Grupo Aeroportuario Del Sureste ((ASR)) has held its Q4 earnings call. Read on for the main highlights of the call.
Grupo Aeroportuario Del Sureste’s recent earnings call highlighted a robust financial performance, with notable revenue and EBITDA growth driven by operations in Colombia and Puerto Rico. However, the company faces challenges, including flat passenger traffic, declines in international traffic, and ongoing issues with Pratt & Whitney engines, particularly affecting Mexican operations.
Revenue Growth Across Regions
Total revenues for the quarter saw a 19% year-on-year increase, reaching MXN 7.4 billion. This growth was fueled by strong performances in Colombia, which experienced a 30% increase, Mexico with a mid-teen increase, and Puerto Rico with a high 20% growth.
EBITDA and Margin Improvement
The company reported a 23% year-on-year rise in consolidated EBITDA, surpassing MXN 5 billion. The adjusted EBITDA margin improved by 200 basis points, reaching 69.7%, reflecting efficient cost management and operational performance.
Strong Commercial Revenue Growth
Commercial revenues grew in the high single digits year-on-year, with significant contributions from Puerto Rico and Colombia, which saw increases of 26% and 31%, respectively.
Infrastructure Investments
ASUR invested MXN 2.5 billion in capital expenditures during the quarter, focusing on expanding Terminal 1 at Cancun Airport and Terminal Oaxaca Airport. These projects are expected to be completed by 2026, enhancing capacity and service quality.
Flat Passenger Traffic
Passenger traffic remained flat year-over-year, declining slightly by 0.3%. Mexico experienced an 8% decline, highlighting regional challenges in maintaining traffic levels.
International Traffic Decline
International traffic faced declines across all regions, with the U.S. down by 8.8%, Europe by 6.4%, South America by 11.1%, and Canada by 0.6%, reflecting broader market challenges.
Pratt & Whitney Engine Issues
Ongoing restrictions with Pratt & Whitney engines have significantly impacted domestic traffic, particularly at Mexico City Airport, posing operational challenges.
Impact of Tulum Airport
Tulum Airport’s operations have diverted 1.2 million passengers from Cancun, with expectations to increase to 1.7 million, affecting Cancun’s international traffic.
Forward-Looking Guidance
ASUR’s guidance indicates a stable passenger traffic outlook, with a slight decline of 0.3% year-over-year to 17.7 million passengers. The company anticipates traffic normalization by 2026, supported by ongoing infrastructure developments and market adjustments. Revenue and EBITDA growth are expected to continue, driven by strong performances in Colombia and Puerto Rico.
In summary, Grupo Aeroportuario Del Sureste’s earnings call reflected a strong financial position with growth in revenue and EBITDA, despite facing challenges in passenger and international traffic. The company’s strategic investments in infrastructure and expectations for market normalization by 2026 position it well for future growth.