Corporacion America Airports Reports Third Quarter 2025 Results

Core Insights - Corporación América Airports reported strong financial results for Q3 2025, achieving record high Adjusted EBITDA of $194 million, with a margin expansion of 5.2 percentage points year-over-year [4][5][11] - The company experienced a 9.3% increase in passenger traffic, reaching 23.3 million, while revenues grew by 17%, driven by both Aeronautical and Commercial segments [4][5][10] Financial Performance - Consolidated revenues ex-IFRIC12 reached $472.1 million, up 16.6% year-over-year, with Aeronautical revenues increasing by 15.2% and Commercial revenues by 18.0% [5][11] - Operating income rose to $147 million, compared to $100.9 million in Q3 2024, reflecting a 45.6% increase [11] - Adjusted EBITDA margin ex-IFRIC12 expanded to 41.2% from 35.9% in Q3 2024, indicating improved profitability [5][11] Operational Highlights - The company maintained a strong liquidity position with $540 million in cash and cash equivalents, and a net debt to LTM Adjusted EBITDA ratio of 0.9x [5][11] - Passenger traffic increased by 9.3%, while cargo volume decreased by 3.4% to 93.5 thousand tons, and aircraft movements rose by 6.9% to 230.3 thousand [5][11] Strategic Initiatives - The company is advancing several initiatives to enhance passenger experience, including the inauguration of a redesigned Duty Free store in Armenia and expansion projects in Uruguay [7][8] - New business development includes signing an award agreement for the Baghdad Airport project in Iraq, with ongoing government processes in the Angola tender [9][10] Future Outlook - Positive traffic momentum is expected to continue, although domestic growth in Argentina may moderate from earlier strong levels [10] - The company anticipates solid results in Q4 2025, despite not benefiting from the easier comparisons that supported Q3 performance [10]