Fraport (FRA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew over 10% year-over-year to €1.35 billion, with international operations and Frankfurt contributing equally; 9M24 revenue reached €3.39 billion, up 13% year-over-year.

• Group EBITDA for 9M24 was €1,051 million, up 9.5–10% year-over-year; group result rose over 20% to €434 million.

• Passenger recovery at Frankfurt reached 86–87% of 2019 levels, while international airports, especially Greece, Lima, and Antalya, surpassed pre-pandemic volumes.

• Free cash flow for 9M24 remained negative at -€318 million, reflecting high investment levels.

• Porto Alegre Airport reopened after flooding, with compensation and insurance covering reconstruction and operational costs.

Financial highlights

• Q3 revenue: €1.35 billion, up more than 10% year-over-year; 9M24 revenue: €3.39 billion, up 13%.

• Group EBITDA for 9M24: €1,051 million, up about 10% year-over-year; EBIT at €665 million (+10.6%).

• Net result for 9M24: €434 million, up over 20% year-over-year; EPS at €4.11 (+20.2%).

• Operating cash flow for 9M24: €896 million, up 22%.

• Net debt at end of 9M24: €8.05 billion; net debt/EBITDA improved to 6.2x.

Outlook and guidance

• Full-year 2024 guidance for EBITDA and group result maintained; expected to reach midpoint of financial targets.

• FY24 free cash flow expected to be negative due to high capex; net debt YE 2024 guided at €8.2–8.4 billion.

• CapEx for 2024 to exceed €1.5 billion, mainly due to Terminal 3 and Lima; 2025 CapEx expected below €1.1 billion.

• Free cash flow break-even targeted for 2025, driven by CapEx reduction.

• Segment outlooks: Aviation and Retail & Real Estate to see further EBITDA growth; Ground Handling EBITDA to improve but remain negative; International Activities to improve on continued traffic growth.