Earnings call · Jun 2026 (Q2 FY26)

CORPORACION AMERICA AIRPORTS S.A. Q2 FY26 earnings call CAAP

Aug 18, 2026 Source

Executive summary

Corporación América Airports Q2 FY26 — Diversified Portfolio Mitigates Domestic Headwinds, Declares Dividend

Corporación América Airports reported a mixed Q2 FY26, with overall adjusted EBITDA declining due to specific headwinds in Argentina and Uruguay. However, the company's diversified portfolio demonstrated resilience, with strong international traffic growth and robust commercial revenue performance across most markets. Management highlighted a strong financial position, enabling a significant cash dividend distribution and continued pursuit of strategic growth opportunities.

Highlights

International traffic increased nearly 6% overall, with Armenia showing double-digit growth of 13%.
Consolidated revenue per passenger rose nearly 9% to $22.9, reflecting stronger commercial performance.
Commercial revenues grew 13% year-over-year, outpacing traffic figures.
Four of the six operating segments delivered double-digit Adjusted EBITDA growth.
Net leverage ratio declined to 0.5x from $502 million at year-end 2025, reflecting a strong financial position.

Concerns

Adjusted EBITDA ex IFRIC 12 was down 4.5% to $160 million.
Domestic traffic declined approximately 8% overall, primarily due to lower seat capacity in Argentina (down 12%).
Adjusted EBITDA in Argentina declined 21%, with margin contracting 6.2 percentage points.
Adjusted EBITDA in Uruguay declined 16%, with margin contracting 8.4 percentage points, due to non-recurring costs.
Cargo revenues in Argentina declined due to an extraordinary bad year-over-year comparison base.

Guidance & targets

Category	Target	Timeline	Confidence
Cash dividend distribution	$150 million high materiality	FY26	High
Argentina domestic traffic	continue to be impacted by domestic seat offer, seat capacity medium materiality	next few months	High
Argentina domestic capacity replacement	gradually replaced by other airlines over time medium materiality	over time	Medium
Uruguay ILS system revenue generation	began generating revenues in August low materiality	Q3 FY26	High
Italy concession rebalancing	issue a statement in the very near future declaring this strategic project medium materiality	very near future	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Argentina International traffic supported by strong seat capacity growth. Domestic traffic affected by Flybondi fleet reduction and higher fuel prices. Cargo revenues declined due to extraordinary bad year-over-year comparison base (labor disruptions in April 2025 led to high storage revenues). International traffic: up 4%Overall passenger traffic: declined approximately 6%Domestic traffic: declined close to 12%Cargo revenues: declined	—	—	—	Adjusted EBITDA declined 21%, margin contracted 6.2 percentage points
Italy Driven mainly by international passengers. Both [indiscernible] and France Airports contributed positively. Traffic: increased just over 5%International passengers: grew 6.4% (80% of total traffic)	—	—	—	Adjusted EBITDA up 19% (11% excluding construction service at Toscana), margin expanding 3.1 percentage points
Brazil Continued year-over-year growth, driven by strong passenger growth, higher VIP lounge, space rental, and food and beverage revenues. Supported by Brazilian Real appreciation. Traffic: increased approximately 4%Transit passengers: increased 14%	double-digit growth	—	—	Adjusted EBITDA up 32%, margin expanding 2.3 percentage points
Uruguay Decline primarily due to costs associated with ILS system implementation ahead of revenue generation (started August) and non-recurring events. Partially offset by passenger growth and stronger VIP lounge and duty-free revenues. Passenger traffic: increased 2%	—	—	—	Adjusted EBITDA declined 16%, margin contracted 8.4 percentage points
Armenia Strong performance despite slight cancellations and regional aerospace restrictions. Driven by strong demand from other regions and Wiser based launch. Traffic growth: up 13%	double-digit growth	—	—	Adjusted EBITDA up 21%, margin contraction reflected continued expansion of the fuel business
Ecuador Despite continued security concerns. International traffic supported by strong demand to US, new services, and additional frequencies. Domestic traffic remains softer. Traffic: increased approximately 2%International traffic: grew more than 8%	—	—	—	Adjusted EBITDA increasing 17%, margin expanding 2 percentage points

CAAP operating KPIs by quarter

CAAP operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Passenger traffic	<22M We posted a strong performance across our operations, with nearly 22 million passengers traveling across our airports. Source transcript	~21M Approximately 21 million passengers traveled through our airports during the quarter, leaving total traffic broadly stable year-over-year. Source transcript	—

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

local partner Shortlisted bidder for Urgada Airport public tender

Public tender for Urgada Airport in Egypt, shortlisted alongside a local partner. Part of pursuing new concession opportunities across Americas, Africa, and Middle East.

Capital programs

Armenia CapEx program underway

Funding: increased working capital facility

Start: about to start

Benefit:extension of the concession agreement

Major CapEx program in Armenia, previously announced, together with the extension of the concession agreement there. Requires increased working capital facility.

Risks & headwinds

Cargo business in Argentina Q2 FY26

Adjusted EBITDA down 4.5% primarily driven by this; cargo revenues declined

Mitigation:Various initiatives already being implemented to enhance profitability.

Lower seat capacity in domestic Argentina market Q2 FY26, near-term

Domestic traffic declined approximately 8% overall, 12% in Argentina; Adjusted EBITDA down 4.5% primarily driven by this

Mitigation:Expected to be gradually replaced by other airlines over time; Flybondi plans to increase fleet from 16 to 19 aircraft in next few months.

Non-recurring costs and expenses in Uruguay Q2 FY26

Adjusted EBITDA down 4.5% primarily driven by this; Adjusted EBITDA in Uruguay declined 16% and margin contracted 8.4 percentage points

Mitigation:Costs associated with ILS system implementation ahead of related revenue (began August).

Higher fuel prices Q2 FY26

Affected seat offer in Argentina; total cost and expenses increased 16% YoY primarily driven by higher fuel costs in Armenia

Calendar shift of Easter holidays Q2 FY26

Affected passenger traffic in Uruguay

Regional aerospace restrictions related to conflict in Middle East Q2 FY26

Affected ~20% of Armenia traffic

Mitigation:Strong demand from other regions and Wiser based launch more than offset disruptions.

Continued security concerns in Ecuador Q2 FY26

Traffic increased approximately 2% despite this; domestic traffic remains softer

Runway maintenance in Aeropark and Acesa October to November (Q3 FY26)

Planned for about two days in Aeropark and more than 15 days in Acesa

Mitigation:Some traffic from Acesa will migrate to Aeropark; not expected to have a major impact on consolidated numbers.

What to watch in Q3 FY26

Argentina domestic seat capacity replacement

Next few months (Q3/Q4 FY26)

Current Domestic traffic declined 12% in Q2 FY26; Flybondi fleet at 16 aircraft

Target Gradual replacement by other airlines; Flybondi increasing to 19 aircraft

Why it matters

Domestic traffic in Argentina is a significant headwind; recovery depends on increased seat offer.

However, we expect [indiscernible] reduced operating capacity in Argentina to be gradually replaced by other airlines over time as we have observed in previous airline disruptions.

Q&A highlights

Could you provide an update on the concession rebalancing in Argentina and Italy, and is the strong commercial revenue per passenger sustainable going forward?

Martin Eurnekian stated that negotiations in Argentina are ongoing, with a leaked press report indicating progress, but no binding agreement yet. Jorge Arruda confirmed Italy's process is moving ahead, expecting a 'strategic project' declaration soon. Jorge also highlighted strong commercial revenue growth (26% ex-Argentina cargo) driven by VIP lounges, duty-free, and rentals, with future projects supporting continued performance.

“Regarding negotiation in Argentina, we -- the rebalancing in Argentina, as we have said before, we keep working with the regulator to move ahead on the rebalancing of the economic equilibrium of the concession. Many of you probably have seen a leak in the press regarding that negotiation. It should be taken as a leak. And I would only say that it indicates that we are working and moving ahead. But once we have something that is binding, we will come to you with the relevant information.”

asked by Guilherme Mendes · answered by Martin Francisco Eurnekian

2 min read 6 chapters

Detailed narrative

Q2 Performance Overview

Adjusted EBITDA ex IFRIC 12 declined 4.5% to $160 million in Q2 FY26, primarily impacted by challenges in Argentina's cargo business and lower domestic seat capacity, alongside non-recurring costs in Uruguay. Despite these headwinds, the company's diversified portfolio demonstrated resilience, with 4 of 6 segments achieving double-digit EBITDA growth and healthy international demand across most markets, supporting overall performance.

Traffic Trends and Drivers

Total passenger traffic remained broadly stable year-over-year at approximately 21 million passengers. International traffic showed strength, increasing nearly 6% with double-digit growth in Armenia (13%) and positive contributions across all regions, including Argentina. Conversely, domestic traffic declined approximately 8%, largely driven by a 12% drop in Argentina due to Flybondi's reduced operating fleet and higher fuel prices. July traffic showed sequential improvement in Argentina's domestic and international segments.

Revenue and Commercial Strength

Total revenues (excluding IFRIC 12) grew 8% year-over-year, outpacing traffic figures. Consolidated revenue per passenger increased nearly 9% to $22.9 from $21, reflecting robust commercial performance across all countries, including Argentina. Commercial revenues were particularly strong, up 13% overall, driven by fuel-related revenues in Armenia and broad-based growth in passenger treatment revenue streams like VIP lounges, space rentals, and duty-free, especially when excluding the impact of Argentina's cargo business.

Profitability by Segment

Segment-wise, Argentina's adjusted EBITDA declined 21% due to lower domestic passenger traffic and the challenging cargo comparison base. Uruguay's adjusted EBITDA fell 16% due to costs associated with the new ILS system implementation ahead of revenue generation. In contrast, Italy posted a 19% increase (11% ex-construction services), Brazil delivered a 32% increase, Armenia grew 21%, and Ecuador increased 17%, all contributing to margin expansion and highlighting the benefits of portfolio diversification.

Financial Position and Capital Allocation

The company maintains a strong financial position, ending the quarter with $861 million in total liquidity, a 20% increase from year-end 2025. Net debt declined to $381 million, resulting in a low net leverage ratio of 0.5x. The Board approved a cash dividend distribution of $150 million ($0.91 per share) for 2026, balancing shareholder returns with maintaining financial strength, preserving adequate cash at operating companies for strategic objectives (e.g., Armenia CapEx), and retaining liquidity for new growth opportunities.

Strategic Initiatives and Outlook

Management is actively pursuing strategic initiatives, including advancing concession rebalancing processes in Argentina and Italy, expanding commercial offerings in Montevideo, and improving profitability in Argentina's cargo business. The company is also exploring new concession opportunities in the Americas, Africa, and the Middle East, having been shortlisted for Urgada Airport in Egypt. While near-term challenges persist in Argentina (domestic capacity, runway maintenance, cargo comparisons), management expects gradual replacement of domestic airline capacity over time.

AI-generated summary of the company's earnings call. Not investment advice.