Aeroports de Paris ADP (ADP) AI Stock Analysis

• Market Cap: €11.34B
• Dividend Yield: 2.69%
• Average Volume (3M): 74.95K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 1.06
• Revenue Growth: 10.23%
• EPS Growth: -88.02%
• Country: FR
• Employees: 29,330
• Sector: General
• Sector Strength: N/A
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 2.80
• Shares Outstanding: 98,960,600
• 10 Day Avg. Volume: 92,483
• 30 Day Avg. Volume: 74,953
• PEG Ratio: 2.43
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 1.64
• P/FCF Ratio: 42.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €124.71
• Price Target Upside: 8.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 6.39
• Revenue Forecast (FY): €6.98B

• Rating: 62 Neutral
• Price Target: €128.00 ▲(11.69% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven by solid operating profitability and steady operating cash generation, but is held back by high leverage, weak/volatile free cash flow in 2025, and a relatively expensive valuation (P/E ~30.8). Technicals are supportive with the stock trading above major moving averages, providing a partial offset.

Positive Factors

High operating margins

Sustained high operating and EBITDA margins indicate ADP’s airport platform benefits from structural cost leverage and high-margin non-aeronautical services. Strong operating profitability supports reinvestment in terminals and services and underpins durable cash generation across business cycles.

Steady operating cash flow

Consistent ~€1.5B operating cash flow provides a reliable internal funding base for capex, maintenance and service obligations. For an infrastructure operator, stable OCF reduces dependence on short-term financing and supports medium-term operational continuity and investment plans.

Diversified revenue streams and revenue recovery

A diversified mix (aeronautical fees, retail, parking, real estate) and recovering passenger-driven revenue reduce reliance on any single source. This structural diversification supports demand resilience and margin stability as travel normalization continues over the medium term.

Negative Factors

High leverage

Elevated debt (~2.4x equity) constrains financial flexibility for an infrastructure operator. High leverage increases sensitivity to interest-rate moves, narrows room for incremental investment or shareholder returns, and raises refinancing risk over the next several quarters to years.

Volatile and weak free cash flow

Sharp FCF decline and poor conversion (FCF ~17% of net income) limits internal capacity to pay down debt or increase distributions. For capital-intensive airports, volatile FCF signals timing risks on capex and working capital and may force reliance on external funding.

Weakened net profitability

A steep drop in net margin points to heavier below-the-line costs (depreciation, financing, taxes) that compress retained earnings. This reduces earnings quality and limits internal reserves for investment or debt reduction, creating longer-term pressure on shareholder returns.

Aeroports de Paris ADP Business Overview & Revenue Model

Company Description

Aeroports de Paris SA owns and operates airports worldwide. The company operates through Aviation, Retail and Services, Real Estate, International and Airport Developments, and Other Activities segments. The Aviation segment offers security and airport safety services, such as security checkpoints, screening systems, aircraft rescue, and fire-fighting services. The Retail and Services segment provides retail activities comprising of bars, restaurants, banks, car rentals, and retails shops, as well as engages in leasing of space for terminals, advertising, restaurant, and car park services. This segment is also involved in production and supply of heat, drinking water, and access to the chilled distribution networks. The Real Estate segment engages in construction, commercialization, and lease management of office, logistic buildings, and freight terminals; and provides property leasing services for airport terminals, as well as rents serviced land. The International and Airport Developments segment designs and operates airport activities. The Other Activities segment offers telecom and cybersecurity services. It operates and manages approximately 28 airports worldwide. Aeroports de Paris SA was incorporated in 1945 and is based in Tremblay-en-France, France.

How the Company Makes Money

ADP generates revenue through multiple streams, primarily from airport operations which include landing and take-off fees charged to airlines, passenger service fees, and cargo handling fees. A significant portion of its income comes from non-aeronautical activities, including retail and duty-free sales, restaurants, and advertising within airport premises. Additionally, ADP earns revenue from car parking services and real estate development projects related to airport facilities. Collaborations with airlines and governmental contracts also bolster its financial performance, as ADP continually seeks to enhance operational efficiency and passenger services.

Aeroports de Paris ADP Financial Statement Overview

Summary

Operating performance is strong (2025 operating margin ~19.7% and EBITDA margin ~34.6%) with steady operating cash flow (~€1.5B). However, net margin weakened materially (~5.7% in 2025 vs ~11.5% in 2023), leverage is high (debt ~2.44x equity in 2025), and free cash flow fell sharply in 2025 (to ~€257M), keeping risk elevated.

Income Statement

Revenue has recovered strongly from 2020–2021 levels and continued to grow through 2025 (2025 revenue up ~4.2% year over year). Profitability is solid at the operating level in 2022–2025 (2025 operating profit margin ~19.7% and EBITDA margin ~34.6%), showing good underlying economics for the airport platform. The key weakness is net profitability: net margin fell to ~5.7% in 2025 from ~11.5% in 2023, indicating heavier below-the-line costs (e.g., depreciation/financing/taxes) and making earnings quality less consistent despite healthy operating performance.

Balance Sheet

Leverage is high for the period shown, with debt running at roughly 2.3–2.9x equity (about 2.44x in 2025), which limits flexibility and increases sensitivity to higher rates and refinancing conditions. Equity has been relatively stable around €4.0–€4.4B and returns on equity turned positive and improved versus the loss years, reaching ~8.8% in 2025 (down from ~14.5% in 2023). Overall, the balance sheet is serviceable but meaningfully debt-loaded for an infrastructure-like business.

Cash Flow

Operating cash flow is steady and strong (about €1.5B in both 2024 and 2025), supporting ongoing operations. However, free cash flow is volatile and declined sharply in 2025 (down ~53.9% to ~€257M), reducing internally generated capacity for debt reduction or shareholder returns. Free cash flow conversion is also weak versus earnings in 2025 (free cash flow only ~17% of net income), signaling heavier reinvestment or working-capital/infrastructure cash demands.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.70B	6.16B	5.50B	4.69B	2.78B
Gross Profit	3.36B	3.98B	2.40B	1.69B	520.00M
EBITDA	2.32B	2.05B	2.13B	1.83B	873.00M
Net Income	381.00M	342.00M	631.00M	516.00M	-248.00M
Balance Sheet
Total Assets	20.27B	20.18B	19.66B	18.84B	18.36B
Cash, Cash Equivalents and Short-Term Investments	1.89B	2.17B	2.44B	2.63B	2.38B
Total Debt	10.59B	10.67B	9.82B	9.84B	10.17B
Total Liabilities	14.86B	14.67B	14.36B	13.93B	14.13B
Stockholders Equity	4.35B	4.42B	4.36B	4.03B	3.52B
Cash Flow
Free Cash Flow	257.00M	435.00M	578.00M	645.00M	24.00M
Operating Cash Flow	1.52B	1.52B	1.59B	1.34B	551.00M
Investing Cash Flow	-1.10B	-1.46B	-1.25B	-726.00M	-1.09B
Financing Cash Flow	-456.00M	-458.00M	-721.00M	-367.00M	-536.00M

Aeroports de Paris ADP Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 114.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ADP, the sentiment is Negative. The current price of 114.6 is below the 20-day moving average (MA) of 117.37, above the 50-day MA of 113.78, and below the 200-day MA of 114.65, indicating a neutral trend. The MACD of 1.28 indicates Positive momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 39.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ADP.

Aeroports de Paris ADP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEC	72 Outperform	€3.61B	15.61	11.69%	3.60%	5.80%	-9.84%
ADP	62 Neutral	€11.34B	30.61	2.20%	2.69%	10.23%	-88.02%
AF	58 Neutral	€2.91B	1.91	―	―	5.52%	1001.19%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%