Fraport (FRA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 11% to EUR 1.35 billion, with international operations and Frankfurt both contributing; 9M24 revenue reached EUR 3.39 billion, up 13% year-over-year.

• Group EBITDA for 9M24 increased 9.5% to EUR 1,050.8 million; group result up 21.6% to EUR 434 million.

• International portfolio, especially Fraport Greece, Lima, and Antalya, drove strong performance, while Frankfurt faced challenges from strikes, aircraft shortages, and higher aviation taxes.

• Free cash flow remained negative at minus EUR 318 million, reflecting high investment levels.

• Porto Alegre airport reopened after flooding, with compensation and insurance expected to cover costs.

Financial highlights

• Net debt to EBITDA at 6.2x as of Q3 2024; net debt stood at over EUR 8 billion.

• Operating cash flow increased 22% to EUR 896 million for the first nine months.

• Free cash flow for 9M24 at minus EUR 318 million, stable year-over-year.

• Equity increased 10% to EUR 4,992 million; gearing ratio improved to 172.6%.

• EPS for 9M24 at EUR 4.11, up from EUR 3.42 in 9M23.

Outlook and guidance

• Full-year 2024 guidance for financials and Frankfurt traffic remains unchanged; passenger volume expected at 61–65 million.

• FY24 EBITDA guidance at EUR 1.26–1.36 billion; group result EUR 435–530 million.

• Free cash flow for FY24 expected to be negative due to high CapEx; break-even targeted for 2025.

• CapEx for 2024 expected to exceed EUR 1.5 billion, mainly due to Terminal 3; 2025 CapEx planned below EUR 1.1 billion.

• Segment outlook: Retail & Real Estate EBITDA above 2023 but below EUR 400 million; Ground Handling EBITDA to improve but remain negative; International Activities to improve.