Avolta (AVOL) Q3 2026 TU earnings summary

Executive summary

• Q3 organic growth accelerated to 4.6% from 2.9% in Q2; 9M organic growth was 4.1%, or 5.2% excluding the Middle East.

• Profitability improved sequentially as major operations ramped up, commercial initiatives gained traction and margin headwinds moderated.

• Geographic and business-line diversification and a flexible operating model supported resilience amid geopolitical and traffic volatility.

• Management reaffirmed medium-term targets, with progress through Q3 and into October supporting confidence.

Financial highlights

• 9M IFRS turnover was CHF 10,663m, operating profit CHF 882m and CORE turnover CHF 10,438m.

• Q3 CORE EBITDA margin was 11.6%; the YoY decline narrowed to 40 bps from 60 bps in Q2.

• 9M CORE EBITDA margin was 10.0%, down 20 bps YoY; excluding Middle East disruption and major-operation ramp-ups, it was 10.4%, up 20 bps YoY.

• 9M EFCF was CHF 501m versus CHF 503m in 9M 2025; Q3 EFCF was CHF 294m versus CHF 287m, up 2.4% YoY.

• 9M growth at constant exchange rates was 3.7%; FX reduced reported turnover growth by 3.4%.

Outlook and guidance

• Medium-term targets reaffirmed: annual organic growth of 5%-7%, annual CORE EBITDA margin improvement of 20-40 bps and annual EFCF conversion improvement of 100-150 bps.

• Preliminary October organic growth was ~4.0%, with strength across all regions; trends and the Middle East impact were similar to Q3.

• Currency translation is expected to reduce reported 2026 turnover versus 2025 by ~2% at current exchange rates.

• JFK and Pudong are expected to perform better in 2027 than in 2026; full potential is expected in 2027 for two JFK terminals and in 2028 for another JFK terminal and Pudong.

• Management expects continued narrowing of the YoY margin gap but gave no quarterly profit guidance; Q4 cash flow has historically been slightly negative to neutral due to seasonality.