Corporacion America Airports Reports Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

Corporación América Airports (NYSE: CAAP) reported its Q4 and full-year 2024 results, showing mixed performance across its portfolio. Q4 2024 saw consolidated revenues ex-IFRIC12 increase 23.1% YoY to $396.2 million, driven by aeronautical (+29.0%) and commercial (+17.5%) revenue growth. Passenger traffic decreased 1.2% to 20.5 million, while cargo volume rose 16.3% to 118.2 thousand tons.

The company maintained a strong financial position with cash and equivalents of $439.8 million and improved net debt to LTM Adjusted EBITDA ratio of 1.1x. Q4 Adjusted EBITDA ex-IFRIC12 decreased 49.5% to $150.8 million, partly due to the Argentine peso devaluation and comparison against Q4 2023's Natal concession termination payment.

Full-year 2024 results showed consolidated revenues ex-IFRIC12 up 29.0% to $1,619.9 million, despite a 2.7% decrease in passenger traffic to 79.0 million. Operating income reached $447.3 million, compared to $540.6 million in 2023.

Positive

• Strong liquidity position with $439.8M cash and improved net debt ratio of 1.1x
• Q4 revenue growth of 23.1% YoY to $396.2M
• 16.3% increase in cargo volume to 118.2K tons in Q4
• Record-high passenger volumes in Argentina (December 2024)
• International traffic in Argentina up 11% YoY in Q4

Negative

• Q4 Adjusted EBITDA declined 49.5% YoY to $150.8M
• Operating income decreased to $108.4M from $263.6M in Q4 2023
• 1.2% decrease in Q4 passenger traffic
• Adjusted EBITDA margin contracted to 38.0% from 92.9% in Q4 2023
• Impact from sharp devaluation of Argentine peso in December 2023

Insights

Financial Analyst

Corporacion America Airports (CAAP) delivered mixed financial results for Q4 and full-year 2024, with consolidated revenues showing strong headline growth but operational challenges affecting overall performance. When adjusting for hyperinflation accounting in Argentina (IAS 29), consolidated Q4 revenues actually decreased 0.6% YoY to $395.2 million.

Q4 operating income fell substantially to $108.4 million from $263.6 million in Q4 2023, but this comparison is skewed by the $166.5 million indemnification payment received in the year-ago period from the Natal concession termination. Similarly, Adjusted EBITDA ex-IFRIC12 decreased 49.5% to $150.8 million, though when excluding both the Natal impact and IAS 29 effects, the decline moderates to 6.7%.

The company's diversification strategy proved valuable as solid performances in Italy, Uruguay, and Brazil helped offset softer results in Argentina. A rebound in Argentine passenger traffic to record-highs in December 2024 and January 2025 provides encouraging momentum entering the new year.

CAAP's balance sheet remains robust with $439.8 million in cash and cash equivalents and a net debt to LTM Adjusted EBITDA ratio of 1.1x, improved from 1.4x a year earlier. This financial flexibility supports ongoing expansion projects across multiple markets including terminal improvements at Ezeiza Airport and new facilities in Uruguay.

While passenger traffic decreased 1.2% to 20.5 million in Q4, cargo volume increased impressively by 16.3% to 118.2 thousand tons, demonstrating strength in freight operations. The company's profit margins contracted, with Adjusted EBITDA margin ex-IFRIC12 falling to 38.0% from 92.9% in Q4 2023, though excluding the Natal impact and IAS 29 effects, the adjusted margin was 38.1% compared to 40.5% in the prior-year period.

Airport Industry Specialist

CAAP's performance highlights both the resilience and vulnerabilities inherent in managing a diverse airport portfolio across emerging markets. The 1.2% decline in Q4 passenger traffic (excluding Natal: +1.5%) reflects challenges in maintaining consistent traffic growth across all regions, though the significant recovery in Argentina toward year-end represents a potentially important turning point.

The company's operational strategy of balancing aeronautical and commercial revenue streams is evident in the Q4 results, with aeronautical revenues increasing 29.0% and commercial revenues growing 17.5%. This diversification provides some protection against traffic volatility, though the slight revenue decline when adjusting for hyperinflation effects demonstrates the importance of passenger volume as a fundamental driver.

CAAP's airport development initiatives target high-impact commercial areas, exemplified by the 50% expansion of Ezeiza Airport's duty-free arrivals zone to 1,100 square meters. Similarly, the new private aviation terminal at Punta del Este and the covered parking facility at Montevideo Airport represent targeted investments in premium service segments with higher revenue potential per square meter.

The 16.3% increase in cargo volume to 118.2 thousand tons is particularly noteworthy as it represents a revenue stream less dependent on passenger fluctuations. This cargo growth outpacing passenger traffic suggests effective positioning of CAAP's facilities within regional supply chains.

From an industry perspective, CAAP's current net leverage ratio of 1.1x is considerably stronger than many international airport operators, providing capacity for both weathering regional economic volatility and pursuing strategic growth opportunities. This financial foundation, combined with operational improvements across the portfolio, positions the company to potentially capture increasing travel demand as Latin American economies strengthen, though short-term performance will likely remain uneven across markets.

Solid results with Adjusted EBITDA margin expansion in all geographies mitigated soft performance in Argentina

Passenger traffic in Argentina rebounded to record-highs in Dec ’24 and Jan ‘25

Cash & Cash Equivalents at $440 million with Net Debt to LTM Adjusted EBITDA of 1.1x

LUXEMBOURG--(BUSINESS WIRE)-- Corporación América Airports S.A. (NYSE: CAAP), (“CAAP” or the “Company”) one of the leading private airport operators in the world, reported today its unaudited, consolidated results for the three-month period ended December 31, 2024, and audited results for the full year 2024. Financial results are expressed in millions of U.S. dollars and are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”).

Commencing 3Q18, the Company began reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance with IFRS rule IAS 29 (“IAS 29”), as detailed in Section “Hyperinflation Accounting in Argentina” on page 23.

Fourth Quarter 2024 Highlights

• Consolidated Revenues ex-IFRIC12 totaled $396.2 million, up 23.1% year-over-year (YoY), driven by increases of 29.0% and 17.5% in Aeronautical Revenues and Commercial Revenues, respectively. Excluding rule IAS 29, consolidated revenues ex-IFRIC12 decreased 0.6% YoY to $395.2 million.
• Key operating metrics:
  • 1.2% decrease in passenger traffic to 20.5 million, but up 1.5% when excluding Natal.
  • 16.3% increase in cargo volume to 118.2 thousand tons.
  • 1.9% increase in aircraft movements, or 4.3% when excluding Natal.
• Operating Income of $108.4 million, compared with $263.6 million in 4Q23 which included a $62.7 million portion of the $166.5 million EBITDA contribution from the indemnification payment received in connection with the friendly termination of the Natal airport concession agreement in Brazil.
• Adjusted EBITDA ex-IFRIC12 decreased 49.5% to $150.8 million, from $298.8 million in the year-ago period. Excluding the impact of rule IAS 29 and the aforementioned Natal-related contribution recorded in 4Q23, Adjusted EBITDA ex-IFRIC12 decreased 6.7% to $150.5 million.
• Adjusted EBITDA margin ex-IFRIC12 was 38.0% compared to 92.9% in 4Q23. Adjusting for both rule IAS 29 and the Natal-related impact in 4Q23, Adjusted EBITDA margin ex-IFRIC12 contracted to 38.1% from 40.5% in the prior-year quarter.
• Strong liquidity position with Cash & Cash equivalents of $439.8 million as of December 31, 2024.
• Net debt to LTM Adjusted EBITDA improved to 1.1x as of December 31, 2024, from 1.4x as of December 31, 2023.

Full Year 2024 Highlights

• Consolidated Revenues ex-IFRIC12 increased 29.0% year-over-year (YoY) to $1,619.9 million, reflecting increases of 36.0% and 22.4% in Aeronautical Revenues and Commercial Revenues, respectively. Excluding rule IAS 29, consolidated revenues ex-IFRIC12 decreased 0.4% YoY to $1,534.6 million.
• Key operating metrics:
  • 2.7% decrease in passenger traffic to 79.0 million, or 0.4% lower when excluding Natal.
  • 7.5% increase in cargo volume to 398.0 thousand tons.
  • 3.0% decrease in aircraft movements, or 1.3% lower when excluding Natal.
• Operating Income of $447.3 million, compared to $540.6 million in 2023. Operating income in 2023 included a $62.7 million portion of the $166.5 million EBITDA contribution from the indemnification payment received in connection with the friendly termination of the Natal airport concession agreement in Brazil.
• Adjusted EBITDA ex-IFRIC12 decreased 7.3% to $622.2 million, from $671.3 million in 2023. Excluding rule IAS 29 and the aforementioned Natal-related contribution recorded in 4Q23, Adjusted EBITDA ex-IFRIC12 decreased 8.5% to $581.5 million.
• Adjusted EBITDA margin ex-IFRIC12 of 38.4% compared to 53.5% in 2023. Adjusting for both rule IAS 29 and the Natal contribution in 4Q23, Adjusted EBITDA margin ex-IFRIC12 contracted to 37.9% from 41.2% in 2023.
• Strong liquidity position with Cash & Cash equivalents totaling $439.8 million as of December 31, 2024.
• Net debt to LTM Adjusted EBITDA improved to 1.1x as of December 31, 2024, from 1.4x as of December 31, 2023.

CEO Message

Commenting on the results for the quarter Mr. Martín Eurnekian, CEO of Corporación América Airports, noted: “Our fourth-quarter results reflect, once again, the strength of our diversified portfolio, which continues to support our solid performance despite the challenges we faced in Argentina. While total passenger traffic declined slightly in the quarter, we were encouraged by a notable rebound in domestic traffic in Argentina toward year-end, culminating in record-high passenger volumes in December. This positive momentum extended into the first months of 2025. International passenger traffic in Argentina performed particularly well during the quarter, increasing by more than 11% year-over-year and driving hard-currency revenue streams. This encouraging trend, combined with solid contributions from our operations in Italy, Uruguay, and Brazil, underscores the strength of our geographically diverse portfolio.

On the financial front, consolidated 4Q24 comparisons were affected by the sharp devaluation of the Argentine peso in December 2023 and the indemnification payment received in 4Q23, in connection with Natal termination. The latter also impacted comparability in the Brazil segment. Excluding these factors, revenues declined 0.6%, in line with lower passenger volumes. By contrast, revenue per passenger improved slightly, reflecting our focus on efficiency and commercial revenue growth. Importantly, all regions except Argentina, delivered positive year-over-year Adjusted EBITDA contributions, helping mitigate softness in the Argentine market, which has already shown signs of improvement in the first two months of 2025.

We are advancing key initiatives to enhance the passenger experience and drive commercial revenue growth across our network. In Argentina, we are expanding Ezeiza Airport's duty-free arrivals area by over 50% to 1,100 square meters. In Uruguay, we inaugurated a new state-of-the art private aviation terminal at Punta del Este Airport, and the construction of a new covered parking facility at Montevideo Airport is progressing as planned. We are also advancing development projects in Armenia and Italy and remain active in exploring opportunities that align with our long-term growth strategy.

In conclusion, we remain committed to advancing our strategic growth plans while building on the strong results achieved throughout 2024. With a solid balance sheet and a net leverage ratio of 1.1x, we are well-positioned to support our growth initiatives while remaining committed to delivering long-term value for our shareholders.”

Operating & Financial Highlights
(In millions of U.S. dollars, unless otherwise noted)
	4Q24 as reported		4Q23 as reported		% Var as reported		IAS 29 4Q24		4Q24 ex IAS 29		4Q23 ex IAS 29		% Var ex IAS 29
Passenger Traffic (Million Passengers)	20.5		20.7		-1.2%				20.5		20.7		-1.2%
Revenue	461.1		365.0		26.3%		-0.6		461.6		454.6		1.5%
Aeronautical Revenues	211.6		164.0		29.0%		-1.1		212.7		209.1		1.7%
Non-Aeronautical Revenues	249.5		201.0		24.1%		0.6		248.9		245.5		1.4%
Revenue excluding construction service	396.2		321.8		23.1%		1.1		395.2		397.6		-0.6%
Operating Income / (Loss)	108.4		263.6		-58.9%		-26.3		134.7		305.1		-55.9%
Operating Margin	23.5%		72.2%		-4,869		0.0%		29.2%		67.1%		-3,793
Net (Loss) / Income Attributable to Owners of the Parent	34.4		130.7		-73.7%		13.1		21.3		34.9		-38.9%
Basic EPS (US$)	0.21		0.81		-73.6%		0.08		0.13		0.22		-39.0%
Adjusted EBITDA	155.4		303.4		-48.8%		0.3		155.1		332.3		-53.3%
Adjusted EBITDA Margin	33.7%		83.1%		-4940		-		33.6%		73.1%		-3,948
Adjusted EBITDA Margin excluding Construction Service	38.0%		92.9%		-5481		-		38.1%		82.4%		-4,435
Net Debt to LTM Adjusted EBITDA	1.1x		1.4x		-		-		-		-		-
Net Debt to LTM Adjusted EBITDA excl. impairment on intangible assets (1)	1.1x		1.7x		-		-		-		-		-
Note: Figures in historical dollars (excluding IAS29) are included for comparison purposes.
1) LTM Adjusted EBITDA excluding impairments of intangible assets.

Operating & Financial Highlights
(In millions of U.S. dollars, unless otherwise noted)
	2024 as reported		2023 as reported		% Var as reported		IAS 29 2024		2024 ex IAS 29		2023 ex IAS 29		% Var ex IAS 29
Passenger Traffic (Million Passengers)	79.0		81.1		-2.7%				79.0		81.1		-2.7%
Revenue	1,843.3		1,400.0		31.7%		94.0		1,749.2		1,741.5		0.4%
Aeronautical Revenues	876.7		644.5		36.0%		47.8		828.9		803.6		3.1%
Non-Aeronautical Revenues	966.5		755.6		27.9%		46.2		920.3		937.8		-1.9%
Revenue excluding construction service	1,619.9		1,255.3		29.0%		85.3		1,534.6		1,541.0		-0.4%
Operating Income / (Loss)	447.3		540.6		-17.3%		-59.3		506.5		707.0		-28.4%
Operating Margin	24.3%		38.6%		-1,435		-		29.0%		40.6%		-1164
Net (Loss) / Income Attributable to Owners of the Parent	282.7		239.5		18.0%		68.6		214.0		126.5		69.2%
Basic EPS (US$)	1.76		1.49		17.9%		0.43		1.33		0.79		69.0%
Adjusted EBITDA	628.7		677.7		-7.2%		40.7		588.0		808.4		-27.3%
Adjusted EBITDA Margin	34.1%		48.4%		-1,430		-		33.6%		46.4%		-1,280
Adjusted EBITDA Margin excluding Construction Service	38.4%		53.5%		-1506		-		37.9%		52.0%		-1,414
Net Debt to LTM Adjusted EBITDA	1.1x		1.4x		-		-		-		-		-
Net Debt to LTM Adjusted EBITDA excl. impairment on intangible assets (1)	1.1x		1.7x		-		-		-		-		-
Note: Figures in historical dollars (excluding IAS29) are included for comparison purposes.
1) LTM Adjusted EBITDA excluding impairments of intangible assets.

To obtain the full text of this earnings release and the earnings presentation, please click on the following link: http://investors.corporacionamericaairports.com/Results-Center

4Q24 EARNINGS CONFERENCE CALL

When:	09:00 a.m. Eastern Time, March 19, 2025
Who:	Mr. Martín Eurnekian, Chief Executive Officer
	Mr. Jorge Arruda, Chief Financial Officer
	Mr. Patricio Iñaki Esnaola, Head of Investor Relations
Dial-in:	1-800-549-8228 (North America, Toll Free); 1-289-819-1520 (Other locations); Conference ID: 69248
Webcast:	CAAP 4Q24 Earnings Conference Call
Replay:	1-888-660-6264 (North America, Toll Free); 1-289-819-1325 (Other locations); Playback Passcode: 69248 #

Use of Non-IFRS Financial Measures

This announcement includes certain references to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Construction Service and Adjusted EBITDA Margin excluding Construction service, as well as Net Debt:

Adjusted EBITDA is defined as income for the period before financial income, financial loss, income tax expense, depreciation and amortization.

Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues.

Adjusted EBITDA excluding Construction Service (“Adjusted EBITDA ex-IFRIC”) is defined as income for the period before construction services revenue and cost, financial income, financial loss, income tax expense, depreciation and amortization.

Adjusted EBITDA Margin excluding Construction Service (“Adjusted EBITDA Margin ex-IFRIC12”) excludes the effect of IFRIC 12 with respect to the construction or improvements to assets under the concession and is calculated by dividing Adjusted EBITDA excluding Construction Service revenue and cost, by total revenues less Construction service revenue.

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Construction Service and Adjusted EBITDA Margin excluding Construction Service are not measures recognized under IFRS and should not be considered as an alternative to, or more meaningful than, consolidated net income for the year as determined in accordance with IFRS or as indicators of our operating performance from continuing operations. Accordingly, readers are cautioned not to place undue reliance on this information and should note that these measures as calculated by the Company, may differ materially from similarly titled measures reported by other companies. We believe that the presentation of Adjusted EBITDA and Adjusted EBITDA excluding Construction Service enhances an investor’s understanding of our performance and are useful for investors to assess our operating performance by excluding certain items that we believe are not representative of our core business. In addition, Adjusted EBITDA and Adjusted EBITDA excluding Construction Service are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods, capital structure or income taxes and construction services (when applicable).

Net debt is calculated by deducting “Cash and cash equivalents” from total financial debt.

Figures ex-IAS 29 result from dividing nominal Argentine pesos for the Argentine Segment, by the average foreign exchange rate of the Argentine Peso against the US dollar in the period. Percentage variations ex-IAS 29 figures compare results as presented in the prior year quarter before IAS 29 came into effect, against ex-IAS 29 results for this quarter as described above. For comparison purposes, the impact of adopting IAS 29 in Aeropuertos Argentina 2000, the Company’s largest subsidiary in Argentina, is presented separately in each of the applicable sections of this earnings release, in a column denominated “IAS 29”. The impact from “Hyperinflation Accounting in Argentina” is described in more detail page 23 of this report.

Definitions and Concepts

Commercial Revenues: CAAP derives commercial revenue principally from fees resulting from warehouse usage (which includes cargo storage, stowage and warehouse services and related international cargo services), services and retail stores, duty free shops, car parking facilities, catering, hangar services, food and beverage services, retail stores, including royalties collected from retailers’ revenue, and rent of space, advertising, fuel, airport counters, VIP lounges and fees collected from other miscellaneous sources, such as telecommunications, car rentals and passenger services.

Construction Service revenue and cost: Investments related to improvements and upgrades to be performed in connection with concession agreements are treated under the intangible asset model established by IFRIC 12. As a result, all expenditures associated with investments required by the concession agreements are treated as revenue generating activities given that they ultimately provide future benefits, and subsequent improvements and upgrades made to the concession are recognized as intangible assets based on the principles of IFRIC 12. The revenue and expense are recognized as profit or loss when the expenditures are performed. The cost for such additions and improvements to concession assets is based on actual costs incurred by CAAP in the execution of the additions or improvements, considering the investment requirements in the concession agreements. Through bidding processes, the Company contracts third parties to carry out such construction or improvement services. The amount of revenues for these services is equal to the amount of costs incurred plus a reasonable margin, which is estimated at an average of 3.0% to 5.0%.

About Corporación América Airports

Corporación América Airports acquires, develops and operates airport concessions. Currently, the Company operates 52 airports in 6 countries across Latin America and Europe (Argentina, Brazil, Uruguay, Ecuador, Armenia and Italy). In 2024, Corporación América Airports served 79.0 million passengers, 2.7% (or 0.4% excluding Natal) below the 81.1 million passengers served in 2023, and 6.2% below the 84.2 million served in 2019. The Company is listed on the New York Stock Exchange where it trades under the ticker “CAAP”. For more information, visit http://investors.corporacionamericaairports.com

Forward Looking Statements

Statements relating to our future plans, projections, events or prospects are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “believes,” “continue,” “could,” “potential,” “remain,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to: the Covid-19 impact, delays or unexpected casualties related to construction under our investment plan and master plans, our ability to generate or obtain the requisite capital to fully develop and operate our airports, general economic, political, demographic and business conditions in the geographic markets we serve, decreases in passenger traffic, changes in the fees we may charge under our concession agreements, inflation, depreciation and devaluation of the AR$, EUR, BRL, UYU or the AMD against the U.S. dollar, the early termination, revocation or failure to renew or extend any of our concession agreements, the right of the Argentine Government to buy out the AA2000 Concession Agreement, changes in our investment commitments or our ability to meet our obligations thereunder, existing and future governmental regulations, natural disaster-related losses which may not be fully insurable, terrorism in the international markets we serve, epidemics, pandemics and other public health crises and changes in interest rates or foreign exchange rates. The Company encourages you to review the ‘Cautionary Statement’ and the ‘Risk Factor’ sections of our annual report on Form 20-F for the year ended December 31, 2019 and any of CAAP’s other applicable filings with the Securities and Exchange Commission for additional information concerning factors that could cause those differences.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250319783772/en/

Investor Relations Contact

Patricio Iñaki Esnaola

Email: patricio.esnaola@caairports.com

Phone: +5411 4899-6716

Source: Corporación América Airports

FAQ

What were CAAP's key financial metrics for Q4 2024?

CAAP reported Q4 2024 revenues of $396.2M (+23.1% YoY), Adjusted EBITDA of $150.8M (-49.5%), and operating income of $108.4M, with cash position at $439.8M.

How did CAAP's passenger traffic perform in Q4 2024?

Passenger traffic decreased 1.2% to 20.5 million passengers, but showed a 1.5% increase when excluding Natal operations.

What is CAAP's current debt position as of December 2024?

CAAP improved its net debt to LTM Adjusted EBITDA ratio to 1.1x as of December 31, 2024, from 1.4x in the previous year.

How did CAAP's Argentina operations perform in late 2024?

Argentina showed record-high passenger volumes in December 2024, with international traffic increasing over 11% YoY in Q4, despite earlier challenges.

What expansion projects is CAAP currently undertaking?

CAAP is expanding Ezeiza Airport's duty-free area by 50%, developing a new private aviation terminal in Punta del Este, and constructing parking facilities in Montevideo.