Grupo Aeroportuario del Pacifico(PAC) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Passenger traffic decreased by 0.9% in Q4 2025 compared to Q4 2024, with a 2.9% growth in Mexico despite varying performance across different airports [3][4] - Combined aeronautical and non-aeronautical service revenues increased by 12.8%, with aeronautical revenues growing by 12.6% and non-aeronautical revenues increasing by 13.3% quarter-over-quarter [5][6] - EBITDA increased by 7.5% to MXN 5.1 billion, with an EBITDA margin of 63.8%, reflecting higher concession fees and increased operational costs [6][7] - Net income declined due to higher financial expenses and decreased interest income, alongside deferred tax adjustments [7] Business Line Data and Key Metrics Changes - Aeronautical revenues for the full year 2025 grew by 19.4%, driven by new tariffs and a 3.7% increase in passenger traffic in Mexico [8] - Non-aeronautical revenue increased by 26.5% for the year, with non-aeronautical revenue per passenger rising to MXN 152 from MXN 123 in 2024 [8][9] - The commercial segment in Mexico showed strong performance, particularly in cargo, food and beverage, retail, and ground transportation [6] Market Data and Key Metrics Changes - The impact of Hurricane Melissa led to a nearly 35% decrease in traffic at Montego Bay and Kingston airports during Q4 2025, although recovery is expected by the 2026 winter season [4][5] - The hotel capacity in Jamaica is projected to return to 100% by the upcoming winter season, supporting long-term growth potential in the market [5] Company Strategy and Development Direction - The company is focused on four growth pillars: strengthening connectivity, expanding commercial revenues, disciplined execution of infrastructure programs, and maintaining a long-term leverage strategy [15] - The business combination with CBX is expected to enhance operational efficiency and expand service capabilities, contributing positively to long-term value creation [10][15] - The company remains disciplined in capital allocation, focusing on projects that align with strategic and financial return criteria [10][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the Jamaican market and the overall structural growth potential despite recent challenges [5] - For 2026, passenger traffic is expected to grow between 2% and 5%, with total revenues projected to increase between 8% and 11% year-over-year [13][14] - EBITDA is anticipated to grow between 8% and 11%, with margins remaining solid at approximately 65% ±1% [14] Other Important Information - The company closed 2025 with MXN 10.5 billion in cash and cash equivalents, having strengthened its capital structure through bond issuances [9] - The company invested MXN 12.4 billion in CapEx during 2025, focusing on major terminal expansions and capacity enhancements [9][10] Q&A Session Summary Question: Can you provide updates on Guadalajara and Puerto Vallarta regarding cancellations and bookings? - Management reported significant cancellations initially but noted a recovery with only four cancellations in Puerto Vallarta and eleven in Guadalajara the following day, expecting no further impact [18][19] Question: Will there be an expansion in the U.S. beyond CBX? - Management indicated that the CBX platform opens opportunities for new investments in the U.S., and they will continue to look for projects that generate shareholder value [19][20] Question: What is the expected timing for pending tariff adjustments? - Management detailed previous tariff increases and indicated that additional increases are planned for the summer, aiming for 95% fulfillment on time [25][26] Question: Can you break down traffic increase expectations for Mexico and Jamaica? - Management expects a 2% to 5% increase in traffic overall, with Jamaica's recovery projected to be around -2% to 0% due to hotel capacity issues [30][31] Question: What are the priorities for capital allocation now that the Turks and Caicos process is over? - Management stated that the focus will be on the CBX project and looking for other opportunities that align with the company's strategic goals [34][35]