CAAP Q2 2026 Earnings: Revenue Grew as EBITDA Margin Contracted

Corporación América Airports (NYSE: CAAP) reported second-quarter 2026 revenue of $534.0 million, up 12.0% from $476.8 million, while basic EPS increased 6.0% to $0.32 from $0.30. Revenue excluding construction services rose despite slightly lower passenger traffic, but weaker results in Argentina and Uruguay pushed adjusted EBITDA lower and compressed margins. CAAP ended the quarter with $692.5 million in cash and net leverage of 0.5x.

Core earnings data

CAAP’s top-line growth exceeded its underlying traffic performance. Revenue excluding construction services increased 8.2% as commercial and aeronautical revenue rose 13.2% and 3.7%, respectively, even though passenger traffic declined 0.6%.

Profitability moved in the opposite direction. Operating income declined 10.1%, while adjusted EBITDA excluding construction services fell 4.5% and its margin narrowed by 4.5 percentage points.

Adjusted EBITDA and the related margin are non-IFRS measures. The company excludes construction activity accounted for under IFRIC 12 to provide a view of operations without concession-related construction revenue and costs.

Business and segment performance

Passenger traffic decreased 0.6% to 20.6 million, cargo volume fell 1.5% to 95.7 thousand tons, and aircraft movements declined 2.6% to 208.8 thousand. Nevertheless, management said revenue per passenger increased nearly 9%, with every operating country contributing to the improvement.

Country-level profitability was mixed. Italy, Brazil, Armenia and Ecuador each delivered double-digit adjusted EBITDA growth, but these gains did not fully offset lower results in Argentina and Uruguay.

Argentina was affected by Flybondi’s reduced operating fleet and a difficult comparison with unusually strong cargo revenue in the prior-year quarter. Domestic passenger weakness also offset broader growth elsewhere in CAAP’s airport portfolio. Uruguay’s results were affected by non-recurring costs and expenses.

Construction accounting and IAS 29 widened the gap between revenue and profit

Total revenue increased faster than revenue excluding construction services. Under IFRIC 12, concession-related improvements are recorded as construction revenue and costs, with the company estimating an average margin of only 3% to 5%. As a result, construction activity can lift reported revenue without producing a proportional increase in EBITDA.

Argentina’s IAS 29 hyperinflation accounting also had a material effect. Excluding IAS 29, operating income was $142.6 million, down 4.7%, rather than the as-reported $105.5 million and 10.1% decline. Net income attributable to owners was $78.5 million on an ex-IAS 29 basis, up 50.4%, compared with as-reported net income of $52.8 million.

Accounting effects did not fully explain the margin pressure. Excluding both construction services and IAS 29, adjusted EBITDA still declined 4.3% to $161.3 million, while the corresponding margin fell to 33.9% from 38.4%. The underlying weakness in Argentina and Uruguay therefore remained the main operating issue.

Liquidity and capital allocation

Cash and cash equivalents stood at $692.5 million on June 30, 2026. Net debt to last-12-month adjusted EBITDA improved to 0.5x from 1.0x a year earlier, with management citing continued cash generation, debt repayments and financial discipline.

The board also approved $150 million in cash dividends to be paid during 2026. CAAP said the decision balanced shareholder returns with maintaining liquidity at its operating companies and preserving flexibility for future acquisitions.

Management commentary

Management expects new routes, additional frequencies and growing inbound demand to support international traffic in Argentina during the second half of 2026. However, domestic airline capacity constraints, planned runway maintenance and difficult cargo comparisons may continue to pressure the country’s near-term results.

In Uruguay, revenue associated with the new ILS system beginning in August, a new VIP lounge, an expanded duty-free area and cargo initiatives are expected to support growth. Other priorities include the concession rebalancing process in Argentina, obtaining final approval for the Florence Airport Master Plan and evaluating potential concessions across the Americas, Africa and the Middle East.

Risks investors should monitor

• Continued pressure in Argentina: Domestic airline capacity constraints and Flybondi’s smaller operating fleet could continue to affect passenger traffic, aeronautical revenue and EBITDA.
• Runway work and cargo comparisons: Planned maintenance and a difficult prior-year cargo comparison may weigh on Argentina’s reported results in the near term.
• Margin recovery: Revenue excluding construction services grew while adjusted EBITDA declined, making cost control and profitability in Argentina and Uruguay important indicators for subsequent quarters.
• Accounting volatility: IAS 29 materially affected reported operating income and net income, complicating comparisons between reported and underlying performance.
• Competing uses of liquidity: CAAP plans to pay $150 million in dividends while pursuing acquisitions and concession opportunities, so its cash balance and leverage will remain important capital-allocation measures.

Summary

CAAP generated higher revenue despite slightly lower passenger traffic, supported by increased commercial revenue, aeronautical revenue and revenue per passenger. However, weaker results in Argentina and non-recurring costs in Uruguay outweighed double-digit EBITDA growth in four other markets, leading to lower adjusted EBITDA and narrower margins. Investors should watch whether Argentina’s international traffic growth and Uruguay’s new commercial initiatives can improve profitability while CAAP funds its dividend and expansion plans without materially increasing leverage.