Grupo Aeroportuario del Sureste, S. A. B. de C. V. Q2 FY2026 earnings call

• Strategic Growth Initiatives
  • Core long-term objective is to become the leading airport group in the Americas via geographic expansion, revenue diversification, and reduced dependence on legacy operations
  • Motiva acquisition: Expected to close in H2 2026 (third quarter 2026 specifically) pending remaining regulatory approvals; will add entry into VERSI (Latin America's largest aviation market) with 45 million annual passengers, significantly increasing scale and geographic diversification
  • Proposed internalization of Special Technical Assistance and Technology Transfer Services currently from strategic partner EECA: To be voted on by shareholders August 20; would simplify corporate structure, align operations with company scale, eliminate $401 million annual recurrent external fees, and retain all future benefits from these activities within the firm; requires issuing ~7.3 million new shares (2.4% of current outstanding) to EECA shareholders
  • Capital allocation: Board proposes two extraordinary cash dividends of 10,000 pesos per share, reflecting strong half-year operating cash flow of 7.3 billion pesos (up 21% year-on-year) and disciplined capital allocation
• Infrastructure Development Projects
  • ASUR US: Completed commercial transformation of GFK Terminal 8 in Q2; ongoing remodeling of commercial spaces ahead of 2027 Super Bowl and 2028 Olympic/Paralympic Games; new GFK Terminal 1 expected to open Q1 2027
  • Mexico (Cancún Airport): New Terminal 1 construction is ongoing, expected to open Q4 2026; opening will rebalance passenger flows, reduce congestion at Terminal 2, improve passenger experience, and add capacity
  • Mexico (Mexico City Airport): Second phase of Terminal 4 expansion is underway, adding new gates, a connecting taxiway, and supporting airside/road infrastructure; expected to be fully operational by end of 2028 to accommodate long-term traffic growth
• Traffic Performance Drivers
  • Overall traffic decline driven by capacity constraints from the Spirit Airlines bankruptcy, high jet fuel prices pushing up airfares, and softer U.S.-origin demand to Mexico; management views current pressure as capacity/affordability-related, not a change in long-term travel demand fundamentals
  • By region: U.S., Europe, South America, and domestic Mexico traffic fell 11.7%, 11.8%, 6.5%, and 1.9% respectively, while Canadian-origin traffic increased 10.5%; Colombian traffic grew on healthy demand and improved connectivity

Overall total passenger traffic declined 2.7% year-on-year to 17 million passengers. By geographic segment: 1) Mexico: Passenger traffic declined 5%, with aeronautical revenue per passenger falling low single-digit; total revenue saw pressure from lower traffic and negative foreign exchange translation effects from the stronger Mexican peso. 2) Puerto Rico: Passenger traffic declined 3.5%, with aeronautical revenue per passenger growing low single-digit. 3) Colombia: Passenger traffic increased 3.6%, with aeronautical revenue per passenger growing high single-digit. 4) ASUR US: The segment holds over 35 million annual customers, with non-regulated dollar-denominated commercial revenues. Q2 2026 completed the $125 million commercial transformation of GFK Terminal 8, which is still ramping up and has not yet reached full earnings potential. Overall company total revenues were flat at 7.4 billion Mexican pesos; non-aeronautical revenues increased, while aeronautical revenues fell mid-single-digit. Consolidated EBITDA decreased nearly 9% year-on-year to 4.6 billion Mexican pesos, with EBITDA margin down 60 basis points to 62%. Net income declined 7% to 2.3 billion Mexican pesos. Capital expenditures for the quarter totaled 2.0 billion Mexican pesos, with the majority spent on Mexican infrastructure projects.

• Maximum tariff compliance: Management targets 99% compliance by the end of 2026, despite near-term pressure from changing passenger mix
• Cancún Terminal 1 opening: Expected in Q4 2026, pushed back from earlier 2026 targets
• GFK new Terminal 1 opening: Expected in Q1 2027, delayed from original June 2026 target
• ASUR US 2026 EBITDA: The prior target of $20 million annual EBITDA will not be met in 2026 due to terminal opening delays
• Traffic recovery: Management expects Cancún and Mexican traffic recovery to be complete by the 2026 winter season (November/December 2026), with current Q2 2026 likely representing the bottom for traffic, margins, and costs, though improvement is not guaranteed
• Mexican insurance cost increases: The 39% year-over-year increase in medical insurance costs is expected to be recurring, not one-time
• Motiva acquisition closing: Confirmed expected closing in H2 2026, specifically third quarter 2026, revised from prior guidance of Q2 2026

• Near-term traffic and revenue weakness: Continued softness in U.S.-origin demand to Mexico, residual capacity impacts from the Spirit Airlines bankruptcy, and high jet fuel prices pushing up airfares have suppressed near-term traffic, and recovery timing remains uncertain
• Cost pressure in Mexico: Minimum wage increases and a significant 39% recurring increase in medical insurance costs driven by Mexican government policy have pushed administrative expenses up over 30% year-over-year, and elevated costs are expected to continue
• Foreign exchange risk: A stronger Mexican peso created negative translation effects on international revenue segments, pressuring overall top-line performance
• Project delay risk: Key infrastructure projects at both Cancún and GFK airports have been pushed back from original timelines, delaying expected earnings and capacity improvements
• Regulatory risk: The Motiva acquisition remains pending final regulatory approvals, which could change closing timing or outcomes
• Long-term competitive risk: Consolidation of Mexican low-cost carriers may increase airlines' bargaining power in future tariff negotiations

Q: What is driving the specific traffic weakness at Cancún Airport, and when can we expect a recovery? / A: The weakness stems mostly from residual capacity disruptions after the Spirit Airlines bankruptcy, which takes time for other carriers to absorb. High jet fuel and airfare levels have also suppressed demand this summer. Management expects recovery to be completed by the 2026 winter season (November/December), when seat capacity is projected to exceed 2025 levels.

Q: Why have Mexican administrative expenses risen 30% year-over-year, and will this elevated level persist? / A: The increases are driven by two main recurring factors: mandatory minimum wage increases and a large 39% jump in employee medical insurance costs resulting from Mexican government policy changes. This higher cost base is expected to remain, so the elevated expense level is the new normal.

Q: What is the timing of the Motiva acquisition closing, and would you consider partial divestment of the acquired assets after closing? / A: Management now expects the acquisition to close in the third quarter of 2026, revised down from the prior target of Q2 2026. No major synergies are expected from the transaction, and management expects business as usual post-close, with no plans for partial divestment mentioned.

Q: Is the $20 million long-term EBITDA target for ASUR US still on track for 2026? / A: The $20 million EBITDA target will not be met in 2026, because the opening of the new GFK Terminal 1 has been delayed to the first quarter of 2027 from the original June 2026 target. Current ASUR US margins are around 9% and are expected to rise over time, but will never reach the higher margin levels of Mexican operations.