Auckland International Airport Ltd. ((AUKNY)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Auckland International Airport Ltd. recently held its earnings call, showcasing a robust financial performance and infrastructure advancements. The sentiment was generally positive, with strong growth in international connectivity. However, challenges were noted in domestic passenger numbers, retail income, and ongoing operational issues.
Revenue Growth
The company reported a 12% increase in full-year revenue, surpassing $1 billion. This growth was primarily driven by an increase in passenger numbers and aeronautical charges, highlighting the airport’s ability to capitalize on rising travel demand.
EBITDAFI and Profit Increase
Auckland Airport’s operating EBITDAFI rose by 14% to $701 million, with a notable EBITDAFI margin of 69.8%. The reported profit after tax saw a significant rise, reaching $420.7 million, reflecting the company’s strong financial health.
Infrastructure Progress
The fiscal year 2025 marked continued momentum in infrastructure development, with over 1,500 personnel engaged in various projects. This progress underscores the airport’s commitment to enhancing its facilities and capacity.
International Connectivity
International airline seat capacity stabilized at 92% of 2019 levels, with new routes and expanded capacity announced by airline partners. This development is crucial for the airport’s growth in international traffic.
Commercial Property Strength
The commercial property segment demonstrated robust performance, with rental growth leading to an 18% increase in rent roll to $192 million. Occupancy rates remained high, exceeding 99%.
Domestic Passenger Decline
The airport faced a slight decline in domestic passenger numbers, down 0.5% to 8.4 million. This was attributed to airline capacity constraints and a challenging economic environment.
Retail Income Challenges
Retail income per passenger saw a modest increase of 1%, impacted by foreign exchange fluctuations and consumer preferences shifting towards lower price points.
Ongoing Operational Challenges
The global backlog of replacement fleet orders has led airlines to prioritize higher-yielding routes, resulting in a 2.2% year-on-year reduction in international capacity.
Forward-Looking Guidance
Looking ahead, Auckland Airport anticipates continued passenger growth, with international and domestic numbers expected to reach 10.6 million and 8.6 million, respectively, in FY ’26. The guidance for underlying earnings is projected between $280 million and $320 million, acknowledging ongoing airline capacity constraints and geopolitical uncertainties.
In summary, Auckland International Airport Ltd.’s earnings call reflected a positive sentiment with strong financial performance and infrastructure progress. Despite challenges in domestic passenger numbers and retail income, the airport remains optimistic about future growth and expansion.