LATAM Airlines Group SA Sponsored ADR (LTM)
NYSE:LTM
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LATAM Airlines Group SA Sponsored ADR
(NYSE:LTM)
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Rating:77Outperform
Price Target:
$54.00
▲(2.64% Upside)
Action:UpgradedDate:02/06/26
The score is driven primarily by strong operational/cash-flow performance and a positive outlook from management’s 2026 guidance, reinforced by bullish technical trends. Valuation is supportive with a moderate P/E and ~3% dividend yield. The main offset is elevated balance-sheet leverage, which raises risk if demand, fuel, or FX conditions deteriorate.
Positive Factors
Improving cash generation
Consistent positive free cash flow (≈$2.0B in 2025) and strong operating cash flow (~$3.26B) show durable cash conversion versus recent years. This supports recurring CapEx, dividends, buybacks and liquidity targets, reducing cyclicality risk and enhancing financial flexibility over the next 2–6 months.
Negative Factors
High leverage and large debt stock
Elevated gross debt (~$8.1B) and materially higher debt-to-equity (~6.0x) limit financial flexibility and increase vulnerability to demand or cost shocks. Despite improvement, the capital structure remains leveraged for an airline, constraining strategic optionality over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
Consistent positive free cash flow (≈$2.0B in 2025) and strong operating cash flow (~$3.26B) show durable cash conversion versus recent years. This supports recurring CapEx, dividends, buybacks and liquidity targets, reducing cyclicality risk and enhancing financial flexibility over the next 2–6 months.
Read all positive factors
LATAM Airlines Group SA Sponsored ADR (LTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.35B
Dividend Yield3.5%
Average Volume (3M)1.28M
Price to Earnings (P/E)10.9
Beta (1Y)0.74
Revenue Growth6.81%
EPS Growth58.22%
CountryUS
Employees39,005
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)1.69
Shares Outstanding287,109,950
10 Day Avg. Volume872,379
30 Day Avg. Volume1,280,212
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)11.83
Price to Sales (P/S)1.12
P/FCF Ratio10.71
Enterprise Value/Market Cap1.48
Enterprise Value/Revenue1.49
Enterprise Value/Gross Profit5.17
Enterprise Value/Ebitda5.25
Forecast
1Y Price Target
$62.28Price Target Upside18.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)5.34
Revenue Forecast (FY)$15.96B
LATAM Airlines Group SA Sponsored ADR Business Overview & Revenue Model
Company Description
LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Chile, Peru, Ecuador, Colombia, Brazil, other Latin American countries, the Caribbean, North America, Europe, and Oceania. It of...
How the Company Makes Money
LATAM Airlines Group primarily makes money by selling air transportation and related travel services.
1) Passenger revenue (core): The largest revenue stream typically comes from passenger ticket sales on domestic and international routes. Passen...
LATAM Airlines Group SA Sponsored ADR Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive performance narrative: significant revenue and profit growth, record customer and employee metrics, robust cash generation, balance sheet improvement and a confident 2026 guidance. The main negative items are a quarter-on-quarter cargo revenue decline (vs an unusually strong prior-year quarter), a temporary rise in unit costs driven by currency moves and one-time wage items, and an end-of-year net debt impact from an early dividend payment. Management frames the cost increases and cargo softness as transitory and points to structural improvements (premium mix, loyalty, fleet and liquidity) that support outlook and guidance.Positive Updates
Strong Revenue and Quarterly Growth
4Q revenues nearly $4.0B, up 16.3% YoY; passenger revenues +20.3% in the quarter; passenger RASK +11.7% in 4Q, demonstrating strong pricing and demand.
Negative Updates
Quarterly Cargo Revenue Weakness
Cargo revenues declined 9.6% in 4Q vs a very strong 4Q 2024 comparison base; management notes the drop is largely due to an exceptionally strong prior-year quarter, though cargo remains positive for the full year.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue and Quarterly Growth
4Q revenues nearly $4.0B, up 16.3% YoY; passenger revenues +20.3% in the quarter; passenger RASK +11.7% in 4Q, demonstrating strong pricing and demand.
Read all positive updates
Company Guidance
LATAM's 2026 guidance calls for capacity growth of 8–10%, an adjusted operating margin of 15–17%, and adjusted levered free cash flow exceeding $1.7 billion (vs. $1.5B in 2025), with year‑end liquidity above $5.0 billion; management expects to receive 41 aircraft (3 wide‑bodies/787s, 12 Embraer E2s and 26 A320‑family), plans net CapEx of about $1.7 billion (net of financing, with a relevant portion financed), and projects $1.0–$1.6 billion available for additional capital allocation after CapEx and minimum statutory dividends (guidance assumes BRL ~5.5).LATAM Airlines Group SA Sponsored ADR Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
45
Neutral
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.27B | 12.83B | 11.64B | 9.36B | 4.88B |
| Gross Profit | 4.16B | 3.27B | 2.82B | 1.26B | -79.47M |
| EBITDA | 3.27B | 2.34B | 1.28B | 2.26B | -3.34B |
| Net Income | 1.46B | 976.97M | 581.83M | 1.34B | -4.65B |
Balance Sheet | |||||
| Total Assets | 17.64B | 15.25B | 14.67B | 13.21B | 13.29B |
| Cash, Cash Equivalents and Short-Term Investments | 2.17B | 1.96B | 1.85B | 1.35B | 1.12B |
| Total Debt | 8.09B | 7.15B | 7.04B | 6.87B | 10.54B |
| Total Liabilities | 16.30B | 14.54B | 14.23B | 13.18B | 20.36B |
| Stockholders Equity | 1.35B | 723.27M | 450.30M | 42.28M | -7.06B |
Cash Flow | |||||
| Free Cash Flow | 1.49B | 1.69B | 1.47B | -733.86M | -859.86M |
| Operating Cash Flow | 3.26B | 3.11B | 2.26B | 96.80M | -184.10M |
| Investing Cash Flow | -1.71B | -1.17B | -659.50M | -748.96M | -542.65M |
| Financing Cash Flow | -1.41B | -1.56B | -1.15B | 854.96M | 109.64M |
LATAM Airlines Group SA Sponsored ADR Technical Analysis
Positive
52.61
Price Trends
55.10
Negative
53.87
Negative
48.74
Positive
Market Momentum
-1.10
Negative
54.88
Neutral
50.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LTM, the sentiment is Positive. The current price of 52.61 is above the 20-day moving average (MA) of 48.97, below the 50-day MA of 55.10, and above the 200-day MA of 48.74, indicating a neutral trend. The MACD of -1.10 indicates Negative momentum. The RSI at 54.88 is Neutral, neither overbought nor oversold. The STOCH value of 50.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LTM.
LATAM Airlines Group SA Sponsored ADR Risk Analysis
LATAM Airlines Group SA Sponsored ADR disclosed 51 risk factors in its most recent earnings report. LATAM Airlines Group SA Sponsored ADR reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LATAM Airlines Group SA Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.35B | 10.91 | 135.39% | 3.50% | 6.81% | 58.22% | |
74 Outperform | $4.90B | 7.41 | 25.62% | 5.28% | 1.36% | 6.84% | |
72 Outperform | $44.47B | 8.99 | 23.14% | 0.96% | 4.33% | -1.58% | |
68 Neutral | $31.15B | 10.91 | 24.13% | ― | 4.24% | 20.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $19.85B | 50.61 | 5.33% | 1.73% | 0.65% | ― | |
46 Neutral | $7.53B | 25.57 | -2.76% | ― | 1.27% | 118.64% |
* Industrials Sector Average
LTM
LATAM Airlines Group SA Sponsored ADR
53.10
26.50
99.62%
CPA
Copa Holdings
119.25
39.00
48.59%
DAL
Delta Air Lines
67.83
28.95
74.45%
LUV
Southwest Airlines
40.21
14.93
59.06%
UAL
United Airlines Holdings
97.67
34.92
55.65%
AAL
American Airlines
11.37
1.86
19.56%
LATAM Airlines Group SA Sponsored ADR Corporate Events
LATAM Airlines Board Proposes Final 2025 Dividend Ahead of April 23 Shareholders’ Meeting
Apr 8, 2026
LATAM Airlines Group S.A. said its board agreed on April 7, 2026, to propose a definitive, minimum mandatory Dividend No. 55 totaling the Chilean peso equivalent of US$37,995,268.60 to the ordinary shareholders’ meeting set for April 23, 202...
LATAM Airlines Lifts February Traffic 9% as Load Factors Strengthen Across Network
Mar 9, 2026
In February 2026, LATAM Airlines Group transported 7.1 million passengers, a 9.3% increase versus February 2025, as consolidated load factor improved 2.2 percentage points to 85.6%. The group expanded system capacity by 11.4% in available seat-kil...
LATAM Airlines Calls Remote Ordinary Shareholders’ Meeting for April 23, 2026
Mar 4, 2026
LATAM Airlines Group S.A. has called an Ordinary Shareholders’ Meeting for April 23, 2026, to be held via remote participation tools, reflecting ongoing digitalization of its corporate governance processes. Shareholders registered by midnigh...
LATAM Airlines Details 12 Million ADS Secondary Offering via J.P. Morgan
Feb 11, 2026
On February 11, 2026, LATAM Airlines Group S.A. reported to the U.S. Securities and Exchange Commission that it has entered into an underwriting agreement dated February 9, 2026, with J.P. Morgan Securities LLC and a selling shareholder for a seco...
LATAM Airlines Starts 2026 With Strong Passenger Growth and Higher Load Factors
Feb 10, 2026
LATAM Airlines Group reported that in January 2026 it transported 8.2 million passengers, a 9.0% increase from January 2025, with its system-wide passenger load factor improving to 86.4%. Consolidated capacity grew 11.1% year over year, led by a 1...
LATAM Airlines Discloses Sixth Secondary ADR Sale by Sixth Street Partners
Feb 10, 2026
On February 9, 2026, LATAM Airlines Group S.A. disclosed that a shareholder initiated the sixth secondary sale under an existing registration rights agreement, involving 12,000,000 of the company’s ADRs. The ADRs were priced at US$61.90 each...
LATAM Airlines Secondary ADR Offering Priced at $61.90 per Share
Feb 10, 2026
On February 9, 2026, LATAM Airlines Group S.A. said a shareholder priced a public secondary offering of 12,000,000 American Depositary Shares at $61.90 per ADS, with J.P. Morgan Securities LLC acting as underwriter. The transaction, expected to cl...
LATAM Airlines Updates F-3 With 2025 Audited Results and Controls Report
Feb 9, 2026
LATAM Airlines Group S.A. has filed a Form 6-K in February 2026, incorporating into its existing F-3 shelf registration a fresh set of audited consolidated financial statements for the years ended December 31, 2025, 2024 and 2023. The filing also ...
LATAM Airlines Discloses Planned Sixth Secondary Share Sale Request by Shareholder
Feb 9, 2026
On February 9, 2026, LATAM Airlines Group disclosed that a shareholder has requested the initiation of a sixth secondary sale of the company’s shares under an existing Registration Rights Agreement, with the transaction intended to be a firm...
LATAM Airlines Shareholder Launches Secondary Offering of 9 Million ADSs
Feb 9, 2026
LATAM Airlines Group S.A., the leading passenger and cargo carrier in Latin America, operates in key domestic markets across the region and serves long‑haul routes to North America, Europe, Africa, Oceania and the Caribbean with a mixed Boei...
LATAM Airlines Files Interim Consolidated Financial Statements for Year-End 2025
Feb 3, 2026
On February 3, 2026, LATAM Airlines Group S.A. filed a Form 6-K with the U.S. Securities and Exchange Commission providing its interim consolidated financial statements as of December 31, 2025. The filing, signed by Chief Financial Officer Ricardo...
LATAM Airlines Posts US$1.5 Billion Profit for 2025 as Capacity and Cash Generation Climb
Feb 3, 2026
On February 3, 2026, LATAM Airlines Group reported its full-year and fourth-quarter 2025 results, highlighting an 11.2% increase in annual revenue to US$14.5 billion and a 49.4% jump in net income attributable to shareholders to US$1.5 billion, su...
LATAM Airlines Carries 87.4 Million Passengers in 2025 as Brazil and International Routes Drive Growth
Jan 12, 2026
On January 12, 2026, LATAM Airlines Group reported that it transported 87.4 million passengers in 2025, a 6.6% increase versus 2024, underscoring continued recovery and expansion driven primarily by Brazil’s domestic market and international...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.