Fraport (FRA) Q2 2024 earnings summary

Executive summary

• Passenger traffic at Frankfurt improved in H1 2024, reaching 86% of 2019 levels, with July preliminary figures at 87%; international portfolio, especially Greece, Lima, and Antalya, exceeded 2019 benchmarks, offsetting challenges at Porto Alegre due to flooding.

• Group EBITDA for H1 2024 rose 18% year-over-year to €567.1 million, reaching an all-time high; group result surged 89% to €160.8 million; group revenues increased by 13% to €2.04 billion.

• Free cash flow improved to €453 million, with liquidity at €3.8 billion; net debt increased to €8.2 billion, but leverage ratio improved to 6.4x.

• Guidance for 2024 remains unchanged, but Frankfurt traffic is expected at the lower end of the 61–65 million range due to strike impacts and airline capacity constraints.

• Porto Alegre airport remained closed since May due to flooding, with partial reopening expected in October and full capacity by December; restoration and compensation are progressing.

Financial highlights

• H1 2024 group revenues exceeded €2 billion, up 13% year-over-year (14% adjusted for IFRIC 12); EBITDA reached €567.1 million, up 18% year-over-year; EBIT at €309 million, also an all-time high.

• Q2 2024 revenue was €1.15 billion (+12% year-over-year); Q2 EBITDA was €355 million (+10% year-over-year); group result nearly doubled year-over-year.

• Operating cash flow for H1 was €359 million, up 22% year-over-year; free cash flow at €-453 million, reflecting high capex.

• Net financial debt rose to €8.2 billion; gearing ratio at 183%.

• Earnings per €10 share: €1.63 (H1 2024) vs. €0.87 (H1 2023).

Outlook and guidance

• Full-year guidance for group EBITDA (€1.26–1.36 billion) and result (€435–530 million) maintained, with expectations to reach the midpoint for financials but lower end for Frankfurt traffic.

• Net debt to EBITDA ratio expected to remain stable year-over-year at ~6.4x.

• Free cash flow for FY24 expected negative; CapEx not to exceed €1.1 billion in 2025.

• 2025 EBITDA expected to improve, driven by international growth, fee increases, and productivity gains, though passenger growth at Frankfurt remains uncertain due to airline capacity.

• Macroeconomic and geopolitical uncertainties remain, with global trade and GDP growth expected to be moderate.