Fraport (FRA) Q4 2025 (Q&A) earnings summary

Executive summary

• Management expects to reduce net debt to EBITDA below 5x by 2027, enabling a 60%-80% dividend payout ratio from 2028 onward.

• Revenue rose by 8.2% to €4.21 billion year-over-year, driven by growth in all four business segments.

• Passenger numbers exceeded pre-pandemic 2019 levels, reaching 184 million across the Group.

• Terminal 3 is opening, with expectations for a 50% uplift in retail spend per passenger by 2027 as passenger flows shift.

• No major M&A activity is planned for the next two years; focus remains on organic growth and capital discipline.

Financial highlights

• Free cash flow is projected at €200 million or slightly above for 2026, driven by EBITDA near €1.5 billion and CapEx of €900 million.

• EBITDA increased by 10.4% to €1.44 billion compared to the previous year.

• Net debt is expected to decrease from €8.2 billion to near €6 billion by 2030, with a long-term net debt/EBITDA floor of 3x.

• Net profit declined by 6.7% to €468.1 million, impacted by higher depreciation, amortization, and interest.

• Cargo volumes at Frankfurt grew by 1.1% year-over-year to 2.1 million metric tons.

Outlook and guidance

• Traffic growth is expected to average 2.5% annually from 2027 onward, in line with European market trends.

• Group passenger traffic expected to reach 188–195 million in 2026.

• Frankfurt Airport (FRA) passenger numbers forecast at 65–66 million for 2026.

• EBITDA target for 2030 is €2 billion, with €1 billion in free cash flow.

• No significant tariff increases are assumed beyond 2028; negotiations will begin in early 2028.