Q2 2026 Grupo Aeroportuario del Centro Norte SAB de CV Earnings Call
Speaker #1: Welcome to Oma's Q2 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.
Speaker #1: If anyone should require operator assistance during the conference, please press *0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Emmanuel Camacho.
Speaker #1: Thank you. You may begin.
Speaker #2: Thank you, Cleo, and hello everyone. Thank you for standing by and welcome to Oma's Q2 2026 earnings conference call. Thank you for joining us today.
Speaker #2: As we discuss our company's performance and financial results for the past quarter, joining us today are our CEO, Ricardo Bañez, and CFO, Rufo Perez Piero.
Speaker #2: 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 #2: Including factors that may be beyond our control. And now, I'll turn the call over to Ricardo Bañez for his opening remarks.
Speaker #3: Thank you, Manuel. Good morning, everyone, and thank you for joining us today. This morning, Rufo and I will review our quarterly operational and financial results, and then we'll be pleased to answer your questions.
Speaker #3: During the second quarter of 2026, Oma served 7.2 million passengers, an increase of 0.4% versus the second quarter of last year, while available seat capacity decreased by 0.3%.
Speaker #3: Domestic passenger traffic grew by 0.6% as compared to the second quarter of '25. Our San Luis Potosí Airport was the main contributor to domestic passenger traffic growth, with increases on the routes to Haifa and Cancun Airports.
Speaker #3: These routes collectively added over 23,000 passengers during the quarter, representing 61% of the total domestic passenger growth. International passenger traffic decreased by 1.2%, mainly driven by our Monterey Airport with lower traffic on the Los Angeles-Dallas-Fort Worth and San Antonio routes.
Speaker #3: In terms of growth by airline, Volaris, which accounted for 25% of our total passenger traffic in the quarter, recorded a 7% growth versus the second quarter of 2025, while Viva, which accounted for 50% of our total passenger traffic, recorded a 2% decline.
Speaker #3: During the quarter, airlines opened 24 new routes across our airports, including 18 domestic and 6 international routes. This included the launch of Aeroméxico's new route to Paris in April, as well as Iberia's new route to Madrid in June, marking the airline's first-ever operation in Monterey.
Speaker #3: The Paris route generated more than 14,000 passengers during the quarter, and following its strong initial performance, the route was converted from a seasonal to a permanent year-round operation, further increasing Monterey's connectivity with Europe.
Speaker #3: Turning to our financial performance, Aeronautical revenues increased 4% during the quarter, mainly reflecting the tariff adjustment that became effective in mid-April. Commercial revenues continued to perform well during the quarter, increasing 7% versus the second quarter of '25.
Speaker #3: Commercial revenue per passenger reached 66.4 pesos, an increase of 60.3%, while occupancy of commercial space remained at 96% at the end of the quarter.
Speaker #3: Diversification revenues increased by 17% year over year, mainly driven by Oma cargo business, where revenues increased 29%, reflecting new client operations and additional high-value cargo handling in Monterey, as well as higher activity at our Chihuahua warehouse.
Speaker #3: Hotel services revenues grew by 6%, supported by higher occupancy at the NH Hotel Terminal 2 Hotel, and higher average daily rates at both hotels.
Speaker #1: Greetings. Welcome to Oma's second 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.
Speaker #3: Industrial services revenues reached 57 million pesos, an increase of 9%, mainly attributable to a greater number of square meters leased. Oma's Q2 adjusted EBITDA increased 6% to 2.7 billion pesos, while the adjusted EBITDA margin expanded to 75.2%, reflecting revenue growth and disciplined cost management despite continued inflationary and labor cost pressures.
Speaker #1: 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 will now turn the conference over to Emmanuel Camacho.
Speaker #1: Thank you. You may begin.
Speaker #2: Thank you, Cleo. And hello, everyone. Thank you for standing by, and welcome to OMA's second quarter 2026 earnings conference call. Thank you for joining us today.
Speaker #3: Total investments in the quarter, including MDP investments, major maintenance, and strategic investments, were $949 million. Before concluding, I would like to highlight two relevant events during the quarter.
Speaker #2: As we discuss our company's performance and financial results for the past quarter, joining us today are our CEO, Ricardo Duenas, and CFO, Ruffo Espriu.
Speaker #2: 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: First, Oma achieved a sustainability performance target linked to our sustainability-linked bonds, reaching an 88% reduction in Scope 1 and Scope 2 greenhouse gas emissions per passengers by the end of 2025, well above the 58% reduction target set against our 2018 baseline.
Speaker #3: The outcome reflects the company's ongoing investments in energy efficiency and decarbonization initiatives. Finally, on July 16, we issued $3 billion in long-term notes in the Mexican market.
Thank you, Manuel. Good morning, everyone, and thank you for joining us today. This morning, Ruffo and I will review our quarterly operational and financial results, and then we'll be pleased to answer your questions.
Speaker #3: Proceeds were used to repay $1.7 billion of outstanding short-term bank debt, as well as to repay the $640 million corresponding to our Oma 2023 notes maturing on July 24.
During the second quarter of 2026, OMA served 7.2 million passengers, an increase of 0.4% versus the second quarter of last year, while available seat capacity decreased by 0.3%.
Speaker #3: The remaining proceeds will fund committed investments under the Master Development Program and General Corporate Purposes, including working capital requirements. I would now like to turn the call over to Rufo Perez Pliego, who will discuss the financial highlights for the quarter.
Domestic passenger traffic grew by 0.6% as compared to the second quarter of '25.
Our Saint Louis Potosí Airport was the main contributor to domestic passenger traffic growth, with increases on the routes to Apodaca and Cancun airports.
Speaker #4: 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 3.9% relative to the Q2 of 2025, mainly reflecting the tariff adjustments that took effect in April 2026.
And passengers during the quarter represented 61% of the total domestic passenger growth.
International passenger traffic decreased by 1.2%, mainly driven by our Monterrey airport, with lower traffic on the Los Angeles, Dallas-Fort Worth, and San Antonio routes.
Speaker #4: Domestic passenger charges grew in line with this new tariffs, while international passenger charges declined, mainly due to the appreciation of the Mexican peso and lower international traffic.
Speaker #4: Other aeronautical services grew at a more moderate pace than the tariff increase, reflecting fewer aircraft operations during the quarter. Together, these effects resulted in a 3.5% increase in aeronautical revenue per passenger.
In terms of road, light Airline Volaris, which accounted for 25% of our total passenger traffic, in the quarter, recorded at 7% growth versus the second quarter of 2025 while Viva, which accounted for 50 for 50% of a total passenger traffic recorded at 2% decline.
During the quarter, airlines opened 24 new routes across our airports, including 18 domestic and 6 international routes.
Speaker #4: Non-aeronautical revenues increased 9.8%, commercial revenues increased 6.7%, mainly driven by higher parking, restaurants, VIP lounges, and retail revenues. Parking revenues increased 8.8%, driven by higher passenger traffic, as well as higher tariffs from longer stays across our airports.
This included the launch of Aeromexico's new route to Paris in April, as well as Iberia's new route to Madrid in June.
Marking the airline's first-ever operation in Monterey.
The path—the Paris route generated more.
Speaker #4: Restaurants and retail revenues were up 11.3% and 4.2%, respectively, both mainly as a result of higher penetration rates and opening of new outlets. VIP lounges increased by 15.8%, driven by higher capture rates in the Monterey Airport, as well as the recent start of operations of the VIP lounge in Torreón.
Than 14,000 passengers during the quarter, and following its strong initial performance, the RAVAS converted from a seasonal to a permanent year-round operation, further increasing Monterrey's connectivity with Europe.
Turning to our financial performance, aeronautical revenues increased 4% during the quarter, mainly reflecting the tariff adjustment that became effective in mid-April. Commercial revenues continued to perform well during the quarter, increasing 7% versus the second quarter of 2025.
Speaker #4: Diversification activities grew by 17.4% in the quarter, mainly due to the increase in Oma Carga revenues. Total aeronautical and non-aeronautical revenues grew 5.4% to 3.6 billion pesos in the quarter, construction revenues amounted to $844 million in Q2 2026, the cost of airport services and GNA expenses increased 3.6% versus Q2 2025, supporting the expansion of adjusted EBITDA margin.
Commercial revenue per passenger reached 66.4 pesos, an increase of 60.3%, while occupancy of commercial space remained at 96% at the end of the quarter.
Diversification revenues increased by 17% year over year.
In my cargo business, revenues increased 29%, reflecting new client operations and additional high-value cargo handling in Monterrey, as well as higher activity at our Chihuahua warehouse.
Speaker #4: The increase mainly reflected higher payroll, contracted services, and materials and supply expenses. Payroll increased 9.5%, mainly reflecting inflationary adjustments and addition of new positions.
Hotel Services revenues grew by 6%, supported by higher occupancy at the NH Hotel Terminal 2 and higher average daily rates at both hotels.
Speaker #4: Contracted services increased 10.7%, primarily due to higher security and cleaning expenses, resulting from contract renewals and minimum wage increases. And materials and supplies increased 18.7%, mainly reflecting the higher operation requirements in our Oma Carga and our VIP lounge operations.
Industrial Services revenues reached 57 million pesos, an increase of 9%, mainly attributable to a greater number of square meters leased.
Well, my second quarter adjusted EBITDA increased 6.6% to 2.7 billion pesos, while the adjusted EBITDA margin expanded to 75.2%, reflecting revenue growth and disciplined cost management, despite continued inflationary and labor cost pressures.
Speaker #4: Concession tax increased 3.9% to $294 million. Major maintenance provision was $99 million compared to $50 million in Q2 2025, reflecting new MDP provisioning requirements.
Total investments in the quarter, including MDP investments, major maintenance, and strategic investments, were 949 million pesos.
Before concluding, I would like to highlight two relevant events during the quarter.
Speaker #4: As a result, adjusted EBITDA increased 6.2% to $2.7 billion and the margin reached 75.2%. Our financing expense decreased by 17.4% to $337 million in the quarter, mainly as a result of a lower effect from the change in present value of our major maintenance provision, which was partially offset by higher interest expense on that.
First, we achieved the sustainability performance target linked to our sustainability-linked bonds, reaching an 88% reduction in Scope 1 and Scope 2 greenhouse gas emissions per passenger by the end of 2025.
Well above the 58% reduction target set against our 2018 baseline.
The outcome reflects the company's ongoing investments in energy, efficiency, and decarbonization initiatives.
Speaker #4: Consolidated net income was $1.5 billion in the quarter, an increase of 10.2% versus Q2 2025. Turning to our cash position, cash generated from operating activities in the Q2 amounted to $1.8 billion, while investing and financing activities used $776 million and $2.1 billion respectively.
Finally, on July 16th, we issued 3 billion pesos in long-term notes in the Mexican market.
Proceeds were used to repay $1.7 billion pesos of outstanding short-term bank debt, as well as to repay the $640 million pesos corresponding to our MA 23 notes maturing on July 24th.
Speaker #4: As a result, our cash position at the end of the quarter was $2.6 billion. At the end of June total debt amounted to $14.3 billion, and leverage measured as net debt to adjusted EBITDA ratio stood at 1.1 times.
The remaining proceeds will fund committed investments under the master development program and general corporate purposes, including working capital requirements.
I would now like to turn the call over to Ruffo, who will discuss the financial highlights for the quarter.
Thank you, Ricardo, and good morning, everyone. I will briefly go over our financial results for the quarter before opening the call for questions.
Speaker #4: This concludes our prepared remarks. Theo, please open the call to 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 1 on your telephone keypad.
Nautical revenues increased 3.9% relative to the second quarter of 2025, mainly reflecting the tariff adjustments that took effect in April 2026.
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due to the appreciation of the Mexican peso and lower international traffic,
Speaker #1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we pull for questions.
Other aeronautical services grew at the more modern basin, the tariff increase reflecting fewer aircraft operations during the quarter.
Speaker #1: Our first question is from Jeff Spies. With Morgan Stanley Investment Mana, please proceed with your question.
Together, these effects resulted in a 3.5% increase in iron article revenue per passenger.
Speaker #5: Hi, this is Jens. Congrats on the results. So I have a question on the maximum tariff completions. What's your expectation throughout the year? And also, if you can give a bit more details on your capex.
Non-aeronautical revenues increased 9.8%. Commercial revenues increased 6.7%, mainly driven by higher parking and restaurant revenues. The IP launches and retail revenues...
Speaker #5: We saw that you have spent so far like $1.4 billion in your Mexican airports. Through the first half of the year, while your MDP investments are $1.2.
Parking revenues increased 8.8%, driven by higher passenger traffic as well as higher charges from longer stays across our airports.
Speaker #5: So what's going on there? Are you anticipating some of the investments that are in the MDP plan for 2027?
Restaurant and retail revenues were up 11.3% and 4.2%, respectively, both mainly as a result of higher penetration rates and the opening of new outlets.
Speaker #2: Sure. For the first part, Jeff, we're planning to end the year we just recently adjusted tariffs, mid-April. So considering that, we believe by the end of the year we're going to be around the 93% compliance with maximum tariffs.
VIP launches increased by 15.8%, driven by higher capture rates in the Monterrey Airport, as well as the recent start of operations at the VIP lounge in Torreón.
Diversification activities grew by 17.4% in the quarter, mainly due to the increase in OMA revenues.
Total iron article and non-iron article revenues grew 5.4%, to 3.6 billion pesos in the quarter.
Speaker #2: And as for the second part, maybe Lupu, you want to join?
Speaker #4: Sure. Remember that we had some carryover investments that were from the previous MDP that were going to be completed in 2026 and 2027. So that has to be added to the actual 2026 commitment.
Construction revenues amounted to 844 million pesos in Q2 2026.
The cost of airport services and G&A expense increased 3.6% versus 2Q25.
Importing the expansion of adjusted EBITDA margin.
The increase mainly reflected higher payroll, contracted services, and materials and supply expenses.
Speaker #4: So for this year, we are expecting around $3.5 to $4 billion total investment for the year.
Payroll increased 9.5%, mainly reflecting inflationary adjustments and the addition of new positions.
Speaker #5: Okay. Perfect. Perfect. Yeah. And just one additional question. It seems like flight schedules are pointing to some seat growth moderation in the fourth quarter.
Contracted services increased 10.7%, primarily due to higher security and cleaning expenses, resulting from contract renewals and minimum wage increases.
Speaker #5: But very strong growth in the first quarter of next year. Are you seeing the same?
And materials and supplies increased 18.7%, mainly reflecting the higher operational requirements in our OMA Cares and our VIP lounge operations.
Speaker #4: Not yet. The schedules or the, I would say, more definitive schedules for the winter season have yet to be published. So right now we have an indication, and yeah, we see some conservativeness from airlines in 4Q.
Position tax increased 3.9% to 294 million pesos.
Major maintenance provision was 99 million pesos, compared to 50 million pesos in Q2 '25.
As a result, adjusted EBITDA increased 6.2% to $2.7 billion pesos, and the margin reached 75.2%.
Speaker #4: So I don't necessarily think that the first quarter yet do reflect the expectations of airlines and their adjust very indicative at this time.
Our financing expense increased by 17.4% to 337 million pesos in the quarter.
Speaker #5: Got it. All right. Thank you.
Mainly as a result of a lower effect from the change in present value of our major maintenance provision, which was partially offset by higher interest expense on that.
Speaker #1: Thank you. Our next question is from Rodolfo Ramos with Brad Desco, BBI. Please proceed with your question.
Consolidated net income was 1.5 billion pesos in the quarter, an increase of 10.2% for Q2 2025.
Speaker #4: Thank you, for taking my question. I have two the first one is a follow-up on Jeff's. I don't know if you can talk a little bit about your outlook on traffic growth.
Turning to our cash position.
Speaker #4: I know there's a lot of challenges on the horizon here, but why not get your sense and visibility? And specifically, if you can comment on the potential for developing Monterrey's route network.
Cash generated from operating activities in the second quarter amounted to $1.8 billion pesos, while investing and financing activities used $7.776 million pesos and $2.1 billion pesos, respectively. As a result, our cash position at the end of the quarter was $2.6 billion pesos.
Speaker #4: It was encouraging to see more regular services to New York, for example. I don't know if there's any other low-hanging fruit on the domestic market.
Speaker #2: The ratio stood at 1.1 times. This concludes our prepared remarks. Theo, please open the call to questions.
At the end of June, total debt amounted to $14.3 billion pesos, and leverage, measured as net debt to adjusted EBITDA ratio, stood at 1.1 times.
Speaker #4: So that's my first question on the traffic side. And then on the second, if I may, it was very interesting to see all my carga with very strong top line growth, just one of your peers has also seen very active activity on the cargo side.
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.
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Speaker #4: So why don't I get a little bit of the sense that you get from the industry that you're seeing participating in your volumes? I don't know if there's any other potential for you to go into bonded warehouses or try to capture more value out of the this booming exports that Mexico is having.
Speaker #1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we pull for questions.
Speaker #1: Our first question is from Jeff Spies with Morgan Stanley Investment Management. Please proceed with your question.
Speaker #4: Thank you.
Speaker #2: Sure. Thank you, Rodolfo, for your question. So regarding traffic growth, yes, of course, as a result of the oil spike jet fuel spike that we've seen in the first half of the year, we're seeing airlines adjusting some of its capacity.
Speaker #3: Hi, this is Jens. Congrats on the results. So, I have a question on the maximum tariff completion. What's your expectation throughout the year? And also, if you can give a bit more detail on your capex.
Speaker #3: We saw that you have spent so far, like $1.4 billion in your Mexican airports through the first half of the year, while your MDP investments are $1.2 billion.
Speaker #2: For the rest of the year, we're still we are anticipating to be in the positive numbers. We think traffic is going to be around flat to low single digits.
Speaker #3: So what's going on there? Are you anticipating some of the investments that are in the MDP plan for 2027?
Speaker #2: I think that reflects some of the resilience of some of the OMAS airport network. There are some Monterey routes already announced that are in the pipeline, specifically with WestJet, Acapulco, Montreal, Chihuahua, Haifa, Mazatlán, Vancouver, Monterrey, Vancouver.
Sure, for for the first part, uh, Jeff. Uh, we're planning to end the year. Uh, we just recently adjusted the tariffs, meet April,
Speaker #2: So we're currently working with airlines to try to expand and take advantage of Monterey's strategic location. In terms of cargo, yes, we're seeing very good numbers coming from there.
So, uh, considering that, uh, We Believe by that, the end of the year, we're going to be around the 93%, uh, compliance, uh, with maximum tariffs.
And as for the second part, maybe you want to join.
Speaker #2: We're currently expanding our warehouse. We're planning to finish that expansion in the next coming months. Some of the growth you've seen has been driven by new client operations.
Speaker #2: As well as the handling of additional high-value cargo operations. Chihuahua, there was an interesting spike due to the implementation of handling service for UPS and FedEx.
Sure. Um, uh, remember, uh, that, uh, we had some, uh, carryover Investments that were, uh, from the previous mdps, that, uh, were going to be completing in 2026 and 2027 so that has to be added to the, uh, actual 2026 uh commitment.
So for this year, uh, we are expecting around 3.5 to 4 billion pesos total investment, uh, for the year.
Speaker #2: So we're investing in OMA cargo and systems and processes so we expect good growth coming in the next coming months. To continue seeing that type of growth.
Okay, perfect. Perfect. Um,
Speaker #4: Thank you.
Yeah, and and just 1 1 additional question on, like, it seems like flight schedules are pointing to some like seat growth moderation. The fourth quarter, but very strong growth in the, in the first quarter of next year, are you seeing the same?
Speaker #1: Thank you. Our next question comes from Alberto Valerio with UBS. Please proceed with your question.
Um, no, not—not yet.
uh,
the uh,
Speaker #5: Hi, team. Thank you for taking my questions. My first question is related to the working cap of the company, we saw a nice growth, nearly double digit growth on net income.
Speaker #5: But when you go for the cash generation from operation, it's a little bit soft than that. If you can explain the differences in receivables and payables if it's a recurring for the remainder of the year, if it was possible for this quarter.
schedules or the I would say, more definitive schedules, uh, for uh, the winter season have yet to be, uh, published. Uh, so right now we have an indication and, and, and yeah, we, we see some um, conservativeness from Airlines in, in, in 4 q. Uh, so I don't necessarily think that the first quarter, uh,
Yet the new reflect, uh, uh, the, uh, expectations of airlines, and they are just very indicative at this time.
Got it. All right. Thank you.
Speaker #4: Sure. Hi, Alberto. So yes, we've seen increased utilization of working capital we are accelerating our capex execution versus what we had last year. So there are some advanced payments of new contracted works that are reflected as advances in the working capital.
Thank you. Our next question is from Rodulfo Ramos with Bradesco BBI. Please proceed with your question.
Speaker #4: And as construction progresses, those advances will be amortized, but they are a signal of our increased capex execution. And the other one is our tax payments have been higher.
Speaker #4: We have a higher factor for calculation of provisional taxes. Versus what we had in the first half of last year. So even though provisional taxes are based on revenue and revenues are growing in the low single digits, our factor reflects that higher level of provisional payments, which in the annual tax filing of next year, they'll be less of an impact.
Uh, thank you. Uh, uh, for taking my question. Um, I I have to the first 1 is a, is a follow up on, on Jeff's. I don't know if you can, uh, talk a little bit about, um, you know, your outlook on on traffic growth. I know there's a lot of challenges on on the horizon here, but, uh, wanted to get, um, uh, your your, your the sense and visibility and, and specifically, if you can comment on on the potential for developing monter, uh, route network, uh, it was encouraging to see more regular Services, uh, you know, to to New York. For example, I don't know if there's any other low-hanging fruit on on the domestic Market. Um, so, that's my first question on on, the, on the traffic side and then on the second. If I met, um, you know, I was very interesting to see all my Cara with very strong, uh, Topline growth. Um, you know, uh, just 1, 1 of your peers has also seen a very active uh uh activity on the cargo side.
Speaker #4: But during the year, we'll see that type of increase in taxes paid. Fantastic. So we should see this normalized. Construction at least until the MDP capex being on execution.
Um, so so I wanted to get a little bit of the sense that you get from the industries that you're seeing uh, participating in your, in your volumes. I don't know if there's any other potential for you to go into bonded warehouses or or try to capture more more value out of the, uh, you know, the, the this booming exports that Mexico's having thank you.
Sure. Thank you, Ruffo, for your question.
Speaker #4: And the taxes is something more on a regular basis. Is that correct? Yes. And starting next year, a new factor will be recalculated. So that will tend to normalize levels versus this year.
Speaker #4: Fantastic. And one more, if I may. I might miss because cutting the first question of our colleague. When should we expect to almost reach the maximum tariff again?
Speaker #4: Should we draw a linear line into that? So this year we're expecting around 93 to 95% compliance with the maximum tariff for full year.
So regarding traffic growth. Yes, of course, as a result of the, of the oil Spike, uh, jet fuel Spike that we've seen in the first half of the Year. We're seeing Airlines adjusting some of its capacity uh for the rest of the year. We're still we are anticipating uh to be in positive numbers. We think traffic is going to be around flat to low. Uh single digits, I think that reflects on the resilience of some of the as uh airport, uh, Network.
Speaker #4: And next year, we should see what the expected growth in traffic is, as well as the adjustments to the inflation in, as you know, maximum tariff is adjusted every year with inflation.
Uh, Monterey routes uh, already announced that are in the pipelines specifically uh, with WestJet, aapo Montreal, uh, Chihuahua, Mexican IA, Vancouver, Montreal Vancouver. So we're currently working uh, with Airlines to try to expand uh and and take advantage of of Monterey strategic uh location.
Speaker #4: So we'll have to see how those vectors behave and see how can we get to our 99% target but as we said, we would probably target between two to three years after implementation of the MDP to get to that level.
In terms of cargo, yes, we're seeing very good numbers coming from there. We're currently expanding our warehouse; we're planning to finish that expansion in the next coming months.
Speaker #5: So probably we'll be reaching the maximum tariff by the end of 2027, mid of 2028.
Some of the growth you've seen has been driven by new client operations, as well as the handling of additional high-value cargo operations.
Speaker #4: Yes, that'd be reasonable. Yep.
Speaker #5: Fantastic. Thanks so much.
Uh, Chihuahua. You there was a an interesting uh Spike uh due to the implementation of of handling service for for ups and had and FedEx.
Speaker #1: Thank you. Our next question is from Anton Mortenakker, with GBM. Please proceed with your question.
So we're investing in OMICARGA in systems and processes. Uh, so we expect good growth coming in the next few months.
To continue seeing that, that type of growth.
Thank you.
Speaker #6: Hi guys. Thank you for taking my question. This is a bit of a follow-up on the tariff maximum tariff question. Do you think that, I mean, if oil pressures remain should we think that the compliance and the maximum tariff could take longer or are you in different to those pressures?
Thank you. Our next question comes from Alberto Valerio with UBS. Please proceed with your question.
Speaker #6: And also on the commercial side, excluding diversification activities, we saw a slight increase in the non-idle per pax slightly above inflation. What kind of growth should we expect on those business lines going forward?
Speaker #6: Thank you.
Speaker #4: So on the second part of your question, yes, on the commercial side, I think that we will remain stable relative to current levels of around 66 pesos per pax.
Hi team. Thank you for taking my thank you taking my questions. Uh my first question is relation uh rated to the working capital of the company. We saw a a nice growth nearly doubled to grow from that income. But when you go for the cash generation from operation it's a little bit. Uh soft than that. If you can explain the the the differences in in receivables. And payables, if uh, is a recurring for for the remainder of the year, if it was sponsored for for for this quarter,
Speaker #4: We expect to open the new areas in the Monterrey airport towards and be fully operational by the end of next year. So we shall see a pickup in commercial revenue per passenger until 2028.
Speaker #4: But for the following months, I think the 66 level is reasonable to assume. And regarding the maximum tariff, that is what you mentioned of increased oil prices and its impact yes, that could be a headwind towards fully passing through our maximum tariff.
Sure. Um, hi. Hi, uh, Alberto. Um, so so yes. Um, we we, we we've seen, uh, in in increased, uh, utilization of, of, of working capital. Uh, uh. We are accelerating our capex execution, uh, versus what we had, uh, last year. So so, so there are some, uh, Advanced payments of of new contracted works that that are reflective as, as, as, uh, advances in, in, in the working capital. Uh,
And, as construction progresses, those, those advances, uh, uh, will be amortized. But they are a, a signal of our increased, uh, capex. Uh, execution. And the other 1 is, uh, our, uh, tax, uh, payments, uh, have been higher. Uh, we have a higher, um, uh,
Speaker #4: But we'll see where we are at the beginning of the year and the situation has become more stable and more visible. And so we can start taking decisions of how to pass through the rest of the increase.
Speaker #6: Very useful. Thank you.
Speaker #1: Thank you. Our next question is from Gabriel Himmelfarb with Scotiabank. Please proceed with your question.
Uh, factor for calculation of provisional taxes, uh, versus what we had in the first half of last year. So, so even though provisional taxes are based on revenue and revenues are, uh, growing, uh, in in, in, in the, in the low single digit, uh, our Factor, uh, reflects uh, that that higher level of provisional payments, which in the annual tax filing of next year, uh, they, they'll be less of an impact, but during the year, we'll show see that type of increase in taxes paid.
Speaker #7: Hi. Good morning. And thanks for the call. My question is regarding what's next for OMA beyond the MDP and how to be to support the long-term growth strategy for OMA?
Fantastic. So, we should see this normalized construction at least until the MDP topics are being, uh, on execution. And the tax is something more on a regular basis. Is that correct?
Speaker #7: Thank ank you.
Speaker #4: I'm sorry, Gabriel. We can catch it. Can you repeat it? The line is not working very well.
Uh, yes. And and and uh, starting next year, uh, a new Factor will be recalculated. So so that will tend to normalize levels. Uh, uh,
Versus this year.
Speaker #7: Sure. Can you hear me now?
Speaker #4: Yes.
Speaker #7: So my question is regarding yeah. Can you hear me? Sorry.
Fantastic, and one more, if I may. I might have missed the first question from our colleague due to the connection cutting out.
Speaker #4: Yes.
Speaker #7: Sorry. Well, my question is regarding what's the next value driver for OMA beyond the MDP? And how could BC support or what was the attribution of BC for OMA's growth in the next years?
When should we expect to almost reach the maximum target again? Should we draw a linear line to that?
So, this year, we're expecting around 93 to 95% compliance with the maximum tariff for the full year. And, next year we should see what the—uh,
Speaker #4: Sure. Thank you, Gabriel, for your question. Regarding the second part, we've seen many advantages. Just to mention a few, just access to human capital has been a great advantage.
Speaker #4: Access to a larger network of airports has allowed us to try to bring best practice around the world. We have seen them concretely in the last quarter in the last six months with all the technology projects that we have implemented in our network and specifically in Monterey, our bargaining power with suppliers and with airlines has also been a great advantage.
Those, uh, vectors, uh, behave and and, and see how can we get to our 99% Target? Uh, but as we said, uh, we would probably Target between 2, to 3 years after implementation of the, uh, MVP, to, to get to that level.
So, probably, we will be reaching the maximum time by the end of 2027, mid or late 2028.
Yeah, that... that'd be the result. Yeah.
Fantastic. Thanks so much.
Speaker #4: Their know-how and their expertise in the construction side of the business has also been very valuable. Their knowledge in terms of commercial in terms of commercial planning has also been very effective.
Thank you. Our next question is from Anton Morton-Knocker with GBM. Please proceed with your question.
Speaker #4: And you have seen those in the numbers. We are, as for drivers, coming forward, we're working in new projects. We're currently working in two new hotels.
Hi guys. Uh, thank you for taking my question. This is a bit of a follow-up on the tally, uh, maximum T question. Uh, do you think that, I mean, if oil pressures remain—
Speaker #4: An additional one in Monterey, a new one in Ciudad Juárez. We're expanding our cargo operations as well. We're currently evaluating industrial park expansion as well.
Speaker #4: And we will continue optimizing our efficiency and trying to improve the commercial revenues per passenger. As you know, by the end of next year, we will have the new terminal in Monterrey that should add new commercial revenue to our airports.
Should we think that the compliance and the maximum tariff could take longer or or argue in different, uh, to those to those pressures? Uh, and and also on the commercial side, excluding diversification activities. We saw a slight increase in the nominal per packs, uh, slightly above inflation. Uh, what, what kind of growth should we expect on on on those on those business lines going forward, thank you.
Speaker #7: Okay. Thank you very much.
Speaker #1: Thank you. This concludes our question and answer session. I would like to turn the floor back over to Ricardo for closing comments.
Speaker #2: We would like to thank
Speaker #4: everyone for participating in today's call. We appreciate your insightful questions, engagement, and continued support. Rufo Emanuel Ayar and I are available to answer your questions.
Speaker #4: Thank you once again and have a great day.
So, so on the second part of your, uh, question, um, yes, uh, on on the commercial side, I think that we will remain stable relative to to current levels of around 66 pesos, uh, per per packs. Uh, we expect to open the new areas in the Monterey Airport towards and be fully operational by the end of, uh, next year. So we shall see a pick up in commercial Revenue per passenger until 2028. Uh, but uh, for the following months, I, I, I, I think, uh, the 66, uh, level is, is, is reasonable to to, to assume
Um, and uh, regarding, uh, the maximum tariff. Uh, that that is that what you mentioned of of, of uh, uh, uh, increased oil prices and and its impact. Uh, yes, that that could be a headwind towards, uh, fully passing through, uh, our, uh, maximum tariff. Uh, uh
But, uh, we we will see where we are at the beginning of the year and situation has, uh, uh, I've become more more stable and, and, and more visible. And so, so we can start taking decisions of of how to pass through, uh, the rest of the of the increase.
Very useful. Thank you.
Thank you. Our next question is from Gabrielle Himelfarb with Scotiabank. Please proceed with your question.
Hi, good morning and thanks for the call. Um, my question is regarding on what's what's next for for Omar? Beyond the MVP and how to be to support the long-term growth strategy for Omar in
I'm sorry, Gabriel. The... we can, we can catch a—can you repeat it? The line is not working very well.
Sure. Can you hear me now?
Yes.
so, my question is regarding
Yeah, can you hear me? Sorry.
Yes.
Speaker #7: the MDP? And how could BC support or what was the attribution of BC for OMA's growth in the next years?
Speaker #2: Sure. Thank you, Gabriel, for your question. Regarding the second part, we've seen many advantages. Just to mention a few, just access to human capital has been a great advantage.
Speaker #2: Access to a larger network of airports has allowed us to try to bring best practice around the world. We have seen them concretely in the last quarter in the last six months with all the technology projects that we have implemented in our network and specifically in Monterey, our bargaining power with suppliers and with airlines has also been a great advantage.
Speaker #2: Their know-how and their expertise in the construction side of the business has also been very valuable. Their knowledge in terms of commercial in terms of commercial planning has also been very effective.
Speaker #2: And you have seen those in the numbers. We are, as for drivers, coming forward, we're working in new projects. We're currently working in two new hotels.
Speaker #2: One, an additional one in Monterey, a new one in Ciudad Juárez. We're expanding our cargo operations as well. We're currently evaluating industrial park expansion as well.
Speaker #2: And we will continue optimizing our efficiency and trying to improve the commercial revenues per passenger. As you know, by the end of next year, we will have the new terminal in Monterey that should add new commercial revenue to our airports.
Speaker #7: Okay. Thank you very much.
Speaker #1: Thank you. This concludes our question-and-answer session. I would like to turn the floor back over to Ricardo for closing comments.
Speaker #2: We would like to thank everyone for participating in today's call. We appreciate your insightful questions, engagement, and continued support. Ruffo, Emmanuel, and I are available to answer your questions.
Speaker #2: Thank you once again, and have a great day.
