• Total Passengers: Nearly 80 million in 2024, with 20 million in Q4.
• Passenger Traffic: Declined 1.2% year-over-year; up 1.5% excluding Natal.
• International Traffic in Argentina: Increased 11.3% year-over-year.
• Revenue per Passenger: Increased to $19.3 from $19.2 in 2023.
• Adjusted EBITDA: Declined 7% year-over-year.
• Total Revenues ex-IFRIC12: Down 0.6% year-over-year.
• Aeronautical Revenues: Up 1.7% year-over-year.
• Commercial Revenues: Down 2.9% year-over-year.
• Cash Flow: Total liquidity position of $526 million, up 15% from year-end 2023.
• Net Debt: Decreased to $718 million from $963 million in December 2023.
• Net Leverage Ratio: 1.1 times at year-end.

• Warning! GuruFocus has detected 4 Warning Signs with CAAP.

Release Date: March 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Corporacion America Airports SA (NYSE:CAAP) reported strong performances across most markets, with record-high passenger volumes in December 2024.
• International traffic in Argentina increased by 11.3% year-over-year, supported by additional routes and increased flight frequencies.
• The company maintains a strong cash flow and a robust financial position, with a low leverage ratio of 1.1 times.
• Passenger traffic in Italy rose by 11%, driven by both international and domestic travel, reflecting strong demand.
• Cargo volumes accelerated to a 16% year-over-year increase in the fourth quarter, with positive contributions from all countries of operations.

Negative Points

• Adjusted EBITDA for the quarter declined by 7%, pressured by weaker domestic traffic in Argentina and lower cargo revenues.
• Revenues were slightly down by 0.6% year-over-year, in line with lower passenger traffic.
• Domestic traffic in Argentina showed sequential improvement but remained 7% lower year-over-year.
• Commercial revenues declined by 2.9% year-over-year, mainly driven by lower Cargo Duty Free revenues in Argentina.
• Passenger traffic in Ecuador declined slightly due to high airfare prices and ongoing security concerns.

Q & A Highlights

Q: Could you update us on the concessional review process in Argentina and your strategic priorities for inorganic growth? A: Martin Eurnekian, CEO, stated that they expect progress on the concessional review in Argentina this year, although exact dates are not available. They are optimistic about positive developments. Regarding inorganic growth, the company is exploring diverse opportunities in various regions, including Latin America, the Middle East, Africa, and Europe, and has strengthened its M&A team to pursue these opportunities.

Q: Can you provide insights on traffic trends for 2025, particularly in Argentina and Brazil, and updates on projects in Armenia and Italy? A: Martin Eurnekian noted positive traffic trends in Argentina, driven by macroeconomic factors and regulatory changes. Brazil's dynamics are promising despite challenges. In Armenia, they await government feedback on a new CapEx program, while in Italy, they are advancing on technical requirements for environmental approval, with positive news expected soon.

Q: How do you weigh potential growth opportunities and investments in new concessions? A: Martin Eurnekian emphasized a disciplined and opportunistic approach, analyzing each opportunity case-by-case without a preference for specific regulatory schemes. The focus is on adding value to shareholders, regardless of the type of concession or geography.

Q: Can we expect more contract extensions in the future? A: Martin Eurnekian stated that the company is always looking to create value for stakeholders, and contract extensions are one way to achieve this. They remain open to opportunities that align with their growth and value creation strategies.

Q: What are your expectations for consolidated traffic growth in 2025? A: Martin Eurnekian expressed optimism about maintaining positive traffic trends seen in the first two months of 2025 across most regions, with Armenia being a potential outlier. Overall, they expect consolidated traffic to remain on the positive side.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.