Transcript: Corporacion America Q1 2026 Earnings Conference Call

This transcript is brought to you by Benzinga APIs. For real-time entree to our full catalog, delight sojourn https://www.benzinga.com/apis/ for a consultation.

View the webcast astatine https://events.q4inc.com/attendee/311785257

Summary

Corporacion America reported beardown fiscal show successful Q1 2026, with a 7% summation successful rider postulation and a 19% emergence successful full revenues, driven by planetary question growth, peculiarly successful Argentina.

The institution achieved a 26% summation successful adjusted EBITDA with borderline expansion, supported by beardown contributions from Argentina, Armenia, and Brazil, portion maintaining a beardown equilibrium expanse and reducing nett debt.

Strategic highlights see a 35-year concession hold successful Armenia with a caller concern program, ongoing engagements successful Iraq and Angola, and imaginable instauration of a dividend argumentation owed to beardown currency travel and fiscal flexibility.

Full Transcript

OPERATOR

Good greeting and invited to Corporacion America Airports archetypal 4th 2026 league call. A descent presumption accompanies today's webcast and is disposable successful the Investor conception of the company's website. As a reminder, each participants are successful perceive lone mode. There volition beryllium an accidental to inquire questions astatine the extremity of the presentation. At this clip I would similar to crook the telephone implicit to Patricio Iñaki Esnola, Head of Investor Relations. Patricio, delight spell ahead.

Patricio Iñaki Esnola

Thank you. Good greeting everyone and convey you for joining america today. Speaking during today's telephone volition beryllium Martina Ornequiano, our Chief Executive Officer and Jorge Arruda, our Chief Financial Officer. Before we proceed, I would similar to marque the pursuing harmless harbor statement. Today's telephone volition incorporate guardant looking statements and I notation you to the Forward Looking Statements SECtion of our net merchandise and caller filings with the SEC. We presume nary work to update oregon revise immoderate guardant looking statements to bespeak caller oregon changed events oregon circumstances. Please enactment that passim this call, each references to revenues, cost, adjusted EBITDA and borderline volition notation to figures excluding IFRIC 12. Also, each comparisons discussed are twelvemonth implicit twelvemonth unless different noted. I volition present crook the telephone implicit to our CEO Martina Ornequianoo.

Martina Ornequiano

Thank you Inaki and bully greeting to everyone joining america today. We started 2026 with a beardown archetypal 4th show crossed the business. We saw coagulated postulation growth, continued gross momentum, beardown profitability and further strengthening of our equilibrium sheet. Passenger postulation accrued 7% twelvemonth implicit twelvemonth supported by affirmative trends crossed each our countries of operation. International postulation remained the main operator of maturation with peculiarly beardown show successful Argentina with further routes, higher frequencies and coagulated summertime request proceed to enactment the betterment successful planetary travel. Revenue show was peculiarly encouraging with apical enactment maturation good up of rider traffic. This was supported by steadfast maturation successful planetary passengers and our quality to proceed expanding gross per rider successful our commercialized activities. Profitability showed beardown advancement successful the quarter. Adjusted EBITDA accrued astatine the faster gait connected postulation and margins expanded arsenic higher revenues from travel done the outgo base. Evidencing our disciplined absorption Argentina and Armenia were the largest contributors to EBITDA maturation portion different countries besides posted affirmative twelvemonth implicit twelvemonth performance. We closed the 4th with a beardown equilibrium sheet. Leverage declined further providing important flexibility to put successful our operations, prosecute disciplined maturation opportunities and see the implementation of a dividend policy. Finally, it is important to item the resilience of Armenia. Despite the determination geopolitical situation, the concern continued to execute good supported by accrued connectivity and the little than anticipated interaction from the Middle East conflict. Overall this was a beardown commencement of the twelvemonth and reinforces the resilience of our portfolio and the benefits of our diversified platform. Moving connected to rider Traffic connected descent 4, we posted a beardown show crossed our operations with astir 22 cardinal passengers traveling crossed our airports. Growth was chiefly driven by planetary travel, which accrued astir 14% with affirmative contributions from each state successful the portfolio and treble digit maturation successful Argentina, Italy and Ecuador. Domestic postulation was broadly unchangeable successful the quarter. Growth successful Brazil and Ecuador offset bundle home volumes successful Argentina and Italy, wherever show was affected by capableness constraints, operational disruptions and In Argentina, the 24 hr nationwide onslaught successful February. Looking astatine the main markets successful Argentina, rider postulation accrued adjacent to 6% twelvemonth implicit year. International postulation maturation remained precise strong, up 19%, driven by postulation with Brazil and the Caribbean and coagulated request during the Summer and Carnival periods. Domestic postulation was somewhat lower, chiefly reflecting impermanent escaped constraints astatine immoderate of the airlines, unneurotic with a 1 time nationwide labour onslaught successful February that disrupted operations. Even with these headwinds, cardinal leisure destinations specified arsenic Bariloche, Cordoba, Iguazu and Mendoza performed good during the quarter. In Italy, postulation grew conscionable implicit 7% driven by planetary passengers, which accounted for adjacent to 80% of full postulation and accrued much than 10% twelvemonth implicit year. Both Florence and Pisa contributed to this performance. Domestic postulation was modestly lower, chiefly owed to reduced enactment astatine Florence, portion adverse upwind successful January besides led to immoderate cancellations and diversions. In Brazil, Traffic accrued by 12%, reflecting a amended situation aft the constraints seen successful the aviation assemblage successful anterior periods. Domestic postulation grew by astir 6%, transit passengers accrued by much than 20% and planetary postulation besides contributed positively. Brasilia continued to payment from its geographic determination and ample infrastructure, allowing it to support its relation arsenic an important home hub successful the country. Passenger postulation successful Uruguay accrued by astir 4%, supported by the summertime play and further frequencies. Both caller and resumed routes connecting Montevideo and Punta del Este with destinations successful Brazil and Argentina, including services from Gol, Gol Linhas, Argentinas and Azul, helped enactment request during the quarter. In Armenia, Traffic was up 8.5%, supported by expanded hose activity, further routes and higher frequencies. The caller East Air Base astatine Yerevan, launched successful precocious 2025, proceed to enactment connectivity with Europe. March was affected by determination disruptions related to the struggle successful the Middle East, including formation cancellations owed to airspace restrictions. However, the interaction was much constricted than initially expected. Lastly, postulation successful Ecuador accrued 7% contempt ongoing information concerns. International postulation was up much than 10%, supported chiefly by higher frequencies successful the US and continued enactment connected European routes. Domestic postulation besides improved, though precocious airfares remained a constraint connected demand. In sum, postulation maturation successful the 4th was steadfast and wide based, with planetary request continuing to beryllium the cardinal operator crossed the portfolio. Turning to Cargo connected descent 5, we besides delivered a beardown 4th successful our cargo concern with cargo related revenues up 16% twelvemonth implicit twelvemonth supported by coagulated contributions from Argentina and Uruguay. On the measurement side, results were mixed. Across the portfolio, full cargo measurement was up 1.7% versus past year, with maturation successful Armenia and Argentina offset by softer trends successful Brazil, Italy, Uruguay and Ecuador. Looking ahead, we stay focused connected strengthening our cargo platform, improving our commercialized capabilities and continuing to seizure maturation opportunities crossed the network. Let maine present crook the telephone implicit to Jorge who volition reappraisal our fiscal results. Please spell ahead.