CORP AMERICA AIRPORTS SA (NYSE:CAAP) Reports Strong Q3 2025 Growth Despite Pre-Market Share Dip

Corporacion America Airports Reports Strong Q3 2025 Revenue and Profit Growth, Shares Dip Premarket

Earnings Overview

CORP AMERICA AIRPORTS SA (NYSE:CAAP) reported its financial results for the third quarter of 2025, showcasing significant year-over-year growth in both revenue and profitability. The company, a leading private airport operator with a global portfolio, posted revenue of $532.1 million, excluding the impact of hyperinflation accounting in Argentina. This figure comfortably exceeded analyst estimates, which had projected revenue of approximately $510.7 million for the quarter.

On the bottom line, the company reported a net income attributable to owners of the parent of $55.1 million, translating to earnings per share (EPS) of $0.34. This represents a substantial increase from the $0.09 EPS reported in the same period last year. However, the reported EPS of $0.34 came in below the consensus analyst estimate of $0.45 for the quarter.

Market Reaction

Despite the top-line beat and strong year-over-year profit growth, the market reaction in premarket trading was negative, with shares of CAAP declining nearly 3%. This initial dip suggests investor focus may be centered on the earnings miss relative to analyst expectations, as well as potential concerns about the sustainability of the exceptional growth witnessed in the Argentine market. It is important to contextualize this short-term movement against the stock's recent performance, which has been positive over the past month with a gain of over 21%.

Key Operational and Financial Highlights

The earnings report was characterized by robust operational metrics and expanding profitability.

• Passenger Traffic: The company served 23.3 million passengers in the quarter, a 9.3% increase compared to the third quarter of 2024.
• Revenue Strength: Excluding construction service revenue, sales reached $475.4 million, a 17.5% year-over-year increase. This growth was driven by broad-based strength across both Aeronautical revenues (up 16.1%) and Commercial revenues (up 14.0%).
• Profitability Expansion: A key highlight was the significant expansion in profitability metrics.
  • Operating Income surged to $147.0 million, a 45.6% increase.
  • Adjusted EBITDA, excluding construction service, grew 34.9% to $195.3 million.
  • The corresponding Adjusted EBITDA margin expanded by 5.3 percentage points to 41.1%, indicating improved operational efficiency and higher revenue per passenger.
• Balance Sheet: The company maintained a strong liquidity position with $540.4 million in cash and cash equivalents. The Net Debt to LTM Adjusted EBITDA ratio remained at a conservative 0.9x.

Management Commentary and Strategic Initiatives

CEO Martín Eurnekian attributed the strong quarter to "solid execution across our network," highlighting positive traffic trends and successful commercial initiatives that drove revenue growth ahead of passenger growth. He noted particularly strong performances in Argentina, Brazil, Armenia, and Italy, while cautioning that domestic growth in Argentina is expected to moderate from earlier exceptional levels.

The company also reported progress on several strategic fronts, including the advancement of concession rebalancing in Argentina, capex program approval processes in Armenia, and a milestone for the Florence Airport master plan in Italy. On new business development, CAAP confirmed the signing of an award agreement for the Baghdad Airport project in Iraq.

Looking Ahead

While the press release did not provide specific quantitative financial guidance for the fourth quarter or full-year 2025, management expressed expectations for continued positive traffic momentum. They anticipate "solid results" in Q4, albeit without the benefit of the favorable comparisons that bolstered the third-quarter performance in Argentina.

Analyst estimates for the upcoming quarter project revenue of approximately $478.0 million and earnings per share of $0.38. For the full 2025 year, the consensus sales estimate stands at $1.93 billion.

For a more detailed breakdown of historical earnings and future analyst estimates for Corporacion America Airports, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.