Germany · Delayed Price · Currency is EUR Fraport AG Earnings Call Transcripts
Fiscal Year 2026
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Guidance is now at the lower end due to Lufthansa strikes and reduced seat growth, but ground handling outperforms and international assets like Greece and Brazil remain strong. Jet fuel supply and price, as well as operational risks, remain key uncertainties.
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Terminal 3 in Frankfurt opened on time and within budget, supporting a 2% revenue and 10% EBITDA growth in Q1 2026. Despite higher net debt and ongoing geopolitical risks, full-year guidance remains unchanged, with strong international airport performance and improved leverage ratio.
Fiscal Year 2025
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Management expects leverage to fall below 5x by 2027, enabling a 60%-80% dividend payout. Terminal 3's opening will drive a 50% uplift in retail spend per passenger by 2027, while free cash flow is projected at €200 million or more for 2026.
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EBITDA hit a record EUR 1.4 billion in 2025, with positive free cash flow and a reinstated dividend. Passenger growth and operational improvements drove results, while 2026 guidance anticipates further EBITDA growth, positive cash flow, and continued investment discipline.
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CapEx is set to decline from EUR 1.1 billion in 2024 to EUR 700 million by 2027, with maintenance stabilizing at EUR 500 million. Dividend payments are expected to resume in 2026, and Free Cash Flow should turn positive as CapEx falls and EBITDA rises. Terminal 3 opens in April 2025, driving retail growth.
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Regulatory approval and construction milestones for major terminals drove record EBITDA and free cash flow in Q3, with strong passenger growth across most regions. Outlook remains positive with moderate EBITDA growth and a likely resumption of dividends.
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Group passenger growth reached 3.8% in H1 2025, with strong international performance and major construction milestones achieved. Q2 saw positive free cash flow, improved leverage, and higher EBITDA, despite FX losses in Antalya and increased D&A from Lima.
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Q1 was marked by regulatory changes, seasonality, and one-off effects, but strong summer traffic and retail growth are expected. CapEx is declining as major projects complete, and cost management remains a focus. Net debt has peaked and is set to decline.
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Q1 2025 saw mixed passenger trends but strong April recovery, with major infrastructure milestones achieved. Revenues excluding IFRIC 12 rose 6% year-over-year, but group net result was -€26 million. Guidance for moderate EBITDA growth and up to 64 million Frankfurt passengers is maintained.
Fiscal Year 2024
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All-time high EBITDA and strong group results were achieved despite headwinds from delayed aircraft deliveries, higher German aviation taxes, and heavy CapEx. Major expansion projects are nearing completion, supporting a shift to positive free cash flow and deleveraging, with dividend resumption likely in 2027.
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Revenue and EBITDA grew strongly, driven by international operations, while Frankfurt lagged due to strikes, aircraft shortages, and higher aviation taxes. CapEx peaked in 2024 with Terminal 3, but will drop in 2025, supporting a free cash flow break-even target.
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Passenger and financial recovery continued, with H1 EBITDA up 18% and strong international growth offsetting Frankfurt's slower traffic rebound. Porto Alegre's closure impacted results, but full compensation is expected. Guidance for 2024 is maintained, with 2025 improvement anticipated as fleet issues resolve.