OMA (OMAB) Q3 2026 Earnings Call Transcript

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DATE

Thursday, Oct. 29, 2026

CALL PARTICIPANTS

• Chief Executive Officer - Ricardo Dueñas
• Chief Financial Officer - Ruffo Pérez Pliego

TAKEAWAYS

• Passenger Traffic -- 7.7 million, representing a 1.3% increase driven by domestic growth at San Luis Potosí and international gains in Monterrey.
• Domestic Passenger Traffic -- increased 0.6% year over year, primarily due to routes from San Luis Potosí to Felipe Ángeles and Monterrey.
• International Passenger Traffic -- grew 6% versus the prior year, supported by Monterrey routes to New York, Madrid, and Paris.
• Aeronautical Revenue -- increased 6.7% year over year, reflecting tariff adjustments implemented in April 2026.
• Aeronautical Revenue per Passenger -- rose 5.3% year over year, driven by the implementation of new tariff structures.
• Commercial Revenue -- rose 11% year over year, supported by increased penetration in VIP lounges, restaurants, and parking facilities.
• Commercial Revenue per Passenger -- reached MXN 66, representing an increase driven by the start of operations for new units and higher capture rates.
• Diversification Revenue -- grew 20% compared to the third quarter of 2025, primarily from a 42% revenue increase in the OMA Carga business.
• Industrial Service Revenue -- reached MXN 53 million, a 13% increase attributable to an expansion in leased square meters.
• Adjusted EBITDA -- increased 9% to MXN 2.9 billion, driven by aeronautical and commercial revenue growth.
• Adjusted EBITDA Margin -- expanded to 75.0% for the quarter.
• Net Income -- rose 2.9% to MXN 1.6 billion, compared to the third quarter of 2025.
• Capital Expenditure -- totaled MXN 1.138 billion for the quarter, including master development plan investments and strategic projects.
• VIP Lounge Revenue -- increased 28% year over year, following the start of operations at the Torreón Airport lounge and higher capture rates.
• Construction Revenue -- totaled MXN 1.02 billion during the third quarter.
• Financing Expense -- increased 16.5% to MXN 348 million, reflecting higher interest expense from increased average debt levels.
• Cash Position -- totaled MXN 4 billion as of Sept. 30, 2026.
• Total Debt -- reached MXN 14.9 billion with a net debt-to-adjusted EBITDA ratio of 1.0x.
• Airline Traffic Share -- Volaris accounted for 27% of total traffic with 14% growth, while Viva represented 49% of traffic and recorded a 2% decline.
• Contracted Services Costs -- increased 19% year over year, due to contract renewals and minimum wage increases affecting security and cleaning expenses.
• Maximum Tariff Compliance -- reached 93% on average for the current year, with management targeting 100% compliance by the third year of the five-year plan.
• Commercial Space Occupancy -- remained at 96% at the end of the quarter, providing a stable base for commercial revenue growth.

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RISKS

• Ruffo Pérez Pliego stated that contracted services increased 19%, "primarily due to higher security and cleaning expenses resulting from contract renewals and minimum wage increases," which pressured operating expenses.
• Pérez Pliego noted that financing expense increased by 16.5% to MXN 348 million in the quarter, "mainly driven by higher interest expense as a result of higher average debt levels."

SUMMARY

Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) reported third quarter results characterized by steady passenger growth and expanded commercial operations. Management reported that the aeronautical segment benefited from regulatory tariff adjustments, while the diversification strategy advanced through significant growth in the air cargo business and new hospitality investments. The company maintained a stable leverage ratio of 1.0x while funding ongoing terminal expansions and major maintenance programs. Strategic focus remains on completing the Monterrey expansion and gradually increasing maximum tariff compliance over the current five-year master development plan.

• Management announced the construction of a second hotel at the Monterrey airport, a $17 million investment in a 120-room Hyatt Place expected to open in the fourth quarter of 2028.
• Chief Executive Officer Ricardo Dueñas stated, "The full commercial area for Monterrey, it is expected to open by the fourth quarter of next year," with a partial opening of the baggage claim area expected by the end of 2026.
• The company plans to implement a nominal tariff increase of slightly above 4% starting Jan. 1, 2027, as part of its path toward 100% maximum tariff compliance.
• Management projected traffic growth in the low single digits for 2027, with a recovery in volume expected to begin by the middle of that year.
• The OMA Carga business is expected to maintain high-teens growth for the remainder of the year and into 2027, driven by new client operations and high-value cargo handling in Monterrey.
• On the call, management noted that a new OMA Premium Lounge is scheduled to open in the Acapulco Airport in November 2026.
• The company is awaiting a final decision from the National Antitrust Commission regarding the potential merger of major airline partners Viva and Volaris to assess potential traffic impacts.

INDUSTRY GLOSSARY

• Aeronautical Revenue: Income generated from regulated services provided to airlines and passengers, such as landing fees and security charges.
• Maximum Tariff: The maximum price per workload unit that an airport operator is permitted to charge, as regulated by the Mexican government.
• MDP: Master Development Plan, a mandatory five-year investment program agreed upon with the Mexican government for airport maintenance and expansion.
• MXN: The ISO currency code for the Mexican Peso.
• OMA Carga: The company's business unit focused on air cargo logistics, storage, and handling services.
• Pax: An industry abbreviation for passengers.

Full Conference Call Transcript

Operator: Welcome to OMA's third quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I would now turn the conference over to your host, Vanessa Velazco. Please go ahead. Hello, everyone. Thank you for standing by. Welcome to OMA's third quarter 2026 earnings conference call. Thank you for joining us today as we discuss our company's performance and financial results for the past quarter. Joining us today are our CEO, Ricardo Dueñas, and CFO, Ruffo Pérez Pliego.

Please be reminded that certain statements made during the course of our discussion today may constitute forward-looking statements, which are based on current management expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our control. Now I will turn the call over to Ricardo Dueñas for his opening remarks.

Ricardo Dueñas: Thank you, Vanessa. Good morning, everyone, and thank you for joining us today. This morning, Ruffo and I will review our quarterly operational and financial results, then we will be pleased to answer the questions. During the third quarter of 2026, OMA served 7.7 million passengers, reflecting a 1.3% increase year-over-year, while available seat capacity increased by 1.3%. Domestic passenger traffic grew by 0.6% as compared to the third quarter of 2025, driven primarily by the San Luis Potosí Airport, which saw increases on the routes to the Felipe Ángeles and Monterrey airports. These routes collectively added over 35,000 passengers during the quarter, representing 91% of the total domestic passenger growth.

International passenger traffic increased by 6%, mainly driven by our Monterrey airport, with higher traffic on the New York, Madrid, and Paris routes. In terms of growth by airline, Volaris, which accounted for 27% of our total passenger traffic in the quarter, recorded a 14% growth versus the third quarter of last year, while Viva, which accounted for 49% of our total passenger traffic, recorded a 2% decline. Turning to our financial performance, aeronautical revenues increased 6.7% during the quarter, reflecting the tariff adjustment that became effective in April, partially offset by the peso appreciation. Commercial revenues increased 11% compared to the third quarter of last year, and commercial revenues per passenger reached MXN 66.

Commercial revenue growth was mainly driven by VIP lounges, restaurants, and parking, mainly as a result of higher penetration, opening of new units, and the increase in passenger traffic. Occupancy of commercial space remained at 96% at the end of the quarter. Diversification revenues increased by 20% year-over-year, mainly driven by our OMA Carga business, where revenues increased 42%, reflecting new client operations, additional high-value cargo handling in Monterrey, and higher average stay of merchandise in our warehouses. Industrial service revenues reached MXN 53 million, an increase of 13%, mainly attributable to a greater number of square meters. OMA's third quarter adjusted EBITDA increased 9% to MXN 2.9 billion, while the adjusted EBITDA margin expanded to 75%.

On the capital expenditure side, total investment in the quarter, including MDP investment, major maintenance, and strategic investments, were MXN 1.138 billion. It is worth mentioning that next month we will be opening an OMA Premium Lounge in the Acapulco Airport, which is expected to further contribute to the growth of this important revenue source. We are also pleased to announce that we will begin the construction of the second hotel in the Monterrey airport, which will be operated under the Hyatt Place brand. The hotel will require an investment of approximately $17 million, will have 120 rooms, and is expected to begin operations in the fourth quarter of 2028.

The hotel in Monterrey will be developed through our existing joint venture with Grupo Hotelero Santa Fe, in which they have a 15% ownership stake, and we will be the operator of the new hotel as well. We believe this development will further diversify our revenue stream and enhance the airport experience for travelers. I would now like to turn the call over to Ruffo Pérez Pliego, who will discuss our financial highlights for the quarter.

Ruffo Pérez Pliego: Thank you, Ricardo, and good morning, everyone. I will go over our financial results for the quarter, and then we will open the call for questions. Aeronautical revenues increased 6.7% as compared to 3Q 2025, primarily driven by tariff adjustments implemented in April 2026. Domestic passenger charges and other aeronautical services grew in line with these new tariffs, while international passenger charges rose by 4%. This increase was offset by the peso appreciation against the U.S. dollar during the quarter. Together, these effects resulted in a 5.3% increase in aeronautical revenue per pax. Non-aero revenues increased 13.3%. Commercial revenues grew 11%, mainly driven by higher VIP lounge revenue, restaurants, parking, and retails.

VIP lounges increased by 28%, driven by higher capture rates as well as the start of operations of the VIP lounge in the Torreón Airport. Restaurant revenues increased 13.5%, mainly as a result of higher passenger traffic and the opening of new units in the Durango and Torreón airports. Parking rose 6.7%, driven by higher average tariffs, and retail revenues increased 18.5% due to the opening of new units and increase in passenger traffic. Diversification activities grew by 20.4% in the quarter, mainly attributable to an increase in OMA Carga revenues. Total aeronautical and non-aeronautical revenues grew 8.3% to MXN 3.8 billion in the quarter. Construction revenues amounted to MXN 1.02 billion in the third quarter of 2026.

The cost of services and G&A expense increased 8.6% versus 3Q 2025. The increase mainly reflected higher payroll and contracted services costs. Payroll increased 8.7% as a result of annual salary increases as well as higher headcount as compared to 3Q 2025. While contracted services increased 19%, primarily due to higher security and cleaning expenses resulting from contract renewals and minimum wage increases. Concession tax increased 7.9% to MXN 312 million. Major maintenance provision was MXN 39 million as compared to MXN 28 million in the 3Q 2025, reflecting the MDP provisioning requirements. As a result, adjusted EBITDA increased 8.7% to MXN 2.9 billion, and EBITDA margin was 75.0%.

Our financing expense increased by 16.5% to MXN 348 million in the quarter, mainly driven by higher interest expense as a result of higher average debt levels. Consolidated net income was MXN 1.6 billion in the quarter, an increase of 2.9% versus the third quarter of 2025. Turning to our cash position. Cash generated from operating activities in the third quarter amounted to MXN 2.3 billion. Investing activities used MXN 1.2 billion and financing activities generated MXN 318 million for the quarter. As a result, our cash position at the end of September was MXN 4 billion. At the end of September, total debt amounted to MXN 14.9 billion and leverage, measured as net debt-to-adjusted EBITDA ratio, stood at 1.0x.

This concludes our prepared remarks. Carrie, please open the call for questions.

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question will come from Jens Spiess with Morgan Stanley.

Jens Spiess: Yes. Hello, good morning. Thank you for taking my question. The first I have is on the technical assistance fee internalization. Just to get a sense of, all else equal, if that when you face the regulator the next MDP cycle, all else equal, will it have an impact on the reference value because it will be a lower cost, or not?

Ruffo Pérez Pliego: Hi, Jens. This is Ruffo. Technical assistance is expected to continue to be encouraged. As you know, we have a strategic partner, VINCI Airports. Under the tariff-based regulation currently in place, it is a recognized expense to a certain percentage of that amount.

Jens Spiess: Okay. And one follow-up. On the max tariff compliance, are you at around 92%? Is that correct? What is your expectation to get closer to 100%? What is the timeline there? Thank you.

Ricardo Dueñas: Hi, Jens. We anticipate to end this year somewhere around 93% compliance with maximum tariff. For next year, we are looking to be somewhere around 95%. We are planning to reach 100% by the third year of the five-year plan.

Jens Spiess: Okay, perfect. Is it by year end, or is it average of the year?

Ricardo Dueñas: The average of the year.

Jens Spiess: Okay, perfect. All right. Thank you.

Operator: Again, that is star one if you would like to ask a question. We will go next to Pablo Ricalde with Itaú.

Pablo Ricalde: Hey. Hi, good morning, OMA. Maybe my question is a follow-up on Jens' questions on the maximum tariff. I do not know if you have already discussed with airlines the hike that you want to implement as of January 1st, and if you can share how much is this hike.

Ricardo Dueñas: Yes. We have already shared that information with the airlines. There is some process that we need to follow, and it will be something slightly above 4% increase nominal terms.

Pablo Ricalde: Perfect. Thank you.

Operator: Our next question comes from Alan Macías with Bank of America.

Alan Macías: Hi, good morning, and thank you for the call. Just a question on OMA Carga business. If you can just give us more color on the type of clients, the new clients that this business had, and what type of cargo was involved. Thank you.

Ricardo Dueñas: Yeah. So during this quarter, the growth was attributable to new client operations in Monterrey, as well as the handling of additional high-value cargo operations and higher average stay of merchandise in our warehouses. We expect for the rest of the year to be in the high teens of growth and somewhere similar for next year.

Alan Macías: Thank you.

Operator: We'll go next to Enrique Cantú with GBM.

Enrique Cantú: Hi. Thank you for taking my question. It's about commercial revenue per passenger. This quarter was strong for this metric. Is Monterrey's commercial expansion still on track for late 2027? And how much further commercial growth per passenger do you expect until then?

Ricardo Dueñas: Sure. The full commercial area for Monterrey, it is expected to open by the fourth quarter of next year. There will be a partial opening by the end of this year, which is mostly the baggage claim area. But the real big commercial area will be by the end of the year.

Enrique Cantú: Okay. Thank you very much.

Ruffo Pérez Pliego: Regarding impact of the new commercial area in Monterrey, we would expect that on a per pax basis for Monterrey Airport that will result in about a 15% increase in income per pax in real terms once it is open. But as Ricardo mentioned, that will be reflected until 2028 results.

Enrique Cantú: Okay, very clear. Thank you.

Operator: And we have a follow-up question from Jens Spiess with Morgan Stanley. Jens, your line is open.

Jens Spiess: Oh, sorry. I was on mute. Thank you. I just want to rephrase my first question I made earlier. In terms of the technical assistance fee, are you having any plans or discussions to internalize it, similar to what your competition has done or not?

Ricardo Dueñas: No, not at the moment. We believe that the technical assistance fee is very well-grounded as VINCI, our strategic partner, is providing most of good value in that technical assistance.

Jens Spiess: Okay, perfect. And if you could provide, do you have any expectations for traffic into next year, especially towards the second half of the year?

Ricardo Dueñas: Yes. We anticipate traffic to be in the low single digits for 2027, and we expect to start to see the recovery in traffic by mid-year.

Jens Spiess: Okay, perfect. Thank you.

Operator: We'll go next to Guilherme Mendes with JPMorgan.

Guilherme Mendes: Yes. Thank you guys so much for taking the time. Hi, Ricardo and Ruffo. I have a follow-up on the traffic performance. How much do you think that the potential merger between Viva and Volaris might impact your traffic performance, and if that is included on this low single digits that you mentioned for 2027? On the capital allocation front, you already mentioned some investments on the commercial part of the business, the hotels, et cetera, but is there anything else that OMA is currently considering maybe outside Mexico? Thank you.

Ricardo Dueñas: Sure. In terms of the merger, we are waiting for the final outcome from the National Antitrust Commission. Up to this day, we do not have an indication from the airlines of how the operation would work if the merger is approved, therefore, we can't assess the full potential impact. In terms of commercial capital expenditures, we mentioned the hotel in Monterrey. There will be investment also in VIP lounges, some in parking. We're evaluating a potential new hotel as well. At this point, there's no tangible opportunity that we see in the pipeline for international expansion. However, we are always on the lookout for potential opportunities.

Guilherme Mendes: Very clear. Thank you.

Operator: This now concludes our question-and-answer session. I would like to turn the floor back over to Ricardo Dueñas for closing comments.

Ricardo Dueñas: Thank you. We would like to thank everyone for participating in today's call. We appreciate your insightful questions, engagement, and continued support. Ruffo, Vanessa, and I are available to answer your questions. Thank you once again, and have a great day.

Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.

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