Corporacion America Airports S.A.

Total revenues, excluding IFRIC 12, increased 8% year over year. Consolidated revenue per passenger rose nearly 9% to $22.9 from $21. Adjusted EBITDA excluding IFRIC 12 was $160 million, down 4.5%, and adjusted EBITDA margin pressure was concentrated in Argentina and Uruguay. Total costs and expenses excluding IFRIC 12 increased 16% year over year. On the balance sheet, total liquidity was $861 million, up 20% from $750 million at the close of 2025; total debt was $1.1 billion; net debt was $381 million versus $502 million at year-end 2025; and net leverage was 0.5x. For the outlook, management said Argentina should benefit from new routes and inbound demand, but domestic capacity constraints, runway maintenance, and tough cargo comps could continue to weigh on near-term results, while Uruguay’s new ILS system began generating revenues in August and should help growth.

Martin Eurnekian emphasized that the quarter’s weaker EBITDA was driven by identifiable headwinds rather than broad deterioration, pointing to cargo comparison effects in Argentina, Flybondi-driven domestic capacity weakness, and non-recurring Uruguay costs. He said the portfolio remains diversified and strong, with broad international traffic growth, rising revenue per passenger across all countries, and double-digit EBITDA growth in four of six segments. His tone was constructive and confident, especially around liquidity, dividend capacity, and ongoing strategic work on Argentina rebalancing, Montevideo commercial expansion, and new concession opportunities.

Jorge Arruda highlighted that revenues outpaced traffic, with the 8% increase in revenue supported by stronger commercial performance and tariff increases in Brazil, Uruguay, and Ecuador. He said costs rose 16% because of higher fuel costs in Armenia, Uruguay non-recurring costs, and currency re-appreciation in Argentina and Uruguay, while Argentina costs rose only 6% despite higher amortization. He also pointed to strong cash generation, $861 million of liquidity, positive operating cash flow in nearly all subsidiaries in the first half, $55 million of loan repayments mainly in Argentina, and a net debt reduction to $381 million.

Analysts focused on Argentina contract renegotiations, the durability of strong commercial revenue per passenger, the outlook for domestic traffic in Argentina, the dividend policy, runway maintenance impacts, and Armenia’s growth. Management said Argentina rebalancing discussions are progressing but nothing binding is in place yet; for Italy, they said the concession/master plan process is advancing with authorities and no red flags. On commercial revenue, management said the quarter was very strong, and excluding Argentina cargo, commercial revenue rose 26%, led by VIP lounges, duty free, parking, and space rental; on domestic traffic, they said the Flybondi capacity issue should gradually normalize as other carriers replace lost seats.