Aena Q1 2025 slides: passenger growth drives 15.4% profit surge, margins expand

Spanish airport operator Aena SME SA (BME:AENA) reported strong first-quarter 2025 results on April 30, with passenger traffic growth driving significant improvements in revenue and profitability. The company’s stock was trading up 1.67% at the time of the presentation, reflecting investor confidence in its operational performance.

Quarterly Performance Highlights

Aena’s passenger traffic reached 78.3 million in Q1 2025, representing a 4.9% increase compared to the same period in 2024. The Spanish airport network, which accounts for the majority of the company’s operations, saw a 4.7% increase to 63.6 million passengers.

This traffic growth translated into robust financial performance across key metrics. Total (EPA:TTEF) revenue increased by 7.5% year-over-year to €1,325.6 million, with aeronautical revenue up 8.2% to €673.5 million and commercial revenue growing 9.6% to €437.7 million.

As shown in the following chart of key financial metrics, Aena’s EBITDA reached €643.6 million, a 10.8% increase from Q1 2024, while net profit jumped 15.4% to €301.3 million:

The company’s EBITDA margin improved to 48.6% from 47.1% in Q1 2024, indicating enhanced operational efficiency. This performance builds on the momentum seen in the previous quarter, where Aena reported an EBITDA margin of 60.2% for the full year 2024.

Detailed Financial Analysis

Aena’s business segments showed varied performance, with commercial operations standing out as particularly strong contributors to profitability. The following breakdown illustrates how each business area contributed to the company’s overall performance:

Commercial revenue, which accounts for 33.3% of total revenue but only 13.9% of expenses, delivered an impressive 77.7% EBITDA margin. This segment benefited from strong growth in several categories, including a 32.7% increase in car rental revenue and a 33.7% rise in VIP services revenue.

Total sales from commercial activities grew by 10.0%, with sales per passenger increasing by 5.1%. Revenue from fixed and variable rents showed particularly strong performance, rising by 15.8% compared to Q1 2024.

Operating expenses increased by 3.2% to €890.6 million, significantly below the revenue growth rate, contributing to the improved profitability. The following chart provides a detailed breakdown of operating expenses:

The company’s financial position strengthened during the quarter, with net cash from operating activities increasing by 13.4% to €820.4 million. Net financial debt decreased, with the debt-to-EBITDA ratio improving from 1.57x to 1.37x:

Aena’s board approved a gross dividend of €9.76 per share to be paid out of the 2024 fiscal year profit, reflecting confidence in the company’s sustainable financial performance.

International Operations

Aena’s international operations showed mixed results in Q1 2025. London Luton Airport, one of the company’s key international assets, delivered exceptional performance with passenger traffic up 7.3% and revenue increasing by 16.3% in local currency:

Luton’s EBITDA surged by 75.3%, though this figure was significantly impacted by insurance compensation for fire damages to a car park. Excluding this one-time factor, EBITDA would have increased by 18.6%, still a strong performance.

The company’s Brazilian operations presented a more complex picture. The Northeast Brazil Airport Group (ANB) saw passenger traffic increase by 4.1%, but revenue declined by 25.2% due to a significant reduction in construction services revenue:

Similarly, the Block of Eleven Airports in Brazil (BOAB) experienced passenger growth of 6.1% and revenue growth of 21.5%, but this was largely driven by construction services revenue:

Forward-Looking Statements

Aena’s Q1 2025 performance suggests the company is on track to exceed its previously announced target of 3.4% traffic growth for the full year 2025, as mentioned in its Q4 2024 earnings call. The current 4.9% growth rate in Q1 positions the company well for the remainder of the year.

The company continued its investment program with €203.1 million paid during the quarter. This aligns with management’s previous statements about entering a significant capital expenditure cycle under DORA III, with potential investments exceeding €1 billion annually.

As shown in the comprehensive income statement below, Aena’s financial performance demonstrates strong momentum across most key metrics:

While the company faces potential challenges from rising staff costs, which increased by 10.7% in Q1 2025, and varying performance across its international portfolio, its core Spanish operations continue to deliver solid results, providing a stable foundation for future growth.

Aena’s stock, which has delivered a 27% return over the past year according to previous reports, continues to trade near its 52-week high of €226.2, reflecting investor confidence in the company’s operational excellence and growth prospects.

Full presentation:

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