Atlas Arteria (ALX) H2 2025 earnings summary

Executive summary

• Statutory net profit after tax was $181.8 million for 2025, down 39% year-over-year, mainly due to the French Temporary Supplemental Tax (TST), despite strong traffic and revenue growth.

• Proportional toll revenue increased 9.4% year-over-year to $2,012.3 million, and proportional EBITDA rose 9.3% to $1,509.9 million, with a stable EBITDA margin of 75.0%, driven by steady traffic growth, toll increases, and favorable FX.

• Free cash flow per security declined to 34.9c, impacted by the TST, but distributions remained stable at 40c per security for 2025, with the same guidance for 2026.

• Leadership changes included a new CFO and new CEOs at Dulles Greenway and Chicago Skyway, with a focus on simplifying the organization and enhancing decision-making.

• Strategic priorities include unlocking value from existing businesses, disciplined growth, and maintaining an optimal capital structure.

Financial highlights

• Proportional toll revenue grew 9.4% year-over-year to $2,012.3 million, supported by traffic growth, toll price increases, and favorable FX movements.

• Proportional EBITDA margin remained strong at 75.0%.

• Operating free cash flow per security was 34.9c, down from 36.3c in 2024, mainly due to the TST.

• Distributions paid totaled $580 million (40c per security), unchanged from 2024.

• Corporate cash balance at year-end was $151 million.

Outlook and guidance

• Distribution guidance reaffirmed at 40c per security for both 2025 and 2026, with distributions expected near or above the 90-110% free cash flow payout range due to the TST.

• Free cash flow is expected to grow over the next few years, with continued focus on portfolio optimization.

• FX hedge program implemented to protect distributions through H1 2026, with zero upfront cost.

• Centralized costs for 2026 guided at $38m–$42m, with growth-related activities expected at $5m–$10m per year.