Grupo Aeroport Del Sureste-b Aktie

Good day, ladies and gentlemen, and welcome to ASUR's First Quarter 2026 Results Conference Call. My name is Sachi, and I'll be your operator. [Operator Instructions] As a reminder, today's call is being recorded. Now Mr. David Barlow, Corporate Governance, Strategic Planning Manager and IRO at ASUR. Please go ahead, sir.

Thank you, Sachi, and thank you, everyone, for joining us today to discuss ASUR's results for the first quarter 2026. With me on today's call is Adolfo Castro, Chief Executive Officer. Additional details about our results can be found in our press release, which was issued yesterday after market close and is available on our website.

As usual, all comparisons discussed on this call will be year-on-year, and all figures are expressed in Mexican pesos, unless specified otherwise. As a reminder, certain statements made during the call today may constitute forward-looking statements, which are based on current management expectations and beliefs and are subject to several risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our company's control.

Please refer to the forward-looking statements disclosure included in this earnings presentation for additional information. With that, I will now turn the call to Adolfo. Please go ahead, Adolfo.

Thank you, David, and good morning, everyone.

Before I begin, I would like to note that David Barlow has assumed the responsibility for Investor Relations. David has been with ASUR for more than 20 years and knows the company and operations very well.

He attends our Board of Directors meeting and committee sessions. Now let me start by turning the quarter. We expected the first quarter of 2026 to reflect a period of transition for ASUR. We were operating in an environment where the traffic trends and our Mexican market were stabilizing after a period of normalization.

Puerto Rico entering a more mature phase following strong post-pandemic growth and Colombia in a growth momentum. Recall that the first quarter for Mexico is the seasonality at the strongest. Then we were negatively affected by the security-related events beginning on February 22 and after that, by the TSA-related disruptions in the U.S. airports, which also impacted Puerto Rico.

This effect contributed to increased volatility in traffic trends, particularly towards the end of the quarter. On the positive side, we've made progress on 2 key priorities. The first one, the integration of ASUR's U.S. airports. This makes the first full quarter of consolidation of our U.S. commercial platform. The business contributed to non-aeronautical revenues, while profitability reflects the early ramp-up operations.

We expect gradual improvement as the platform scales, supported by the new commercial openings in Terminal 8 and the upcoming opening of the Terminal 1 this year, both at GF which will further expand the commercial base. Second, continued execution of our regional expansion strategy. We remain focused on completing the Motiva transaction, which is now pending remaining regulatory approvals and is expected to close in the second quarter this year.

This transaction will significantly expand our footprint and reinforce our long-term growth profile. This transaction represents a step change in scale and geographic diversification. Expanding our presence in new markets and further balancing our portfolio.

Our strategy remains consistent, diversifying our revenue base, including a greater focus on nonregulated revenue, selecting expanding into markets with attractive long-term demand and deploying capital in a disciplined and value-accretive manner.

Let me now review ASUR's operational performance for the quarter. Total passenger traffic increased 1.9% year-on-year, reaching nearly 90 million passengers, driven by strong traffic in Colombia, stabilization in Mexico and short-term softness in Puerto Rico.

Colombia remains our fastest-growing market with traffic up 11%, supported by increased connectivity and solid demand. Domestic traffic growth 12%, outpacing 7% growth in international passengers. Mexico remained broadly stable with international traffic showing modest growth, while domestic traffic remained slightly below prior year's levels.

Traffic in Cancun declined 2% during the quarter, while the other 8 airports in Mexico grew by 5%. Positive trends in January and February were offset by weaker March. Beginning on February 22, traffic was affected by the security-related events in Mexico, which impacted traffic to and from the United States through mid-March.

Later that month, traffic was affected by the TSA-related screening disruptions in the U.S. airports. We believe these factors were temporary and do not reflect a change in the underlying demand. As we move through the year, we expect to see difficult operating conditions, including higher fuel prices and recent capacity reductions.

Passenger volumes from the United States, our largest international service market, decreased 4.6%, while South America contracted 1.4%. On the positive note, Canada and Europe increased by 11% and 11.4%, respectively.

In Puerto Rico traffic trends declined low single digits, driven primarily by domestic demand and the effects of TSA while international traffic continued to grow. Turning now to financial performance. As a reminder, all figures exclude construction revenue and cost and comparisons are year-on-year unless otherwise noted.

Total revenues increased 2.2% year-on-year, reaching MXN 8.4 billion. This performance was primarily driven by a nearly 9% increase in non-aeronautical revenues, supported by the first full consolidation of the U.S. airports, which added approximately MXN 438 million in non-aeronautical revenue during the quarter.

In turn, aeronautical revenues declined low single digits, mainly reflecting the FX conversion impacts in Puerto Rico and Colombia, together with a lower traffic in Puerto Rico. Commercial revenues increased nearly 7%, primarily reflecting the new commercial operations in the U.S. and mid single-digit organic growth in Colombia.

Performance in Mexico and Puerto Rico remained softer during the quarter, reflecting a combination of FX headwinds given the strength of the Mexican peso against the U.S. dollar, combined with lower traffic in Puerto Rico. We continue to execute on our strategy to enhance and diversify our revenue base with a growing contribution from nonregulated and dollar-denominated sources.

The integration of the U.S. commercial platform is an important step in that direction. And while still in its early stages, it already represents an attractive addition to our portfolio. Over the past year, we also continued to actively expand our commercial footprint across the network, opening 47 new retail and service units, including 34 in Colombia, 8 in Puerto Rico and 5 in Mexico.

On a per passenger basis, commercial revenue increased mid-single digits to MXN 153.6, benefited from a full quarter of operations from the U.S. commercial operations. Despite the impact of the depreciation of the Mexican and Colombian pesos against the U.S. dollar and a mixed traffic environment, by geography, Puerto Rico delivered the highest levels with MXN 163.3 per passenger despite the 5% decline driven by FX conversion and the slight reduction in traffic levels.

Mexico saw a 4% decline, mainly reflecting the impact of the peso appreciation over the U.S. dollar denominated commercial revenues. Lastly, Colombia posted a mid-single-digit decline despite the strong traffic growth, reflecting FX and mix effects given higher growth domestic traffic.

Turning to operation costs. Total expenses increased 25% year-on-year, mainly driven by the integration of U.S. commercial operations, higher depreciation and amortization in Colombia, professional fees related to the U.S. acquisition together with the ongoing inflationary pressures.

Excluding these effects, underlying operating cost was moderate. By region, Mexico recorded a 6% increase in expenses. Excluding production of fees associated with the U.S. commercial acquisition, expenses would have grown just 0.9%, mainly reflecting modest increases in labor and service-related costs.

In Puerto Rico, expenses declined nearly 7%, benefiting from the depreciation of the Mexican peso against the U.S. dollar. Expenses in Colombia increased 33%, largely driven by the higher depreciation and amortization following the change in amortization methodology.

Recall this change reflects the expected evolution of the concession, including the phaseout of regulated revenues starting in '27 and the remaining life of the asset through 2032. Excluding depreciation and amortization, expenses in Colombia would have increased by just 2.6%.

In the U.S., we recorded approximately MXN 368 million in operating costs during the quarter. Of this, approximately MXN 70 million related to items attributable to 2025 that were recognized in this period, including lease-related adjustments, account reconciliation of items, provisions for uncollectible accounts and prior year employees bonus.

Moving on to profitability. Consolidated EBITDA decreased nearly 6% to MXN 5.4 million in the quarter. EBITDA was lower across regions, down mid-single digits in Mexico and Colombia, high single digits in Puerto Rico while our U.S. commercial operation posting a negative EBITDA of MXN 50 million in the quarter.

The adjusted EBITDA margin declined nearly 600 basis points to 64.1% year-on-year, mainly reflecting the ramp-up of the U.S. operations and the impact of amortization changes in Colombia I just mentioned. Net majority income declined 20% year-on-year to MXN 2.8 billion, mainly reflecting higher depreciation and amortization, increased interest expenses following the recent financings and the lower interest income.

Importantly, the reported profitability of ASUR's U.S. airport this quarter is not yet indicative of the underlying earnings capacity of the business and costs associated to sell out the business. As disclosed in our 20-F report on a pro forma basis, full year consolidation, this commercial operation generated approximately MXN 2.1 billion in revenues and MXN 711 million in net income in the fiscal year 2025.

In addition, the launch of the new Terminal 1 at JFK Airport expected to come online during the third quarter this year which further support commercial revenue growth as it ramps up, further enhancing the performance of this business. Moving into the balance sheet. We closed the quarter with cash of MXN 13.8 billion and net debt to EBITDA of 0.8x.

Our balance sheet continues to prove significant flexibility to fund growth while maintaining conservative leverage. Capital expenditures totaled MXN 544 million, primarily focused on Mexico, where our investment under the [ mass ] development program continue to advance, including the construction of Terminal 1 in Cancun on track to open on the third quarter this year, which will increase capacity, improve passenger flow and optimize commercial mix, supporting higher commercial revenues over time. Note that the CapEx for the full year as per our master development plan totaled MXN 7.9 billion. In Puerto Rico, we remain focused on operational improvements and while capital deployment in Colombia remain limited.

At the end of March, Airplan signed an addendum to transition agreement authorizing immediate interventions at José María Córdova Airport to address unexpected demand with an estimated investment of approximately COP 165 billion. The project covers a series of capacity expansions and service level improvement works, including domestic and international check-in facilities, and the parking baggage handling system, security checkpoints, remote boarding areas and aircraft plans and immigration facilities.

In summary, ATU is becoming a more diversified platform with increased exposure to U.S. dollar-denominated revenues, a clear visibility on key growth drivers, including the ramp-up of U.S. commercial operations and the expected closing of Motiva transaction. While in the near-term traffic trends remain mixed across regions, we continue to see healthy underlying demand for air travel and remain focused on execution, cost discipline and long-term value creation. The final comment is that ASUR shareholders meeting will take place at 10:00 a.m. Mexico City Time today with a proposed dividend payment of MXN 10 per share to be paid at the end of May.

Now I will open the floor for questions. Sachi, please open the floor.

[Operator Instructions] The first question is from Rodolfo Ramos from Bradesco BBI.

David, congratulations on your new responsibilities, all the success there. I have a couple of questions. The first one is in regards with your U.S. commercial business. I'm assuming there is some level of seasonality. Can you give us a sense of how much should ASUR U.S. should be contributing in EBITDA on a 12-month rolling basis, considering this new commercial space in JFK?

And if you expect any material extraordinary expenses in the coming quarter as you close the Motiva acquisition. So that would be my first one. And the second one on traffic, and let me perhaps take a little bit of a different approach here. I mean the Cancun, Mexico route has been an important bottleneck for you guys. I mean, do you see a scenario where we could see a short-term pressure during the World Cup as Guadalajara and Monterrey routes are prioritized?

In the case of the U.S., it's important to say that the current operation we have is not exactly what we will have, what we expect to have at the end of this year. Just to say on the 21st of April, new openings took place at John F. Kennedy Terminal 8, and we are expecting the opening of new Terminal 1 at the end of this year. New Terminal 1 today is a project that is under construction. It is a new terminal. So it's not in operation.

So even though -- even if I tell you the 12-month number, I will not meant anything to size representation of what this business could be next year. Basically, I would say the EVA this year should be close to, let's say, MXN 20 million that we will be basically investing or reinvesting in the projects we have.

In the case of the traffic in Cancun, yes, you are right. Mexico City Airport is or has been a bottleneck for a while. If they are going to relocate some traffic because of the workup, I don't think so. Remember that the workup at the end of the day in Mexico is just 30 days. The most important ones here in Mexico City, and probably there's one that is particularly important in the case of Guadalajara.

Apart from that, nothing else. On the other side, I have to say that Cancun Airport is probably the only one in the world that has daily connection to the 16 venues of the world, if that is a different story for some other people that lives outside Mexico.

The next question is from Guilherme Mendes from JPMorgan.

A follow-up on traffic performance. You mentioned that the trends remain kind of mixed in the near term. If you can help us try to understand what to expect, especially in Mexico. I know there's a lot of moving parts, but it looks like some of the negative impact of the first quarter seems to be fading away.

So is it fair to assume some kind of increase in traffic on a year-over-year basis going forward? And the second one is a follow-up on the Motiva's Airport. If you can share what kind of synergies of upside on the commercial front you expect to get once you integrate the business into this platform.

Yes, of course. Well, in the case of traffic, I have to say that in the case of Mexico traffic and particularly in the case of the most important source of traffic for the first quarter, which is the U.S. Everything went well up to February 22 and then basically collapsed. That collapsed up to March 14 that we were back on track again and then the TSA thing appear.

So I have to say that the quarter was severely affected by these 2 things. Going forward, the only thing I can say is Holy Week is in a different date as it was last year. So probably the beginning of April is something that we can see on the positive side. On the other side, I'm saying that we will be facing difficult operational conditions going forward, and we don't know how much.

But basically, with the oil price of $100 per barrel is not the best for the airlines. No. We have received some capacity reduction from Spirit so far, the only one. But we don't know how much this is going to last.

So it is not an easy moment to be saying how the year is going to end up. In terms of Motiva, the synergy is not probably the right one. They have a business that is operating well. We have some common customers. Yes, it's true. The large ones. They are also in the U.S. But I don't see synergy as an important piece of this.

The next question is from Anton Mortenkotter from GBM.

Just 2 quick ones. One is related to the investments in Colombia. I was wondering if this investment will trigger any amendment to concession or any adjustment or any kind of compensation on that front? And the second one is related to the maximum tariff. Just wondering if due to the lower -- the peso appreciation, maybe there are some places where you are still slightly below the maximum tariff that we should see some adjustments going forward? Or if you could give us some color on that front?

Absolutely. In the case of Colombia on March '26, we signed an amendment to our concession agreement that was [indiscernible] the important of this document is that once again, we are able to invest in the for the moment as an emergency plan for the case of the airport [ Olaya in Medellín. ] And this will improve the level of service there, which is really back to place.

But for the moment, what this document allows is to invest COP 165 billion. And of course, that will be moving the day when our regulated revenues will pay down. So far, we were expecting that to happen on February 27 with this investment, and we are making all the places with the current conditions, probably will be up to the end of '27.

But again, this will give us the opportunity -- this is giving us the opportunity to invest more and to solve some issues that we have there. So we will keep you posted on how these things evolve in the future. But for the moment, this is a very good news in the case of Colombia.

In our maximum tariff, the objective we have this year is 98%. And for the moment, we do not see why we should not be reaching the 98%.

The next question is from Alberto Valerio from UBS..

Adolfo a follow-up on the maximum tariff and also on the expenses for this quarter. Remind us how is the methodology for maximum tariffs from the MDP on the international flights, if you can adjust later because the FX appreciated or not?

And also if you could tell us from the leases that you paid this quarter, if there is any one of those that is nonrecurring. We saw MXN 9 million in the Mexican airport as well $120 for the U.S. operations.

Yes, in the case of maximum tariff, the level of maximum tariff is [indiscernible] passenger basis or on a workload unit basis that we can charge in a year. So when you're saying international traffic, that is part of the maximum time. So if peso to dollar or dollar to peso, we will have to adjust in accordance to try to reach the amount in pesos. So there is no different treatment for international flights versus domestic flights. It's one basket and it's peso denominated.

In the case of the onetime events, yes, you're right, MXN 91 million is what we have paid as a professional fees to get the U.S. acquisition. And also, I have mentioned that in the case of the U.S., we have recorded things that were related to last year. So onetime events as well of approximately MXN 70 million more.

[Operator Instructions] The next question is from Gabriel Himelfarb from Scotiabank.

Just a quick question. Have you seen any shift on traffic or seat or capacity from airlines from both perhaps U.S. and domestic airlines? And what could be like the outlook or the drivers for the traffic ahead?

Well, the only shift that we have seen or we have been informed is what I just mentioned. It's the case of Spirit. Spirit has decreased its capacity for the case of May in comparison of what they have scheduled before. That is the only one we have so far. As I said before, it's difficult times with the level of fuel prices we have today and the uncertainty that we have about the situation in the Middle East and look at the situation in the Middle East results and just affects, let's say, the end of April and some pieces of May.

That's it. But of course, difficult for me to say when is this going to be over.

Okay. And if I may, another question and perhaps in the terms of commercial revenues, what is like the trend on the passenger profile? Is there like lower expenditure on terminals, lower time on the terminals? Or what's driving the trends on the commercial revenues?

Well, let me say -- let me start with Puerto Rico because we were facing difficult times, let's say, in the third week of March, the PSA lines over the weekend reached 4.5 hours, lost 1 hour more for the case of the agricultural filter.

So you have to be there more than 6 hours before you flight. And of course, that has an impact on everything and also on the commercial side. A lot of people lost their flights and a lot of flights had to be rescheduled, et cetera.

But we are not seeing, let's say, low spending people some other effects that have been affecting the situation. The effects that I have mentioned during my call during my initial remarks, remember last year, the peso versus dollar was MXN 20-something and today MXN 17 something. So the difference was important, it's around 14% difference. And it's very clear that you can see the results of the quarter.

The next question is from Andres Cardona from Citigroup.

I's have one question about the EBITDA contribution of the U.S. business. If you can share how much do you expect on an annual basis from there?

Could you repeat your question again? How much...

How much EBITDA contribution you expect from the U.S. business on an annual basis?

For the moment, what I was saying is this year so far, $30 million in EBITDA. And of course, next year should be more as a result of the opening of the new terminal...

The next question is from Francisco Suarez from Scotiabank.

David, congrats on the new appointments. The question that I have relates with -- also with the U.S. operations, it is about excluding Terminal 1, what would be the overall occupancy rates that you see over there? And also a related question, what is the overall outlook, again, excluding Terminal 1 on potential increases in the overall leases that you may see there and your overall strategy to manage those assets?

Well, round numbers, I would say, Francisco, we have more than 400 contracts there so 400 units. If you see some of them in the case of LAX are empty, but that doesn't mean that those does not have a contract. Some of them are empty because they are in the process of being remodeled or in the process of new spaces. So basically, I would say we have all or almost all the spaces contracted.

And also, if you can discuss a little bit about your overall average life on those leases and what would be the potential to see further increases in rents? Do you have any idea of how likely is to see an improvement on rents once the leases are expire?

Well, average life basically, I would say between 15 to 17 years. I would invite you to see some news related to Terminal 8, and you can see the new spaces that were opened recently -- those spaces were for a long time. Those were in severe remodeling process.

But now we have finished that piece. We are focused now on 2 major projects. One is, of course, the new Terminal 1. And the other one we have is a new agreement that we reached with last year where we will be preparing the terminals for the Olympics in '28. Some spaces are going to be remodeled for the Super Bowl that is going to the first quarter next year. But the most important event, of course, is the Olympics in '28.

Great color. So in other words, I think that the overall tenant improvements and all these investments and the remodelation are linked towards better rents and rate because you will be recovering those investments, isn't it?

Absolutely.

This concludes the question-and-answer session of today's conference call. I would like to turn it back over to Mr. Castro for closing remarks.

Thanks, David, and thanks, Sachi. Ladies and gentlemen, that concludes ASUR's First Quarter 2026 Results Conference Call. We would like to thank you again for your participation. Now you may disconnect.

Ladies and gentlemen, that concludes ASUR's First Quarter 2026 Results Conference Call. We'd like to thank you again for your participation. You may now disconnect.

Good day, ladies and gentlemen, and welcome to ASUR's Fourth Quarter 2025 Results Conference Call. My name is Dave, and I'll be your operator. [Operator Instructions] As a reminder, today's call is being recorded. Now I'd like to turn this call over to Mr. Adolfo Castro, Chief Executive Officer. Please go ahead, sir.

Thank you, Dave, and good morning, everyone, and thank you for joining us today to discuss ASUR's results for the fourth quarter and full year 2025. Before I begin discussing our results, let me remind you that certain statements made during the call today may constitute forward-looking statements, which are based on current management expectations and beliefs and are subject to several risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our company's control.

Additional details of our quarterly and full year 2025 results can be found in our press release, which was issued yesterday after market close, and is available on our website in the Investor Relations sector.

Following my presentation, I will be available for Q&A. As usual, all comparisons discussed on this call will be year-on-year, and all figures are expressed in Mexican pesos, unless specified otherwise.

Before getting into the discussion of traffic and financial results, let me start today's call with a recap of the key business developments during the fourth quarter and over the course of the year. The fourth quarter marked an important inflection point for ASUR. While traffic trends in certain markets moderated, we remain focused on strengthening our long-term platform through diversification, disciplined capital allocation and continued operational excellence. Strategically, we completed our expansion into the U.S. airport, commercial market and advanced transformational Latin American growth opportunity.

As previously discussed, on December 11, we completed the acquisition of URW Airports, renamed as ASUR U.S. at an enterprise value of $295 million. This transaction established ASUR a direct participation in the U.S. nonregulated commercial airport segment, with operations in major U.S. hubs, including Los Angeles International Airport, Chicago O'Hare and New York John F. Kennedy International Airport. From December 11 through December 31, ASUR U.S. contributed approximately to $133 million in revenues and $86 million in EBITDA. We are excited about what this acquisition brings to ASUR's portfolio. First, it adds exposure to high-traffic dollar-denominated commercial revenues. Second, it diversifies our revenue mix beyond regulated income. And third, creates a scalable platform for future growth in the United States.

Revenue and EBITDA for the ASUR U.S. were included within the results of our Mexican operations this quarter. Starting our first quarter 2026 earnings report, we plan to provide more detailed disclosure regarding on the business so that the investment community can better assess revenue profile, margin structure and growth prospectus as fully consolidated operation. In parallel, as disclosed in November, we signed a purchase agreement to acquire Motiva's stake in its airport portfolio, which holds interest in 20 airports across Brazil, Ecuador, Costa Rica and Curacao, for a purchase price of BRL 5 billion, which at the moment represented approximately $936 million. Upon closing this transaction would add approximately 45 million passengers annually to our network, bringing total annual passenger traffic over 116 million.

It also provides entrance to Brazil, the largest aviation market in Latin America, while further strengthening our presence in Central and South America. This acquisition enhances our geographic diversification, increases scale and creates long-term operational opportunities, giving ASUR's track record as an efficient airport operator and more important, the opportunity to use the balance sheet.

The Motiva transaction remains subject to customary closing conditions and regulatory approvals, while closing expected in the first half of 2026. We intend to fund the acquisition with debt. Together, these initiatives reflect a deliberate expansion, strengthening our position in the U.S. commercial segment while deepening our footprint across high-growth markets in the Americas. Importantly, we continue to adhere to our long-standing strategy of pursuing disciplined accretive acquisitions that increase long-term shareholders' value while preserving balance sheet strength.

Lastly, reflecting the strength of ASUR's cash generation model, we returned value to shareholders in form of dividends. During 2025, dividend payment totaled $24 billion. At the same time, we supported our selective expansion strategy and preserve our financial flexibility.

Let me now review ASUR's operational performance for the quarter and full year. During the fourth quarter, we handled 17.9 million passengers, up nearly 1% year-on-year with nearly 72 million passengers traveling through our airports during the year.

Looking at the quarter performance by region, Mexico was essentially flat with domestic traffic slightly below prior year levels, while international traffic showed modest improvement. We believe this reflects the early stages of normalization following aircraft availability constraints and softer regional demand in earlier year. In addition, traffic in Cancun declined 2% during the quarter, while our 8 other Mexican airports grew middle-single digit. In Puerto Rico, traffic declined 3%, primarily driven by domestic market demand softness, while international traffic remained positive. Colombia once again delivered the strongest performance with our portfolio with fourth quarter traffic increased nearly 6% to 4.7 million passengers, reflecting high single-digit growth in international traffic and mid-single digit in domestic traffic, supported by improving connectivity and resilient demand.

Overall, we are seeing gradual stabilization in Mexico and sustained structural growth in Colombia. Passenger volumes from the United States, our larger international source market decreased just 0.6%. While South America contracted 10.9%, on the positive note, Canada and Europe increased by 12.9% and 1.1%, respectively. Looking ahead, we expect a more balanced operation environment across our portfolio.

In Mexico, we expect traffic to gradually stabilize over the year as aircraft availability improves. In Cancun, we continue to monitor the dynamic with Tulum Airport. As comparables ease, and airline networks adjust, we believe traffic trends should progressively improve during the year. In Puerto Rico and Colombia, we continue to expect sustained positive momentum, supported by healthy international demand and improved connectivity.

Turning now to financial performance. As a reminder, all figures exclude construction revenue and costs and comparisons are all year-on-year, otherwise noted. Total revenue were flat year-on-year at MXN 7.3 billion, reflecting the softer traffic environment in Mexico and the FX impact from the appreciation of the Mexican peso on the commercial activity. Aeronautical and non-aeronautical revenues were essentially unchanged during the quarter. By region, Mexico, revenues were flat due to softer traffic trends and the FX impact from the appreciation of the Mexican peso against the U.S. dollar on commercial revenues.

Puerto Rico's revenues declined nearly 6%, affected by the FX impact, while Colombia revenues increased nearly 5%, broadly in line with traffic growth and improved commercial performance. As part of our strategy to increase and enhance commercial offering, we opened 41 additional retail and service units across the network over the past year. This includes 31 in Colombia, 8 in Puerto Rico and 6 in Mexico. These additions contributed to a low single-digit increase in commercial revenues with solid momentum in Colombia, partially offset by softer results in Puerto Rico and Mexico.

Commercial revenue per passenger increased 1% year-on-year to nearly MXN 132. By geography, Colombia posted the strongest performance with a 12% gain, followed by Puerto Rico, which rose nearly 4%, while Mexico remained broadly stable at MXN 159 per passenger.

Turning to operating costs. Total expenses increased 25% year-on-year. In Mexico, expenses rose 10%, primarily driven by professional fees associated with the ASUR U.S. and the Motiva Airport project, along with the high minimum wages and increased service-related costs. Puerto Rico recorded a 6% increase, mainly due to security expenses and inflationary pressures. In Colombia, expenses doubled largely due to a change in the concession amortization methodology implemented in the previous quarter. As a reminder, we expect the regulated revenues to phase out by 2027 with the concession running through 2032.

Starting in the third quarter 2025, we aligned amortization with the updated revenue generation. This is a structural adjustment and will continue going forward. Excluding this account adjustment, costs will have increased just by 1%.

Turning to profitability. Consolidated EBITDA decreased nearly 5% to MXN 4.9 billion during the quarter, with adjusted EBITDA margin declining 330 basis points to 66.4% year-on-year, reflecting the dynamics I just explained. Colombia delivered EBITDA growth of 2%, while EBITDA declined by 3% in Mexico and 19% in Puerto Rico, mainly reflecting lower traffic and higher operating costs.

Net majority income for the fourth quarter decreased 22% to MXN 2.7 billion, primarily driven by 2 factors: a noncash foreign exchange loss of MXN 155 million in connection with the appreciation of the Mexican peso against the U.S. dollar, while in the fourth quarter 2024 we recorded a MXN 773 million gain. Second, the MXN 407 million adjustment in amortization methodology in Colombia introduced in the third quarter 2025 that I just mentioned.

For the full year, total revenues increased nearly 19% to MXN 37 billion. EBITDA rose 2% to MXN 20.2 billion with adjusted EBITDA margin of 67.8% in '25 compared with the 69.7% in '24. In turn, net income declined 20% year-on-year to MXN 10.9 billion, mainly reflecting a noncash foreign exchange loss of MXN 1.9 billion this year versus a MXN 2 billion gain in '24.

Moving on to the balance sheet. We closed the year with cash and cash equivalents with MXN 11 billion and net debt of MXN 16 billion, equivalent to 0.8x last 12 months EBITDA. This reflects 2 loans obtained during the second half of 2025, which were secured to pay CapEx projects and fund our strategic U.S. initiative. Even after incorporating these financings, leverage remains at a conservative level and well below global airport peers, presenting ample flexibility to fund regulatory CapEx commitments and future growth.

Capital expenditures during the fourth quarter were MXN 3.9 billion invested across our airport network, of which MXN 3.5 billion were invested in Mexico under our master development plan, and the remainder in Colombia and Puerto Rico. For the full year, we invested MXN 7.8 billion in CapEx with a similar geographic breakdown. Investments under our Master Development Programs across our Mexican airports, ensuring the capacity, service quality and regulatory compliance continue to advance. In Puerto Rico and Colombia, we remain focused on operational improvements and commercial optimization initiatives aimed at enhancing non-aeronautical revenue generation.

In Mexico, we expect to reopen Terminal 1 in Cancun in the third quarter of this year, which is anticipated to provide a commercial tailwind. New facility will help rebalance passenger flows across terminals and improve the passenger experience, which over time should support higher commercial spending.

Wrapping up, ASUR enters 2026 with a strengthened platform, greater diversification, disciplined capital allocation, robust balance sheet and proven operational model. While near-term traffic trends in some markets have moderated, the structural demand drivers for air travel in our region remains intact, and we are confident in our ability to generate long-term value for our shareholders.

With that, now we are ready to take your questions. Dave, please open the floor for questions.

[Operator Instructions] The first question comes from Andressa Varotto with UBS.

I have 2 questions. I can make the first one and then the next one. Starting with if you could share any additional color and projections about the recent ASUR U.S. acquisitions or if we can try to calculate how much it could add on revenue and EBITDA for the year based on the results showed in this quarter? And also, if you have any update on the process of the Motiva Airports acquisition?

Well, in the case of the U.S., 2 comments. First of all, you have the numbers for the first 20 days, which are, I will say, not something that we can consider as a normalized for the full year in '26. Due to the fact that during the third quarter this year, we're expecting the opening of the new Terminal 1 in New York at the JFK Airport, which is an important element of the equation of this transaction. So more or less the same for the first 3 quarters and then the jump because of the new Terminal 1.

In the case of the process for Motiva, everything is -- it's going well. Of course, it's going to take time. There are some process that are slow in the case of aeronautical approvals. But we expect to conclude this during the end, maybe the beginning of the third quarter this year.

Very clear. And my other question would be regarding the tax rate. We noticed a lower tax rate this quarter. I would like to understand if this is something that we can expect for upcoming quarters or was more of a one-off effect?

No, that is related to the results of the year.

[Operator Instructions] Our next question comes from Anton Mortenkotter with GBM.

I mean we saw really good performance on the commercial side on Puerto Rico and Colombia operations using local currency. So I was just wondering what kind of initiatives were you pushing in those markets? And should we expect to see that non-aero [ part ] continue growing?

Thank you for your question, Anton. Yes, the appreciation of the Mexican peso was for the quarter, 13.4%. So if you see the results in their currency, they were very good. In the case of Puerto Rico, we have worked in the second half of the year very hard on a new strategy into the convenience stores, and there are some other adjustments to improve the operational performance of the duty free. In the case of Colombia, I would say, apart from what I mentioned in terms of the new units we have established there, nothing else.

[Operator Instructions] This concludes our question-and-answer portion of today's call. I would like to turn back over to Mr. Castro for closing remarks.

Thank you, Dave. Ladies and gentlemen, that concludes ASUR's Fourth Quarter 2025 Results Conference Call. We would like to thank you again for your participation. You may now disconnect.

Ladies and gentlemen, that concludes ASUR's Fourth Quarter 2025 Results Conference Call. We would like to thank you again for your participation. You may now disconnect.

Good day, ladies and gentlemen, and welcome to ASUR's Third Quarter 2025 Results Conference Call. My name is Latanya, and I'll be your operator. [Operator Instructions] As a reminder, today's call is being recorded.

Now I'd like to turn the call over to Mr. Adolfo Castro, Chief Executive Officer. Please go ahead, sir.

Thank you, Latanya, and good morning, everyone. Before I begin discussing our results, let me remind you that certain statements made during the call today may constitute forward-looking statements, which are based on current management expectations and beliefs and are subject to several risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our company's control. Additional details about our third quarter 2025 results can be found in our press release, which was issued yesterday after market close and is available on our website in the Investor Relations section.

Following my presentation, I will be available for Q&A. As usual, all comparisons discussed on this call may be -- will be year-on-year and figures are expressed in Mexican pesos, unless specified otherwise.

Before discussing our results, I would like to begin today's call with an important strategic development. As recently announced, we entered into a definitive agreement to acquire URW Airports for an enterprise value of $295 million. This transaction marks a significant step forward in ASUR's international expansion strategy, building our established presence in the U.S., which began with the operation of San Juan Puerto Rico Airport in 2030. URW airports managed commercial programs are 3 most iconic and high-traffic airports in the United States. URW airports manage commercial programs at 3 of the terminals -- 3 of the airports in the United States, Los Angeles International Airport with 6 terminals, Chicago O'Hare International Airport at Terminal 5. And in the case of John F. Kennedy International Airport covering terminals 8 and the upcoming new terminal 1.

Together, these terminals process around 14 million enplanements annually. This acquisition provides ASUR with a strategic foothold in the 3 of the largest U.S. air travel markets and strengthens our position in the high-growth nonregulated commercial segment in the U.S. airport industry. The acquisition will be financed by JPMorgan Chase. As with all our strategic decisions, we are approaching this opportunity with a financial discipline and operational rigor that has long defined ASUR's execution. Closing is expecting during the second half of the 2025. Subject to customary regulatory approvals, we look forward to keeping you updated on our progress in the quarters ahead.

Now turning to our third quarter performance. We serve over 17 million passengers across our airports, with traffic remaining practically flat as continued growth in Colombia and Puerto Rico helping to offset persistent headwinds in Mexico. Starting with Colombia, passenger traffic rose 3% to close to 5 million, supported by a solid 11% increase in international traffic and a modest growth just under 1% in domestic volumes. In Puerto Rico, total traffic was up 1%, reaching over 3 million passengers. Growth was driven by international passengers, which increased nearly 12% year-on-year, offsetting the 0.5% decrease in domestic traffic.

In Mexico, traffic declined 1% to nearly 10 million passengers for the quarter. The decrease reflects softer demand, domestic traffic, which was down nearly 2% and international which saw a slight contraction of 0.3%. Passenger volumes from the United States, our largest international source market decreased just 0.2%, while South America contracted 7.2%. On the positive note, Canada and Europe increased 9.3% and 1.3%, respectively. Looking ahead, we anticipate a more balanced operating environment across our portfolio. In Mexico, we expect traffic to gradually stabilize over the next year as aircraft ability improves. In Puerto Rico and Colombia, we expect continuous positive momentum supported by the healthy international demand and improving productivity.

Now turning to review our financial results. As a reminder, all figures exclude construction revenues and costs, unless otherwise noted. Comparisons are all year-on-year unless otherwise noted. Total revenues increased in the mid-single digits, reaching over MXN 7 billion, driven by growth in Puerto Rico and Colombia. Mexico at 70% of total revenues posted a slight low single-digit decline with aeronautical revenues practically flat and non-aeronautical revenues down in the mid-single digits.

Revenue growth was limited by softer passenger volumes and the stronger peso, which continues to weigh on the U.S. linked revenue streams. Puerto Rico at nearly 18% of total revenues reported revenue growth in the high single digit driven by increases in 5% in aeronautical revenues and 10% in non-aeronautical revenues. This performance reflects positive passenger traffic trends and sustained demand across commercial activities. Colombia, which accounted for a total of [ 30% ] of the total revenues, delivered revenue growth in the high single digits, reflecting a mid-single digit increase in aeronautical revenues while non-aeronautical revenues were up in the high teens. This good performance was supported by passenger traffic growth and solid -- partially offset by the strong Mexican peso.

Continue our ongoing focus on commercial development. We added 45 new commercial spaces across our airports over the last 12 months, including 31 in Colombia, 8 in Puerto Rico and 6 in Mexico. This supported a low single-digit increase in commercial revenues as solid growth in Puerto Rico and Colombia was partially offset by a weaker performance in Mexico. On a per passenger basis, commercial revenue rose 1% to MXN 126. By region, Colombia led a 14% increase followed by Puerto Rico, up 10%, while Mexico posted a 4% decline, reaching MXN 144 per passenger.

Turning to costs. Total expenses were up nearly 17% year-on-year. By region, Mexico posted a 4% increase, largely due to higher maximum -- minimum wages and service costs. Puerto Rico reported expense increase of nearly 8%, reflecting inflationary pressures and higher operating activity. While Colombia cost increased 76%, mainly driven by an adjustment in amortization method of the concession. Without this increase would have been 5.4%. Lastly, in Puerto Rico and Colombia cost benefited from depreciation of Mexican peso against the U.S. dollar.

On the profitability front, consolidated EBITDA declined just over 1% year-on-year to MXN 4.6 billion in the quarter. Puerto Rico and Colombia delivered EBITDA growth of nearly 5% and 10%, respectively, while EBITDA in Mexico declined close to 4%, mainly reflecting lower traffic and higher operating costs. The adjusted EBITDA margin, which excludes construction related revenues and costs under IFRIC 12 declined by 157 basis points to 66.7%. This reflects lower margin contribution from the Mexican and Puerto Rico operations, where the margin contracted 152 and 151 basis points, respectively. In contrast, Colombia reported an 81 basis points margin expansion.

On our bottom line, this quarter was negatively impacted by depreciation of the Mexican peso against the U.S. dollar, which resulted in a foreign exchange loss of nearly MXN 1 billion compared to the reverse effect during the third quarter of last year. Profitability was also affected by the MXN 333 million adjustment in the concession amortization method in Colombia that I just explained.

Now moving to our balance sheet. We closed the quarter with a solid cash position of MXN 16 billion, down 19% from December 31, 2024, primarily reflecting dividend payments made during the period. Our net debt-to-EBITDA ratio remained at healthy 0.2x. In terms of capital deployment, in September, we paid an extraordinary dividend of MXN 15 per share funded from retained earnings. Note that in November, we will be paying an additional dividend of MXN15 per share.

Lastly, we invested close to MXN 1.9 billion during the quarter, primarily directed to projects our Mexican airports, including the reconstruction and expansion of Terminal 1 at Cancun Airport, and the terminal expansion in [indiscernible]. In Puerto Rico, we are progressing on the new pedestrian bridge for Terminal A, while in Colombia, we invested in maintenance CapEx.

In closing, our third quarter results reflect the resilience of multi-country platform and the value of our disciplined execution amid a more tempered demand environment. While traffic in Mexico continued to face near-term headwinds, we are encouraged by the ongoing momentum in Puerto Rico and Colombia. We remain focused on advancing on our commercial strategy, investing in infrastructure and maintaining a strong financial profile. These conclude my prepared remarks. Latanya, please open the floor for questions.

[Operator Instructions]. The first question comes from Rodolfo Ramos with Bradesco BBI.

I have a couple, if I may. The first one is in regards to the URW acquisition. Can you shed a bit of light on the economics, revenue per pax, how much EBITDA contribution you're expecting from these assets on an annualized basis?

And the second is on Colombia. Can you elaborate on this adjustment to the concession amortization method that we saw during the quarter, was this a one-off? Or should it be a new level going forward? I don't know if it has to do something with the economics of your concession title there?

Thank you for your questions. In the case of URW, I cannot yet share numbers with you until [indiscernible]. In the case of Colombia, basically, what we have done is to change amortization method because in accordance with our estimates, during 2027, we will not receive regulated revenues anymore, and the concession should be over by 2032. So we are aligning amortization in accordance with revenue generation there. And it's going to be not one-off. It's going to be from now the same level.

The next question comes from Emst Mortenkotter with GBM.

I wanted to follow up a little bit on URW. I understand you cannot discuss the financials. But leaving that aside, it seems like a great way to gain some strategic insight into the consumer that goes from your airports to the U.S. I just was wondering if you could discuss a little bit what kind of synergies do you see? Or what is the strategic rationale behind this acquisition?

Thank you, Anton. Well, basically, the most important for us is to get -- to put a foot in the U.S. market. The U.S. market represents 22% of the aviation market of the world. And these terminals are extremely important for the U.S. market. So pulling our name there is extremely important, and this should be the platform for future growth in the United States, probably in the same kind of contracts that we are entering right now. That is the most important thing.

Our next question comes from Andressa Varotto with UBS.

I have 2 here on my side. The first one is about Motiva Airports that are for sale. We've been seeing the news source that ASUR is [indiscernible] interested in this airport. So just wondering if you could provide some more information, if you're looking, for example, at all of the airports are just a subside of them. And how would the company finance this?

And my next question is regarding the traffic trends that you've been seeing for Mexico. We've been seen recently on news as well that Tulum airport has been facing some cancellations. And if you think that this could help Cancun airport in the near future. These are my 2 questions.

In the case of Motiva, I cannot comment. In the case of the traffic trends, what I see today, it's a slow recuperation in the domestic market because of Pratt & Whitney engines, something that should improve in my opinion during the next year. For the moment, the traffic is really weak and the demand is weak in the case of the region. If we see Cancun and Tulum together for the first 8 months of the year, and I'm saying that months because that is the latest public figure or the case of the airport of Tulum. The traffic for the region is a decrease of 3.1%. If we go to the latest month that has been published for the case of the airport of Tulum which is the month of August this year. August versus August last year, the traffic of the region was a decrease of 5.1%. So the traffic is soft. Nevertheless, what you are saying in terms of the recent cancellations to the airport of Tulum.

[Operator Instructions] Our next question comes from...

Sorry, could you repeat?

Our next question comes from Pablo Ricalde. The next question comes from Pablo Ricalde with Itau.

My question is related to the [indiscernible] Cancun? Is it still expected to be open around Q3 2026 or there are delays on that construction of that one?

What we are expecting is to open this new facility during the third quarter 2025 -- 2026, sorry.

Okay. So as expected.

The next question comes from Gabriel [indiscernible] with Deutsche Bank.

[indiscernible] Just 2 questions. First, is there any way or some how that capacity allocation from carriers has been shifting from Cancun? And the second one is the decrease in traffic could somehow make the pace of writing the tariffs towards the maximum tariff faster for either this year or next year?

Well, in terms of capacity, we are not -- we're not seeing a shift in capacity. What we are seeing basically is a weak demand, as I said, from the domestic resulted from Pratt & Whitney and some other elements. And in the case of the U.S., the numbers for the quarter is 0.2% decrease, which is small, but it's the largest market we have. Let's see how the winter comes. And I hope that the winter will be very strong in the north part of the Americas, and then they come. Positive side is the case of Canada, which is up for the quarter, and I thought that it will be up during the fourth quarter as well.

And in the case of the traffic that has somehow decreased, that could accelerate the pace on which tariffs are increased up to the maximum tariff?

No. I don't see that. Our maximum tax compliance this year should be similar of what it was last year, so more than 99%.

[Operator Instructions] At this time, we'll turn the call back over to Mr. Adolfo Castro for closing comments.

Thank you, Latanya, and thank you all of you again for joining us on our conference call for the third quarter 2025. We wish you a good day, and goodbye.

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

Good day, ladies and gentlemen, and welcome to ASUR's Second Quarter 2025 Results Conference Call. My name is Christine, and I'll be your operator. [Operator Instructions] As a reminder, today's call is being recorded.

Now I'd like to turn this call over to Mr. Adolfo Castro, Chief Executive Officer. Please go ahead, sir.

Thank you, Christine, and good morning, everyone. Before I begin discussing our results, let me remind you that certain statements made during the call today may constitute forward-looking statements, which are based on current management expectations and beliefs and are subject to several risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our company's control. Additional details about our second quarter 2025 results can be found in our press release, which was issued yesterday after market close and is available on our website in the Investor Relations section.

Following my presentation, I will be available for Q&A. As usual, all comparisons discussed on this call will be year-on-year figures and are expressed in Mexican pesos, unless specified otherwise.

During the second quarter, we served 17.7 million passengers across all airports we operate with traffic remaining largely flat year-on-year. Once again, better performance in Colombia and Puerto Rico offset softness in Mexico. Puerto Rico was the best performing market this quarter, posting 3% growth in passenger traffic, supported by domestic traffic and sustained strength in the international traffic. In Colombia, traffic was up 1% with international travel up 12% and domestic contracting a low single digit. Lastly, Mexico reported a decline of nearly 2% in total traffic with an increase of 1.2% in domestic, offset by a decrease by 4.5% in international travel.

International travel in Mexico continued to experience year-on-year declines from all regions during the quarter. Passenger volumes from Europe were down 4.7% from the U.S., 5.3%; South America, 2.7% and Canada, 1.6%. A meaningful portion of this decline, approximately 38% is attributable to the ramp-up of the new airport in Tulum, which continues to draw some passenger growth previously concentrated in Cancun. Beyond this shift, we believe the broader softness in international traffic reflects broader market dynamics, including a more cautious demand environment across several sorts of markets.

While the underlying drivers vary, some of these pressures are also evident in other international markets as well. Looking ahead, we expect traffic in Mexico to gradually stabilize over the course of next year as the effects of the engine-related aircraft plumbings appear to have bottomed out and Tulum airport reaches more normalized level of operations.

With respect to the potential U.S. Department of Transportation restrictions on Mexican carriers, ASUR's does not expect a material impact on our operations from these measures as our exposure to the affected airlines is minimal. To put this in context, Aeromexico accounted for just 0.3% of total passengers traveling between our airports and the U.S. while Viva Aerobus and Volaris together represented approximately 1.3%.

As I've noted in prior calls, we see long-term growth potential for both Cancun and Tulum, each driven by the specific demand dynamics of their respective catchment area. While the broader macro environment remains uncertainty, history has shown that travel-related disruptions, particularly those tied to U.S. and Mexico demand tend to be temporary in nature.

Now turning to a review of our financial performance. Recall that all references to revenue and gross figures exclude construction. Total revenues increased 5% year-on-year to MXN 7.4 billion, reflecting top line growth across operations, particularly in Puerto Rico and Colombia. Mexico, which accounted for 72% of total revenues, posted a low single-digit increase of 0.7% with relatively growth in aeronautical and non-aeronautical revenues. Puerto Rico contributed 17.7% of the total revenues with top line growth in the high teens. This compared to growth in the high 20s in the prior quarter that was supported by the foreign exchange rate benefit resulting from a weaker peso. Colombia, which accounted for 12% of the total revenues, posted a 15.4% top line growth. This accelerating from growth in the low 30s achieved in prior quarters.

This was driven by both aeronautical and non-aeronautical revenues, which benefited from the continued recovery in domestic traffic and international traffic and the opening of 35 new commercial spaces over the past 12 months, partially offset by a strong Mexican peso.

As part of our ongoing strategy to enhance our commercial offerings, we opened 47 new commercial spaces over the last 12 months. As I said, 35 in Colombia, 7 in Mexico, 5 in Puerto Rico. This expansion supported high single-digit growth in total commercial revenues, driven by strong performance in Colombia and Puerto Rico and a modest increase in Mexico.

On a per passenger basis, commercial revenue reached nearly MXN 140 in the quarter, representing mid-single-digit year-on-year growth with contributions from all three regions. Colombia lead with a 22% increase, followed by 12% gain in Puerto Rico, both achieved despite less favorable exchange rates. In Mexico, commercial revenue per passenger rose nearly 3% to MXN 159 even as passenger traffic soft.

Moving on to costs. Total expenses increased nearly 10% year-on-year. This accelerating from the 18% growth we saw in prior quarter. In Mexico, costs rose 7%, primarily reflecting the 12% increase in minimum wage effective at the start of the year. In both Puerto Rico and Colombia, cost increased in low teens, benefiting from the depreciation of the Mexican peso against the U.S. dollar and the Colombian peso.

As a result, consolidated EBITDA rose slightly 2% year-over-year, reaching MXN 5 million in the quarter. Notably, Puerto Rico and Colombia posted a double-digit EBITDA growth of 20% and 15%, respectively, while Mexico saw a 1.6% decrease in EBITDA, in line with the passenger traffic, the negative impact of the strong peso and the higher cost I just explained. The adjusted EBITDA margin, which excludes construction revenue stood at nearly 68% compared with the 69% in the same quarter last year. The slight margin contraction was mainly attributable to 170 basis points decline in Mexico, while Colombia posted a 20 basis point decrease. Puerto Rico, on the other hand, delivered 120% margin improvement in adjusted EBITDA margin.

Our bottom line this quarter was negatively impacted by a foreign exchange loss of MXN 1,200 million driven by the appreciation of the Mexican peso against the U.S. dollar. This compares to a foreign exchange gain of MXN 942 million in the same quarter last year, which reflected the opposite effect driven by the depreciation of the peso during the period.

Moving on to our balance sheet. We maintained a strong cash position, closing the quarter with nearly MXN 20 billion in cash and cash equivalents, up 32% year-on-year. Net debt-to-EBITDA ratio increased slightly to 0.1x, reflecting the drawdown of a loan facility in Mexico for MXN 9.5 billion in the quarter.

Turning to capital allocation, reflecting our solid financial position. In May, we paid a MXN 50 per share cash dividend, funded from accounted accumulated retained earnings -- in addition, we will be paying two extraordinary dividends of MXN 15 per share, each in September and another one in November.

Capital expenditures in the quarter totaled MXN 1.4 billion, with most of this investment directed towards modernization and expansion projects at our Mexican airports. This includes the ongoing work of the reconstruction and expansion of Terminal 1 at Cancun Airport and the terminal expansion in [indiscernible]. In Puerto Rico, we're currently advancing in the construction of taxiway hotel. All construction activities continue to take place outside operational areas to ensure no disruption to operation airport operations.

Lastly, on the governance front, during the quarter, Mrs. Isabel Prieto was appointed to our Board of Directors as an independent member. Following the resignation of Mr. Ricardo Guajardo Touché, with the 57% of our Board is comprised of independent directors and female representation has increased to 36%. We thank Mr. Guajardo Touché for his valuable contribution and years of service on the Board. Mrs. Prieto brings a wealth of experience in both public and private sector, beginning her career in financial services.

To close, our second quarter performance underscores the resilience of our diversified portfolio and our sustained focus on efficiency improvements. We continue investing in infrastructure, elevating the passenger experience and delivering sustainable long-term growth. We also remain attentive to evolving global macroeconomic conditions and believe our healthy financial position will help to mitigate potential risk.

This concludes my prepared remarks. Christine, please open the floor for questions.

[Operator Instructions] Our first question comes from the line of Jens Spiess with Morgan Stanley.

I have basically two. One is regarding non-aero revenues. So just was wondering what drove like the sequential decline in non-aero revenues. Was it mix of the type of passengers or is anything else explaining it?

And secondly, I mean, you already mentioned the DOT situation with the U.S. not impacting you. But I was thinking that maybe one outcome might be that the capacity restrictions in Mexico City might be lifted, which would end up benefiting potentially the passenger traffic in the system as a whole. What -- in case that materializes, how much of a positive impact would you expect?

Thank you, Jens. Well, in the case of non-aeronautical revenues, of course, the exchange rate played an important role during the quarter. Now I would say, of course, a slight difference in the passenger mix, international versus domestic, and also in the case of domestic, the situation that we have in Terminal 2.

In terms of your second question, I don't know if you saw 30 days ago that the Mexican government decided to increase or to ease the restriction they have in Mexico City Airport from 43 to 44. This announcement explained that they have made an analysis of the airspace in Mexico City and also an analysis on [indiscernible], and that's why they decided to increase that from 42 to 43.

So one operation more in Mexico City airport reflects more or less 1 million passenger traffic in that airport. I was expecting this restriction to be lifted towards the end of the year. I have my serious doubts that this will happen after what we saw in this announcement. Of course, the situation of the DOT came later, and I believe the Mexican government will have to review the situation and see what is -- what they're going to say after what the DOT has expressed.

As I said, the situation between the traffic to and from the U.S. from our airports. It's basically managed by U.S. airlines. As I said, Aeromexico 0.3%. In the case of Viva and Volaris together, 1.3%. So it's 1.8%, 1.6% of the total traffic between these two countries. So I do not expect any major implication of this in our case. Of course, as a result of this, the government decided to increase the operations in Mexico City, that will be beneficial to us.

Our next question comes from the line of Stephen Trent with Citi.

The first, just quickly on Tulum. Is it still the case that its charter traffic is still sort of the primary piece of the pie that's leaving Cancun and shifting to Tulum? Or are you seeing a little bit more of a tilt in commercial?

Hello?

Yes. Adolfo, can you hear me?

Yes. But could you repeat your question because you were not...

Sure, sure. No problem. Yes, I was just curious in terms of the -- what you're seeing in Tulum Airport and the traffic impact to Cancun, am I thinking about this correctly? It's still primarily charter traffic that's the piece that's going there? Or are you seeing a little more of a shift of commercial traffic there, too?

Well, it's -- of course, you can find some charter flights there. But basically, I would say most of these is commercial flights basically coming from the U.S. A piece is coming from Mexico, but the most important region in that sense is U.S.

Got it. I appreciate that. And just a very quick question on the balance sheet. I saw there was a MXN 1.5 billion investment in financial instruments in 1Q that is no longer there in 2Q. And just was curious what was sort of the rationale behind the shift?

The rationale is the huge amount of that we have in the bank in investment. So we decided to invest a piece of that in a fund instead of the usual instruments we have been in just to try to get some more return for that amount of money.

Our next question comes from the line of Guilherme Mendes with JPMorgan.

The first question is on a follow-up on the traffic outlook. You mentioned at the beginning that you do expect some kind of normalization on Mexican traffic into next year. Just trying to understand what does it mean for the second half of this year? I understand that the base of comparison is relatively easier. So is it fair to assume that we could expect some kind of traffic growth, let's say, mid-single digits on Mexican traffic into the second half of '25 when compared to second half of '24?

And the second question is on the FX impact. So you mentioned the negative impact on aeronautical revenues. Can you clarify what is the actual impact on commercial revenues during the quarter?

Yes. Well, the domestic traffic, as you have seen in the numbers during the quarter, is no longer decreasing. It was a small increase. I think traffic -- and basically, this is because the engine problem of Pratt & Whitney is basically bottomed out. So Volaris has expressed yesterday that they have like six aircraft in the shop. And then, and how can I say, in the grounders because of the same problem, exactly. And that was exactly the same figure we saw during the first quarter. So this is the lowest part of the curve, I would say, as we can see with the numbers from now on, we should see an increase in domestic because of this.

That is, in my opinion, the most important situation. Of course, the situation of Mexico City helps on this. But as we said, there was a small increase in the restriction from 42 to 43. So from now on, everything should be better than how it was before.

In the case of the FX in the commercial revenues, this has to do with the exchange rate activities there on one side. On the other side, it has to do with duty-free. And of course, what I have mentioned before, the situation we have in the case of Terminal 2. So that's why you're seeing a very soft, I would say, non-aeronautical revenues in the second quarter compared with the first quarter this year.

Maybe put in a different way, do you have high-level numbers on what is the USD exposure you have on your commercial activity?

It's not that easy because, of course, the only one that is related to U.S. dollars is duty free. The other thing is the way the people expense in terms of food and beverage prices are in pesos, but that doesn't mean that the people will spend more if Mexican peso depreciates, which is not the case in the stores. In the stores, again, the prices are in pesos. But the people tends to spend more if the Mexican peso depreciates.

Our next question comes from the line of Pablo Monsivais with Barclays.

A follow-up on the commercial revenues question. What should we expect for the next two quarters with the situation you're naming on Terminal 2? Should we expect again a couple of quarters of still a soft commercial revenue activity?

And my second question is maybe to put different the question of Guilherme, what percentage of the rents that you have in your tenants at Cancun are in U.S. dollars?

Pablo, in the case of Terminal 2, we should expect that for the next four quarters. It will be up to the third quarter next year when we will be able to open the new reconstruction and expanded Terminal 1, which should alleviate in a significant way the situation in Terminal 2.

My prices or the way that we charge in the commercial revenues is basically a minimum guaranteed payment per passenger and a percentage of the sales. Normally, what they pay to us is a percentage of the sales. And as I said before, if their sales are in pesos, in between brackets, this is pesos. But it's not the currency. The thing that explains the spending behavior has to do with the passenger weakness of this. In the past, I used to say, what Russian is to U.S. guys in the duty free. And it has to do with packaging, not with what is there.

Our next question comes from the line of Pablo Ricalde with Itaú Asset Management.

I have two questions. The first one is on the Mexico profitability or EBITDA margin. I don't know if you can explain a little bit further what happened on the cost line. You mentioned we saw an increase in labor cost and utilities. But just wondering if maybe you register a provision or something and that's why expenses grew that much and profitability declined that much? And how should we think of profitability in Mexico going forward?

And my second question is on your balance sheet and your cash on balance. If I'm mistaken, 60% of your cash is in USD. I just want to double check that number.

Yes, Pablo. Well, in the case of the margin, and normally, I don't want to -- I don't like to talk about margins because revenues and expenses are basically independent. The expenses side grew 7% and basically because of the minimum wage increase of 12% that's from the beginning of the year. It was less than what we had in the first quarter. We had to take some actions there due to the situation of the weak traffic we had during the [indiscernible] The combination of both is what you are saying, a decrease in the margin. That is something that we need to see on an independent basis.

In the case of what you're saying in the balance sheet, what was your question?

Like that how -- which percentage of your cash is in USD? Trying to understand what was the FX loss on your P&L. If I'm not mistaken, around 60% of your FX is -- all of your cash is in USD.

Yes. In the case of Mexico at the end of the quarter, we had $700 million in dollars.

Our next question comes from the line of Fernanda Recchia with BTG Pactual.

Two here from our side as well. So the first on the dividend policy going forward, we saw that despite the payment of the first tranche, your leverage is in a pretty comfortable level. So just wondering what we can think about next year onwards if we could expect such a good dividend payment like we saw in 2025?

And second, still a follow-up on the Tulum. Maybe if you could elaborate a little bit further. When do you expect this airport to reach full capacity? And when do you expect it to stop hurting Cancun's figures?

Thank you, Fernanda. Well, in the case of figures for next year, let's try to conclude this year first. Now we have another payment in September and another one in November, and then we will have to evaluate what the situation for the year and the results of operations. And then next year, we will propose something to the Board and then to the shareholders assembly.

In the case of Tulum Airport, if we see last 12 months, Tulum Airport reached around 1.5 million passengers. If we see the last 12 months end of December last year, it was 1.2 million. So there was an increase of 300,000 passengers during the first half of the year. I was expecting a better ramp-up if you go back to my first conference call of the year, I was expecting 2.9 million for this airport, but recent news basically showing cancellation of some routes, Bogota [indiscernible] some others basically are saying to me that this airport will not reach what I was expecting at the beginning of the year. This airport should have, roughly speaking, 2.9 million in accordance with the location this airport has.

So going back to your question, when we will not be hurting from these is once the airport reaches the 2.9 million. In the meantime, we will have to continue talking about the ramp-up of Tulum.

Our next question comes from the line of Andres Aguirre with GBM.

Wondering if you could share the rationale behind the new debt. And given your current high cash balance, how are you thinking about deployment going forward and possibilities for further leverage for CapEx?

Hi, Andres. Well, the net debt has to do with taxes, expenses in Cancun Airport. We thought that it was something important for us to maintain some cash on hand for the future, given the fact that the dividend -- the proposed authorized for this year is a total of MXN 24 billion. So it was important to be sure that we were able to fund that situation.

Our next question comes from the line of Abraham Fuentes with Banco Santander.

We have seen a drop in the number of tourists that are visiting the U.S. Do you think that Mexico could capture any of those passengers? And if that will be the case, when do you think we can begin to see it effect in terms of traffic?

Well, this is true. There are diminishing, decline from all the regions to the U.S. in terms of tourism. We have approached some Canadian airlines and talk about the situation. And basically, what they're saying is that they will evaluate the situation towards the end of the year. If this continue, of course, they will jump into our region.

For the moment, what they have expressed is that they do not want to lose their slots in their most important airports in the U.S. they have. Basically, I do believe that next year, we will see some positive effect of this basically from Canada and from Europe.

Our next question comes from the line of [ Enrique Segura ] with Fundamenta Capital.

I wanted to quickly dive into international traffic dynamics in Mexico more specifically during this first half of the year, we have seen traffic internationally fall 7.5% in the first Q and 4% in the second Q. I know if this has been happening basically with Tulum not ramping up. How do you expect international traffic to kind of continue in the second half of this year? And should we expect Tulum to basically ramp up in 2026 and hindering growth next year?

Well, as I said during the initial remarks, the decline -- 38% of the decline of this quarter in the international traffic is related to Tulum Airport. The difference is related to a weaker market from all the regions, all are negative, Canada, U.S., Europe and South America.

What to expect for the future, let's see what the economics on one side, macroeconomics on the other side, all of this situation with the U.S. migration policies. And the case of South America with the situation of the visa from the Brazilians, the visa for the Peruvians, the mistreatment to Colombians. All of this has been analyzed by the Mexican government today and also considering that the next year, we will have some gains on the World Cup in Mexico, they will have to do something about it.

Great. And just a quick follow-up, if I may. In terms of domestic passengers, we should not continue to see it falling, but do you expect a strong rebound? Do you see that when talking to Volaris and Viva Aerobus? Or do you think it will be a more gradual change?

Well, what I do expect is a better behavior. So no more decreases from the domestic and a slight decrease in the rest of the year.

Our next question comes from the line of [ Alberto Velez ] with UBS.

One remaining from our side here, it's about CapEx. How should we expect the pace of CapEx deployment for the next quarter? This quarter come a little bit below what consensus and us was expecting. So how should we see the deployment of CapEx in the following quarters?

You're welcome. Well, I have to say that in the case of the CapEx, we are above our internal budget for the first half of the year, slightly above. What do we expect for the end of the year to comply with what we have, they're written in our MVP roughly speaking, MXN 7 billion. Remember that most of this is spended towards the full quarter.

[Operator Instructions] Our next question comes from the line of Alan Macias with Bank of America.

Our next question comes from the line of Anton Mortenkotter with GBM.

Just a quick one. I mean, aside from Cancun and the smaller airports in Mexico, maybe like Merida or Oaxaca, we've seen some steady performance. I was just wondering what kind of dynamics are you seeing in those smaller airports? And what would you expect going forward? I mean anything interesting there?

Well, every single airport, of course, has its own situation. I would say that let me go in the case of Oaxaca, public demonstrations in Oaxaca have affected, of course, the [indiscernible] In the case of Merida, it's growing less than it was before, but it is still growing. So it's doing well. In the case of we get most of, I would say [indiscernible] traffic. So each one has its own particular, we cannot generalize all of them.

Our next question comes from the line of Gui Mendes with JPMorgan.

A quick one on traffic. There has been a lot of news on increasing sargassum in the Caribbean region. Is this kind of concerning in your view? Could it imply downside risk to your traffic assumptions for the second half of the year?

Well in the case of sargassum, I have to say not -- if we go back in [indiscernible], we cannot say every three years, every five years, every seven years, you will have some worst in the region. The worst ever has been in 2018. But what we have seen for this year, this may be the worst ever, a situation that it's very, very difficult. Of course, in terms of the seasonality of the year, summer is the most important. So I would say after or during the third quarter and fourth quarter, you will see less sargassum of what you will see for the summer. But yes, it's true that this year has been a very tough situation.

Our next question comes from the line of Fernanda Recchia with BTG Pactual.

Adolfo, just a quick follow-up. Could you comment a little bit on your inorganic growth opportunities that you're currently evaluating? I don't know if you have any update on Bávaro Airport. And apart from that, is there any other opportunity that you're looking at?

The case Bávaro is still the same. We're still in the middle process of that. For the moment, the project is on course. And yes, we are seeing some other opportunities.

Okay. And just a follow-up here. We know that CCR is under a divestment process. Is this process makes sense for you? Or are you looking at it?

I cannot comment on the other opportunities we are analyzing for the moment.

Our next question comes from the line of Alan Macias with Bank of America.

Just if you can give us some color on what's happening or what are the drivers for international traffic in Puerto Rico and Colombia. They're growing double-digit levels. And if this is sustainable for the second half of this year?

You're welcome. Well, in the case of Puerto Rico, I would say this has to do with what's happening there with concerts and everything related to music. So Puerto Rico is really on that one and some international traffic are taking opportunity to go there because of that. In the case of Colombia, basically is the U.S...

Mr. Castro, are you still connected?

I'm connected, yes.

Okay. And Mr. Macias, was that the end of your question?

Yes.

[Operator Instructions] Our next question comes from the line of Federico Galassi with TRG.

Quick question in [ Chilean ] operations. I can see a jump in cost of services in terms of revenues year-over-year. The question is, is there any one-off or this is the level that we have to think in for Mexican operation in the near future?

This is what you should expect for the coming quarters, yes.

Okay. But it's not -- no one-off. It's 100% for the operations, for operations.

Yes.

That concludes the question-and-answer portion of today's conference call. I would like to turn it back over to Mr. Castro for closing remarks.

Thank you, Christine, and thank you all again for joining us today for our second quarter 2025 conference call. We wish you a good day and goodbye.

Ladies and gentlemen, that concludes ASUR's Second Quarter 2025 Results Conference Call. We would like to thank you again for your participation. You may now disconnect.