Corporacion America Airports ((CAAP)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Corporación América Airports’ latest earnings call conveyed a generally positive sentiment, underscored by robust performance across most markets. The company celebrated record-breaking passenger traffic and financial growth, although challenges in Ecuador and Uruguay were acknowledged.
Record Passenger Traffic Growth
Passenger traffic surged by 13.7% year-over-year, setting historical records in Argentina, Italy, Uruguay, and Armenia. Domestic traffic saw a near 15% rise, while international traffic increased by 12%, marking a significant milestone for the company.
Revenue and EBITDA Growth
Revenues climbed nearly 19%, with adjusted EBITDA seeing a 23% year-over-year increase. The revenue per passenger also rose to $21, highlighting the company’s strong financial performance.
Strong Cargo Revenue Performance
Cargo revenues experienced a 30% year-over-year increase, driven by improved pricing dynamics and new revenue streams, particularly in Argentina, Brazil, and Uruguay.
Solid Financial Position
The company ended the quarter with a total liquidity position of $595 million, and the net leverage ratio improved to a record low of 1x, showcasing its robust financial health.
Environmental Approval for Florence Airport
Corporación América Airports received environmental approval from the region of Tuscany for the Florence Airport Master Plan in April, marking a significant step forward in their expansion plans.
Flat Traffic in Ecuador
Ecuador faced flat traffic with a slight 0.5% decline in total passengers, primarily due to reduced U.S. operations and challenging security conditions.
Decline in Adjusted EBITDA in Ecuador
Reflecting weaker passenger traffic, Ecuador’s adjusted EBITDA declined by 3%, indicating some financial challenges in this region.
Adverse Weather Impact in Uruguay
Uruguay’s July traffic declined by 6% year-over-year, mainly due to adverse weather conditions and the removal of a key route, affecting overall performance.
Forward-Looking Guidance
Looking ahead, Corporación América Airports anticipates continued growth, particularly in Argentina, Italy, and Romania. The company reported robust growth in the second quarter of 2025, with passenger traffic increasing by 13.7% year-over-year. Revenues grew by nearly 19%, and adjusted EBITDA increased by 23% year-over-year. The company also announced a $150 million dividend distribution from their Argentine subsidiary.
In conclusion, Corporación América Airports’ earnings call reflected a strong overall sentiment, with significant growth in passenger traffic and financial metrics. Despite some regional challenges, the company remains optimistic about future growth prospects, particularly in key markets like Argentina and Italy.