Q4 2025 Grupo Aeroportuario del Centro Norte SAB de CV Earnings Call

Speaker #1: Greetings. Welcome to OMA's fourth-quarter 2025 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 star 0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Emmanuel Camacho, Investor Relations Officer.

Speaker #1: Thank you. You may begin.

Speaker #2: Thank you, Sherry. Hello, everyone. Thank you for standing by, and welcome to OMA's fourth-quarter 2025 earnings conference call. We are delighted to have you join us today as we discuss our company's performance and financial results for the past quarter.

Speaker #2: Joining us today are 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 be materially different.

Speaker #2: Including factors that may be beyond our control. And now, I'll turn the call over to Ricardo Duenas for his opening remarks.

Speaker #3: Thank you, Emmanuel. Good morning, everyone, and thank you for joining us today. This morning, I will briefly discuss the approval of our master development program. Then Ruffo and I will review our annual and quarterly operational performance and financial results.

Speaker #3: And finally, we will be happy to answer your questions. During December, we received approval from the Federal Civil Aviation Agency for a master development program covering the 2026–2030 period.

Speaker #3: The approved investment commitment amounts to approximately $16 billion, expressed in December 2024. This new five-year program is focused on capacity expansion and quality enhancements at our largest airports in terms of passenger contribution, while further strengthening the efficiency of our network.

Speaker #3: Investments are allocated across terminal expansions, airside infrastructure, equipment upgrades, pavement rehabilitation, modernization works, environmental initiatives, as well as safety and certification programs. Capacity and quality improvements, infrastructure optimization, airport equipment, and sustainability-related CapEx represent the main drivers of the program.

Speaker #3: In this context, our MDP prioritizes projects that enhance passenger experience, improve operational efficiency, and incorporate technology solutions that support long-term service quality and cost optimization.

Speaker #3: Sustainability and decarbonization are embedded in our investment strategy, with initiatives aimed at improving energy efficiency and supporting our long-term emission reduction targets. Importantly, the total investment commitment for 2026–2030 is comparable, in real terms, to the investment considered in the 2021–2025 cycle.

Speaker #3: However, traffic levels today are materially higher than five years ago. This implies an improvement in capital efficiency per passenger and reflects the scalability of our existing infrastructure.

Speaker #3: In other words, this MDP reflects disciplined capital allocation, greater efficiency in the deployment of CapEx, and a focus on maximizing the use of current assets.

Speaker #3: The approval also provides long-term regulatory visibility and reinforces the structural growth outlook of our airports. Moving now to our full-year 2025 results, this was a year marked by the continued recovery in operational capacity and a strong performance in our main airport of Monterrey.

Speaker #3: While the Pratt & Whitney engine inspection program continued to affect certain fleets during the year, capacity constraints eased compared to 2024. This allowed Mexican airlines to progressively restore frequencies and reintroduce routes that had been limited or suspended due to aircraft availability.

Speaker #3: As a result, seat capacity across our airports increased close to 11% during 2025, reflecting improved aircraft deployment and network adjustments. During 2025, we opened 35 new routes, of which 24 were domestic and 11 were international.

Speaker #3: Further strengthening connectivity across our airports, supported by higher seat availability and route expansion, total passenger traffic reached 28.8 million passengers in 2025, representing an 8.5% increase as compared to 2024, with domestic passenger traffic growing by 8% and international passenger traffic by 12%.

Speaker #3: The expansion reflects a continued diversification of Monterey's international footprint. In addition to consolidating its position as a key gateway to the United States, Monterey has progressively expanded its long-haul connectivity in recent years, including overseas service to Europe and Asia.

Speaker #3: The consolidation of long-haul routes such as Monterrey-Madrid, Monterrey-Tokyo, and Monterrey-Seoul reinforces our long-term vision of positioning Monterrey not only as a regional hub within Mexico, but as an increasingly relevant international connecting point linking northern Mexico with major global destinations.

Speaker #3: In 2026, we will continue strengthening overseas connectivity with additional operations to Madrid and the launch of the Monterey–Paris route in April 2026, further expanding our presence across diversified international markets.

Speaker #3: Beyond traffic growth, 2025 was also a year of solid execution across our commercial and diversification businesses. On the commercial front, we recorded growth across key revenue line items, driven primarily by the opening of new outlets and continued commercial.

Operator: Greetings. Welcome to OMA's Q4 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Emmanuel Camacho, Investor Relations Officer. Thank you. You may begin.

Speaker #3: Optimization. Restaurant revenues grew by 22%, VIP lounges revenues increased by 30%, and parking revenues increased by 13% as compared to 2025. From our diversification lines of business, our industrial park was one of the strongest contributions to growth, with a 44% increase in revenues versus 2024, supported by higher leased square meters.

Luis Emmanuel Camacho Thierry: Thank you, Sherry. Hello, everyone. Thank you for standing by, and welcome to OMA's Q4 2025 Earnings Conference Call. We are delighted to have you join us today as we discuss our company's performance and financial results for the past quarter. Joining us today are CEO, Ricardo Loaiza, and CFO, Rufo Perezpilego. 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 Loaiza for his opening remarks.

Speaker #3: Omaha Cargo revenues recorded strong results as well, with a 9% increase in revenues, mainly as a result of higher volumes and improved operational efficiencies.

Speaker #3: Regarding our financial performance, aeronautical and non-aeronautical revenues each grew approximately 12% year over year. As a result, our adjusted EBITDA for the year was $10.2 billion, and we recorded an adjusted EBITDA margin of 74.5%.

Speaker #3: I will now move on to our fourth quarter 2025 performance. In the quarter, Omaha's passenger traffic totaled 7.5 million, a 6% increase year over year. Seat capacity increased by 8% during the quarter.

Ricardo Dueñas Espriu: Thank you, Emmanuel. Good morning, everyone, and thank you for joining us today. This morning, I will briefly discuss the approval of our Master Development Program. Ruffo and I will review our annual and quarterly operational performance and financial results, and finally, we will be happy to answer your questions. During December, we received approval from the Federal Civil Aviation Agency for a Master Development Program covering the 2026, 2030 period. The approved investment commitment amounts to approximately MXN 16 billion, expressed in December 2024 pesos. This new 5-year program is focused on capacity expansion and quality enhancements at our largest airports in terms of passenger contribution, while further strengthening the efficiency of our network. Investments are allocated across terminal expansions, airside infrastructure, equipment upgrades, pavement, rehabilitation, modernization works, environmental initiatives, as well as safety and certification programs.

Speaker #3: On the domestic front, passenger traffic grew by 6%, driven primarily by the Monterrey airport, which saw increases on routes to the metropolitan areas of Mexico City—mainly to Toluca and Mexico City airports—as well as to Bajio, Puerto Vallarta, Mérida, and Guadalajara.

Speaker #3: These routes collectively added over 300,000 passengers during the quarter, representing 79% of the total domestic passenger growth. International passenger traffic increased by 4%, mainly driven by Monterrey, with higher traffic on the routes to Bogotá, Toronto, and Panama.

Speaker #3: And San Luis Potosí on the routes to Dallas, Fort Worth, Atlanta, and San Antonio. Together, these routes added more than 67,000 passengers during the quarter.

Speaker #3: In terms of growth by airline, Volaris, which accounted for 24% of our total passenger traffic in the quarter, recorded a 17% increase in passenger traffic compared to the fourth quarter of 2024. Meanwhile, Viva, which accounted for 51% of our total passenger traffic, recorded a 5% traffic increase during the quarter.

Ricardo Dueñas Espriu: Capacity and quality improvements, infrastructure optimization, airport equipment, and sustainability-related CapEx represent the main drivers of the program. In this context, our MDP prioritizes projects that enhance passenger experience, improve operational efficiency, and incorporate technology solutions that support long-term service quality and cost optimization. Sustainability and decarbonization are embedded in our investment strategy, with initiatives aimed at improving energy efficient and supporting our long-term emission reduction targets. Importantly, the total investment commitment of 2026-2030 is comparable in real terms to the investment considered in the 2021-2025 cycle. However, traffic levels today are materially higher than five years ago. This implies an improvement in capital efficiency per passenger and reflects the scalability of our existing infrastructure. In other words, this MDP reflects disciplined capital allocation, greater efficiency in the deployment of CapEx, and a focus on maximizing the use of current assets.

Speaker #3: Turning to our financial performance, aeronautical revenues increased 6%. Commercial revenues grew by 8% compared to the fourth quarter of '24, and commercial revenue per passenger stood at 62 pesos.

Speaker #3: Commercial revenue growth was mainly driven by parking, restaurants, VIP lounges, and retail, mainly as a result of higher penetration and the increase in passenger traffic.

Speaker #3: Occupancy rate for commercial space stood at 93% at the end of the quarter. On the diversification front, revenues increased 5%, with Omaha Cargo contributing most of the growth, mainly due to higher revenues from our bonded warehouses in Chihuahua, given our successful strategy to further develop this warehouse in previous quarters.

Ricardo Dueñas Espriu: The approval also provides long-term regulatory visibility and reinforces the structural growth outlook of our airports. Moving now to our full year 2025 results. This was a year marked by the continued recovery in operational capacity and a strong performance in our main airport of Monterrey. While the Pratt & Whitney engine inspection program continued to affect certain fleets during the year, capacity constraints eased compared to 2024. This allowed Mexican airlines to progressively restore frequencies and reintroduce routes that had been limited or suspended due to aircraft availability. As a result, seat capacity across our airports increased close to 11% during 2025, reflecting improved aircraft deployment and network adjustments. During 2025, we opened 35 new routes, of which 24 were domestic and 11 were international, further strengthening connectivity across our airports.

Speaker #3: Omaha's fourth quarter adjusted EBITDA increased by 6% to $2.6 billion, with a margin of 73.6%. On the capital expenditures front, total investments in the quarter, including MDP investments, major maintenance, and strategic investments, were 755 million pesos.

Speaker #3: I would now like to turn the call over to Ruffo Castillo, who will discuss our financial highlights for the quarter.

Speaker #4: Thank you, Ricardo. And good morning, everyone. I will briefly review our financial results for the quarter, and then we will open the call for your questions.

Speaker #4: Our aeronautical revenues increased 5.6% relative to Q4 '24, mainly due to the increase in passenger traffic. It is worth noting that the peso appreciation against the dollar resulted in a 1.3% decline in international passenger charges, despite a 4.2% increase in international passengers.

Speaker #4: Non-aeron revenues increased 7.5%. Commercial revenues increased 8.4%. The line items with the highest growth were parking, restaurants, VIP lounges, and retail. Parking grew by 18.4%, mainly as a result of higher passenger traffic, as well as higher penetration across our airports and increased tariffs.

Ricardo Dueñas Espriu: Supported by higher seat availability and route expansion, total passenger traffic reached 28.8 million passengers in 2025, representing an 8.5% increase as compared to 2024, with domestic passenger traffic growing by 8% and international passenger traffic by 12%. The expansion reflects a continued diversification of Monterrey's international footprint. In addition to consolidating its position as a key gateway to the United States, Monterrey has progressively expanded its long-haul connectivity in recent years, including overseas service to Europe and Asia... The consolidation of long-haul routes, such as Monterrey-Madrid, Monterrey-Tokyo, and Monterrey-Seoul, reinforces our long-term vision of positioning Monterrey not only as a regional hub within Mexico, but as an increasingly relevant international connecting point, linking northern Mexico with major global destinations.

Speaker #4: Restaurants and retail increased 11.3% and 7.0%, respectively, both driven by higher passenger traffic as well as previously opened or replaced outlets. VIP lounges grew by 17%, mainly due to the higher capture rate, primarily in Monterrey airport, as well as the increase in passenger traffic.

Speaker #4: Partially offset by a stronger peso against the US dollar. Diversification activities increased 4.8%. Omaha Cargo contributed most to the growth in the quarter, increasing by 14.2%, resulting from a higher level of operation and tons handled during the quarter.

Ricardo Dueñas Espriu: In 2026, we will continue strengthening overseas connectivity with additional operations to Madrid, and the launch of Monterrey-Paris route in April 2026, further expanding our presence across diversified international markets. Beyond traffic growth, 2025 was also a year of solid execution across our commercial and diversification businesses. On the commercial front, we recorded growth across three key revenue line items, driven primarily by the opening of new outlets and continued commercial mix optimization. Restaurant revenues grew by 22%, VIP lounges revenues increased by 30%, and parking revenues increased by 13% as compared to 2025. From our diversification lines of business, our industrial park was one of the strongest contributions to growth, with 44% increase in revenues versus 2024, supported by higher leased square meters.

Speaker #4: Total aeronautical and non-aeronautical revenues grew 6.1% to 3.5 billion pesos in the quarter. Construction revenues amounted to 613 million pesos during the fourth quarter.

Speaker #4: The cost of airport services and G&A expense increased 11.6% versus Q4 '24, primarily due to the following line items. Contracted services expenses rose 14.7%, mainly due to higher cost of security and cleaning services following contract renewals in prior quarters, reflecting inflationary pressures and tight labor market conditions.

Speaker #4: Minor maintenance increased 24.1%, primarily due to the timing effect of work performed; however, maintenance for the full year increased by 4.0%. Basic services increased by 11 million pesos, mainly due to higher utility costs, particularly electricity.

Speaker #4: This includes a one-time 6 million peso impact related to the temporary use of an alternative power supply line at the Monterrey airport, which carries a higher tariff than our purchased power purchase agreement.

Ricardo Dueñas Espriu: OMA Carga revenues recorded strong results as well, with a 9% increase in revenues, mainly as a result of higher volumes and improved operational efficiencies. Regarding our financial performance, aeronautical and non-aeronautical revenues each grew approximately 12% year-over-year. As a result, our adjusted EBITDA for the year was MXN 10.2 billion, and we recorded an adjusted EBITDA margin of 74.5%. I will now move on to our Q4 2025 performance. In the quarter, OMA's passenger traffic totaled 7.5 million, a 6% increase year-over-year. Seat capacity increased by 8% during the quarter. On the domestic front, passenger traffic grew by 6%, driven primarily by the Monterrey airport, which saw increase on routes to the metropolitan areas of Mexico City, mainly to Toluca and Mexico City airports, Bajío, Puerto Vallarta, Mérida, and Guadalajara.

Speaker #4: This temporary situation was caused by construction works related to the subway line near the airport, and since the end of December, electricity supply has reverted to our regular PPA contract.

Speaker #4: Other costs and expenses increased by 9.9%, due primarily to higher IT-related requirements and transportation services. Concession tax increased 8.0% to 286 million pesos, in line with revenue growth.

Speaker #4: Major maintenance provision was 216 million pesos compared to 39 million pesos in Q4 '24. It is important to highlight that this is a non-cash item.

Speaker #4: During the quarter, we reassessed our major maintenance requirements to reflect the expenditures included in the recently approved 2026-2030 Master Development Program. This reassessment resulted in an increase in the provision liability.

Ricardo Dueñas Espriu: These routes collectively added for over 300,000 passengers during the quarter, representing 79% of the total domestic passenger growth. International passenger traffic increased by 4%, mainly driven by Monterrey, with higher traffic on the routes to Bogota, Toronto, and Panama, and San Luis Potosi on the routes to Dallas, Fort Worth, Atlanta, and San Antonio. Together, these routes added more than 67,000 passengers during the quarter. In terms of growth by airline, Volaris, which accounted for 24% of our total passenger traffic in the quarter, recorded a 17% increase in passenger traffic compared to Q4 2024. Viva, which accounted for 51% of our total passenger traffic, recorded a 5% traffic increase during the quarter. Turning to our financial performance, aeronautical revenues increased 6%.

Speaker #4: Approximately 17% of the total investments under the 2026–2030 MDP corresponds to major maintenance projects. For 2026, we expect the full-year major maintenance provision costs to be approximately 400 million pesos.

Speaker #4: Omaha's fourth quarter adjusted EBITDA grew 5.9% to $2.6 billion pesos, and the adjusted EBITDA margin reached 73.6%. Our financing expense decreased 12.7% to $380 million pesos, mainly driven by lower interest expense associated with the major maintenance provision, as well as higher interest income resulting from a higher average cash position.

Speaker #4: Consolidated net income was 1.2 billion pesos in the quarter, an increase of 3.6% versus Q4 '24. Turning to our cash position, cash generated from operating activities in the fourth quarter amounted to 1.9 billion pesos.

Ricardo Dueñas Espriu: Commercial revenues grew by 8% compared to Q4 2024, and commercial revenue per passenger stood at MXN 62. Commercial revenue growth was mainly driven by parking, restaurants, VIP lounges, and retail, mainly as a result of higher penetration and the increase in passenger traffic. Occupancy rate for commercial space stood at 93% at the end of the quarter. On the diversification front, revenues increased 5%, with OMA Carga contributing most of the growth, mainly because of higher revenues from our bonded warehouses in Chihuahua, given our successful strategy to further develop this warehouse in previous quarters. OMA's Q4 adjusted EBITDA increased by 6% to MXN 2.6 billion, with a margin of 73.6%.

Speaker #4: Investing and financing activities used 663 million and $2.5 billion pesos, respectively. As a result, our cash position at the end of the quarter was $3.1 billion pesos.

Speaker #4: At the end of December, total debt amounted to 13.6 billion pesos, and leverage, measured as net debt to adjusted EBITDA ratio, stood at 1.0 times.

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

Speaker #1: Thank you. 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.

Ricardo Dueñas Espriu: On the capital expenditures front, total investments in the quarter, including MDP investments, major maintenance, and strategic investments, were MXN 755 million. I would now like to turn the call over to Ruffo Pérez Pliego, who will discuss our financial highlights for the quarter.

Speaker #1: You may press star two if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker #1: Our first question is from Juan Ponce with Prodesco. Please proceed.

Ruffo Pérez Pliego: Thank you, Ricardo, and good morning, everyone. I will briefly review our financial results for the quarter, and then we will open the call for your questions. Our aeronautical revenues increased 5.6% relative to Q4 2024, mainly due to the increase in passenger traffic. It is worth noting that the peso appreciation against the US dollar resulted in a 1.3% decline in international passenger charges, despite a 4.2% increase in international passengers. Non-aero revenues increased 7.5%. Commercial revenues increased 8.4%. The line items with the highest growth were parking, restaurants, VIP lounges, and retail. Parking grew by 18.4%, mainly as a result of higher passenger traffic, as well as higher penetration across our airports and increased tariffs.

Speaker #3: Hi. Thank you. Thank you very much for taking my question for the call. On the $260 million major maintenance provision recognized this quarter, does this reflect higher maintenance intensity, or just timing shifts?

Speaker #3: Any additional color on the change would be helpful. Thanks.

Speaker #4: Sure. Hi, Juan. It does reflect the next five years well, the 2026–2030 expected expenditures, as well as timing changes versus what we had assumed in the past.

Speaker #3: Okay. And just to clarify, the expectation is that the full-year number is going to be around 400 million pesos, correct?

Speaker #4: That is correct. Non-cash. And, yeah, yeah.

Speaker #3: Non-cash.

Speaker #4: The P&L impact is non-cash, yes.

Speaker #3: Yes, yes, yes. Okay, okay. Thank you very much.

Ruffo Pérez Pliego: Restaurants and retail increased 11.3% and 7.0%, respectively, both driven by higher passenger traffic, as well as previously opened or replaced outlets. VIP lounges grew by 17%, mainly due to the higher capture rate, primarily in Monterrey Airport, as well as the increase in passenger traffic, partially offset by stronger peso against the US dollar. Diversification activities increased 4.8%. OMA Carga contributed most to the growth in the quarter, increasing by 14.2%, resulting from a higher level of operation and tons handled during the quarter. Total aeronautical and non-aeronautical revenues were 6.1% to MXN 3.5 billion in the quarter. Construction revenues amounted to MXN 613 million during Q4.

Speaker #1: Our next question is from Jens Sees with Morgan Stanley. Please proceed.

Speaker #5: Oh, yes. I have a question regarding the passenger fees. How do you expect to increase them throughout the year? And in order to reach close to 100% of your maximum tariff, what's your expectation there?

Speaker #5: Thank you.

Speaker #6: Yes, thank you, Jens. So, the announced increase is a 6.9% increase starting April 10th. And we anticipate it will take a couple of years—two to three years—to reach the 100% maximum tariff.

Speaker #5: Okay. So, by the end of this year, what percentage do you expect to have completed of the maximum tariff for this year?

Ruffo Pérez Pliego: The cost of airport services and G&A expense increased 11.6% versus Q4 2024, primarily due to the following line items. Contracted services expenses rose 14.7%, mainly due to higher cost of security and cleaning services, following contract renewals in prior quarters, reflecting inflationary pressures and tight labor market conditions. Minor maintenance increased 24.1%, primarily due to the timing effect of works performed. However, maintenance for the full year increased by 4.0%. Basic services increased by MXN 11 million, mainly due to higher utility costs, particularly electricity. This includes a one-time MXN 6 million impact related to the temporary use of an alternative power supply line at the Monterrey Airport, which carries a higher tariff than our power purchase agreement.

Speaker #6: Something around the 93%.

Speaker #5: 93%. Okay, perfect. Okay. If I may, just a second question—any update on the timing of the investment in Monterrey? Yeah, pretty much appreciated.

Speaker #5: Thank you.

Speaker #6: Timing of investment in Monterrey.

Speaker #1: Our next question.

Speaker #6: Yes. For the main—our main works are, as you know, focused on Monterrey and Culiacán. In Monterrey, we are anticipating to finish what we've been mentioning, which is that by mid-next year we should be opening the new commercial area of Monterrey.

Speaker #6: And for Culiacán, we're expecting to open the new commercial area by the end of this year.

Ruffo Pérez Pliego: This temporary situation was caused by construction works related to the subways line near the airport, and since the end of December, electricity supply has reverted to our regular PPA contract. Other costs and expenses increased by 9.9%, due primarily to higher IT-related requirements and transportation services. Concession tax increased 8.0% to MXN 286 million, in line with revenue growth. Major maintenance provision was MXN 216 million, compared to MXN 39 million in Q4 2024. It is important to highlight that this is a non-cash item. During the quarter, we reassessed our major maintenance requirements to reflect the expenditures included in the recently approved 2026/2030 Master Development Program. These reassessments resulted in an increase in the provision liability.

Speaker #5: Excellent. Okay. Thank you so much.

Speaker #6: Thank you, Jens.

Speaker #1: Our next question is from Vanessa with Eternal Capital Group. Please proceed.

Speaker #7: Hi. Thanks for taking my question. I would like to ask if you can provide the following detail: How much of the Master Development Plan investments for the next five years is major maintenance?

Speaker #7: And whether the accounting rule is to provision 100% of that major maintenance during the five-year period?

Speaker #4: Sure. The total investments related to major maintenance in the approved MDP represents approximately 17% of the total MDP. For the next five years, the accounting rule is to provision the present value of such expenditure from today until the day the project is expected to start its execution.

Ruffo Pérez Pliego: Approximately 17% of the total investments under the 2026/2030 MDP corresponds to major maintenance projects. For 2026, we expect the full year major maintenance provision cost to be approximately MXN 400 million. OMA's Q4 adjusted EBITDA grew 5.9% to MXN 2.6 billion, and the adjusted EBITDA margin reached 73.6%. Our financing expense decreased 12.7% to MXN 380 million, mainly driven by lower interest expense associated to the major maintenance provision, as well as higher interest income resulting from a higher average cash position. Consolidated net income was MXN 1.2 billion in the quarter, an increase of 3.6% versus Q4 2024. Turning to our cash position.

Speaker #7: Okay. That's excellent. Thank you.

Speaker #1: Our next question is from Abraham Fuentes with Santander. Please proceed.

Speaker #8: Hi. Hello. I would like to think it was more of a call about the excess of concession tax on aeronautical revenues that we had during this war.

Speaker #8: Is this something that could be recurrent going forward, or not?

Speaker #6: So the excess recurrent to the 2023 tariff-based regulation, that excess was incorporated as an additional reference value that was used in the recent negotiation that occurred in December.

Ruffo Pérez Pliego: Cash generated from operating activities in Q4 amounted to MXN 1.9 billion. Investing and financing activities used MXN 663 million and MXN 2.5 billion, respectively. As a result, our cash position at the end of the quarter was MXN 3.1 billion. At the end of December, total debt amounted to MXN 13.6 billion, and leverage measured as net debt to adjusted EBITDA ratio stood at 1.0x. This concludes our prepared remarks. Sherry, please open the call to questions.

Speaker #6: So, that excess is already being recovered through the maximum tariff starting January 1st of this year.

Speaker #8: Okay. Perfect. Thanks.

Speaker #1: Our next question is from Gabriel with Scotiabank. Please proceed.

Speaker #9: Hi, good morning. Thanks for the call. If I may, I have two questions. First, the MDP CapEx on Monterrey—how much do you expect such commercial revenues to ramp, in percentage terms, in terms of EBITDA?

Operator: Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Juan Ponce with Bradesco. Please proceed.

Speaker #9: How much EBITDA do you expect they might ramp up for OMA? And the second is, have you seen any, or what's your view or your color on the Viva-Volaris consolidation in terms of routes and seat allocation?

Speaker #9: Thank you.

Juan Ponce: Hi, thank you. Thank you very much for taking my question for the call. On the MXN 260 million major maintenance provision recognized this quarter, does this reflect higher maintenance intensity or just timing shifts? Any additional color on the change would be helpful. Thanks.

Speaker #6: In terms of the second part of your question, we're still assessing the potential impact, so it's still an analysis of the impact. And in terms of the first part, yes.

Speaker #6: So, we do expect a bump after the commercial areas of the expanded Terminal A are opened towards the start of the second half of next year.

Ruffo Pérez Pliego: Sure. Hi, Juan. It does reflect the next 5 year, well, the 2026/2030 expected expenditures, as well as timing changes versus what we had assumed in the past.

Speaker #6: And it's a full-year effect being reflected in full in 2028. We do expect about a 10% to 15% increase in spending per pax in Monterrey in real terms on an annualized basis once these stores and new outlets are opened.

Juan Ponce: Okay. Just to clarify, the expectation is that the full year number is gonna be around MXN 400 million, correct?

Ruffo Pérez Pliego: That is correct.

Juan Ponce: Non-cash.

Ruffo Pérez Pliego: Yeah.

Juan Ponce: Non-cash.

Ruffo Pérez Pliego: The PNL impact is a non-cash, yes.

Juan Ponce: Yes, yes. Okay. Okay, thank you very much.

Speaker #9: Okay, thank you. And if I may, I have an additional question. Have you been well? How's your view towards asset acquisitions, like perhaps involving BNC on the MDP, or future acquisitions making, I don't know, OMA as a consolidation vehicle?

Operator: Our next question is from Jens Fees with Morgan Stanley. Please proceed.

Jens Fees: Oh, yes. I have a question regarding the passenger fees, and how do you expect to increase them throughout the year? In order to reach close to 100% of your maximum tariff, what's your expectation there? Thank you.

Speaker #6: In terms of new acquisitions, we're always looking for opportunities to expand locally or internationally. At the moment, there's no activity. If there were in the future, that is something that would be discussed internally within Vinci and ourselves.

Ricardo Dueñas Espriu: Yes. Thank you, Jens. The announced increase is 6.9% increase starting April 10th. We anticipate it will take a couple of years, two to three years, to reach the 100% maximum tariff.

Speaker #9: Okay. Thank you.

Speaker #6: We do we are look one thing that we are looking is at expanding our hotels' presence. So we're evaluating a new hotel in Monterrey.

Speaker #6: And another one in Ciudad Juárez. And we're also looking to expand our industrial park in Monterrey.

Gabriel Gimelfarb: Okay. By the end of this year, what percentage do you expect to have completed of the maximum tariff of this year?

Speaker #9: Okay. Thank you.

Ricardo Dueñas Espriu: Something around the 93%.

Speaker #1: Our next question is from UBS. Please proceed.

Gabriel Gimelfarb: 93%. Okay, perfect. Okay, if I may, just a second question, like, any update on the timing of the investment in Monterrey? Yeah, would be much appreciated. Thank you.

Speaker #10: Hi, gentlemen. Thank you for taking my questions. I have two here. If you could provide a little bit more detail on the lining of revenues and as well on costs.

Ruffo Pérez Pliego: Timing of investment Monterrey.

Speaker #10: Regarding revenues, do you guys have an impact from effects on the international traffic? And on costs, if you could provide a little bit more detail on maintenance—you mentioned that it'd be a big portion of your max MDP.

Operator: Our next question.

Ricardo Dueñas Espriu: Yes, our main works are, as you know, focused on Monterrey and Culiacán. Monterrey, we are anticipating to finish, it's what we've been mentioning, which is by mid-next year, we should be opening the new commercial area of Monterrey. For Culiacán, we're expecting to open the new commercial area by the end of this year.

Speaker #10: How can we forecast this for the future? And if you keep providing any more details, then what would the expanded it be? Thank you very much.

Speaker #6: Yes. So the first part of your question was related to the FX impact, correct? Okay. So we basically, on the revenue line, have four items that are very closely related to FX, which are international passenger charges, VIP lounge, duty-free, and industrial park.

Gabriel Gimelfarb: Excellent. Okay, thank you so much.

Ricardo Dueñas Espriu: Thank you, Jens.

Operator: Our next question is from Vanessa Quiroga, with Eternal Capital Group. Please proceed.

Vanessa Quiroga: Hi, thanks for taking my question. I would like to ask if you can provide the following detail: How much of the Master Development Program investment for the next five years is major maintenance? Whether the rule, the accounting rule, is to provision 100% of that major maintenance during the five-year period.

Speaker #6: We estimate that the impact of the peso appreciation in the fourth quarter of '25, as compared to the fourth quarter of '24—which was about an 8% appreciation—was between 50 to 60 million pesos.

Speaker #6: That was our estimate of the effect of such appreciation. Regarding the second part of your question, we do expect, at least for 2026, that the full-year provisioning would be around $400 million.

Ruffo Pérez Pliego: Sure. The total investments related to major maintenance in the approved MDP represents approximately 17% of the total MDP for the next five years. The accounting rule is to provision the present value of such expenditure from today until the day the project is expected to start its execution.

Speaker #6: And we're still assessing what the impact would be for the following years. And it will depend on both construction costs, as well as the long-term interest rates used to discount that provision.

Speaker #10: Thank you. And if I may, just one more about the violence that you have seen. I know the region—that is a little bit different from all airports region.

Vanessa Quiroga: Okay. That's excellent. Thank you.

Speaker #10: But do you have any sort of impact on your airports, or consideration for routes and so forth?

Operator: Our next question is from Abraham Fuentes with Santander. Please proceed.

Abraham Fuentes: Hi. Hello. I wonder if you could give us more color about the excess of consumption tax on aeronautical revenues that we had during this quarter, if this is something that could be recurrent going forward or not?

Speaker #6: All our 13 airports are operating normally. We did see on Sunday during the event a few cancellations from and to Guadalajara and Puerto Vallarta airports.

Speaker #6: There were some yesterday, but today is pretty normal. And it is not something that it's not a traffic that we believe will have an impact in our numbers.

Ruffo Pérez Pliego: The excess related to the 2023 tariff-based regulation, that excess was incorporated as additional reference value that was used in the recent negotiation that occurred in December. That success is already being recovered through maximum tariff starting January 1st of this year.

Speaker #10: Very helpful. Thank you very much.

Speaker #1: Our next question is from GBM. Please proceed.

Speaker #11: Hi, guys. Thank you for taking my question. Just a quick one. We've heard and we've seen in some newspapers that some of your peers are considering some alternative financing methods, such as maybe a FIBRA-E.

Abraham Fuentes: Okay, perfect. Thanks.

Operator: Our next question is from Gabriel Gimelfarb, with Scotiabank. Please proceed.

Speaker #11: I was just wondering if you guys are considering something as an alternative to funding your CapEx, similar to those, or any special vehicles that you're maybe looking at.

Gabriel Gimelfarb: Hi, good morning. Thanks for the call. If I may, I have two questions. First, the MDP CapEx on Monterrey, how much do you expect such a commercial revenues to ramp in percentage terms, in terms of EBITDA? How much EBITDA do you expect they might ramp up for OMA? The second is, have you seen any, or what's your view or your color on the Viva Aerobus consolidation in terms of routes and seat allocation? Thank you.

Speaker #6: So right now, we're not necessarily considering other types of structures, different from what we have used. In the past few years, we do have some refinancings of that that is due this year.

Speaker #6: And we would expect to tap the Segures market as we have done so in the past four or five years.

Ricardo Dueñas Espriu: In terms of the second part of your question, we're still assessing the potential impact, so It's still an analysis, the impact. In terms of the first part, Hugo?

Speaker #11: Okay. Thank you.

Speaker #1: Our next question is from JPMorgan. Please proceed.

Ruffo Pérez Pliego: Yes. We do expect a bump after the commercial areas of the expanded Terminal A are opened towards the second, starting the second half of next year. It's a full year effect being reflected in full in 2028. We do expect about a 10 to 15% increase in spending per PAX in Monterrey, in real terms, on an annualized basis, once these stores and new outlets are opened.

Speaker #12: Yes. Hi, everyone. Good morning. Thanks for taking the time. So, can you comment a bit on your traffic expectations for these years? On the previous call, you were mentioning a low- to mid-single-digit growth rate for 2026.

Speaker #12: Is this still the case? Thank you.

Speaker #6: Yeah. For the year, we're anticipating somewhere in the low to mid single-digit growth in traffic.

Speaker #12: Got it. Thank you.

Speaker #1: Our next question is a follow-up from Vanessa with Eternal Capital. Please proceed.

Gabriel Gimelfarb: Okay. Thank you. If I may, I have an additional question. Have you been, well, or how's your view towards the asset acquisitions, like perhaps involving Vinci on the MDP or the future acquisitions making, I don't know, OMA as a consolidation vehicle?

Speaker #13: Yes. Thank you. My question is regarding the increase in the tariffs. The 7% in real terms that you mentioned, what is the base for that?

Ricardo Dueñas Espriu: In terms of new acquisitions, we're always looking for opportunities to expand locally or internationally. At the moment, there's no specific transaction that we're looking at. If there were in the future, that was something that would be discussed internally with between Vinci and ourselves.

Speaker #13: Is the base the average in peso terms achieved in 2025, or do you assume any effects? What is the base that you're using?

Gabriel Gimelfarb: Okay. Thank you.

Ricardo Dueñas Espriu: ... We do, we are. Look, one thing we are looking is at expanding our hotels presence. We're evaluating a new hotel in Monterrey and another one in Ciudad Juarez, and we're also looking to expand our industrial park in Monterrey.

Speaker #6: Sure. The MDP-approved maximum tariff was a 6.9% real increase in all of the airports. And that reflects the 2025 maximum tariff. So, 2026.

Juan Ponce: Okay, thank you.

Speaker #13: Increase that you?

Speaker #6: It's the 2026 maximum tariff as compared to the 2025 maximum tariff. That increase, in real terms—that's excluding inflation—is 6.9%.

Operator: Our next question is from Alberto Valerio with UBS. Please proceed.

Alberto Valerio: Hi, gentlemen, thank you for taking my questions. I have two here. If you could provide a little bit more details on the lining of revenues and as well on costs. Revenues, do you guys have an impact from effects on the international traffic? On costs, if you could provide a little bit more details on maintenance. You mentioned that to be a big portion of your next MDP. How can we forecast this for the future? If you could provide any more details, you know, what would the expanded it? Thank you very much.

Speaker #13: So, the part that maybe I need clarification on—you are in 2026, you are going to have that increase or that target in three years?

Speaker #6: Yes. The increase that we're going to pass through this year is 6.9%, starting on the 10th of April. That includes inflation as well, so it's a nominal 6.1% increase.

Speaker #13: Okay. Thank you.

Ruffo Pérez Pliego: Yes. The first part of your question was related to the FX impact, correct? Okay.

Speaker #1: Our next question is from Enrique with GBM. Please proceed.

Speaker #11: Hi. Thank you for taking my question. So, as you implement tariff increases under the new MDP, how are you assessing the manual elasticity? Particularly in routes like Monterrey and tourist destinations.

Alberto Valerio: Perfect. Yes.

Ruffo Pérez Pliego: We basically, on the revenue line, have four items that are very closely related to FX, which are international passenger charges, VIP lounge, duty-free, and industrial park. We estimate that the impact of the peso appreciation in Q4 2025, as compared to Q4 2024, which was about an 8% appreciation, was between MXN 50 to 60 million. That was our estimate of the effect of such appreciation. Regarding the second part of your question, we do expect, at least for 2026, that the full year provisioning would be around MXN 400 million, and we're still assessing what the impact will be for the following years.

Speaker #11: And could you share your outlook for further route additions, and whether you see scope for continued expansion based on your ongoing discussions with carriers?

Speaker #6: Sorry, could you repeat the question, Enrique? Sorry, the line?

Speaker #11: Yes, of course. So, it's about demand elasticity. How are you assessing the demand elasticity, particularly in routes like Monterrey and tourist destinations, as you implement your tariff increases under the new MDP?

Speaker #6: Yep. Yeah. So, in terms of the elasticity, we believe that the path through that we're implementing this year is not—it's not going to have a major impact in terms of elasticity, traffic elasticity.

Ruffo Pérez Pliego: It will depend on both construction costs as well as the interest rate, long-term interest rates used to discount that provision.

Speaker #11: Okay. Yeah. Sorry.

Speaker #6: Yeah. Just regarding new route openings, so far, 20 routes have been confirmed—17 of them are domestic and 3 are international. And they start, the vast majority of them, in June of this year.

Alberto Valerio: Thank you. If I may, just one more about the violence that you have seen. I know that the region that is, it's a little bit different from all our airports region, but do you have any sort of impact on your airports or consolidation routes and so forth?

Speaker #6: From airports such as Monterey, San Luis Potosí, primarily.

Speaker #11: Perfect. Very clear. Thank you.

Ricardo Dueñas Espriu: All our 13 airports are operating normally. We did see, on Sunday, during the event, a few, cancellations from to Guadalajara and Puerto Vallarta Airport. There were some yesterday, but today is operating normally, and it is not something that. It's not a traffic that we believe will have an impact in our numbers.

Speaker #1: Our next question is from TRG. Please proceed.

Speaker #10: Hi, guys. Thanks for taking my question. I was curious about commercial revenues for passengers and revenues from diversification for 2026. What kind of growth should we be expecting?

Speaker #10: Any particular lines? Do you see any for this year? Thank you.

Alberto Valerio: Very helpful. Thank you very much.

Speaker #6: Okay, so in terms of commercial revenue per pax, they ended 2025 around 62 pesos per pax. We expect a similar amount for the next few quarters in 2026.

Operator: Our next question is from Anton Morton Carter with GBM. Please proceed.

Anton Morton Carter: Hi, guys. Thank you for taking my question. Just a quick one. We've heard and we've seen in some newspaper, some of your peers are considering some alternative financing methods, such as maybe a Fibra. I was just wondering if you guys are considering something, such as an alternative to funding your CapEx, similar to those, or any special vehicles that you may be looking at.

Speaker #6: And regarding diversification revenues, we don't look at them on a per pax basis, but rather as a whole. We have two mature hotels, the NH in Mexico and the Hilton Garden at our Monterrey airport.

Ruffo Pérez Pliego: Right now we're not necessarily considering other type of structures different to what we have used in the past few years. We do have some refinancings of debts that are, is due this year. We would expect to tap the securities market as we have done so in the past four or five years.

Speaker #6: So, we should expect inflationary increases in the results of those two units. And the driver this year of diversification would be our Carga unit, which should have double-digit growth.

Speaker #10: Great. Thank you.

Speaker #1: As a reminder, this is Star One on your telephone keypad. If you would like to ask a question, we will pause for a brief moment to see if there are any final questions.

Anton Morton Carter: Okay, thank you.

Operator: Our next question is from Julia Orsi with JP Morgan. Please proceed.

Speaker #1: There are no questions.

Speaker #6: So we would like to thank.

Speaker #1: Thank you.

Juan Ponce: ...

Julia Orsi: Yes. Hi, everyone. Good morning. Thanks for taking the time. Can you comment a bit on your traffic expectations for these years? On previous call, you were mentioning a low to mid-single digit growth rate for 2026. Is this still the case? Thank you.

Speaker #6: 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 remain available to answer your questions.

Speaker #6: Thank you once again, and have a great day.

Ricardo Dueñas Espriu: Yeah. For the year, we're anticipating somewhere in the low to mid-single digits growth in traffic.

Julia Orsi: Got it. Thank you.

Operator: Our next question is a follow-up from Vanessa Quiroga with Eternal Capital. Please proceed.

Vanessa Quiroga: Yes, thank you. My question is regarding the increase in the tariffs, the 7% in real terms that you mentioned. What is the base for that? Is the base the average in peso terms achieved in 2025, or do you assume any effects? What is the base that you're using?

Ruffo Pérez Pliego: Sure. The MDP approved maximum tariff was a 6.9% real increase in all of the airports, and that reflects the 2025 maximum tariff.

Vanessa Quiroga: Okay, that's the increase that.

Ruffo Pérez Pliego: So two thousand and twenty-six-

Vanessa Quiroga: Mm-hmm.

Ruffo Pérez Pliego: It's the 2026 maximum tariff as compared to the 2025 maximum tariff. That increase in real terms, that's excluding inflation, is 6.9%.

Vanessa Quiroga: The part that maybe I need clarification, you are, in 2026, you are going to have that increase, or that's targeting three years?

Ruffo Pérez Pliego: Yes, the increase that we're gonna pass through this year is 6.9%, starting in 10 April. That includes inflation as well. It's a nominal 6.1% increase.

Vanessa Quiroga: Okay. Thank you.

Operator: Our next question is from Enrique Cantu with GBM. Please proceed.

Enrique Cantu Garza: Hi, thank you for taking my question. As you implement tariff increases under the new MDP, how are you assessing the demand elasticity, particularly in routes like Monterrey and tourist destinations? Could you share your outlook for further route additions, and whether you see a scope for continued expansion based on your ongoing discussions with carriers, new route additions?

Ruffo Pérez Pliego: Sorry, could you repeat the question, Enrique? Sorry, the line.

Enrique Cantu Garza: Yes, of course. It's about demand elasticity. How are you assessing the demand elasticity, particularly in routes like Monterrey and tourist destinations, as you implement your tariff increases under the new MDP?

Ruffo Pérez Pliego: Yep. Yeah, in terms of elasticity, we believe that the pass-through that we're implementing this year is not gonna have a major impact in terms of elasticity, traffic elasticity.

Enrique Cantu Garza: Okay, just follow up-.

Ruffo Pérez Pliego: And, uh, regarding-

Enrique Cantu Garza: Oh, sorry. Yeah, sorry.

Ruffo Pérez Pliego: Yeah, just regarding new route openings, so far, 20 routes have been confirmed. 17 of them are domestic and three are international. They start, the vast majority of them, in June of this year, from airports such as Monterrey, San Luis Potosi, primarily.

Enrique Cantu Garza: Perfect. Very clear. Thank you.

Operator: Our next question is from Andrew Radin with TRG. Please proceed.

Andres Radin Borrajo: Hi, guys. Thanks for taking my question. I was curious about commercial revenues per passenger and revenue from diversification for 2026. What kind of growth should we be expecting? Any particular lines, do you see any kitty for this year? Thank you.

Ruffo Pérez Pliego: Okay. In terms of commercial revenue per pax, they ended 2025 around MXN 62 per pax. We expect similar amounts for the next few quarters in 2026. Regarding diversification revenues, we don't look at them on a per-pax basis, but rather as a whole. We have, as you know, both two mature hotels, the NH in Mexico and the Hilton Garden Inn in our Monterrey airport. We should expect inflationary increases in the results of those two units.

Ruffo Pérez Pliego: The driver of this year of diversification would be our Carga unit, which should have a double-digit growth.

Andres Radin Borrajo: Great. Thank you.

Operator: As a reminder, it is star one on your telephone keypad. If you would like to ask a question, we will pause for a brief moment to see if there's any final questions.

Ruffo Pérez Pliego: we would like to thank-

Operator: Thank you.

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

Operator: Thank you. This does conclude today's conference. You may disconnect at this time, and thank you for your participation.