Earnings call transcript: Aena Q1 2025 reports strong revenue growth

Aena SME SA (AENA) reported robust financial results for the first quarter of 2025, with total revenue increasing by 7.5% to €1,025.6 million. The company also saw improvements in its earnings before interest, taxes, depreciation, and amortization (EBITDA), reaching €643.6 million. This performance aligns with the company’s impressive 80.13% gross profit margin, as reported by InvestingPro. Despite the positive financial performance, the company’s stock price experienced a modest increase, rising by 2.88% to €221.8 in pre-market trading.

Key Takeaways

• Revenue increased by 7.5% to €1,025.6 million.
• EBITDA margin improved from 47.1% to 48.6%.
• Net profit slightly exceeded €300 million.
• Passenger traffic rose by 4.9% to 78.3 million.
• Stock price increased by 2.88% following the earnings report.

Company Performance

Aena demonstrated strong performance in the first quarter of 2025, driven by increased passenger traffic and higher commercial revenue. The company maintained its leadership in operational efficiency, with low-cost traffic growing by 6.7%. The increase in international traffic, particularly from European markets, contributed to the revenue growth. Aena’s strategic focus on airport renovations and energy initiatives also supported its positive performance.

Financial Highlights

• Revenue: €1,025.6 million, up 7.5% year-over-year
• EBITDA: €643.6 million, with a margin of 48.6%
• Net profit: Slightly over €300 million
• Net financial debt: Decreased to €4.9 billion
• Net debt to EBITDA ratio: 1.77x

Market Reaction

Following the earnings announcement, Aena’s stock price rose by 2.88%, reaching €221.8. According to InvestingPro data, the stock has delivered an impressive year-to-date return of 13.33% and trades near its 52-week high, suggesting strong market confidence. The positive market reaction reflects investor confidence in the company’s financial health, which InvestingPro rates as "GREAT" with an overall score of 3.42, and growth prospects, despite broader market volatility. InvestingPro analysis indicates the stock is currently slightly undervalued based on its proprietary Fair Value model.

Outlook & Guidance

Aena maintains its traffic guidance from February, with cautious optimism about potential domestic market softening. The company is monitoring early indicators of U.S. market demand changes and continues its airport expansion efforts, notably at Luton Airport. Aena’s focus on renewable energy projects, including solar farm developments, aligns with its strategic vision for sustainable growth. InvestingPro subscribers can access detailed analysis of Aena’s growth prospects, including revenue growth forecasts and comprehensive financial health metrics, along with 8 additional exclusive ProTips about the company’s performance and valuation.

Executive Commentary

CFO Ignacio Castellon highlighted the company’s resilience during a national power outage, stating, "The operations and management of the airports through a network demonstrated once again its strength." Castellon also emphasized the strategic importance of the Luton Airport expansion, describing it as a "win-win opportunity for both parties."

Risks and Challenges

• Potential softening in the domestic market could impact future growth.
• Increasing electricity costs, although 50% hedged for 2025, may affect profitability.
• The judicial review period for Luton Airport expansion poses regulatory risks.
• Early signs of changing U.S. market demand require careful monitoring.
• Macroeconomic pressures could influence international traffic trends.

Q&A

During the earnings call, analysts raised questions about the sustainability of commercial revenue growth and the potential impact of electricity cost increases. Aena’s management expressed confidence in sustaining revenue growth, citing strong performance across retail segments. They also noted that electricity costs are partially hedged, mitigating some financial impact.

Full transcript - Aena SME SA (AENA) Q1 2025:

Desiree, Conference Operator: Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the Aeana First Quarter twenty twenty five Results Presentation. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session.

I would now like to turn the conference over to Carlos Galliego, Head of Investor Relations. You may begin.

Carlos Galliego, Head of Investor Relations, Aena: Good afternoon, everyone, and welcome to our Q1 twenty twenty five results presentation. This is Carlos Galligo speaking, Head of IR. It’s a real pleasure being with all of you today. Our CFO, Ignacio Castellon, will host the call together with myself. As usual, we are going to cover some of the main topics explained in the results presentation that is already available both on the Aina and on the CNV website, and we’ll finish with a Q and A session.

Without further ado, I give the floor to Ignacio Castellon. Thank you.

Ignacio Castellon, CFO, Aena: Thank you very much, Carlos. Good afternoon, ladies and gentlemen, and thank you for joining us to go through our first quarter twenty twenty five results presentation today. I’ll start sharing some highlights with all of you, and then I’ll give back the floor to Carlos to further explain our performance through this quarter. At the end, there will be a Q and A session, as stated by Carlos. So I’m referring now to traffic.

So I would go to Slide four. Aina Group traffic increased year on year by 4.9%, as you can see over there, reaching almost 78,300,000 passengers. In the Spanish network, the annual increase was 4.7%, and we reached almost 63,600,000 passengers, beating our expectations and recording the highest ever traffic in any first quarter. As you know, you are well aware that last year, 2024, was a leap year and that the Easter break took place during the first quarter of twenty twenty four. We don’t see at this stage reasons to change our traffic our February traffic guidance for this year.

April traffic is performing well, continuing the positive trend seen over the last quarters. The European market and most of our international markets are performing in line with our expectations. On the other hand, we observed a certain slowdown in the domestic market. And regarding The U. S.

A, the summer schedule looks higher than the comparable figure in 2024 as of today. However, we are seeing some early indicators that might result into a lesser strong demand in the following months. Having said all that, I would like to share that the current aircraft shortage, spare parts supply chain issues, economic and political uncertainty, raising airfare and accommodation prices, especially in Spain, could affect both the demand and supply in our industry and therefore, results into changes in the traffic forecast. Now I will move to financial performance. With respect to the first quarter twenty twenty five financial performance, total revenue went up by 7.5%, up to EUR $1.03 and 25,600,000.0.

On the cost side, the total operating expenses increased by 3.2%, up roughly to EUR 8 and 90,600,000.0. This means that in total, EBITDA came to EUR 6 and 43,600,000.0, and the margin stood at 48.6% comparing to 47.1% in the first quarter of the previous years. All in all, the net profit slightly exceeded 300,000,000. With respect to commercial on the commercial side and now in Slide five, I would like to mention that the growth that started back in 2022 continues this year, in 2025. Total sales have gone up by 10% in this quarter and on a per passenger basis, by 5.1%.

Revenue from fixed and variable rents invoiced in the period increased by 15.8% compared to the first quarter of twenty twenty four. I would like to highlight several things on the commercial front. Our tenants keep finishing their units, and therefore, we are adding more renovated spaces and a more complete offer and new brands. The lot of the Canary Islands, I’m referring to the duty free business, has operated this first quarter above the minimum annual guarantee rent level for that lot. The outstanding performance of the car rental and VIP services have been incredible this quarter.

The car rental revenue increased by 32.7% year on year, reflecting the sales increase and improved conditions of the new contracts that are entering into operation in the November 1. With regard to the VIP services, revenue increased by 33.7%, thanks to a strong demand in the VIP lounges, plus 18%, and also in the increase in the number of users. Real estate revenue also increased 9.7% year on year. In the context of this real estate activity in our real estate businesses, I would like to highlight and I’m happy to announce that we have received proposals to develop the land plot for logistic purposes in the Barcelona Airport. This is a fifty year contract in which China will be collecting a monthly rent and the logistic operator will be responsible for the CapEx investments.

On the international front, international revenue and EBITDA were above €168,000,000 and €88,000,000 respectively. Our international assets keep performing positively and delivering growth and efficiency improvements. Please note that this quarter, the reported performance of our international activity in our consolidated figure was affected by an was positively affected by an insurance compensation received in Luton, also was affected by the end of our construction activity in A and B and the beginning of construction activity in our subsidiary in our second subsidiary in Brazil, BOAB. You know that all this construction activity and how it is accounted for in our books has an impact in how we report income and cost, although it’s neutral from an EBITDA standpoint. With respect to the future capacity expansion of Luton, I would like to mention that on April 3, the British Secretary of State for Transport approved the expansion of airport capacity from the current 90,000,000 passengers to 32,000,000 passengers.

Starting on that date, there is a six week judicial review period in which there might be arguments being presented against such decision. Once this DCO has been granted, the Luton Borough Council will have to decide how and when that expansion is carried out. These are positive news for us. And as we said in our 2024 results presentation in our call, at that moment in time, we would welcome the opportunity to collaborate with the Luton Borough Council to make that project happen. As you know, in the annual general meeting held back in April 9, all the resolutions were approved, including our updated climate action plan, the 10 by one share split that we expect to execute in the following weeks and also a dividend payment of €9.76 per share out of our results of last year that was paid last week.

Before finishing with this part of the call, I would like to refer to the very serious event that took place on Monday, mainly affecting Spain and Portugal and referring to the general blackout that affected the country. In this regard, I would like to highlight the robustness and effectiveness of the company operations during that day. All airports were operational since the outage, thanks to the contingent power systems in place at the airports. The transitions to these backup systems happened without disruptions, and the transitions back to the ordinary power systems also happened without major disruptions. The operations and management of the airports through a network demonstrated once again its strength by helping to keep all the airports operational and coordinated during that day.

Overall, the Spanish airport served 93% of the commercial flights that day. I would like to thank all the teams involved on our partners that day. It was a difficult day, but the company reacted in a very positive manner. This is the end of my brief presentation. I will join you, of course, in the Q and A session afterwards.

Now I’ll give the floor to Carlos to go through the whole presentation. Thank you, Carlos. Thank you, everyone.

Carlos Galliego, Head of Investor Relations, Aena: Okay. Thank you very much, Ignacio. Let me go through some details with respect to traffic and financial performance of the company before moving to the Q and A session. Our on traffic, our CFO already covered the traffic performance at the group level and in Spain, so I will comment on what happened in our international concessions. Luton Airport, 1 Hundred And 3 Point 6 Million packs.

That’s an increase of 7.3% compared to Q1 twenty twenty four. In our Brazilian assets, AMB managed more than 4,200,000 passengers, plus 4.1% year on year. And BOAB recorded almost 6,900,000 passengers, 6.1% higher than the previous year. Digging deeper in the Spanish network, international traffic grew well above the domestic, 6.7% versus 1% in the domestic one. Therefore, the market share of international traffic moved from 65.3% in Q1 twenty twenty four to 66.6% in Q1 twenty twenty five.

European traffic represents 84.3% of our international traffic, 0.74 bps lower than in Q1 twenty twenty four because of the extraordinary origin destination year on year traffic growth with Asia, Africa, Middle East and to a lesser extent with LATAM. With respect to our main markets, growth from the British market has been eight sorry, 3.8% German market grew 4.6% French near 7% and Italy at a very healthy 15.3% despite the adverse calendar effects. In terms of performance at our Spanish airports, Madrid has an increase of 4.5%, Barcelona three point two %, Majorca one point nine % and the Canary Islands 3 Point 6 Percent. 16 airports have achieved a record number of passengers in the month of March, so good figures, especially given the challenging base. With respect to the airlines operating in Spain, the top 10 companies carry out circa 50,000,000 passengers.

That’s an annual increase of 4.6%. Low cost traffic grew by 6.7% year on year with Iberia Express plus 9.3% and Rayonier seven point eight percent, leading the growth. Low cost traffic markets circled to 60.1%. As usual, you have a full disclosure of the passenger breakdown by top airline sub countries in the Slides thirty two and thirty one of this presentation. Let’s move to Slide 11.

Ordinary aeronautical revenue grew by 8.2% year on year, mainly due to traffic performance and the year on year traffic increase in January and February 2025. The dilution was low, only EUR 3,500,000.0 in the whole Q1 twenty twenty five in comparison with the EUR 28,300,000.0 in the first quarter of twenty twenty four. Moving on to the commercial business. As Ignacio mentioned before, total sales increased by 10%, thus the double of the traffic growth, and on a per passenger basis, the growth was 5.1%. Total commercial and real estate ordinary revenue grew by 9.7% year on year, reaching EUR $467,000,000, and again, above traffic performance.

This is explained by both higher traffic and higher yield, plus 4.7%, reaching €7.4 per passenger. On Slide 13, we see the commercial revenue amounting to more than EUR $473,000,000, resulting in an increase compared to Q1 twenty twenty four of 9.6%. And once again, real estate revenue increased by EUR 9,900,000.0 to close to EUR 30,000,000. Excluding the multiyear straight lining and other adjustment, now we are on the Slide 14. Commercial and real estate revenue grew by 11.6% to about CHF $452,000,000, and the revenue on per passenger basis grew by 6.6%, reaching EUR 7.11 per passenger.

I think it’s worth analyzing the information along Commercial Business in lines to comment on some specific details. I would like to start by stating that the sales of our tenants in our core retail activities, duty free, specialty shops and food and beverage, grew above traffic. In the case of duty free, growth was 19% in the case of specialties up 7% and in the case of F and B, 6%. The extraordinary performance in duty free sales is explained by the progress on the construction works with a vast majority of the main stores completed, especially in Madrid and Barcelona. In Palma De Mallorca, at the April, the worst of the 76% of the surface subject to refurbishment in 2025 were completed.

We are especially proud of the growth in sales in March, also plus 19%, despite the adverse timing of the Easter period. Total business revenue in duty free grew by 6.8 compared to Q1 twenty twenty four, reaching EUR 120,000,000. The Canada East High landlords, as Ignacio mentioned before, was the only one that exceeded the minimum and guarantee rents. The good performance in food and beverage and specialty shops can be explained by new brands and tenants, the improvement of the commercial mix and in the case of the food and beverage, additional commercial service. Total business revenue in Food and Beverage grew year on year by 4.8% to EUR 79,000,000 and specialty subs by 5.1, reaching more than EUR 32,000,000.

The growth rate of both businesses is in line with the traffic growth. Taking a look of the tenders of the last nine months, sorry, we awarded 23 tenders in food and beverage with an increase of the minimum annual guarantee rents in 2025 and in 2026 of 3032%, respectively, compared to 2024. And in specialty shops, the tenders awarded were 30%, an increase of 7074%. These hikes are partially due to some additional premises in comparison to 2024. In Palma Mallorca, the premises of both businesses will enter into operation from the end of Q2 ’20 ’20 ’5 until mid-twenty twenty six.

VIP Services business revenues keep growing every quarter, 37.3% year on year in Q1 twenty twenty five to EUR 42,000,000, with an income per passenger of EUR 0.66, plus 31% compared to Q1 twenty twenty four. Within this business line, VIP launches is the main one, representing 84% of the revenue. Its revenue grew by 39 because of the higher number of users, plus 19%, at the higher average price, 17%. As the demand is stronger than ever, the penetration rate increased by 13%, standing at 2.1%. Car rental performance was also outstanding.

Sales grew by 9% and the total business revenue by 30.4% to €54,700,000 The reasons behind that this increase are the higher number of contracts, the higher average transaction value of the contract signed by the users and the more lucrative conditions of the new contract that came into force last November 1. Car park business revenue grew well above domestic traffic, plus 9.2% to EUR 47,700,000.0, while domestic traffic increased by 1%. The main drivers behind the revenue growth are the streamlining of the available parking spaces and the pricing policy, which puts the average ticket by 1.5%. Let’s spend some minutes on OpEx. On Slide 15, you will see that consolidated operating expenses amounted to €692,000,000 That’s an increase of 4.8% year on year, in line with traffic.

The main factors behind this increase are related to the staff cost increase in the group, the growth of the electricity bill, higher maintenance and security costs in Spain and lower IFRIC twelve accounting in Brazil. If we look at the Spanish network, operating expenses amounted to EUR $597,000,000, that’s an increase of 6.6%. Staff costs grew by 11% to EUR 142,000,000, mainly due to annual salary reviews, that’s 2.5% higher, social security costs and the headcount increase. Other operating expenses rose by 5.8%, reaching €413,000,000 Although OpEx growth was higher than traffic growth, Aina clearly maintains the leadership in the OpEx per passenger metric. According to 2024 data, Inaq’s OpEx per passenger was €6.24 much lower than those of its European peers.

Slide 16 shows a higher detail of the main items of the other operating expenses for the network in Spain, both in €1,000,000,000 and in a per passenger basis. If we look at the cash generated by operating activities, I am referring to Slide number 17, they amounted to €820,000,000 that’s an increase of 13.4%. At the group level, consolidated net financial debt increased sorry, decreased to $4,900,000,000 The net debt to EBITDA ratio stood at 1.77x. In this sense, let me recall you that last Thursday, paid out over $1,500,000,000 in dividends. In the next slide, Slide 18, you can see that fixed rate debt stood at 76% of our total debt compared to 77% of 2024.

The average cost of our debt decreased to 2.29% compared to 2.55 sorry, 2.54% in 2024. I will end up commenting on international assets. Starting with Duton, Slide 19. We are about to recover 2018 traffic, 98.6% in Q1 twenty twenty five. The EBITDA stood at 38,000,000, plus 75.3% compared to Q1 twenty twenty four.

But excluding the insurance compensation for the Parking Fire, the EBITDA margin grows at a healthy 70 basis points to 33.1%. Let’s move to Brazil, Slides twenty and twenty one. I would like to highlight the traffic growth, plus 4.1% in ANB and 6.1% in VOAB. The negligible CapEx in ANB and the mandatory CapEx we already began to spend in VOAB. As you know, EBITDA margins are affected by the accounting standard Flick 12.

Excluding this impact, the EBITDA margin in ANB stands at 65%, two ninety basis points higher than in Q1 twenty twenty four and in BOOB at 63.3%, one hundred and thirty basis points. Well, that would be the end of my presentation. So the theory, if that’s okay for you, we are ready to move to the Q and A session. I can see that there are many of you who would like to clear up some doubts about this presentation. And in order to give everyone a chance to speak and to give we have this time limit of this presentation, I will be grateful if you could limit your comments to a single question.

As always, the Investor Relations team is available to answer any further questions you may have. Thank you.

Desiree, Conference Operator: Thank you. We will now begin the question and answer simply press star 1 again. If you are called upon to ask your question and are listening via speakerphone in your device, please pick up your handset to ensure that your phone is not on mute when asking your question. Again, press star 1 to join the queue. And our first question comes from the line of Luis Prieto with Kepler Capital.

Your line is open.

Luis Prieto, Analyst, Kepler Capital: Good afternoon, everyone, and thanks, I and our team, for taking our questions. Apologies. I had a technical issue. Apologies if you’ve explained this during your presentation. But my single question would be, electricity costs went up, and I would like to understand what the moving parts are behind this trend, which seems to be a big change versus previous year quarterly trend.

Thank you.

Ignacio Castellon, CFO, Aena: Thank you very much, Luis. Happy to hear from you. This is Ignacio. With respect to energy cost, basically average prices for this first quarter of twenty twenty five compared to average prices of 2024 are higher, and that’s impacting our line. You know that we have a hedge in place for the medium to long term and also short term hedge.

On average, I would say that we are protected for 2025 for around 50% of our energy cost exposure. Therefore, we are being impacted by those increases. I’m lucky to share with all of you and happy to share with all of you that we finally signed our first PPA very recently. It’s a small one, but it’s I think we are moving in the right direction with a protection for ten years for part of our supply. And end up, Luis, just basically stating that we are making progress with our solar farms.

And hopefully, in the next twelve, twenty four months, we’ll start having some energy costs coming from our own production and therefore reducing the exposure to the market. And that will be all from my side, Luis. Thank you.

Luis Prieto, Analyst, Kepler Capital: Thanks a lot. Super clear. Thank you.

Desiree, Conference Operator: Our next question comes from the line of Christian Adelcu with UBS. Your line is open.

Christian Adelcu, Analyst, UBS: Hi, thank you very much. I guess, sticking to one question. If we look at the very strong spend per packs that we’ve seen in valuable rents, 10%, eleven % as well as in the total commercial revenue, 6 percent, 7 percent. Do you believe that these run rates are sustainable going forward for the next few quarters? Ballpark, is that the right type of growth you would expect to see in commercial?

Thank you very much.

Ignacio Castellon, CFO, Aena: Hi, Christian. This is Ignacio. And thank you very much for your question. I think you know that we don’t normally provide guidance for the year with respect to specific items of our P and L or business segments. I think the performance this quarter has been very positive.

Traffic has helped, new brands, new units, more space. So we have had there some tailwinds that are helping us. Through the next months, we’ll have more surface being opened in Palma and hopefully in the Canary Islands, in some airports, we’ll have a better offer. So we are hopeful, sorry, that we’ll keep working in a positive manner. But as you know, through the year, the traffic evolves, the passenger mix changes, and that will likely affect consumption.

As I was saying at the beginning at my opening remarks, we are positive with our traffic guidance, but we are seeing some markets that are evolving more positively than others. So there will be many factors that could impact that potential future performance. Thank you, Christian.

Christian Adelcu, Analyst, UBS: Thank you very much.

Desiree, Conference Operator: Next question comes from the line of Graham Hunt with Jefferies. Your line is open.

Graham Hunt, Analyst, Jefferies: Yes. Thank you very much for the question. I’ll just come back to your point around potential traffic weakness going into the summer. I just wanted to clarify, is that just a general comment around uncertainty that you’re seeing? Or are there specific data points that you’re now seeing in the data or capacity for the summer that would lead you to be a little bit more cautious with regards to Aena?

And any commentary, I know it’s a small exposure for Aena, but anything you’ve seen around The U. S. Traveler would be interesting. Thank you.

Ignacio Castellon, CFO, Aena: Thank you, Graham. And I’m very happy you have made that question because perhaps I was not clear in my opening remarks. We I was not saying that generally speaking, we are seeing a weaker demand. I was referring to some specific indicators in relation to The U. S.

Market that might show some kind of potential less strong demand. Having said that, for The U. S, we are seeing more schedules or more scheduled seats than in the previous year as of today. So it’s just an early indicator that could result into that less strong or potential weaker demand. But generally speaking, April is performing well, as I was saying, and the positive trend that we are seeing is there.

We are seeing some weakness, sorry, with the domestic market. That’s the info that we have in front of us. The first quarter, the Spanish market, the domestic market has grown by 1%. And we are not seeing that, that trend could go up. Will it stay there or could go down seeing what understanding what we are seeing.

So no generally speaking, no weaker demand for summer. In summary, The U. S, your second question, looking at the schedule or capacity and comparing that number with the 2024 number at the same date is higher, but it’s true that we are seeing some weaknesses, sorry, with some other early indicators that could affect those capacity numbers. Having said all that, Graham, we have a current aircraft shortage, potential supply chain issues affecting spare parts, huge economic and political uncertainty, rising prices, especially in domestic prices for the Spanish market. So many things could happen.

But apart from the points that I have just said with you, Graham, that’s what we are we are not anticipating a deviation from the guidance that we provided in February.

Graham Hunt, Analyst, Jefferies: Super clear. Thank you.

Ignacio Castellon, CFO, Aena: My pleasure.

Desiree, Conference Operator: Next question comes from the line of Elodie Rall with JPMorgan. Your line is open.

Elodie Rall, Analyst, JPMorgan: Hi, good afternoon. So my one question would be on this insurance compensation at Luton that you’ve registered once more in Q1 after the Q4 one as well. So I was wondering if we should account for more of these to come for the remaining of the year.

Ignacio Castellon, CFO, Aena: Hi, Louis. If I understood you well, your question is about if we should expect more compensation payments coming from the Luton situation. The company is planning to get full protection with respect to the damage coming or resulting from the fire and also from the loss of revenue because of the lower commercial revenues they are getting we are having because that facility is not up and running. We will keep working with our insurance companies in order to have that protection duly paid by the insurance companies in the next months. That’s all of what I can disclose so far, Elie.

Elodie Rall, Analyst, JPMorgan: Okay. Thanks.

Desiree, Conference Operator: Next question comes from the line of Andrew Lobbenberg with Barclays. Your line is open.

Andrew Lobbenberg, Analyst, Barclays: Hi there. Sorry to stay in Luton. It’s not the most glamorous part of your portfolio, is it? Can you help me understand what happens in the event that the government approval for the expansion of the airport is absolutely confirmed? And Luton Borough Council needs to get the agreement and get someone to build it.

Is it does the process start with a one on one negotiation with you because you’re the incumbent? Or do we see just a fully open tender and it becomes just equivalent to you bidding for any other new potential airport transaction elsewhere in the world? How will it work? And does your incumbency give you an advantage to potentially win this opportunity?

Ignacio Castellon, CFO, Aena: Thank you, Andy. This is Ignacio. Well, we don’t see the situation as an advantage because we are the incumbent. We see the situation as a win win for everyone involved in this situation. It’s positive news for our guarantor, the Luton Boro, and it’s also positive news for us, given our performance operating and developing that airport and our experience and skills improving airports.

We see this as an opportunity, as a win win opportunity for both parties to be able to look for a solution that allows our guarantor to move with the project as fast as possible and in the best possible manner, given that we are already there and we are a second to none airport operator and developer. And we welcome the opportunity to be able to do it. That’s how with this situation. And hopefully, how we our guarantor will see the situation. But our concession is expiring in 02/1932 as of today, and we’ll have to have many discussions and negotiations in order to look for how we accommodate this new scenario between the two parties.

Thank

Andrew Lobbenberg, Analyst, Barclays: you.

Desiree, Conference Operator: RAMON

Ignacio Castellon, CFO, Aena: I don’t know.

Desiree, Conference Operator: And our last question comes from the line of Jose Arroyas with Santander. Your line is open.

Jose Arroyas, Analyst, Santander: Yes, thank you. I wanted to ask you about the aviation tariffs for 2026. Perhaps it’s a bit early on in the year, but I wanted to ask you if the effective tariff, the EMAS would rise next year, in particular given that there was the significant dilution. I think there was like almost $130,000,000 revenue that were lost due to dilution. And I wanted to, in particular, ask you if the mass were to rise next year, would it impact then tariff path for Dora three?

Or it’s two separate things? Thank you.

Ignacio Castellon, CFO, Aena: Thank you, Jose Manuel. This is Ignacio speaking. It’s a bit early in the year to start talking about 2026 tariffs. We haven’t started the consultation process with our carriers, our partners that is establishing the applicable regulation. As you know, we normally the company normally approves at the Board meeting of July the applicable tariff for next year.

So at that moment in time is when we will communicate with all of you where we stand on that in that regard. With respect to the formula, I think it’s a very straightforward one with respect to dilution recovery from the two previous years. So that’s how should operate and is the formula there. And in 2026, as you know, is the we’ll be entitled to recover that dilution given that the caps will not be applicable. And that’s where we are with respect to Tariff 2026, Jose Manuel.

Desiree, Conference Operator: That concludes the question and answer session. I would like to turn the call back over to Carlos Galliego for closing remarks.

Carlos Galliego, Head of Investor Relations, Aena: Excellent. Thank you, Desiree. There are no further questions, so I think we can end the results presentation. Thank you very much, everyone, for joining us today. Thank you.

Desiree, Conference Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you all for joining, and you may now disconnect.

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