Grupo Aeroportuario del Centro Norte (OMAB) Q2 2024 earnings summary

Executive summary

• Passenger traffic reached 6.5 million in 2Q24, down 2.4% year-over-year, with domestic traffic declining 4.3% and international rising 12.4%, mainly due to engine recalls and post-hurricane recovery.

• Served 26.6 million passengers in the last twelve months as of June 2024, operating 13 airports, 2 hotels, and 1 industrial park.

• Non-aeronautical revenues grew 13.8%, with strong performance in commercial activities, cargo, and hotel services.

• Listed on BMV and Nasdaq, with a market cap of Ps. 62.0 billion ($3.4 billion) as of July 2024.

• Strong corporate governance with independent committees and a diverse board.

Financial highlights

• Aeronautical revenues decreased 2.5% year-over-year, while non-aeronautical revenues increased 13.8%.

• Total revenues (aero and non-aero) grew 1.1% to MXN 2.9 billion.

• Adjusted EBITDA was MXN 2.2 billion with a margin of 73.3%; excluding concession tax surplus, margin would be 76.3%.

• Net income was MXN 1.3 billion, up 1.5% year-over-year; EPS rose 1.2% to Ps.3.33.

• Cash at quarter-end was MXN 1.6 billion; net debt to adjusted EBITDA ratio stood at 1.0x.

Outlook and guidance

• Management projects a low single-digit decrease in traffic for the second half of 2024 due to ongoing engine recall impacts.

• Non-aeronautical revenue per passenger expected to at least keep pace with inflation; diversification activities not directly tied to passenger growth.

• Ongoing expansion projects at Monterrey, Culiacán, and Ciudad Juárez airports to increase capacity and commercial space by 2025.

• Committed investments of Ps. 15,601 million under the 2021-2025 Master Development Program.

• Excess concession taxes paid in 2024 will be recoverable through maximum tariff adjustments starting January 2026.