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 notable decline in Jamaica due to Hurricane Melissa [3][4] - Combined aeronautical and non-aeronautical service revenues increased by 12.8%, with aeronautical revenues growing by 12.6% and non-aeronautical revenues 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 lower interest income, alongside deferred tax adjustments [7] Business Line Data and Key Metrics Changes - Aeronautical revenues for the full year grew by 19.4%, driven by a new tariff and a 3.7% increase in passenger traffic in Mexico [7][8] - Non-aeronautical revenue increased by 26.5% for the year, with revenue per passenger rising to MXN 152 from MXN 123 in 2024 [8] - The commercial segment in Mexico showed strong performance, particularly in cargo, food and beverage, and retail [6] Market Data and Key Metrics Changes - In Jamaica, passenger traffic was significantly impacted by Hurricane Melissa, leading to a nearly 35% decline in traffic during the quarter [4][5] - Recovery in hotel capacity in Jamaica is expected to reach 100% by the 2026 winter season, supporting long-term growth potential [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] - A strategic transaction to integrate the Cross Border Xpress platform is underway, aimed at enhancing operational efficiency and expanding service capabilities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the Jamaican market despite recent challenges [5] - For 2026, passenger traffic is expected to grow between 2% and 5%, with total revenues projected to increase by 8% to 11% year-over-year [14][15] Other Important Information - The company closed 2025 with MXN 10.5 billion in cash and cash equivalents, having strengthened its capital structure through bond issuance [9] - CapEx for 2025 was MXN 12.4 billion, focusing on major terminal expansions and capacity enhancements [9] Q&A Session Summary Question: Can you provide details on Guadalajara and Puerto Vallarta 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 [18] Question: Will there be an expansion in the U.S. beyond CBX? - Management indicated that they are exploring opportunities for expansion in the U.S. while maintaining disciplined capital allocation [20] Question: What is the expected timing for pending tariff adjustments? - Management outlined a series of tariff increases implemented throughout 2025, with additional increases expected in the summer [26][27] Question: Can you break down traffic increase expectations for Mexico and Jamaica? - Management expects a traffic increase of 2% to 5% in Mexico, while Jamaica may see a slight decline of 2% to 0% due to hotel capacity recovery [30][33] Question: What are the priorities for capital allocation now that the Turks and Caicos process is over? - Management emphasized focusing on the CBX project and exploring other opportunities that align with the company's strategic goals [36]