Group 1 - Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB), known as OMA, is recognized as one of the best Mexican stocks to invest in [1] - Jefferies has maintained a Buy rating for OMA and set a price target of $135 for the shares [2] - OMA operates 13 airports in central and northern Mexico, including key locations such as Monterrey, Acapulco, Mazatlán, and Chihuahua [3] Group 2 - OMA announced a second cash dividend installment for 2025, scheduled for November 27, amounting to 2.25 billion Mexican pesos, which corresponds to 5.77 Mexican pesos per share [2] - The total approved dividend for 2025 is 4.5 billion Mexican pesos, with the full-year dividend per share reaching 11.54 Mexican pesos [2]

Core Insights - Grupo Aeroportuario del Centro Norte (OMAB) is characterized as a "cash flow machine" indicating strong financial performance and operational efficiency [1] Company Analysis - The analysis highlights the company's ability to generate significant cash flow, which is a critical factor for long-term investment potential [1] - The focus is on identifying undervalued companies with strong fundamentals, suggesting that OMAB may be an attractive investment opportunity due to its overlooked value [1] Market Context - The analyst's background in macroeconomic research provides a comprehensive view of the market dynamics affecting OMAB, particularly in the context of the Latin American economic landscape [1]

Financial Data and Key Metrics Changes - In Q3 2025, total passenger traffic reached 7.6 million, an 8% increase year over year [3] - Aeronautical revenues increased by 11%, with aeronautical revenue per passenger rising by 3% [4] - Adjusted EBITDA grew by 9% to 2.7 billion pesos, with a margin of 74.8% [5][10] - Consolidated net income was 1.5 billion pesos, reflecting a 9.1% increase compared to the same quarter last year [10] - Total debt at the end of September was 13.6 billion pesos, with a net debt to adjusted EBITDA ratio of 0.9 times [11] Business Line Data and Key Metrics Changes - Domestic passenger traffic grew by 7%, primarily driven by Monterrey Airport [3] - International passenger traffic increased by 11%, with significant contributions from routes to San Francisco and Dallas [4] - Commercial revenues grew by 7%, with parking, restaurants, VIP lounges, and retail being the main contributors [4][8] - Industrial services revenues increased by 53%, driven by higher leased square meters and contractual rent increases [9] Market Data and Key Metrics Changes - The occupancy rate for commercial space stood at 96% at the end of the quarter [4] - The overall traffic growth expectation for the year is between 7% and 8% [14] Company Strategy and Development Direction - The company is focusing on expanding capacity and commercial opportunities at Monterrey Airport, with half of the Master Development Program (MDP) investment allocated there [23] - The company is exploring international expansion opportunities, although no concrete transactions are currently in place [23] Management's Comments on Operating Environment and Future Outlook - Management expects commercial revenues per passenger to gradually increase in line with inflation [17] - Cost pressures from AG&E and utility costs are viewed as not permanent, with ongoing analysis to maintain costs [19] Other Important Information - Total investments in Q3 amounted to 472 million pesos, including major maintenance and strategic investments [5] - The negotiation process for the next MDP is on track, with expectations for a resolution in December [6][7] Q&A Session Summary Question: Traffic expectations for Q4 and 2026 - Management expects overall traffic growth for the year to be between 7% and 8%, with next year's growth anticipated in the low to mid-single digits [14] Question: Drivers behind the decline in commercial revenue per passenger - The decline is attributed to one-time revenues recorded in the previous year, with expectations for gradual increases in future quarters [17] Question: Outlook on AG&E and utility cost pressures - Cost pressures are not expected to be permanent, with management actively analyzing alternatives to control costs [19] Question: Capital allocation for the next MDP and international expansion - Half of the MDP will be allocated to Monterrey, focusing on capacity expansion and commercial opportunities, while international expansion opportunities are being explored [23]

Financial Data and Key Metrics Changes - In Q3 2025, OMA's passenger traffic reached 7.6 million, an 8% year-over-year increase, with seat capacity rising by 11% [3] - Aeronautical revenues increased by 11%, with aeronautical revenue per passenger rising by 3% [4] - Adjusted EBITDA grew by 9% to MXN 2.7 billion, with an adjusted EBITDA margin of 74.8% [5][10] - Consolidated net income for the quarter was MXN 1.5 billion, reflecting a 9.1% increase compared to the same quarter last year [10] - Cash generated from operating activities amounted to MXN 1.9 billion, with a cash position of MXN 4.4 billion at the end of the quarter [11] Business Line Data and Key Metrics Changes - Domestic passenger traffic grew by 7%, primarily driven by Monterrey Airport, contributing significantly to overall growth [3] - International passenger traffic increased by 11%, with notable contributions from routes to San Francisco, Atlanta, and Dallas [4] - Commercial revenues grew by 7%, with commercial revenue per passenger at MXN 60, driven by parking, restaurants, VIP lounges, and retail [4][8] - Industrial services revenues surged by 53%, mainly due to increased leased square meters in the industrial park [9] Market Data and Key Metrics Changes - The occupancy rate for commercial space was 96% at the end of the quarter, indicating strong demand [4] - The overall investment level for the next Master Development Program is expected to remain similar in real terms to the previous program [7] Company Strategy and Development Direction - The company plans to allocate around half of its Master Development Program (MDP) investment to Monterrey, focusing on capacity expansion and commercial opportunities [23] - OMA is exploring international expansion opportunities, although no concrete transactions are currently in place [23] Management Comments on Operating Environment and Future Outlook - Management expects overall traffic growth for the year to be between 7% and 8%, with a forecast of low to mid-single-digit growth for the following year [14] - Cost pressures from AG&E and utility costs are viewed as not permanent, with ongoing efforts to manage costs effectively [19] Other Important Information - Total debt at the end of September was MXN 13.6 billion, with a net debt to adjusted EBITDA ratio of 0.9x, indicating a solid financial position [11] Q&A Session Summary Question: Traffic expectations for Q4 and early thoughts on 2026 - Management anticipates overall traffic growth for the year to be between 7% and 8%, with expectations for next year in the low to mid-single digits [14] Question: Drivers behind the decline in commercial revenue per passenger - The decline is attributed to one-time revenues recorded in the previous year, with expectations for gradual increases in future quarters [17] Question: Outlook on AG&E and utility cost pressures - Cost pressures are not expected to be permanent, with management analyzing alternatives to maintain costs [19] Question: Capital allocation for the next MDP and potential international expansion - Half of the MDP will be allocated to Monterrey, focusing on capacity and commercial opportunities, while international expansion opportunities are being explored [23]

Financial Data and Key Metrics Changes - In Q3 2025, total passenger traffic increased by 8% year over year, totaling 7.6 million passengers [4] - Aeronautical revenues rose by 11%, with aeronautical revenue per passenger increasing by 3% [6] - Adjusted EBITDA grew by 9% to MXN 2.7 billion, with an EBITDA margin of 74.8% [7][13] - Consolidated net income for the quarter was MXN 1.5 billion, reflecting a 9.1% increase compared to the same quarter last year [13] - Total debt at the end of the quarter was MXN 13.6 billion, with a net debt to adjusted EBITDA ratio of 0.9 times [14] Business Line Data and Key Metrics Changes - Commercial revenues increased by 7%, driven by parking, restaurants, VIP lounges, and retail, with occupancy rates for commercial space at 96% [6][10] - Industrial services revenue surged by 53%, attributed to higher square meters leased and contractual rent increases [11] - Non-aeronautical revenues grew by 7.3%, with significant contributions from parking and retail [9][10] Market Data and Key Metrics Changes - Domestic passenger traffic grew by 7%, primarily due to increased routes from Monterrey Airport [5] - International passenger traffic increased by 11%, with notable growth on routes to San Francisco, Atlanta, and Dallas [5] Company Strategy and Development Direction - The company is focusing on expanding capacity and commercial opportunities at Monterrey Airport, which accounts for half of its traffic [30] - The Master Development Program (MDP) is under negotiation, with expectations for final resolution in December [7][8] Management Comments on Operating Environment and Future Outlook - Management anticipates overall traffic growth for the year to be between 7% to 8%, with expectations for low to mid-single-digit growth in 2026 [19] - Cost pressures from SG&A and utility costs are viewed as temporary, with management exploring alternatives to maintain cost control [24] Other Important Information - Total investments in Q3 amounted to MXN 472 million, including major maintenance and strategic investments [7] - Cash generated from operating activities was MXN 1.9 billion, with cash position at MXN 4.4 billion at the end of the quarter [13][14] Q&A Session Summary Question: Traffic expectations for Q4 and 2026 - Management expects overall traffic growth for the year to be between 7% to 8%, with low to mid-single-digit growth anticipated for next year [19] Question: Decline in commercial revenue per passenger - The decline is attributed to one-time revenues recorded in the previous year, with expectations for gradual increases in the following quarters [22] Question: SG&A and utility cost pressures - Management views these cost pressures as temporary and is analyzing alternatives to maintain cost control [24] Question: Capital allocation for the next MDP - Half of the capital will be allocated to Monterrey for capacity expansion and commercial opportunities [30]

Financial Data and Key Metrics Changes - In Q3 2025, total passenger traffic reached 7.6 million, an 8% increase year over year, with seat capacity rising by 11% [3][4] - Aeronautical revenues increased by 11%, with aeronautical revenue per passenger rising by 3% [4][10] - Total aeronautical and non-aeronautical revenues grew by 9.8% to 3.5 billion pesos [9] - Adjusted EBITDA increased by 9% to 2.7 billion pesos, with a margin of 74.8% [5][10] - Consolidated net income was 1.5 billion pesos, reflecting a 9.1% increase compared to the same quarter last year [10][11] Business Line Data and Key Metrics Changes - Domestic passenger traffic grew by 7%, primarily driven by Monterrey Airport, contributing to 68% of total domestic growth [3][4] - International passenger traffic increased by 11%, with significant contributions from routes to San Francisco, Atlanta, and Dallas [4] - Commercial revenues grew by 7%, with notable increases in parking (9.4%), restaurants (9.8%), VIP lounges (9.9%), and retail (8.2%) [8][9] - Industrial services revenues surged by 53%, driven by higher leased square meters and contractual rent increases [9] Market Data and Key Metrics Changes - The occupancy rate for commercial space stood at 96% at the end of the quarter [4] - Cash generated from operating activities amounted to 1.9 billion pesos, with a cash position of 4.4 billion pesos at the end of the quarter [11] Company Strategy and Development Direction - The company is focused on its Master Development Program (MDP) for 2026-2030, with expectations for a similar investment level to the previous MDP [5][6] - Approximately half of the MDP will be allocated to Monterrey, reflecting its significant traffic share [22] - The company is exploring international expansion opportunities, although no concrete plans have been disclosed [22] Management's Comments on Operating Environment and Future Outlook - Management expects overall traffic growth for the year to be between 7% and 8%, with a forecast of low to mid-single digits growth for 2026 [14] - Cost pressures from AG&E and utility costs are viewed as temporary, with expectations for cost management strategies to mitigate these pressures [18] Other Important Information - Total investments in Q3 2025 amounted to 472 million pesos, including major maintenance and strategic investments [5] - The company maintains a solid financial position with a net debt to adjusted EBITDA ratio of 0.9 times [11] Q&A Session Summary Question: Traffic expectations for Q4 and early thoughts on 2026 - Management anticipates overall traffic growth for the year between 7% and 8%, with next year's growth expected in the low to mid-single digits [14] Question: Drivers behind the decline in commercial revenue per passenger - The decline is attributed to one-time revenues recorded in the previous year, with expectations for gradual increases in future quarters [16] Question: Outlook on AG&E and utility cost pressures - Cost pressures are seen as temporary, with management analyzing alternatives to maintain costs in check [18] Question: Capital allocation for the next MDP and international expansion - Half of the MDP will focus on Monterrey, with ongoing exploration of international expansion opportunities [22]

Core Insights - The report is part of Ian's Insider Corner, which provides subscribers with access to investment ideas, updates, and macro analysis [1][2] - Ian Bezek, the lead analyst, has extensive experience in Latin American markets and focuses on high-quality growth stocks [3] Group 1 - Ian's Insider Corner includes features such as the Weekend Digest, trade alerts, and direct access to the lead analyst [2] - The group emphasizes research on new stocks and updates on current holdings [2] - Ian Bezek has a background as a hedge fund analyst and specializes in identifying reasonable-priced growth stocks [3]

Financial Data and Key Metrics Changes - Aeronautical revenues increased by 17% year-over-year, driven by higher yields and increased passenger traffic [15][19] - Non-aeronautical revenues grew by 16%, with commercial revenues rising by 20% [15][19] - Adjusted EBITDA increased by 19% to MXN 2.6 billion, with an adjusted EBITDA margin of 74.6% [13][19] Business Line Data and Key Metrics Changes - Passenger traffic totaled 7.2 million, an 11% increase year-over-year, with domestic traffic growing by 10% and international traffic by 19% [11][12] - Commercial revenue per passenger increased by 8% to 62 pesos, with strong growth in restaurants (41.1%), parking (12.7%), VIP lounges (34.6%), and retail (27.4%) [13][17] - Diversification revenues increased by 11%, primarily from industrial services [13][19] Market Data and Key Metrics Changes - The occupancy rate for commercial space stood at 96% at the end of the quarter [13] - Viva Aerobus represented 51% of total traffic, with a 14% increase in terminal passenger numbers, while Volaris accounted for 24% of total traffic with a 31% increase [12] Company Strategy and Development Direction - The company is negotiating the 2630 Master Development Program, with a total committed investment similar to previous programs, focusing on enhancing efficiency and optimizing operations [8][9] - Approximately 49% of the investment will be allocated to Monterrey Airport, with key projects including terminal expansions and technology upgrades [10][56] Management Comments on Operating Environment and Future Outlook - Management anticipates mid to high single-digit traffic growth for the remainder of the year, influenced by reduced airline capacity and tougher comparisons to the previous year [26] - Strong economic performance in Monterrey is driving traffic growth, attributed to industrial activity and high occupancy in the industrial park [28] Other Important Information - The company completed a MXN 2.75 billion issuance in long-term notes, with proceeds used for loan repayments and committed investments [8] - Total debt at the end of the quarter amounted to MXN 13.6 billion, with a net debt to adjusted EBITDA ratio of one time [21] Q&A Session Summary Question: Confirmation on MDP CapEx levels - Management confirmed that the CapEx will be at a similar level in real terms, not per passenger [23] Question: Traffic outlook for the second half of the year - Management expects mid to high single-digit traffic growth, with some reduction anticipated due to airline capacity cuts [26] Question: Drivers of traffic performance - Traffic growth is attributed to strong economic performance in Monterrey and new routes [27][28] Question: Network development expectations for Monterrey Airport - New openings are expected in the domestic market, but growth may not accelerate significantly due to capacity cuts [33] Question: Tariff expectations for MVP - Management indicated that they do not foresee decreases in tariffs, with expected growth in low single digits [40] Question: Growth in commercial revenue per passenger - Management expects continued growth driven by contract renegotiations and new outlet openings [45] Question: Potential investments in Brazil - The company is not formally involved in the process of acquiring airport assets in Brazil but is always looking for opportunities [51] Question: Contribution of Monterrey to non-commercial revenues - Specific numbers were not available, but management will follow up [55] Question: Focus of new investments in Monterrey - Investments will focus on expanding platform capacity and improving operational efficiency [56] Question: Upside risk on passenger growth due to U.S. DOT actions - Management does not expect major impacts from recent U.S. DOT actions but will monitor the situation [63] Question: Dividend policy in light of expected CapEx - The company plans to maintain a similar dividend policy, distributing between 85% to 95% of net income [67]

Financial Data and Key Metrics Changes - Aeronautical revenues increased by 17% year-over-year, driven by higher yields and increased passenger traffic [12][15] - Non-aeronautical revenues grew by 16%, with commercial revenues rising by 20% [15][19] - Adjusted EBITDA increased by 19% to MXN 2.6 billion, with an adjusted EBITDA margin of 74.6% [13][19] - Consolidated net income reached MXN 1.3 billion, reflecting a 3.8% increase compared to the same quarter last year [20] Business Line Data and Key Metrics Changes - Passenger traffic totaled 7.2 million, an 11% increase year-over-year, with domestic traffic growing by 10% and international traffic by 19% [11][12] - Commercial revenue per passenger increased by 8% to 62 pesos, driven by strong performance in restaurants, parking, VIP lounges, and retail [13][15] - The occupancy rate for commercial space stood at 96% at the end of the quarter [13] Market Data and Key Metrics Changes - Monterrey Airport was a significant driver of growth, contributing to 65% of total domestic passenger growth and 66% of international passenger traffic increase [11][12] - Viva Aerobus represented 51% of total traffic, with a 14% increase in terminal passenger numbers, while Volaris accounted for 24% of traffic with a 31% increase [12] Company Strategy and Development Direction - The company is focused on a master development program aimed at enhancing efficiency and optimizing operations, with a significant portion of investment allocated to Monterrey Airport [8][10] - The investment proposal emphasizes capacity optimization and improving passenger experience, with a low single-digit increase in maximum tariffs expected [10][19] Management Comments on Operating Environment and Future Outlook - Management anticipates mid to high single-digit traffic growth for the remainder of the year, despite some capacity reductions announced by airlines [26] - Strong economic performance in the Monterrey region is attributed to industrial activity, which is expected to continue driving traffic growth [29] Other Important Information - The company completed a MXN 2.75 billion issuance in long-term notes, with proceeds used for loan repayments and committed investments [7] - Changes in senior management were announced, with a new COO and CCO set to join the company [5][6] Q&A Session Summary Question: Confirmation on MDP CapEx levels - Management confirmed that the CapEx levels are similar in real terms to previous programs [24][25] Question: Traffic outlook for the second half of the year - Management expects mid to high single-digit traffic growth, with some reduction anticipated due to airline capacity cuts [26] Question: Drivers of traffic performance - Traffic growth is attributed to strong economic performance and industrial activity in Monterrey [28][29] Question: Network development expectations for Monterrey Airport - New domestic routes are expected, but growth may be tempered by capacity cuts [34] Question: Tariff expectations for MVP - Management indicated that tariff increases are expected to be in the low single digits, with no decreases anticipated [41] Question: Growth in commercial revenue per passenger - Management highlighted ongoing initiatives to enhance commercial revenues through contract renegotiations and new outlet openings [44][45] Question: Potential investments in Brazil - The company is not formally involved in the process of acquiring airport assets in Brazil but is always looking for opportunities [49] Question: Contribution of Monterrey to non-commercial revenues - Specific numbers were not provided, but management will follow up on this inquiry [52] Question: Focus of new investments in Monterrey - Investments will focus on expanding platform capacity and improving operational efficiency [54][55] Question: Impact of U.S. DOT actions on passenger growth - Management does not expect major impacts from recent U.S. DOT actions but will monitor the situation closely [60] Question: Dividend policy outlook - The company plans to maintain a similar dividend distribution policy, with potential increases as EBITDA and net income grow [64]

Group 1 - International Consolidated Airlines Group SA (ICAGY) is a notable stock within the Transportation group, which consists of 122 companies, currently ranked 13 in the Zacks Sector Rank [2] - The Zacks Rank system indicates that ICAGY has a ranking of 2 (Buy), suggesting a favorable outlook for the stock based on earnings estimate revisions [3] - The Zacks Consensus Estimate for ICAGY's full-year earnings has increased by 3.1% over the past quarter, reflecting improved analyst sentiment and a stronger earnings outlook [4] Group 2 - ICAGY has achieved a year-to-date return of approximately 33.1%, significantly outperforming the Transportation sector, which has an average return of -2.5% [4] - Within the Transportation - Airline industry, which includes 25 companies, ICAGY is performing better than the industry average return of 5.6% year-to-date [6] - Grupo Aeroportuario del Centro Norte (OMAB), another stock in the Transportation sector, has a year-to-date return of 56.6% and a Zacks Rank of 1 (Strong Buy), indicating strong performance in the sector [5][7]