Can you provide an update on the timing for the Argentina concession rebalance and the Italy investment opportunity approval?

The Argentina rebalance is on track, but public timing is difficult due to political and bureaucratic dynamics. For Italy, environmental approval has been received, and progress is being made, but a timetable for full construction approval is not yet available. “On Argentina, we are in the right track. However, it's very difficult for us to provide, publicly, a timing for the outcome of the rebalance given the political and bureaucracy dynamics associated with a process like this one.”

What is the capital allocation strategy for new regions and concessions, and what are the main drivers for commercial revenue growth going forward?

The company is pursuing Iraq and Angola concessions (though delayed by war) and actively looking at opportunities in the Middle East, Central Asia, Africa, and Americas, prioritizing portfolio growth funded by cash at hand. Commercial revenues performed very well in 2025, driven by VIP lounges, parking, fueling, and cargo, with similar but potentially less intense performance expected in early 2026. “And what we are seeing in the first few months of the year is a bit more of the same, perhaps not as intense as we saw in 2025, but the portfolio is performing very well.”

What is the funding strategy for potential acquisitions outside of Argentina?

Funding for current acquisition targets would primarily come from cash at hand, given the size of the opportunities being considered. “So sorry, I think the targets that we are currently looking at, the funding would come primarily from cash at hand given the size of the opportunity that we are looking at.”

CAAP

Corporacion America Airports S.A. (CAAP) Q4 FY25 earnings call: guidance and Q&A

Q: Will the strong profitability seen in Q4 FY25 be the new base for CAAP, and what is the impact of the war on Armenia operations?

EBITDA margins are stable for now, with the business expected to continue growing above passenger traffic. In Armenia, traffic has been flat since the war started, affecting 10-15% of traffic, though the first two months of the year showed positive growth. “In terms of your second question, approximately 10% to 15% of the traffic in Armenia has been affected by the war. The first few months of the year were very positive, around 11% growth for the first two months. And what we have observed since the war is it's flat. It's no growth, no decline.”

Earnings call· Dec 2025 (Q4 FY25)· Industrials· Mar 17, 2026

Source: earnings call transcript

Executive summary

Corporación América Airports S.A. Q4 FY25 — Record Traffic and Strong Profitability

Corporación América Airports concluded FY25 with record passenger traffic and robust financial performance, driven by broad-based growth across key markets and effective commercial execution. Profitability significantly expanded, and the balance sheet strengthened, providing flexibility for strategic growth initiatives, including recent concession extensions and new bidding processes. The company continues to monitor geopolitical headwinds impacting some operations, particularly in Armenia and the Middle East.

Highlights

Total passenger traffic reached a record 22.3 million in Q4 FY25, growing over 9% year-over-year.
Revenue excluding IFRIC 12 increased 17% year-over-year, outpacing passenger traffic growth.
Adjusted EBITDA excluding IFRIC 12 was up nearly 40% to $211 million in Q4 FY25.
Net leverage ratio improved significantly to 0.7x at year-end FY25.
Secured a 35-year concession extension in Armenia and a 6-year extension in Galapagos, enhancing long-term visibility.

Concerns

Armenia's passenger traffic growth flattened since the war, with approximately 10% to 15% of traffic affected.
Ecuador's adjusted EBITDA declined 12% in Q4 FY25, primarily due to higher maintenance expenses.
Italy's domestic traffic declined modestly in Q4 FY25, mainly reflecting operational disruptions at certain airlines.

Guidance & targets

Category	Target	Timeline	Confidence
Passenger traffic momentum	Continued positive momentum medium materiality	Full-year 2026 · FY26	Medium
Commercial optimization and revenue per passenger growth	Continue to prioritize low materiality	Ongoing	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Argentina Strong operating leverage, continued cost discipline, and favorable currency fluctuations contributed to performance. Strong momentum continued into January and February with traffic up 7.9% and 5.8% respectively. Passenger traffic: up nearly 9%Domestic traffic: up 6%International traffic: up 15%Aeronautical revenues: up 21%	Up 18%	—	—	Adjusted EBITDA up 42% (7.5 percentage points margin expansion)
Armenia Margin contraction primarily reflected higher operating expenses and a greater contribution from the fueling business. Strong performance continued into January and February with traffic up 10% and 11.6% respectively. Passenger traffic: up nearly 14%	Double-digit growth	—	—	Adjusted EBITDA up 15%
Brazil Improvement reflects a better environment among main airlines and stronger activity during summer season. Trend extended into January and February with traffic up 16% and 8.2% respectively. Passenger traffic: up 12%	Double-digit growth	—	—	Adjusted EBITDA up 44% (ex-COVID item, 6.4 percentage points margin expansion)
Italy Growth mainly driven by international segment. Domestic decline reflected operational disruptions at certain airlines. Positive trend continued into January and February with traffic up 4% and 7.4% respectively. Passenger traffic: up 8%International traffic: up 11%Domestic traffic: declined modestly	Double-digit growth	—	—	Adjusted EBITDA down 11% (up 4% ex-construction services)
Uruguay Performance reflects recovery from temporary disruption in Q3 and stronger seasonal operations. Impacted by higher salaries, maintenance expenses, and Uruguayan peso appreciation. Traffic in January and February up 1% and 2.4% respectively. Passenger traffic: up 5%	Double-digit growth	—	—	Adjusted EBITDA slightly down 2%
Ecuador Decline mainly due to higher maintenance expenses concentrated in Q4 FY25. Traffic in January and February up 5% and 8.6% respectively. Passenger traffic: up 1%	—	—	—	Adjusted EBITDA declined 12%

CAAP operating KPIs by quarter

CAAP operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q1 FY26	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: earnings call transcript	~21M Approximately 21 million passengers traveled through our airports during the quarter, leaving total traffic broadly stable year-over-year. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

Government of Armenia Concession extension for Zvartnots International Airport 35 years

Secured a 35-year extension of the concession through 2067, which includes a $425 million investment program and significant expansion of infrastructure.

Government of Ecuador Concession extension for Galapagos Airport 6 years

Achieved a 6-year extension of the Galapagos concession.

Government of Iraq Concession award for Baghdad Airport

Received concession awards and been selected as preferred leaders for Baghdad in Iraq, subject to the execution of definitive concession agreements. Process expected to be delayed due to geopolitical situation.

Government of Angola Preferred bidder for Luanda Airport concession

Selected as preferred bidder for Luanda in Angola, subject to the execution of definitive concession agreements. Company is in frequent discussions with the government to finalize this process.

Capital programs

Armenia concession investment program underway $425 million

Benefit:Significant infrastructure expansion

Part of the 35-year concession extension through 2067.

Risks & headwinds

Geopolitical situation in Middle East Ongoing

Armenia traffic flat since war, 10-15% of traffic affected; Iraq concession process expected to be delayed.

Mitigation:Closely monitoring and remaining attentive to potential implications for international travel; pursuing opportunities and in frequent discussions with government in Angola.

Operational disruptions at certain airlines Q4 FY25

Italy domestic traffic declined modestly in Q4 FY25.

Political and bureaucracy dynamics in Argentina Ongoing

Difficult to provide public timing for concession rebalance.

Mitigation:In frequent discussions with the government.

Higher maintenance expenses Q4 FY25

Ecuador adjusted EBITDA declined 12% in Q4 FY25.

What to watch in Q1 FY26

Argentina concession rebalance

Next quarter

Current On the right track

Target Concrete news or timing for outcome

Why it matters

Resolution impacts future financial terms and stability in a key market.

On Argentina, we are in the right track. However, it's very difficult for us to provide, publicly, a timing for the outcome of the rebalance given the political and bureaucracy dynamics associated with a process like this one. But again, we are in the right track. We are in very frequent discussions with the government, and we will keep the market updated as we receive concrete news from the government.

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Q&A highlights

Will the strong profitability seen in Q4 FY25 be the new base for CAAP, and what is the impact of the war on Armenia operations?

EBITDA margins are stable for now, with the business expected to continue growing above passenger traffic. In Armenia, traffic has been flat since the war started, affecting 10-15% of traffic, though the first two months of the year showed positive growth.

“In terms of your second question, approximately 10% to 15% of the traffic in Armenia has been affected by the war. The first few months of the year were very positive, around 11% growth for the first two months. And what we have observed since the war is it's flat. It's no growth, no decline.”

asked by Alessandro Demichelis · answered by Jorge Arruda

2 min read 7 chapters

Detailed narrative

Record Performance in FY25

Corporación América Airports achieved a record year in 2025, marked by record passenger traffic of 22.3 million in Q4, a 17% year-over-year revenue growth (ex-IFRIC 12), and a significant 40% increase in adjusted EBITDA (ex-IFRIC 12) to $211 million. The company also strengthened its balance sheet, reducing its net leverage ratio to 0.7x by year-end, reflecting the resilience of its portfolio and disciplined execution.

Broad-Based Passenger Traffic Growth

Passenger traffic showed robust growth across the portfolio. Argentina saw a nearly 9% increase, driven by 15% international growth. Italy's traffic grew 8%, with international up 11%. Brazil posted a strong 12% increase, and Uruguay returned to growth with a 5% increase.

Armenia experienced a nearly 14% pickup, while Ecuador saw a 1% increase. These positive trends continued into January and February 2026 across most markets.

Revenue and Profitability Drivers

Revenue growth significantly outpaced traffic, supported by double-digit increases in both aeronautical and commercial revenues. Revenue per passenger rose nearly 8% to $20.8, up from $19.4 in the prior year. Adjusted EBITDA ex-IFRIC 12 increased 33.3% year-over-year to $178 million (excluding specific one-time items), with a margin expansion of 4.6 percentage points to 38.3%, driven by operating leverage and commercial execution.

Strategic Concession Extensions

The company secured key long-term extensions for its concessions, including a 35-year extension in Armenia through 2067, which involves a $425 million investment program for infrastructure expansion. Additionally, a 6-year extension was obtained for the Galapagos concession in Ecuador. These extensions enhance the long-term visibility and stability of the company's asset base.

Inorganic Growth Pipeline and Capital Allocation

CAAP is actively pursuing inorganic growth opportunities, having received concession awards for Baghdad (Iraq) and being declared a preferred bidder for Luanda (Angola). The company is also evaluating additional bidding processes and M&A opportunities across the Middle East, Central Asia, Africa, and the Americas. Funding for these opportunities is expected to come primarily from cash at hand, leveraging the company's strong liquidity of $750 million.

Geopolitical Impact and Operational Challenges

The ongoing geopolitical situation in the Middle East has impacted operations in Armenia, where traffic growth has flattened since the war began, affecting 10% to 15% of total traffic. The company is closely monitoring the situation. Additionally, Italy's domestic traffic faced modest declines due to operational disruptions at certain airlines, and Ecuador's EBITDA was impacted by higher maintenance expenses.

Argentina Concession Rebalance and Italy Investment

Discussions regarding the Argentina concession rebalance are ongoing and on track, though a public timeline is difficult to provide due to political and bureaucratic dynamics. In Italy, progress is being made on the investment opportunity, with environmental approval secured, but further steps are needed before construction can commence.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.