Q1 2026 Grupo Aeroportuario del Centro Norte SAB de CV Earnings Call

April 28, 2026

Operator 2: Greetings, and welcome to OMA's Q1 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief 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. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Emmanuel Camacho, Investor Relations Officer. Thank you. You may begin.

Operator: Greetings, and welcome to OMA's Q1 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief 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. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Emmanuel Camacho, Investor Relations Officer. Thank you. You may begin.

Speaker #2: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.

Speaker #2: It is now my pleasure to introduce your host, Emmanuel Camacho, Investor Relations Officer. Thank you. You may begin.

Speaker #3: Thank you, Christine. Good morning, everyone. Thank you for sending by and welcome to Oma's first quarter 2026 earnings conference call. We appreciate you joining us today as we discuss our company's performance and financial results for the past quarter.

Emmanuel Camacho: Thank you, Christine. Good morning, everyone. Thank you for standing by, and welcome to OMA's Q1 2026 Earnings Conference Call. We appreciate you 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'll turn the call over to Ricardo Dueñas for his opening remarks.

Speaker #3: Joining us today are our CEO, Ricardo Duenas, and CFO, Ruffo Castillo. 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.

Speaker #3: Including factors that may be beyond our control. And now I'll turn the call over to Ricardo Duenas, for his lecture remarks.

Speaker #4: Thank you, Manuel. Good morning, everyone, and thank you for joining us today. This morning, Ruffo and I will review our quarterly operation and our financial results, and then we will be pleased to answer your questions.

Ricardo Dueñas: Thank you, Emmanuel. Good morning, everyone, and thank you for joining us today. This morning, Rufo and I will review our quarterly operation and the financial results, and then we will be pleased to answer your questions. In Q1 2026, OMA passenger traffic totaled 6.7 million, a 4.7% increase versus last year. Seat capacity increased by 3.9% during the quarter. Domestic passenger traffic grew by 5.7%, driven primarily by the Monterrey Airport, with increases on routes to the metropolitan area of Mexico City, mainly to Toluca and Mexico City airports, Bajío, Puerto Vallarta, Mérida, and Cancún. These routes collectively added over 265,000 passengers during the quarter, representing 87% of the total domestic passenger growth. International passenger traffic decreased by 0.5%.

Speaker #4: In the first quarter of '26, Oma passenger traffic totaled 6.7 million, a 4.7% increase versus last year. Seat capacity increased by 3.9% during the quarter.

Speaker #4: Domestic passenger traffic grew by 5.7%, driven primarily by the Monterey Airport, with increases on routes to the metropolitan area of Mexico City mainly to Toluca and Mexico City Airports, Bajio, Puerto Vallarta, Mérida, and Cancún.

Speaker #4: These routes collectively added over 265,000 passengers during the quarter, representing 87% of the total domestic passenger growth. International air passenger traffic decreased by 0.5%.

Speaker #4: The decrease was mainly driven by Monterey, with lower traffic on the routes to San Antonio, Chicago, and Los Angeles. And Mazatlan on the route to Minneapolis, Dallas, and Los Angeles.

Ricardo Dueñas: The decrease was mainly driven by Monterrey, with lower traffic on the routes to San Francisco, Chicago, and Los Angeles. Mazatlán on the route to Minneapolis, Dallas, and Los Angeles. These decrease were partially offset by a positive performance in San Luis Potosí, which saw higher passenger activity on the routes to Dallas, San Antonio, and Houston. In terms of growth by airline, Volaris, which accounted for 25% of our total passenger traffic in the quarter, recorded a 15% increase in passenger traffic compared to Q1 2025. While Viva, which accounted for 48% of our total passenger traffic, recorded a 3% passenger increase during the quarter. Turning around to our financial performance, aeronautical revenues increased 4.3%. Domestic passenger charges revenue increased by 9%, driven by passenger growth of 85.7%.

Speaker #4: This decrease was partially offset by a positive performance in San Luis Potosí, which saw higher passenger activity on the routes to Dallas and Antonio in Houston.

Speaker #4: In terms of growth by airline, Volaris, which accounted for 25% of our total passenger traffic in the quarter, recorded a 15% increase in passenger traffic compared to the first quarter of 2025, while Viva, which accounted for 88% of our total passenger traffic, recorded a 3% passenger increase during the quarter.

Speaker #4: Turning to our financial performance, aeronautical revenues increased 4.3%. Domestic passenger charges revenue increased by 9%, driven by passenger growth of 5.7%. Our international passenger charges revenue declined by 11% year over year, mostly due to the appreciation of the Mexican peso against the dollar.

Ricardo Dueñas: Our international passenger charges revenue declined by 11% year-over-year, mostly due to the appreciation of the Mexican peso against the USD. Commercial revenues grew by 4.9% compared to Q1 2025, and commercial revenue per passenger stood at MXN 66.4. Commercial revenue growth was mainly driven by retail, parking, VIP lounges, and restaurants as we continue to benefit from higher penetration levels and increased passenger traffic. Occupancy rate for commercial space stood at 93% at the end of the quarter. On the diversification front, revenues decreased 1.1% year-over-year, reflecting a mixed performance across our portfolios. Hotel services declined 7.8%, mainly driven by our Hilton Garden Inn hotel, where results were impacted by the appreciation of the Mexican peso against the USD and lower occupancy.

Speaker #4: Commercial revenues grew by 4.9% compared to the first quarter of 2025, and commercial revenue per passenger stood at 66.4 pesos. Commercial revenue growth was mainly driven by retail, parking, VIP lounges, and restaurants as we continue to benefit from higher penetration levels and increased passenger traffic.

Speaker #4: Occupants rate for commercial space stood at 93% at the end of the quarter. On the diversification front, revenues decreased 1.1% year over year, reflecting a mixed performance across our portfolio.

Speaker #4: Hotel services declined 7.8%, mainly driven by our Hilton Garden Inn Hotel, where results were impacted by the appreciation of the Mexican peso against the dollar and lower occupancy.

Speaker #4: Other services decreased by $13 million, mainly due to a one-time effect in the first quarter of '25 related to industrial park activities, which did not repeat this quarter.

Ricardo Dueñas: Other services decreased by MXN 13 million, mainly due to a one-time effect in Q1 2025 related to industrial park activities, which did not repeat this quarter. These effects were partially offset by strong performance in OMA Cargo, which grew by 8%, supported by a more than threefold increase in operations at our Chihuahua warehouses as the business continued to scale. While industrial services grew 19%, driven by a higher number of leased square meters. OMA's Q1 adjusted EBITDA increased by 2.1% to MXN 2.4 billion with a margin of 73.4%. On the capital expenditure front, total investments in the quarter, including MDP investment, major maintenance, and strategic investments, were MXN 605 million.

Speaker #4: This affects were partially offset by strong performance in Oma Cargo, which grew by 8%. Supported by a more than threefold increase in operations at our Chihuahua warehouses as the business continued to scale.

Speaker #4: While industrial services grew 19%, driven by a higher number of leased square meters. Oma's first quarter adjusted EBITDA, increased by 2.1% to 2.4 billion pesos with a margin of 73.4%.

Speaker #4: On the capital expenditure front, total investments in the quarter, including MDP investment, major maintenance, and strategic investments, were 605 million pesos. Before concluding, I would like to highlight that during the quarter, we agreed with the Mexico City International Airport to extend the lease term of the NH Collection Hotel at Terminal 2 by another five years.

Ricardo Dueñas: Before concluding, I would like to highlight that during the quarter, we agreed with the Mexico City International Airport to extend the lease term of the NH Collection Hotel at Terminal 2 by another 5 years from its original maturity of 2029 to April 2034, under the same terms and conditions as the existing lease agreement. This extension allow us to secure revenues over a longer period from a business that has proven to be highly successful within our diversification strategy, while providing greater visibility on the long-term contributions of this asset to our non-aeronautical revenues. Finally, on 24 April, we held our 2026 annual shareholders meeting, where shareholders approved, among other matters, the declaration and payments of a MXN 4.4 billion peso cash dividend. I would now like to turn the call over to Ruffo Pérez Pliego, who will discuss the financial highlights for the quarter.

Speaker #4: From its original maturity of 2029 to April 2034. Under the same terms and conditions as the existing lease agreement. This extension allows us to secure revenues over a longer period from a business that has proven to be highly successful within our diversification strategy, while providing greater visibility on the long-term contributions of this asset to our non-aeronautical revenues.

Speaker #4: Finally, on April 24th, we held our 2026 annual shareholders' meeting, where shareholders approved among other matters the declaration and payments of a 4.9 billion peso cash dividend.

Speaker #4: I would now like to turn the call over to Ruffo Pérez Prio, who will discuss the financial highlights for the quarter. Thank you, Ricardo, and good morning, everyone.

Ruffo Pérez Pliego: Thank you, Ricardo, and good morning, everyone. I will briefly go over our financial results for the quarter before opening the call for questions. Aeronautical revenues increased 4.3% relative to Q1 2025, mainly due to the increase in domestic passenger traffic despite a 10.5% decrease in international passenger revenues as a result of appreciation of the Mexican peso. Non-aero revenues increased by 3.8%. Commercial revenues increased 4.9%, and the line items with the highest growth were car parking, retail, restaurants, and VIP lounges. Parking increased 8.5%, driven by higher passenger traffic as well as higher charges. Retail and restaurants grew by 8.9% and 5.0% respectively, both mainly as a result of higher passenger traffic, higher penetration rates, and the opening or replacement of outlets from previous quarters.

Speaker #4: I will briefly go over our financial results for the quarter before opening the call for questions. I don't know if you can revenues increased 4.3% relative to 1Q25, mainly due to the increase in domestic passenger traffic despite a 10.5% decrease in international passenger revenues a result of appreciation of the Mexican peso.

Speaker #4: Non-aero revenues increased by 3.8%. Commercial revenues increased 4.9%, and the line items with the highest growth were car parking, retail, restaurants, and VIP lounges.

Speaker #4: Parking increased 8.5% driven by higher passenger traffic as well as higher tariffs. Retail and restaurants grew by 8.9% and 5.0% respectively, both mainly as a result of higher passenger traffic, higher penetration rates, and the opening or replacement of outlets from previous quarters.

Speaker #4: VIP lounges increased by 8.1%, driven by a higher capture rate. In March, we opened a new VIP lounge at our Torreón Airport, and we currently operate OMA Premium Lounges in 11 of our 13 airports.

Ruffo Pérez Pliego: VIP lounges increased by 8.1%, driven by a higher capture rate. In March, we opened a new VIP lounge at our Torreón Airport, and we currently operate OMA Premium Lounges in 11 of our 13 airports. Diversification activities decreased 1.1% in the quarter. Total aeronautical and non-aeronautical revenues grew 4.1% to MXN 3.3 billion in the quarter. Construction revenues amounted to MXN 519 million in Q1 2026. Cost of airport services and G&A expense increased 20.0% versus Q1 2025, primarily due to the following line items. Minor maintenance increased 54.2%, driven by timing effect of works performed.

Speaker #4: Diversification activities decreased 1.1% in the quarter. Total aeronautical and non-aeronautical revenues grew 4.1% to 3.3 billion pesos in the quarter. Construction revenues amounted to 519 million pesos in 1Q26.

Speaker #4: Cost of airport services and GNA expense increased 20.0% during versus 1Q25, primarily due to the following line items. Minor maintenance increased 54.2% driven by timing effect of works performed.

Speaker #4: Contracted services expenses rose 20.8%, mainly due to higher cost of security and cleaning services following contract renewals in prior quarters, reflecting inflationary pressures and tight labor market conditions.

Ruffo Pérez Pliego: Contracted services expenses rose 20.8%, mainly due to higher cost of security and cleaning services following contract renewals in prior quarters, reflecting inflationary pressures and tight labor market conditions. Other costs and expenses, which increased by MXN 24 million as a result primarily of higher transportation costs, retirement provision, and budget expense, among others. Concession tax increased 2.2% to MXN 265 million. Major maintenance provision was MXN 109 million compared to MXN 53.4 million in Q1 2025. The increase reflects the reassessment of our maintenance requirements in line with the investments included in our 2026, 2030 MDP, consistent with guidance provided in the previous quarter. OMA's Q1 adjusted EBITDA grew 2.1% to MXN 2.4 billion and adjusted EBITDA margins stood at 73.4%.

Speaker #4: Other costs and expenses, which increased by 24 million as a result primarily of higher transportation costs, retirement provision, and budget expense, among others. Concession tax increased 2.2% to 265 million pesos.

Speaker #4: Major maintenance provision was 109 million pesos compared to 53.4 million pesos in 1Q25. The increase reflects the reassessment of our maintenance requirements in line with the investments concluded in our 2026-2030 MDP.

Speaker #4: Consistent with guidance provided in the previous quarter. Oma's first quarter adjusted EBITDA grew 2.1% to 2.4 billion pesos, and adjusted EBITDA margins stood at 73.4%.

Speaker #4: Our financing expense decreased by 0.6% to 310 million pesos. Consolidated net income was 1.2 billion pesos in the quarter, a decrease of 4.1% versus 1Q25.

Ruffo Pérez Pliego: Our financing expense decreased by 0.6% to MXN 310 million. Consolidated net income was MXN 1.2 billion in the quarter, a decrease of 4.1% versus Q1 2025. Turning to our cash position. Cash generated from operating activities in Q1 amounted to MXN 1.7 billion. Investing and financing activities used MXN 791 million and MXN 376 million, respectively. As a result, our cash position at the end of the quarter was MXN 3.7 billion. At the end of March, total debt amounted to MXN 13.6 billion, and leverage measured as net debt to adjusted EBITDA stood at 1.0 times. This concludes our prepared remarks. Christine, please open the call for questions.

Speaker #4: Turning to our cash position. Cash generated from operating activities in the first quarter amounted to 1.7 billion pesos. Investing and financing activities used 791 million pesos and 376 million pesos, respectively.

Speaker #4: As a result, our cash position at the end of the quarter was 3.7 billion pesos. At the end of March, total debt amounted to 13.6 billion pesos, and leverage measured as net debt to adjusted EBITDA stood at 1.0 times.

Speaker #4: This concludes our prepared remarks. Christine, please open the call for questions.

Speaker #1: 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.

Operator 2: 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. One moment please while we poll for questions. Thank you. Our first question comes from the line of Rodolfo Ramos with Bradesco. Please proceed with your question.

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. One moment please while we poll for questions. Thank you. Our first question comes from the line of Rodolfo Ramos with Bradesco. Please proceed with your question.

Speaker #1: 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.

Speaker #1: For participants using speaker equipment, it may be necessary to pick up your hands at V4 pressing the star keys. One moment, please, while we pull for questions.

Speaker #1: Thank you. Our first question comes from line of Rodolfo Ramos with Bradesco. Please proceed with your question.

Speaker #5: Good afternoon. Good morning to you guys, Ricardo, Ruffo, and Manuel. Thanks for taking my question. Just a couple from my side. The first one is to see if you can help us get a sense of the potential for route development and the timeline.

Rodolfo Ramos: Good afternoon, well, good morning to you guys, Ricardo, Ruffo, Emmanuel. Thanks for taking my question. Just a couple from my side. The first one is to see if you can help us get a sense of the potential for route development and the timeline. It was interesting to hear during your remarks that 87% of domestic traffic during the quarter came from new routes. So when you look at these recently open routes, you know, if you can remind us what kind of maturation curves, you know, do you expect in these routes? Maybe if you can quantify, as a percentage of your total traffic, what do you see in terms of, you know, route development?

Speaker #5: It was interesting to hear during your remarks that 87% of domestic traffic during the quarter came from new routes. So when you look at these recently opened routes, if you can remind us, what kind of maturation curves do you expect in these routes?

Speaker #5: And maybe if you can quantify as a percentage of your total traffic, what do you see in terms of route development? Not sure how these discussions are going with airlines in the current context of more constrained seat supply.

Rodolfo Ramos: Not sure how these discussions are going with airlines in the current context of, you know, more constrained seat supply. The second, if you can remind us where you stand on your maximum tariff execution and what should we expect at the end of this year? Thank you.

Speaker #5: And then the second, if you can remind us where you stand on your maximum tariff execution and what should we expect at the end of this year.

Speaker #5: Thank you.

Speaker #6: Sure. Hi, Rodolfo. This is Ruffo. So, as you know, we have a very good dialogue with all of our airline partners. We have, right now, 19 confirmed routes for the rest of the year.

Ruffo Pérez Pliego: Sure. Hi, Rodolfo, this is Ruffo Pérez Pliego. As you know, we have a very good dialogue with all of our airline partners. We have right now 19 confirmed routes for the rest of the year, most of them opening in June, primarily with Viva Aerobus and Volaris. We also have 1 confirmed route to Madrid with Iberia. As we announced recently, we continue to position Monterrey as a long-haul connecting point. We have now a direct flight to Paris as of last week. We also see some recovery in the Canadian market for the winter season. Especially in Mazatlán as well.

Speaker #6: Most of them opening in June, primarily with Viva Airbus and Volaris. And also we have one confirmed route to Madrid with Iberia. And as we announced recently, we continue to position Monterrey as a long-haul connecting point.

Speaker #6: We have now a direct flight to Paris as of last week. And also we see some recovery in the Canadian market for the winter season.

Speaker #6: So especially in Mazatlan, as well. So I think that will also help our results towards 4Q. And with respect to maximum tariff compliance, we currently are around 91, 92 percent.

Ruffo Pérez Pliego: I think that will also help our results towards Q4. With respect to maximum tariff compliance, we currently are around 91%, 92%. We started our pass-through of the tariff increase starting this month. We would expect to end of the year close to 95%.

Speaker #6: We started our pass-through of the tariff increase starting this month. And we would expect to end up the year close to 95 percent.

Speaker #5: Thank you.

Rodolfo Ramos: Thank you.

Speaker #1: Our next question comes from line of Alberto Valerio with UBS. Please proceed with your question.

Operator 2: Our next question comes from the line of Alberto Valerio with UBS. Please proceed with your question.

Operator: Our next question comes from the line of Alberto Valerio with UBS. Please proceed with your question.

Alberto Valerio: Thank you for the opportunity to make the question. It's a follow-up on the first question as well. We have a guidance that MDP tariff would be starts pointing in April. I would like to know if it how is proceeding this increasing price for tariffs? Another question is about the international operations due to strength of Mexican peso. How have been the pass-through, or you think that Mexican peso may weaken in further in the year, you might be holding to pass through tariffs on these routes? Just a follow on tariffs as well. Thank you very much.

Speaker #7: Thank you for the opportunity to make the question. It's a follow-up on the first question as well. We have a guidance that MDP tariffs would be start pointing in April.

Speaker #7: I would like to know if how it's proceeding this increasing price for tariffs. And another question is about the international operations due to strength of Mexican peso.

Speaker #7: How have been the pass-through? Or you think that Mexican peso may weaken further in the year? You might be holding to pass-through tariffs on these routes?

Speaker #7: Just a follow-up on tariffs as well. Thank you very much.

Ruffo Pérez Pliego: Yes. So, during Q1, we made little adjustments to our regulated tariffs. Most of the tariffs increased in April 10 of this month. We have already implemented that as of April 10. I think that we are not right now holding any tariff increase considering the FX potential variation. We'll have to assess that in the future depending on the peso exchange rate. Right now we did implement the contemplated tariff increase earlier this month.

Speaker #6: Yes. So during the first three months we made a little adjustments to our regulated tariffs. Most of the tariffs increased in April 10th of this month.

Speaker #6: And we have already implemented that as of April 10th. I think that we are not right now holding any tariff increase in considering the effects potential variation.

Speaker #6: So we'll have to assess that in the future depending on the peso exchange rate. But right now we did implement the contemplated tariff increase this earlier this month.

Speaker #5: Thank you.

Alberto Valerio: Thank you.

Speaker #1: Our next question comes from line of Jen Spies with Morgan Stanley. Please proceed with your question.

Operator 2: Our next question comes from the line of Jens Spiess with Morgan Stanley. Please proceed with your question.

Operator: Our next question comes from the line of Jens Spiess with Morgan Stanley. Please proceed with your question.

Speaker #5: Yes. Hello. Thank you for taking my question. So just on the April tariff increase, if you could give just some additional caller on how much you increased it for domestic versus international.

Jens Spiess: Yes, hello. Thank you for taking my questions. Just on the April tariff increase, if you could give just some additional color on how much you increased it for domestic versus international, I mean, in peso terms. Just to get a better understanding of how much room there is to increase it further. Because my sense is that with the appreciation of the Mexican peso, you could probably do a bit more pronounced increases on the international side. Just to confirm, a follow-up on your response earlier. The 92%, that's based on Q1 numbers, right? Or how should we understand that 92%? Thank you.

Speaker #5: I mean, in peso terms, and just to get a better understanding of how much room there is to increase it further, because my sense is that with the appreciation of the Mexican peso, you could probably do a bit more pronounced increases on the international side.

Speaker #5: And just to confirm, a follow-up on your response earlier. So the 92 percent, that's based on first quarter numbers, right? Or how should we understand that 92 percent?

Speaker #5: Thank you.

Speaker #6: Okay, Jen. Thank you for your question. So in terms of the increase, it was as of April 10th. It was a 6.9 percent across the board for domestic and for international TUA and airport services as well.

Ruffo Pérez Pliego: Okay, Jens, thank you for your question. In terms of the increase, it was, as of 10 April, it was a 6.9% across the board for domestic and for international, TUA and airport services, as well. That was a nominal increase of 6.9%. Regarding the maximum tariff, yes, the 91%-92% is in the Q1. We would expect to go higher, around 95%, towards the end of the year.

Ricardo Dueñas: Okay, Jens, thank you for your question. In terms of the increase, it was, as of 10 April, it was a 6.9% across the board for domestic and for international, TUA and airport services, as well. That was a nominal increase of 6.9%. Regarding the maximum tariff, yes, the 91%-92% is in the Q1. We would expect to go higher, around 95%, towards the end of the year.

Speaker #6: That was a nominal increase of 6.9 percent. And regarding the maximum tariff, yes, the 91, 92 percent is in the 1Q. And we would expect to go higher around 95 percent towards the end of the year.

Speaker #5: Okay. And when is the next step up planned for this year?

Jens Spiess: Okay, when is the next step up planned for this year?

Ruffo Pérez Pliego: We don't have any other step up contemplated for the rest of the year. Any increase would be until the next year. Still TBD.

Speaker #6: We don't have any other step-up contemplated for the rest of the year. Any increase would be until the next year. Still TBD, the timing of that.

Ricardo Dueñas: We don't have any other step up contemplated for the rest of the year. Any increase would be until the next year. Still TBD.

Jens Spiess: Okay.

Ruffo Pérez Pliego: The timing of that.

Ricardo Dueñas: The timing of that.

Speaker #5: Okay. So even if the Mexican peso appreciates further, any adjustment would be implemented next year.

Jens Spiess: Okay. Even if the Mexican peso appreciates further, any adjustment would be implemented next year?

Speaker #6: Correct. Yes.

Ruffo Pérez Pliego: Correct. Yes.

Ricardo Dueñas: Correct.

Ruffo Pérez Pliego: Yes.

Speaker #5: All right. Perfect. Thank you.

Jens Spiess: All right. Perfect. Thank you.

Speaker #1: Our next question comes from line of Anton Morton Cotter with GBM. Please proceed with your question.

Operator 2: Our next question comes from a line of Ernst Mortenkotter with GBM. Please proceed with your question.

Operator: Our next question comes from a line of Ernst Mortenkotter with GBM. Please proceed with your question.

Speaker #8: Hi guys. Thank you for taking my question. On the commercial side, commercial revenue per pax was quite stable quarter well, sorry, year on year.

Ernst Mortenkotter: Hi, guys. Thank you for taking my question. On the commercial side, commercial revenue per pax was quite stable year on year. I was just wondering, as you look ahead, how are you thinking about the next phase of monetizing the commercial side across the portfolio? Where do you see the biggest opportunities, structurally, to increase the spend per passenger? Thank you.

Ernst Anton Mortenkotter: Hi, guys. Thank you for taking my question. On the commercial side, commercial revenue per pax was quite stable year on year. I was just wondering, as you look ahead, how are you thinking about the next phase of monetizing the commercial side across the portfolio? Where do you see the biggest opportunities, structurally, to increase the spend per passenger? Thank you.

Speaker #8: I was just wondering, as you look ahead, how are you thinking about the next phase of monetizing the commercial side across the portfolio? And where do you see the biggest opportunities structurally to increase the spend per passenger?

Speaker #8: Thank you.

Ruffo Pérez Pliego: Sure. We did have flattish per pax income this quarter versus last year. Most of that is explained because of reconfiguration of commercial spaces in our Monterrey Airport as a result of the terminal expansion works that we're doing in that airport. As we open new areas and works in certain areas are completed, we should see the benefit of those works, probably starting mid-2027 and kicking in in full in 2028. In addition, we have a couple of line items that are also quite peso linked, sorry, US dollar linked. Primarily the VIP lounge operation is basically fully dollarized, as well as the duty-free.

Speaker #6: Sure. We did have flattish per pax income this quarter versus last year. Most of that is explained because of reconfiguration of commercial spaces in our Monterey airport as a result of the terminal expansion works that we are doing in that airport.

Speaker #6: As we open new areas and works in certain areas are completed, we should see the benefit of those works. Probably starting mid-2027. And kicking in in full in 2028.

Speaker #6: And in addition, we have a couple of line items that are also quite peso—sorry, US dollar—linked. Primarily, the VIP lounge operation is basically fully dollarized.

Speaker #6: And as well as the duty-free. So appreciation of the peso also affected those two particular line items.

Ruffo Pérez Pliego: Appreciation of the peso also affected those two particular line items.

Speaker #8: Thank you.

Ernst Mortenkotter: Thank you.

Ernst Anton Mortenkotter: Thank you.

Speaker #1: Our next question comes from line of Enrique Cantu with GBM. Please proceed with your question.

Operator 2: Our next question comes from the line of Enrique Cantu with GBM. Please proceed with your question.

Operator: Our next question comes from the line of Enrique Cantu with GBM. Please proceed with your question.

Speaker #9: Hi. Thank you for the call and congratulations on the results. My question is on profitability. We saw a meaningful increase in operating costs, particularly in service costs.

Enrique Cantu: Hi. Thank you for the call, and congratulations on the results. My question is on profitability. We saw a meaningful increase in operating costs, particularly in service costs, which pressured margins. How much of this cost increase will you consider as a one-off, and how should we think about the margin trends in the coming quarters?

Enrique Cantú Garza: Hi. Thank you for the call, and congratulations on the results. My question is on profitability. We saw a meaningful increase in operating costs, particularly in service costs, which pressured margins. How much of this cost increase will you consider as a one-off, and how should we think about the margin trends in the coming quarters?

Speaker #9: Which pressure margins? How much of this cost increase will you consider as a one-off? And how should we think about the margin trends in the coming quarters?

Ruffo Pérez Pliego: Hi, Enrique. So we had some advanced minor maintenance expenses that were advanced in Q1 due to timing of execution of the works. We should expect that line item to normalize going forward. And also in the other costs and expenses, we did have some non-recurring items related to other provisionings for the litigation provisions and IT expenses that should level off in coming quarters. Now, regarding the major maintenance provision, let me just highlight it's a non-cash item. Even though it does affect the margin, it is not affecting the cash position of the company.

Speaker #6: Hi Enrique. So we had some advanced minor maintenance expenses that were advanced in the first quarter due to timing execution of the works. We should expect that line item to normalize going forward.

Speaker #6: And also, in the other costs and expenses, we did have some non-recurring items related to battery provisioning, certain litigation provisions, and IT expenses that should level off in coming quarters.

Speaker #6: Now, regarding the major maintenance provision, I will just highlight it's a non-cash item. So even though it does affect the EBDA margin, it is not affecting the cash position of the company.

Speaker #9: Perfect. Thank you.

Enrique Cantu: Perfect. Thank you.

Enrique Cantú Garza: Perfect. Thank you.

Speaker #1: Our next question comes from line of Pablo Mulas with GBM. Please proceed with your question. Pablo Mulas, your line is live. Our next question comes from line of Alan Macias with Bank of America.

Operator 2: Our next question comes from the line of Pablo Mulas with GBM. Please proceed with your question. Pablo Mulas, your line is live. Our next question comes from the line of Alan Macias with Bank of America. Please proceed with your question.

Operator: Our next question comes from the line of Pablo Mulas with GBM. Please proceed with your question. Pablo Mulas, your line is live. Our next question comes from the line of Alan Macias with Bank of America. Please proceed with your question.

Speaker #1: Please proceed with your question.

Speaker #8: Hi. Good morning and thank you for the call. Just a question on jet fuel. Any risks there of availability in Mexico? Any scarcity you have you seen?

Alan Macias: Hi. Good morning, and thank you for the call. Just a question on jet fuel. Any risks there of availability in Mexico? Any scarcity have you seen? What have jet fuel prices been doing in Mexico? Any risk of airlines such as Delta that suspended some flights from the US to Mexico? Anything you've seen from US airlines or, in that case, Mexican? Thank you.

Speaker #8: And what have jet fuel prices been doing in Mexico? And any risk of airlines such as Delta that suspended some flights from the US to Mexico?

Speaker #8: Anything you've seen from US airlines or in that case, Mexican? Thank you.

Speaker #6: Thank you, Alan. Yes. Fortunately, we're not having the issue that you're seeing in Europe, where you're seeing shortages of jet fuel. Fortunately, in Mexico, we don't see a problem of shortage.

Ruffo Pérez Pliego: Thank you, Alan. Yes, as we are fortunately, we're not having the issue that you're seeing in Europe, where you're seeing shortages of jet fuel. Fortunately, in Mexico, we don't see a problem of shortage. We also have spoken directly with the ASA authorities, and there's no sign that there is a problem of shortage. We do have the price of oil where it is, that is probably having an impact across the board.

Ricardo Dueñas: Thank you, Alan. Yes, as we are fortunately, we're not having the issue that you're seeing in Europe, where you're seeing shortages of jet fuel. Fortunately, in Mexico, we don't see a problem of shortage. We also have spoken directly with the ASA authorities, and there's no sign that there is a problem of shortage. We do have the price of oil where it is, that is probably having an impact across the board.

Speaker #6: We also have spoken directly with the ASA authorities, and there's no sign that there's a problem of shortage. We do have the price of oil what it is, that it's probably having an impact across the board.

Speaker #8: Thank you.

Alan Macias: Thank you.

Speaker #1: As a reminder, if you would like to ask a question, please press star one on your telephone keypad. One moment, please, while we repoll for any additional questions.

Operator 2: As a reminder, if you would like to ask a question, press star one on your telephone keypad. One moment, please, while we re-poll for any additional questions. Thank you. Our next question comes from the line of Vanessa Quiroga with Eternal Capital. Please proceed with your question.

Operator: As a reminder, if you would like to ask a question, press star one on your telephone keypad. One moment, please, while we re-poll for any additional questions. Thank you. Our next question comes from the line of Vanessa Quiroga with Eternal Capital. Please proceed with your question.

Speaker #1: Thank you. Our next question comes from line of Vanessa, Churago with Eternal Capital. Please proceed with your question.

Speaker #10: Hi. Thank you. A follow-up regarding the increase in tariffs that are due in April that you are going to implement. What exchange rate for the Mexican peso did you assume to decide to increase by 6.9% the tariffs?

Vanessa Quiroga: Hi. Thank you. A follow-up regarding the increase in tariffs that are due in April that you are going to implement. What exchange rate for the Mexican peso did you assume to decide to increase by 6.9% the tariffs? Thank you.

Speaker #10: Thank you.

Ruffo Pérez Pliego: That increase was based or planned earlier in the year. It does reflect both inflationary expectations for this year, as well as some catch-up of the MDP tariff increase that we obtained in December of last year. It's consistent with our expectation of passing through the MDP increase in two to three years.

Speaker #6: So that increase was based or planned earlier in the year. And it does reflect both inflationary expectations for this year as well as some catch-up of the NDP tariff increase that we obtained in December of last year.

Speaker #6: So it's consistent with our expectation of passing through the NDP increase in two to three years.

Speaker #10: Okay. And a question about the non-commercial sorry, the commercial revenues and what we saw for the hotels. Are you expecting that the hotel performance will remain as we saw in the first quarter?

Vanessa Quiroga: Okay. A question about the commercial revenues and what we saw for the hotels. Are you expecting that the hotel performance will remain as we saw in Q1 with declines?

Speaker #10: With declines?

Ruffo Pérez Pliego: Part of the decline that you saw in Q1 was mostly due to FX, especially the Hilton Garden Inn in Monterrey. Mostly our two-thirds are Hilton Honors, which are American-based. The currency was well, that had an impact there. We expect it to normalize going forward. We're also exploring 2 additional new hotels.

Speaker #6: Part of the decline that you saw in the first quarter was mostly due to FX. So especially the Hilton Garden Inn in Monterrey—mostly, about two-thirds are Hilton Honors, which are American-based.

Ricardo Dueñas: Part of the decline that you saw in Q1 was mostly due to FX, especially the Hilton Garden Inn in Monterrey. Mostly our two-thirds are Hilton Honors, which are American-based. The currency was well, that had an impact there. We expect it to normalize going forward. We're also exploring 2 additional new hotels.

Speaker #6: So the currency was what played an impact there. We expect it to normalize going forward. And we're also exploring two additional new hotels.

Speaker #10: Okay. Thank you.

Vanessa Quiroga: Okay. Thank you.

Speaker #1: Our next question comes from line of Julia Orssi with JPMorgan. Please proceed with your question.

Operator 2: Our next question comes from the line of Julia Orsi with J.P. Morgan. Please proceed with your question.

Operator: Our next question comes from the line of Julia Orsi with J.P. Morgan. Please proceed with your question.

Speaker #11: Yes. Hello, everyone. Thanks for taking my question. So just a question on your outlook for traffic for this year. So any changes on your previous estimates of mid to low to mid-single-digit growth rate due to airlines reducing capacity and some sort of demand hit due to higher jet fuel costs?

Julia Orsi: Yes. Hello, everyone. Thanks for taking my question. Just a question on your outlook for traffic for this year. Any changes on your previous estimates of low to mid-single digit growth rate due to, you know, airlines reducing capacity and some sort of demand hit due to higher jet fuel costs, and how you're seeing the breakdown across domestic and international demand as well? Thank you.

Speaker #11: And how you're seeing the breakdown across domestic and international demand as well? Thank you.

Ruffo Pérez Pliego: Hi, Julia. Even though there is a lot of uncertainty on the number of seats after the last summer season, we think that the low to mid-single digit estimate is still valid. We do see better performance on the domestic side than in international. Yes, in the Q1 of this year, US demand has been soft, but it has been compensated by higher dynamism of the Monterrey industrial market.

Speaker #6: Hi, Julia. Even though there is a lot of uncertainty on the number of seats after the summer season, we think that the low to mid-single-digit estimate is still valid.

Speaker #6: We do see better performance on the domestic side. Than international. So yes, in the one queue, this year, US demand has been soft. But it has been compensated by higher dynamism of the Monterey industrial market.

Speaker #11: Perfect. Thank you.

Julia Orsi: Perfect. Thank you. Our next question comes from the line of Federico Galassi with the Rohatyn Group. Please proceed with your question.

Julia Orsi: Perfect. Thank you.

Speaker #1: Our next question comes from line of Federico Galassi with the Roerton Group. Please proceed with your question.

Operator: Our next question comes from the line of Federico Galassi with the Rohatyn Group. Please proceed with your question.

Speaker #12: Hi. Thank you, Ruffo, for taking my question. Maybe this is a follow-on, but when I checked the growth in cost, we see two or three lines as minor maintenance, other cost, and in particular, contracted service.

Federico Galassi: Hi. Thank you, Rufo, for taking my question. Maybe this is a follow on, but when I checked the growth in cost, we see two or three lines as minor maintenance, other costs, and in particular, contracted service. Was something in particular for this quarter? This is a number that you can continue to grow, and in particular for the project that you are running today? Just to understand how is the increase in cost? Only that.

Speaker #12: This is was something in particular for this quarter? This is a number that you can continue to grow? And in particular, for the project that you are running today?

Speaker #12: Just to understand how is the increase in cost, only that.

Speaker #8: Sure. Hi, Federico. So on yeah, maintenance cost was impacted by timing effect. So it should trend down in the following quarters. And the same with other costs.

Ruffo Pérez Pliego: Sure. Hi, Federico. So on, yeah, maintenance cost was impacted by timing effects. It should trend down in the following quarters. The same with other costs. On the contracted services line item, it does reflect primarily security and cleaning contracts that we have. Those levels are expected of that particular line item to be maintained for the remainder of the year.

Speaker #8: On the contracted services line item, it does reflect primarily security and cleaning contracts that we have. And those levels are expected to of that particular line item to be maintained for the remainder of the year.

Speaker #12: Okay. Clear. Other? Other costs and expenses?

Federico Galassi: Okay. Clear. Other costs and expenses?

Speaker #8: Yeah. And other costs also we did have some timing effects. As well as some extraordinary events in the one queue. So that number should also be slightly lower in future quarters.

Ruffo Pérez Pliego: Yeah. Other costs also we did have some timing effects as well as some extraordinary events in the Q1. That number should also be slightly lower in future quarters.

Speaker #12: Okay. It's fair to say that today, that in the next quarters, the cost of revenues should be decreased for all these one effects. One of the effects.

Federico Galassi: Okay. It's fair to say that today, no? That in the next quarters, the cost over revenues should be decreased for all these one-off effects.

Ruffo Pérez Pliego: Yes.

Federico Galassi: One of the effects.

Speaker #8: Yes. That is correct. Yes. That is correct.

Ruffo Pérez Pliego: That is correct.

Federico Galassi: Okay.

Ruffo Pérez Pliego: Yes, that is correct.

Federico Galassi: Okay. Thanks.

Speaker #12: Okay. Perfect. Perfect. Very clear. And the second one, Ruffo, if I can, is we saw in the last quarter, Oma Carga growing again almost double-digit, if you see the two quarters.

Ruffo Pérez Pliego: We're

Federico Galassi: Perfect. Very clear. The second one, Ruffo, if I can, is we saw in the last quarter OMA Cargo growing again almost double digits, if you see the two quarters. How do you see the activity in cargo, thinking in the rest of the year?

Speaker #12: How do you see the activity in Carga? Thinking in the rest of the year.

Speaker #6: So it continues to be strong. What is driving right now the first Q numbers is primarily our Chihuahua warehouse results. Which is picking up in terms of client penetration.

Ruffo Pérez Pliego: It continues to be strong. What is driving right now the Q1 numbers is primarily our Chihuahua warehouse results, which is picking up in terms of client penetration and operations. We still see a lot of potential in the Monterrey airport. We see dynamism to continue for the coming quarters on that line item.

Speaker #6: And operations. But we still see a lot of potential in the Monterey airport. And we see dynamism to continue for the coming quarters on that line item.

Speaker #12: Okay, Ruffo. Thank you so much.

Federico Galassi: Okay. Ruffo, thank you so much.

Speaker #1: Our next question comes from the line of Gabriel Himmelfarb with Scotiabank. Please proceed with your question.

Operator 2: Our next question comes from the line of Gabriel Himelfarb with Scotiabank. Please proceed with your question.

Operator: Our next question comes from the line of Gabriel Himelfarb with Scotiabank. Please proceed with your question.

Speaker #13: Hi. Good morning. Thanks for the call. Just a quick reminder or a quick follow-up on the MDP CapEx. I believe it's the core of the MDP.

Gabriel Himelfarb: Hi. Good morning. Thanks for the call. Just a quick reminder or a quick follow-up on the MDP CapEx. I believe it's the core of the MDP. It's based on expanding the Monterrey commercial areas. I think you mentioned last quarter that you expect a ramp up between 10% and 15% on revenue per passengers by 2028. Is this number still in line, or there's an update? Or perhaps can you give us, in terms of EBITDA, how much this can be incremental for OMA? Thank you.

Speaker #13: It's based on expanding the Monterey commercial areas. I think you mentioned last quarter that you expect a ramp-up between 10 and 15 percent in revenue per passengers.

Speaker #13: By 2028. It's these numbers still in line or there's an update or perhaps can you give us in terms of EBITDA how much can this be incremental for Oma?

Speaker #13: Thank you.

Ruffo Pérez Pliego: That number is based, in real terms. Yeah, we expect that spend per pax in the Monterrey airport to go up by 15% by 2028 as compared to baseline of 2024, in real terms. Yeah.

Speaker #6: So yes, that number is based in real terms. So yeah, we expect that spend per tax in the Monterey airport to go about by 15 percent by 2028 as compared to baseline of 2024.

Ruffo Pérez Pliego: That number is based, in real terms. Yeah, we expect that spend per pax in the Monterrey airport to go up by 15% by 2028 as compared to baseline of 2024, in real terms. Yeah.

Speaker #6: In real terms. Yeah.

Speaker #13: Okay. And how much in terms of EBITDA will be the step-up?

Gabriel Himelfarb: Okay. How much in terms of EBITDA will be the step up?

Ruffo Pérez Pliego: Let me confirm. I'll get back to you because I'll have to check what the expected passengers are for that airport. I will get back to you. I don't have the numbers in front of me.

Speaker #6: Let me confirm and get back to you because I'll have to check what the expected passengers are for that airport. But we'll get back to you.

Speaker #6: I don't have the numbers in front of me.

Speaker #13: Sure. Thank you very much.

Gabriel Himelfarb: Sure. Thank you very much.

Operator 2: We have no further questions at this time. I'd now like to turn the floor back over to management for closing comments.

Operator: We have no further questions at this time. I'd now like to turn the floor back over to management for closing comments.

Speaker #1: We have no further questions at this time. I'd now like to turn the floor back over to management for closing comments.

Speaker #13: We would like to thank we would like to thank everyone participating in today's call. We appreciate your insightful questions, engagement, and continued support. Ruffo Manuel and I are available to answer your questions.

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

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

Speaker #13: Thanks. Thank you once again and have a great day.

Speaker #14: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

Operator 2: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

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

Q1 2026 Grupo Aeroportuario del Centro Norte SAB de CV Earnings Call

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