committee receiving Ps. 135,000.00 [9]. Operational Highlights - The company operates 16 airports across Mexico, the United States, and Colombia, including major airports like Cancún and Medellin [8][10]. - ASUR is traded on the NYSE under the symbol ASR and on the Mexican Bolsa under the ticker ASUR [10].

Financial Data and Key Metrics Changes - Total revenues increased by 14% year-on-year to MXN 8.2 billion, supported by solid increases across all operations [10] - Consolidated EBITDA rose 12% year-on-year to MXN 5.7 billion, with an adjusted EBITDA margin of 70% compared to 71.4% a year ago [16] - Net majority income increased by 14% to MXN 3.5 billion [26] Business Line Data and Key Metrics Changes - Aeronautical revenues were up 9%, with commercial revenues per passenger reaching nearly MXN 147, reflecting a strong year-on-year growth in the high teens [10][14] - Puerto Rico contributed 15% of total revenues, with growth in the high 20s, while Colombia accounted for 12% of total revenues, posting growth in the low 30s [11][12] - Commercial revenues in Mexico showed a low single-digit increase, marking a positive shift from previous trends [13] Market Data and Key Metrics Changes - Passenger traffic across operations was largely flat, with Puerto Rico seeing an increase of nearly 11%, while Mexico experienced a decline of nearly 5% [4][6] - Traffic from Europe decreased by 0.8%, from the U.S. by 10.5%, and from South America by 2.8%, while traffic from Canada remained unchanged [7] - Domestic traffic in Mexico was affected by capacity limitations at Mexico City Airport, expected to be lifted in the second half of the year [8] Company Strategy and Development Direction - The company is focused on expanding commercial offerings, having opened 40 new commercial spaces over the last 12 months [12] - Significant capital expenditures are planned for infrastructure projects, including the expansion of Cancun Airport's Terminal 1, expected to be completed by 2026 [20] - The company anticipates a gradual increase in CapEx as it moves forward with strategic infrastructure projects [20] Management's Comments on Operating Environment and Future Outlook - Management expects traffic in Mexico to stabilize next year as the impact of Pratt & Whitney engine issues fades [9] - The global macro situation is described as fluid and unpredictable, but disruptions related to U.S. travel to Mexico are expected to be short-lived [10] - Management remains cautious about potential macro challenges but is optimistic about the remainder of 2025 [26] Other Important Information - The company proposed a total cash dividend of MXN 24 billion, to be paid in three tranches, reflecting solid financial performance [21] - Sustainability efforts include expanding social investment programs and building alliances for biodiversity preservation [23][24] Q&A Session Summary Question: Drivers of strong commercial revenue - Management attributed strong commercial revenue growth to positive exchange rates and passenger mix, particularly in Puerto Rico and Colombia [33] Question: CapEx impact on operating expenses - Management acknowledged that costs will increase once new infrastructure is operational, particularly with the remodeling of Terminal 1 [35] Question: Interest in CCR's airport assets - Management is analyzing CCR's airport asset offering but indicated that the proposed dividend reflects current cash reserves [41] Question: Impact of airline frequency reductions - Management stated it is too early to see any effects from U.S. airlines reducing frequencies, attributing current traffic declines mainly to Tulum Airport's ramp-up [44] Question: Mexico City Airport restrictions - Management expects capacity restrictions at Mexico City Airport to be lifted by the end of Q3, which is crucial for domestic traffic [52] Question: Tariff pricing in Mexico - Management confirmed that the maximum tariff compliance was 99% last year and that current revenues align with maximum rates [60] Question: CapEx expectations for the year - Management expects CapEx to reach approximately MXN 7 billion for Mexico, with seasonal deployment patterns [66] Question: International expansion opportunities - No updates were provided on the Aeropuerto de Bavaro investment, as it remains in the legal process [92] Question: U.S. recession impact on traffic - Management noted resilience in international traffic during past U.S. recessions and is monitoring current trends closely [98]

Company Information - Grupo Aeroportuario del Sureste, S.A.B. de C.V. is a foreign private issuer under the Securities Exchange Act of 1934[1] - The principal executive office is located in Mexico City, D.F.[2] - Adolfo Castro Rivas serves as the Chief Executive Officer[5] Report Details - The report is filed for the month of April 2025[2]

Revenue and Passenger Traffic - In 2023 and 2024, passenger charges represented 45.7% and 46.1% of the company's consolidated revenues, respectively[13]. - Total passenger traffic in the company's airports recovered for 2024, increasing by 1.1% compared to 2023[25]. - In 2022, 2023, and 2024, 63.4%, 61.8%, and 62.2% of international passengers in the company's Mexican airports arrived or departed on flights to or from the United States[28]. - In 2022, 2023, and 2024, 53.1%, 51.5%, and 52.8% of revenues from Mexican passenger charges were derived from international passengers[28]. - Revenues from Mexican passenger charges accounted for 16.6% of total revenues in 2024[49]. - In 2024, 52.6% of Mexican domestic passengers and 51.8% of Colombian domestic passengers relied on Mexico City International Airport and El Dorado International Airport, respectively, indicating a high dependency on these airports for traffic[75][76]. - Overall Mexican domestic passenger traffic to and from Mexico City decreased by 13.8% in 2024 compared to 2023[75]. - In 2024, 59.3% of total revenues were earned from aeronautical services at all airports, with 53.7%, 59.1%, and 60.1% in 2022, 2023, and 2024 respectively[137]. Economic and Political Factors - The ongoing military conflict involving Russia and Ukraine could cause significant disruptions in supply chains, adversely affecting the travel industry and the company's business[16]. - The company cannot predict how economic conditions in the United States, Mexico, or Colombia may develop in the future, which could affect tourism and travel decisions[30]. - The Colombian economy's fluctuations, including currency devaluation and changes in fiscal policies, could adversely affect the company's financial condition and results of operations[32]. - The economy of Puerto Rico has been in a recession since 2006, which has worsened due to various factors including natural disasters and the COVID-19 pandemic[33]. - The Mexican government has significant influence over the economy, which could impact market conditions and the company's financial performance[160]. - Political developments in Mexico may adversely affect the company's operations and financial condition[159]. - The U.S. is Mexico's primary trading partner, receiving over 80% of Mexico's total exports, and any weakened trading ties could adversely impact the Mexican economy and the company's business[171]. - The company cannot predict the impact of political, economic, and social conditions on the Mexican economy, which may adversely affect its financial condition and results of operations[165]. - Political instability and violence in Colombia may adversely affect the economy and operations of the company[190]. Financial Performance and Risks - The company has outstanding indebtedness of U.S.$640.6 million as of December 31, 2024, with U.S.$136.7 million of that being floating rate[64]. - Increased interest rates could adversely affect the company's financial condition, impacting debt service costs and overall results of operations[64]. - The company is exposed to risks related to construction projects, which could lead to delays or budget overruns affecting its ability to expand capacity at Mexican airports[86]. - The company’s insurance policies may not provide sufficient coverage against all liabilities, exposing it to potential financial risks[101]. - The company is subject to potential fines and penalties pending the outcome of its appeal against the Mexican government's tax treatment of airport concessions[57]. - The company is currently evaluating the potential impact of new concessions granted by the government that could compete with its airports[132]. Regulatory and Compliance Issues - The FAA downgraded Mexico's aviation safety rating to Category 2 on May 25, 2021, which affected 0.8%, 0.7%, and 1.1% of passengers traveling to or from the U.S. in 2022, 2023, and 2024 respectively[60]. - The Mexican government increased the concession fee for federal airports from 5.0% to 9.0% of gross annual regulated revenues, effective January 1, 2024[120]. - The amendments to the Mexican Airport Law enhance regulatory authority over civil aviation, including the ability to revoke permits and impose sanctions for non-compliance[119]. - The company faces risks from potential violations of the Mexican Airport Law, which could lead to fines or termination of concessions[128]. - The creation of a single authority for free competition may affect the enforcement of competition laws and the company's operations[126]. Operational Developments - The company incurred major capital expenditures in Puerto Rico during 2024, including costs related to the reconstruction of Terminal D and Runway 8/26[89]. - The company entered into an investment agreement in May 2023 for developing an international airport in Bavaro, Dominican Republic, with a total estimated investment of U.S.$66.0 million, of which U.S.$48.1 million remains pending[89]. - The company completed all projects under the 2014 and 2016 investment agreements with the Colombian government for certain airports by March 6, 2020[88]. - The Felipe Carrillo Puerto International Airport, inaugurated on December 1, 2023, is expected to impact passenger traffic and operating results, although the extent is uncertain[134]. Taxation and Fiscal Policies - The Colombian government passed Law 2277, introducing a new permanent equity tax with rates ranging from 0.5% to 1.5% based on net equity, effective January 1, 2023[185]. - The dividend tax rate for local and foreign shareholders increased to a progressive marginal rate of up to 39% for Colombian individuals and a flat 20% for non-resident shareholders[185]. - The long-term capital gains tax rate rose from 10% to 15%[185]. - A minimum corporate income tax of at least 15% was established based on the effective tax rate calculated on book profit[185]. - The Colombian government introduced a new tax reform bill in September 2024, proposing to increase equity tax rates up to 2% and long-term capital gains tax from 15% to 20%, but it was rejected in December 2024[188]. Future Outlook - IATA forecasts global airline industry net profits of U.S.$36.6 billion on revenues of U.S.$1,007 billion for 2025[43]. - Forward-looking statements are made in various reports and communications, indicating the company's expectations and plans for future performance[209]. - The company uses terms like "believe," "anticipate," and "expect" to identify forward-looking statements, which are not the exclusive means of identification[210].

Group 1 - Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) has filed its annual report on Form 20-F for the year ended December 31, 2024, with the U.S. Securities and Exchange Commission [1] - ASUR has published its 2024 Sustainability Report, detailing the company's environmental, social, and governance performance [1] - ASUR operates 16 airports across the Americas, including nine in southeast Mexico and six in northern Colombia, with Cancun Airport being the most significant tourist destination in Mexico [3] Group 2 - ASUR is a 60% joint venture partner in Aerostar Airport Holdings, LLC, which operates Luis Muñoz Marín International Airport in San Juan, Puerto Rico [3] - The company is listed on both the Mexican Bolsa under the symbol ASUR and on the NYSE under the symbol ASR, with one ADS representing ten series B shares [3] - Investors can access ASUR's 2024 Form 20-F and Sustainability Report on its Investor Relations website [2]

Core Insights - Grupo Aeroportuario del Sureste (ASUR) reported a total passenger traffic of 6.5 million in March 2025, marking a year-over-year increase of 1.2% compared to March 2024 [1][2][4] Passenger Traffic Summary - Passenger traffic increased by 13.7% in Puerto Rico, 3.1% in Colombia, while it decreased by 3.0% in Mexico [2][4] - In Puerto Rico, international traffic rose by 12.0% and domestic traffic by 13.8% [2][4] - Colombia experienced an 8.4% increase in international traffic and a 1.6% increase in domestic traffic [2][4] - Mexico saw a 5.7% decrease in international traffic, which was partially offset by a 1.1% increase in domestic traffic [2][4] Detailed Traffic Figures - For March 2025, Mexico's total passenger traffic was 3,902,720, down 3.0% from 4,024,853 in March 2024 [4][6] - Domestic traffic in Mexico increased slightly by 1.1% to 1,593,163, while international traffic decreased by 5.7% to 2,309,557 [4][6] - In Puerto Rico, total passenger traffic reached 1,323,498, up 13.7% from 1,164,522 in March 2024 [4][6] - Colombia's total passenger traffic was 1,319,997, reflecting a 3.1% increase from 1,280,754 [4][6] Year-to-Date Performance - Year-to-date figures show a total of 10,945,137 passengers in Mexico, a decrease of 4.8% from 11,496,410 in the same period last year [4][6] - In Puerto Rico, year-to-date traffic increased by 10.6% to 3,608,582 from 3,261,896 [4][6] - Colombia's year-to-date traffic rose by 6.4% to 4,046,354 from 3,804,230 [4][6] Company Overview - ASUR operates 16 airports across the Americas, including nine in southeast Mexico and six in northern Colombia [7] - The company is a significant player in the airport sector, particularly with its operations at Cancun Airport, a major tourist destination [7] - ASUR is also a 60% joint venture partner in Aerostar Airport Holdings, which operates Luis Muñoz Marín International Airport in San Juan, Puerto Rico [7]

Group 1: Stock Performance - Grupo Aeroportuario del Sureste (ASR) shares increased by 10.6% in the last trading session, closing at $285.93, following a period of 10.5% loss over the past four weeks [1] - The company has seen a year-to-date stock performance gain of 11% despite tariff-related tensions [2] Group 2: Earnings Expectations - ASR is expected to report quarterly earnings of $5.52 per share, reflecting an 11.1% year-over-year decline, while revenues are projected to be $462.64 million, up 5.6% from the previous year [3] - The consensus EPS estimate for ASR has been revised 1.1% higher over the last 30 days, indicating a positive trend that may lead to price appreciation [4] Group 3: Industry Context - Grupo Aeroportuario del Sureste operates within the Zacks Transportation - Services industry, where Matson (MATX) is another player, having closed 0.5% higher at $130.10, but with a -8.7% return in the past month [4] - Matson's consensus EPS estimate has increased by 73.7% over the past month to $2.64, representing a 153.9% change from the previous year [5]