Grupo Aeroportuario Del Cent Aktie

Greetings, and welcome to OMA's First Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Emmanuel Camacho, Investor Relations Officer. Thank you. You may begin.

Thank you, Christine. Good morning, everyone. Thank you for standing by, and welcome to OMA's First Quarter 2026 Earnings Conference Call. We appreciate you joining us today as we discuss our company's performance and financial results for the past quarter.

Joining us today are our CEO, Ricardo Duenas; and CFO, Ruffo Perez Pliego. Please be reminded that certain statements made during the course of our discussion today may constitute forward-looking statements, which are based on current management expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our control.

And now I'll turn the call over to Ricardo Duenas for his opening remarks.

Thank you, Emmanuel. Good morning, everyone, and thank you for joining us today. This morning, Ruffo and I will review our quarterly operation and our financial results and then we will be pleased to answer your questions.

In the first quarter of '26, OMA passenger traffic totaled 6.7 million, a 4.7% increase versus last year. Seat capacity increased by 3.9% during the quarter. Domestic passenger traffic grew by 5.7%, driven primarily by the Monterrey Airport with increases on routes to the metropolitan area of Mexico City mainly to Toluca, and Mexico City Airports, Bajio, Puerto Vallarta, Merida?and Cancun. These routes collectively added over 265,000 passengers during the quarter, representing 87% of the total domestic passenger growth.

International passenger traffic decreased by 0.5%. The decrease was mainly driven by Monterrey with lower traffic on the routes to Chicago and Los Angeles and Mazatlan on the route of Minneapolis, Dallas and Los Angeles. This decrease were partially offset by a positive performance in San Luis Potosi, which saw higher passenger activity on the routes to Dallas, San Antonio and Houston.

In terms of growth by airline, Volaris which accounted for 25% of our total passenger traffic in the quarter recorded a 15% increase in passenger traffic compared to the first quarter of 2025 and while Viva, which accounted for 48% of our total passenger traffic recorded a 3% passenger increase during the quarter.

Turning around to our financial performance. Aeronautical revenues increased 4.3%, domestic passenger charges revenue increased by 9%, driven by passenger growth of 5.7%. Our international passenger charges revenue declined by 11% year-over-year, mostly due to the depreciation of the Mexican peso against the dollar.

Commercial revenues grew by 4.9% compared to the first quarter of 2025, and commercial revenue per passenger stood at MXN 66.4. Commercial revenue growth was mainly driven by retail, parking, VIP lounges and restaurants as we continue to benefit from higher penetration levels and increased passenger traffic. Occupancy rate for commercial space stood at 93% at the end of the quarter.

On the diversification front, revenues decreased 1.1% year-over-year, reflecting a mixed performance across our portfolio. Hotel Services declined 7.8%, mainly driven by our Hilton Garden Inn hotel, where results were impacted by the appreciation of the Mexican peso against the dollar and lower occupancy.

Other services decreased by MXN 13 million, mainly due to a onetime effect in the first quarter of '25 related to industrial park activities, which did not repeat this quarter. These effects were partially offset by strong performance in OMA Carga, which grew by 8%, supported by a more than threefold increase in operations at our Chihuahua warehouses as the business continues to scale, while Industrial Services grew 19%, driven by a higher number of leased square meters.

OMA's first quarter adjusted EBITDA increased by 2.1% to MXN 2.4 billion with a margin of 73.4%. On the capital expenditure front, total investments in the quarter, including MDP investments, major maintenance and strategic investments were MXN 605 million.

Before concluding, I would like to highlight that during the quarter, we agreed with the Mexico City International Airport to extend the lease term of the NH Collection Hotel at Terminal 2 by another 5 years from its original maturity of 2029 to April 2034, under the same terms and conditions as the existing lease agreement. This extension allows us to secure revenues over a longer period from a business that has proven to be highly successful within our diversification strategy while providing greater visibility on the long-term contributions of this asset to our non-aeronautical revenues.

Finally, on April 24, we held our 2026 Annual Shareholders Meeting, where shareholders approved among other matters, the declaration and payment of a MXN 4.9 billion cash dividend.

I would now like to turn the call over to Ruffo Perez Pliego, who will discuss the financial highlights for the quarter.

Thank you, Ricardo, and good morning, everyone. I will briefly go over our financial results for the quarter before opening the call for questions. Aeronautical revenues increased 4.3% relative to 1Q '25 mainly due to the increase in domestic passenger traffic despite a 10.5% decrease in international passenger revenues, a result of appreciation of the Mexican peso.

Non-aero revenues increased by 3.8%. Commercial revenues increased 4.9% and the line items with the highest growth were car parking, retail, restaurants and VIP lounges.

Parking increased 8.5%, driven by higher passenger traffic as well as higher tariffs. Retail and restaurants grew by 8.9% and 5.0%, respectively, both mainly as a result of higher passenger traffic, higher penetration rates and the opening or replacement of outlets from previous quarters. VIP lounges increased by 8.1% driven by a higher capture rate. In March, we opened a new VIP lounge at our Torreon airport, and we currently operate OMA Premium Lounges in 11 of our 13 airports.

Diversification activities decreased 1.1% in the quarter. Total aeronautical and non-aeronautical revenues grew 4.1% to MXN 3.3 billion in the quarter. Construction revenues amounted to MXN 519 million in 1Q '26.

Cost of airport services and G&A expense increased 20.0% versus 1Q '25, primarily due to the following line items: Minor maintenance increased 54.2% driven by timing effects of works performed. Contracted services expenses rose 20.8%, mainly due to higher cost of security and cleaning services following contract renewals in prior quarters, reflecting inflationary pressures and tight labor market conditions.

Other costs and expenses, which increased by MXN 24 million as a result primarily of higher transportation costs, retirement provision and bad debt expense, among others.

Concession tax increased 2.2% to MXN 265 million. Major maintenance provision was MXN 109 million compared to MXN 53.4 million in 1Q '25. The increase reflects the reassessment of our maintenance requirements in line with the investments included in our 2026-2030 MDP, consistent with guidance provided in the previous quarter.

OMA's first quarter adjusted EBITDA grew 2.1% to MXN 2.4 billion and adjusted EBITDA margin stood at 73.4%. Our financing expense decreased by 0.6% to MXN 310 million. Consolidated net income was MXN 1.2 billion in the quarter, a decrease of 4.1% versus 1Q '25.

Turning to our cash position. Cash generated from operating activities in the first quarter amounted to MXN 1.7 billion. Investing and financing activities used MXN 791 million and MXN 376 million, respectively. As a result, our cash position at the end of the quarter was MXN 3.7 billion.

At the end of March, total debt amounted to MXN 13.6 billion and leverage measured as net debt to adjusted EBITDA stood at 1.0x.

This concludes our prepared remarks. Christine, please open the call for questions.

[Operator Instructions] Our first question comes from the line of Rodolfo Ramos with Bradesco.

Just a couple from my side. The first one is to see if you could help us get a sense of the potential for route development and the time line. It was interesting to hear during your remarks that 87% of domestic traffic during the quarter came from new routes. So when you look at these recently opened routes, if you can remind us what kind of maturation curves do you expect in these routes?

And maybe if you can quantify as a percentage of your total traffic, what do you see in terms of route development? Not sure how these discussions are going with airlines in the current context of more constrained seat supply.

And then the second, if you can remind us where you stand on your maximum tariff execution? And what should we expect at the end of this year?

Sure. Rodolfo, this is Ruffo. So as you know, we have a very good dialogue with all of our airline partners. We have right now 19 confirmed routes for the rest of the year. Most of them opening in June, primarily with VivaAerobus and Volaris. And also, we have one confirmed route to Madrid with Iberia. And as we announced recently, we continue to position Monterrey as a long-haul connecting point. We have now a direct flights to Paris as of last week.

And also, we see some recovery in the Canadian market for the winter season, so especially in Mazatlan as well. So I think that will also help our results towards 4Q. And with respect to maximum tariff compliance, we currently have around 91%, 92%. We started our pass-through of the tariff increase starting this month, and we would expect to end up the year close to 95%.

Our next question comes from the line of Alberto Valerio with UBS.

It's a follow-up on the first question as well. We have a guidance that MDP tariffs would be -- start point in April. I would like to know if -- how it is proceeding this increasing price for tariffs. And another question is about the international operations due to strength of Mexican peso. How has been the pass-through? Or you think that Mexican peso may weaken further in the year, you might be holding to pass-through tariffs on these routes? Just a color on tariffs as well.

Yes. So during the first 3 months, we made little adjustments to our regulated tariffs, with most of the tariffs increased in April 10 of this month. And we have already implemented that as of April 10. I think that we are not right now holding any tariff increase considering the FX potential variation. So we'll have to assess that in the future, depending on the peso exchange rates. But right now, we did implement the contemplated tariff increase, this -- earlier this month.

Our next question comes from the line of Jens Spiess with Morgan Stanley.

So just on the April tariff increase, if you could give just some additional color on how much you increased it for domestic versus international? I mean, in peso terms and just to get a better understanding of how much room there is to increase it further because my sense is that with the appreciation of the Mexican peso, you could probably do a bit more pronounced increases on the international side. And just to confirm a follow-up on your response earlier. So the 92%, that's based on first quarter numbers, right? Or how should we understand that 92%?

Okay. Jens, thank you for your question. So in terms of the increase, it was -- as of April 10, it was a 6.9% across the board for domestic and for international to and airport services as well. That was a nominal increase of 6.9%.

And regarding the maximum tariff, yes, the 91%, 92% is in the 1Q, and we would expect to go higher around 95% towards the end of the year.

Okay. So -- and when is the next step up planned for this year?

We don't have any other step-up contemplated for the rest of the year. Any increase would be until the next year, still TBD and the timing of that.

Okay. So even if the Mexican peso appreciates further, any adjustment would be implemented next year.

Correct. Yes.

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

On the commercial side, commercial revenue per pax was quite stable quarter -- sorry, year-on-year. I was just wondering, as you look ahead, how are you thinking about the next phase of monetizing the commercial side across the portfolio? And where do you see the biggest opportunities structurally to increase the spend per passenger?

Sure. We did have flattish per pax income this quarter versus last year. Most of that is explained because of the reconfiguration of commercial spaces in our Monterrey Airport as a result of the terminal expansion works that we are doing in that airport. As we open new areas and works in certain areas are completed, we should see the benefit of those works probably starting mid-2027 and kicking in, in full in 2028. And in addition, we have a couple of line items that are also quite peso linked -- sorry, U.S. dollar linked, primarily the VIP lounge operation is basically fully dollarized as well as duty free. So appreciation of the peso also affected those 2 particular line items.

Our next question comes from the line of Enrique Cantu with GBM.

Congratulations on the results. My question is on profitability. We saw a meaningful increase in operating costs, particularly in service costs, which pressured margins. How much of this cost increase will be considered as a one-off? And how should we think about the margin trends in the coming quarters?

Enrique, so we had some advanced minor maintenance expenses that were advanced in the first quarter due to timing execution of the works. We should expect that line item to normalize going forward. And also in the other costs and expenses, we did have some nonrecurring items related to bad debt provisioning, certain litigation provisions and IT expenses that should level off in coming quarters. Now regarding the major maintenance provision, I will just highlight, it's a noncash item. So even though it does affect the EBITDA margin, it is not affecting the cash position of the company.

Our next question comes from the line of [ Pablo Monsivais ] with GBM.

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

Just a question on jet fuel. Any risks there of availability in Mexico? Any scarcity have you seen? And what have jet fuel prices been doing in Mexico? And any risk of airlines such as Delta that suspended some flights from the U.S. to Mexico. Anything you've seen from U.S. airlines or in that case, Mexican?

Alan, yes, we -- fortunately, we're not having the issue that you're seeing in Europe, where you've seen shortages of jet fuel. Fortunately, in Mexico, we don't see a problem of shortage. We've also spoken directly with the airport authorities, and there's no sign that there is a problem of shortage. We do have the price of oil where it is, that it's probably having an impact across the board.

[Operator Instructions] Our next question comes from the line of Vanessa Quiroga with Eternal Capital.

A follow-up regarding the increase in tariffs that are due in April that you are going to implement. What exchange rate for the Mexican peso did you assume to decide to increase by 6.9%, the tariffs?

So that increase was based or planned earlier in the year, and it does reflect both inflationary expectations for this year as well as some catch-up of the MDP tariff increase that we obtained in December of last year. So it's consistent with our expectation of passing through the MDP increase in 2 to 3 years.

Okay. And a question about the noncommercial -- sorry, the commercial revenues and what we saw for the hotels. Are you expecting that the hotel performance will remain as we saw in the first quarter with declines?

Part of the decline that you saw in the first quarter was mostly due to FX. So especially the Hilton Garden Inn in Monterrey mostly are -- 2/3 are Hilton Honors, which are American-based. So the currency was -- that played an impact there. We expect it to normalize going forward. And we're also exploring 2 additional new hotels.

Our next question comes from the line of Julia Orsi with JPMorgan.

So just a question on your outlook for traffic for this year. So any changes on your previous estimates of low to mid-single-digit growth rate due to airlines reducing capacity and some sort of demand hit due to higher jet fuel costs and how you're seeing the breakdown across domestic and international demand as well?

Julia, even though there is a lot of uncertainty on the number of seats after the summer season, we think that the low to mid-single-digit estimate is still valid. We do see better performance on the domestic side than in international. So yes, in the 1Q of this year, U.S. demand has been soft, but this has been compensated by higher dynamism of the Monterrey industrial market.

Our next question comes from the line of Federico Galassi with The Rohatyn Group.

Maybe this is a follow-on, but when I checked the growth in cost, we see 2 or 3 lines as minor maintenance, other costs and in particular, contracted service. This is -- was something in particular for this quarter? This is a number that you can continue to grow and in particular, for the project that you are running today? Just to understand how is the increase in cost only that.

Sure. Federico. So on -- yes, maintenance cost was impacted by timing effect. So it should trend down in the following quarters, and the same with other costs. On the contracted services line item, it does reflect primarily security and cleaning contracts that we have. And those levels are expected to -- of that particular line item to be maintained for the remainder of the year.

Okay. Other costs and expenses?

Yes. And other costs also, we did have some timing effects as well as some extraordinary events in the 1Q. So that number should also be slightly lower in future quarters.

Okay. It's fair to say that today that in the next quarters, the cost of our revenues should be decreased for those one effect, one-off effects.

That is correct.

Perfect. Very clear. And the second one, Ruffo, if I can, is we saw in the last quarter, OMA Carga?growing again, almost double digit, if you see the 2 quarters. How do you see the activity in Carga thinking in the rest of the year?

So it continues to be strong. What is driving right now the first Q numbers is primarily our Chihuahua warehouse results, which is picking up in terms of client penetration and operations. But we still see a lot of potential in the Monterrey airport, and we see dynamism to continue for the coming quarters on that line item.

Our next question comes from the line of Gabriel Himelfarb with Scotiabank.

Just a quick reminder or a quick follow-up on the MDP CapEx. I believe it's the core of the MDP, it's based on expanding the Monterrey commercial areas. I think you mentioned last quarter that you expect a ramp-up between 10% and 15% on revenue per passenger by 2028. Is this number still in line or there's an update? Or perhaps can you give us in terms of EBITDA, how much can this be incremental for OMA?

So yes, we -- that number is based in real terms. So yes, we will expect that spend per pax in the Monterrey Airport to go about by 15% by 2028 as compared to baseline of 2024 in real terms, yes.

Okay. And how much in terms of EBITDA will be the step up?

Let me confirm and get back to you because I will have to check what the expected passengers are for that airport. But I'll get back to you. I don't have the numbers in front of me.

We have no further questions at this time. I'd now like to turn the floor back over to management for closing comments.

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

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

Greetings. Welcome to OMA's Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to Emmanuel Camacho, Investor Relations Officer. Thank you. You may begin.

Thank you, Sherri. Hello, everyone. Thank you for standing by. And welcome to OMA's Fourth Quarter 2025 Earnings Conference Call. We are delighted to have you join us today as we discuss our company's performance and financial results for the past quarter.

Joining us today are CEO, Ricardo Duenas; and CFO, Ruffo Perez Pliego. Please be reminded that certain statements made during the course of our discussion today may constitute forward-looking statements, which are based on current management expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our control. And now I'll turn the call over to Ricardo Duenas for his opening remarks.

Thank you, Emmanuel. Good morning, everyone, and thank you for joining us today. This morning, I will briefly discuss the approval of our master development program, then Ruffo and I will review our annual and quarterly operational performance and financial results. And finally, we will be happy to answer your questions.

During December, we received approval from the Federal Civil Aviation Agency for a master development program covering the '26-'30 period. The approved investment commitment amounts to approximately MXN 16 billion expressed in December 2024 pesos. This new 5-year program is focused on capacity expansion and quality enhancements at our largest airports in terms of passenger contribution while further strengthening the efficiency of our network. Investments are allocated across terminal expansions, airside infrastructure, equipment upgrades, pavement, rehabilitation, modernization works, environmental initiatives as well as safety and certification programs.

Capacity and quality improvements, infrastructure optimization, airport equipment and sustainability-related CapEx represent the main drivers of the program. In this context, our MDP prioritizes projects that enhance passenger experience, improve operational efficiency and incorporate technology solutions that support long-term service quality and cost optimization. Sustainability and decarbonization are embedded in our investment strategy with initiatives aimed at improving energy efficient and supporting our long-term emission reduction targets.

Importantly, the total investment commitment of 2026-2030 is comparable in real terms to the investment considered in the 2021-2025 cycle. However, traffic levels today are materially higher than 5 years ago. This implies an improvement in capital efficiency per passenger and reflects the scalability of our existing infrastructure. In other words, this MDP reflects disciplined capital allocation, greater efficiency in the deployment of CapEx and a focus on maximizing the use of current assets. The approval also provides long-term regulatory visibility and reinforces the structural growth outlook of our airports.

Moving now to our full year 2025 results. This was a year marked by the continued recovery in operational capacity and a strong performance in our main airport of Monterrey. While the Pratt & Whitney engine inspection program continued to affect certain fleets during the year, capacity constraints eased compared to 2024. This allowed Mexican airlines to progressively restore frequencies and reintroduce routes that had been limited or suspended due to aircraft availability. As a result, seat capacity across our airports increased close to 11% during 2025, reflecting improved aircraft deployment and network adjustments.

During 2025, we opened 35 new routes, of which 24 were domestic and 11 were international, further strengthening connectivity across our airports. Supported by higher seat availability and route expansion, total passenger traffic reached 28.8 million passengers in 2025, representing an 8.5% increase as compared to 2024, with domestic passenger traffic growing by 8% and international passenger traffic by 12%. The expansion reflects a continued diversification of Monterrey's international footprint.

In addition to consolidating its position as a key gateway to the United States, Monterrey has progressively expanded its long-haul connectivity in recent years, including overseas service to Europe and Asia. The consolidation of long-haul routes such as Monterrey-Madrid, Monterrey-Tokyo and Monterrey-Seoul reinforces our long-term vision of positioning Monterrey not only as a regional hub within Mexico, but as an increasingly relevant international connecting point linking Northern Mexico with major global destinations. In 2026, we will continue strengthening overseas connectivity with additional operations to Madrid and the launch of Monterrey-Paris route in April 2026, further expanding our presence across diversified international markets.

Beyond traffic growth, 2025 was also a year of solid execution across our commercial and diversification businesses. On the commercial front, we recorded growth across three key revenue line items, driven primarily by the opening of new outlets and continued commercial mix optimization. Restaurant revenues grew by 22%. VIP lounges revenues increased by 30% and parking revenues increased by 13% as compared to 2025. From our diversification lines of business, our industrial park was one of the strongest contributions to growth with 44% increase in revenues versus 2024, supported by higher leased square meters. OMA Carga revenues recorded strong results as well with a 9% increase in revenues, mainly as a result of higher volumes and improved operational efficiencies.

Regarding our financial performance, aeronautical and non-aeronautical revenues each grew approximately 12% year-over-year. As a result, our adjusted EBITDA for the year was MXN 10.2 billion, and we recorded an adjusted EBITDA margin of 74.5%. I will now move on to our fourth quarter 2025 performance. In the quarter, OMA's passenger traffic totaled 7.5 million, a 6% increase year-over-year. Seat capacity increased by 8% during the quarter. On the domestic front, passenger traffic grew by 6%, driven primarily by the Monterrey Airport, which saw increase on routes to the metropolitan areas of Mexico City, mainly to Toluca and Mexico City airports, Bajio, Puerto Vallarta, Merida and Guadalajara. These routes collectively added for over 300,000 passengers during the quarter, representing 79% of the total domestic passenger growth.

International passenger traffic increased by 4%, mainly driven by Monterrey with higher traffic on the routes to Bogotá, Toronto and Panama and San Luis Potosi on the routes to Dallas-Fort Worth, Atlanta and San Antonio. Together, these routes added more than 67,000 passengers during the quarter. In terms of growth by airline, Volaris, which accounted for 24% of our total passenger traffic in the quarter, recorded a 17% increase in passenger traffic compared to the fourth quarter of 2024, while Viva, which accounted for 51% of our total passenger traffic recorded a 5% traffic increase during the quarter.

Turning to our financial performance. Aeronautical revenues increased 6%. Commercial revenues grew by 8% compared to the fourth quarter of '24 and commercial revenue per passenger stood at MXN 62. Commercial revenue growth was mainly driven by parking, restaurants, VIP lounges and retail, mainly as a result of higher penetration and the increase in passenger traffic. Occupancy rate for commercial space stood at 93% at the end of the quarter. On the diversification front, revenues increased 5% with OMA Carga contributing most of the growth, mainly due to -- because of higher revenues from our bonded warehouses in Chihuahua, given our successful strategy to further develop this warehouse in previous quarters.

OMA's fourth quarter adjusted EBITDA increased by 6% to MXN 2.6 billion with a margin of 73.6%. On the capital expenditures front, total investments in the quarter, including MDP investments, major maintenance and strategic investments were MXN 755 million. I would now like to turn the call over to Ruffo Perez Pliego, who will discuss our financial highlights for the quarter.

Thank you, Ricardo, and good morning, everyone. I will briefly review our financial results for the quarter, and then we will open the call for your questions. Aeronautical revenues increased 5.6% relative to 4Q '24, mainly due to the increase in passenger traffic. It is worth noting that the peso appreciation against the dollar resulted in a 1.3% decline in international passenger charges despite a 4.2% increase in international passengers. Non-aero revenues increased 7.5%. Commercial revenues increased 8.4%. The line items with the highest growth were parking, restaurants, VIP lounges and retail.

Parking grew by 18.4%, mainly as a result of higher passenger traffic as well as higher penetration across our airports and increased tariffs. Restaurants and retail increased 11.3% and 7.0%, respectively, both driven by higher passenger traffic as well as previously opened or replaced outlets. VIP lounges grew by 17%, mainly due to the higher capture rate, primarily in Monterrey Airport as well as the increase in passenger traffic, partially offset by a stronger peso against the U.S. dollar.

Diversification activities increased 4.8%. OMA Carga contributed most to the growth in the quarter, increasing by 14.2%, resulting from a higher level of operation and tons handled during the quarter. Total aeronautical and non-aeronautical revenues grew 6.1% to MXN 3.5 billion in the quarter. Construction revenues amounted to MXN 613 million during the fourth quarter. The cost of airport services and G&A expense increased 11.6% versus 4Q '24, primarily due to the following line items. Contracted services expenses rose 14.7%, mainly due to higher cost of security and cleaning services following contract renewals in prior quarters, reflecting inflationary pressures and tight labor market conditions.

Minor maintenance increased 24.1%, primarily due to the timing effect of works performed. However, maintenance for the full year increased by 4.0%. Basic services increased by MXN 11 million, mainly due to higher utility costs, particularly electricity. This includes a onetime MXN 6 million impact related to the temporary use of an alternative power supply line at the Monterrey Airport, which carries a higher tariff than our power purchase agreement. This temporary situation was caused by construction works related to the subway line near the airport. And since the end of December, electricity supply has reverted to our regular PPA contract. Other costs and expenses increased by 9.9% due primarily to higher IT-related requirements and transportation services.

Concession tax increased 8.0% to MXN 286 million, in line with revenue growth. Major maintenance provision was MXN 216 million compared to MXN 39 million in 4Q '24. It is important to highlight that this is a noncash item. During the quarter, we reassessed our major maintenance requirements to reflect expenditures included in the recently approved 2026-2030 master development program. This reassessment resulted in an increase in the provision liability. Approximately 17% of the total investments under the 2026-2030 MDP corresponds to major maintenance projects.

For 2026, we expect the full year major maintenance provision cost to be approximately MXN 400 million. OMA's fourth quarter adjusted EBITDA grew 5.9% to MXN 2.6 billion and the adjusted EBITDA margin reached 73.6%. Our financing expense decreased 12.7% to MXN 290 million, mainly driven by lower interest expense associated to the major maintenance provision as well as higher interest income resulting from a higher average cash position. Consolidated net income was MXN 1.2 billion in the quarter, an increase of 3.6% versus 4Q '24.

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

[Operator Instructions] Our first question is from Juan Ponce with Bradesco.

On the MXN 260 million major maintenance provision recognized this quarter, does this reflect higher maintenance intensity or just timing shifts? Any additional color on the change would be helpful.

Sure. Juan, it does reflect the next 5 year -- well, the 2026-2030 expected expenditures as well as timing changes versus what we had assumed in the past.

Okay. And just to clarify, the expectation is that the full year number is going to be around MXN 400 million, correct?

That is correct, noncash. And the P&L impact is noncash, yes.

Yes, yes.

Our next question is from Jens Spiess with Morgan Stanley.

Yes. I have a question regarding the passenger fleet. And how do you expect to increase them throughout the year. And -- in order to reach close to 100% of your maximum tariff, what's your expectation there?

Yes. Thank you, Jens. So the announced increase is 6.9% increase starting April 10. And we anticipate it will take a couple of years, 2 to 3 years to reach the 100% maximum tariff.

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

Something around the 93%.

93%. Okay. Perfect. Okay. If I may, just a second question, like any update on the timing of the investments in Monterrey? Yes, it would be much appreciated.

Investment in Monterrey.

Our next...

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

Our next question is from Vanessa Quiroga with Eternal Capital Group.

So I would like to ask if you can provide the following details. How much of the master development plan investments for the next 5 years is major maintenance? And whether the rule -- the accounting rule is to provision 100% of that major maintenance during the 5-year period?

Sure. The total investments related to major maintenance in the approved MDP represents approximately 17% of the total MDP for the next 5 years. And the accounting rule is to provision the present value of such expenditure from today until the day the project is expected to start its execution.

Our next question is from Abraham Fuentes with Santander.

I wonder if you can give us more color about the excess of concession tax on aeronautical revenues that we had during this quarter. If this is something that could be recurrent going forward or not?

So the excess pursuant to 2023 tariff-based regulation, that excess was incorporated as additional reference value that was used in the recent negotiation that occurred in December. So that excess is already being recovered through a maximum tariff starting January 1 of this year.

Our next question is from Gabriel Himelfarb with Scotiabank.

If I may, I have two questions. First, the MDP CapEx on Monterrey, how much do you expect such commercial revenues to ramp in percentage terms -- in terms of EBITDA, how much EBITDA do they -- do you expect they might ramp up for OMA? And the second is, have you seen any -- or what's your view or your color on the Viva-Volaris consolidation in terms of routes and seat allocation?

In terms of the second part of your question, we're still assessing the potential impact. So it's still an analysis, the impact. And in terms of the first part, Ruffo?

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

Okay. And if I may, I have an additional question. Have you been -- well, how is your view towards asset acquisitions like perhaps involving VINCI and the MDP or the future acquisitions, making, I don't know, OMA a consolidation vehicle?

In terms of new acquisitions, we're always looking for opportunities to expand locally or internationally. At the moment, there's no specific transaction that we're looking at. If there were in the future, that was something that will be discussed internally between VINCI and ourselves. We do -- we are -- look, one thing we are looking it at expanding our hotels presence. So we're evaluating a new hotel in Monterrey and another one in Ciudad Juarez. And we're also looking to expand our industrial park in Monterrey.

Our next question is from Alberto Valerio with UBS.

I have two here. If you could provide a little bit more details on the line of revenues as well on cost revenues, if -- do you guys have an impact from FX on the international traffic? And on cost, if you could provide a little bit more details on maintenance. You mentioned that will be a big portion of your next MDP. How can we forecast this for the future? And if you could provide any more details on what would expand it?

Yes. So the first part of your question was related to the FX impact, correct? Okay.

Perfect. Yes.

So we basically -- on the revenue line, we have four items that are very closely related to FX, which are international passenger charges VIP lounge, duty-free and industrial park. We estimate that the impact of the peso appreciation in the fourth quarter of '25 as compared to the fourth quarter of '24, which was about an 8% appreciation was between MXN 50 million to MXN 60 million. That was our estimate of the effect of such appreciation. Regarding the second part of your question, we do expect at least for 2026 that the full year provisioning would be around MXN 400 million, and we're still assessing what the impact would be for the following years. And it will depend on both construction costs as well as the interest rate -- long-term interest rates used to discount that provision.

And if I may, just one more about the violence that we have seen. I know that the region Jalisco is a little bit different from OMA airports region. But do you have any sort of impact on your airports or cancellation routes and so forth?

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

Our next question is from Anton Mortenkotter with GBM.

Just a quick one. We've heard and we've seen in some newspaper, some of your peers are considering some alternative financing methods such as maybe FIBRA. I was just wondering if you guys are considering something -- an alternative to funding your CapEx similar to those or any special vehicles that you may be looking at?

So right now, we are not necessarily considering other type of structures different to what we have used in the past few years. We do have some refinancings of debt that is due this year, and we would expect to tap the CEBURES market as we have done so in the past 4 or 5 years.

Our next question is from [ Julia Arce ] with JPMorgan.

So can you comment a bit on your traffic expectations for the year? So on previous call, you were mentioning a low to mid-single-digit growth rate for 2026. Is this still the case?

Yes. For the year, we're anticipating somewhere in the low to mid-single-digit growth in traffic.

Our next question is a follow-up from Vanessa Quiroga with Eternal Capital.

My question is regarding the increase in the tariffs. The 7% in real terms that you mentioned, what is the base for that? Is the base the average in peso terms achieved in 2025? Or do you assume any FX? What is the base that you're using?

Sure. The MDP approved maximum tariff was a 6.9% real increase in all of the airports, and that reflects the 2025 maximum tariff. So 2026...

So that will increase a few...

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

So the part that maybe I need clarification, you are in 2026, you are going to have that increase or that's targeting 3 years?

Yes. The increase that we're going to pass through this year is 6.9% starting in 10th of April. That includes inflation as well. So it's a nominal 6.1% increase.

Our next question is from Enrique Cantú with GBM.

So as you implement tariff increases under the new MDP, how are you assessing demand elasticity, particularly in routes like Monterrey and tourist destinations? And could you share your outlook for further route additions and whether you see scope for continued expansion based on your ongoing discussions with carriers and route additions?

Sorry, could you repeat the question, Enrique? Sorry.

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

Yes. So in terms of elasticity, we believe that the pass-through that we're implementing this year is not going to have a major impact in terms of elasticity -- traffic elasticity.

Yes. Just regarding new route openings, so far, 20 routes have been confirmed. 17 of them are domestic and 3 are international. And they start the vast majority of them in June of this year from airports such as Monterrey, San Luis Potosí primarily.

Our next question is from Andres Radin with TRG.

I was curious about commercial revenues per passenger and revenue from diversification for 2026. What kind of growth should we be expecting in any particular lines? Do you see any for this year?

Okay. So in terms of commercial revenue per pax, they ended 2025 around MXN 62 per pax. We expect similar amounts for the next few quarters in 2026. And regarding diversification revenues, we don't look at them on a per pax basis, but rather as a whole. We have, as you know, both 2 mature hotels, the NH in Mexico and the Hilton Garden in our Monterrey Airport. So we should expect inflationary increases in the results of those 2 units. And the driver of this year of diversification would be our OMA Carga unit which should have double digit growth.

[Operator Instructions] There are no further...

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

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

Greetings, and welcome to the OMA Third Quarter 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Emmanuel Camacho, Investor Relations Officer for OMA. Thank you. You may begin.

Thank you, Melissa. Hello, everyone, and welcome to OMA's Third Quarter 2025 Earnings Conference Call. We're delighted to have you join us today as we discuss the company's performance and financial results for the past quarter. Joining us today are CEO, Ricardo Duenas; and CFO, Ruffo Pérez Pliego. Please be reminded that certain statements made during the course of our discussion today may constitute forward-looking statements, which are based on current management expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our control.

And now I'll turn the call over to Ricardo Duenas for his opening remarks.

Thank you, Emmanuel. Good morning, everyone, and thank you for joining us today. This morning, Ruffo and I will review our operational performance and financial results. And finally, we will be pleased to answer your questions. In the third quarter of this year, OMA's passenger traffic totaled 7.6 million passengers, an 8% increase year-over-year. Seat capacity increased by 11% during the quarter. On the domestic front, passenger traffic grew by 7%, driven primarily by the Monterrey Airport, which saw increases on routes to the metropolitan area of Mexico City, mainly to Toluca Airport, Bajio, Puerto Vallarta, Mérida and Querétaro. These routes collectively added over 300,000 passengers during the quarter, representing 68% of the total domestic passenger growth.

International passenger traffic increased by 11%, mainly driven by Monterrey on the route to San Francisco, San Luis Potosi with higher traffic on the routes to Atlanta and Dallas and Tampico on the route to Dallas. Together, these routes added more than 47,000 passengers during the quarter, accounting for 46% of the total international passenger growth.

Moving on to OMA's third quarter financial highlights. Aeronautical revenues increased 11% with aeronautical revenue per passenger rising 3% in the quarter. Commercial revenues grew by 7% compared to the third quarter of '24 and commercial revenue per passenger stood at MXN 60. Commercial revenue growth was mainly driven by parking, restaurants, VIP lounges and retail, mainly as a result of higher penetration and an increase in passenger traffic.

Occupancy rate for commercial space stood at 96% at the end of the quarter. On the diversification front, revenues increased 8%, with Industrial Services contributing most of this growth, mainly because of additional square meters leased in our industrial park as compared to the third quarter of '24 and contractual increases to rents.

OMA's third quarter adjusted EBITDA increased by 9% to MXN 2.7 billion with a margin of 74.8%. On the capital expenditures front, total investments in the quarter, including MDP investments, major maintenance and strategic investments were MXN 472 million. Finally, in relation to the negotiation process of our next Master Development Program discussion with the AFAC remain underway. We submitted our proposed Master Development Program for the '26-'30 period at the end of June, and the process remains on track.

During the quarter, we continued addressing AFAC's technical observations and advancing the validation of investment projects in accordance with the schedule agreed with the authority. We continue to expect the final resolution and publication of results during December. Our expectations regarding the overall investment level remain at committed levels of MDP investment similar in real terms to the level of the previous '21-'25 MDP and maximum tariff increase in the low single digits.

I would now like to turn the call over to Ruffo Pérez Pliego, who will discuss our financial highlights for the quarter.

Thank you, Ricardo, and good morning, everyone. I will briefly go over our financial results for the quarter, and then we will open the call for your questions. Aeronautical revenues increased 10.6% relative to 3Q '24, mainly due to the increase in passenger traffic as well as higher aeronautical yields. Non-aeronautical revenues increased 7.3%. Commercial revenues increased 7.0%. The line items with the highest growth were parking, restaurants, VIP lounges and retail.

Parking grew by 9.4%, mainly as a result of higher passenger traffic. Restaurants and retail increased 9.8% and 8.2%, respectively, both driven by higher passenger traffic as well as the previously opened or replaced outlets. VIP lounges rose 9.9%, mainly due to higher market penetration, primarily in Monterrey as well as the increase in passenger traffic.

Diversification activities increased 8.2%. Industrial Services, which relates to the operation of the industrial park contributed most to the growth in the quarter, increasing by 53%, resulting from higher square meters leased as compared to third quarter of '24 as well as contractual rent increases. Total aeronautical and non-aeronautical revenues grew 9.8% to MXN 3.5 billion in the quarter.

Construction revenues amounted to MXN 382 million in the third quarter. The cost of airport services and G&A expense increased 14.4% versus 3Q '24, primarily due to the following line items: Payroll grew by 10.7%, mainly as a result of annual wage increases as well as higher headcount as compared to the third quarter of '24. Other costs and expenses increased by 22% due primarily to higher IT-related requirements and transportation services. Contracted services expense rose 16.4%, mainly due to higher cost of security and cleaning services following contract renewals in prior quarters, reflecting the inflationary pressures and tight labor market conditions in Mexico.

Minor maintenance increased 19.8%, primarily due to timing effect of the works performed. Concession tax increased by 10.4% to MXN 290 million, in line with revenue growth. Major maintenance provision was MXN 28 million as compared to MXN 75 million in the same quarter of last year. OMA's third quarter adjusted EBITDA grew 9.0% to MXN 2.7 billion and adjusted EBITDA margin reached 74.8%. Our financing expense increased by 9.8% to MXN 299 million, mainly driven by higher interest expense as a result of higher average debt levels. Consolidated net income was MXN 1.5 billion in the quarter, an increase of 9.1% versus the same quarter of last year.

Turning to our cash position. Cash generated from operating activities in the third quarter amounted to MXN 1.9 billion and investing and financing activities used cash for MXN 480 million and MXN 365 million, respectively. As a result, our cash position at the end of the quarter stood at MXN 4.4 billion. At the end of September, total debt amounted to MXN 13.6 billion, and we maintained a solid financial position, ending the quarter with a net debt to adjusted EBITDA ratio of 0.9x.

This concludes our prepared remarks. Melissa, please open the call for questions.

[Operator Instructions] Our first question comes from the line of Pablo Ricalde with Itaú.

I have one question regarding your traffic expectations maybe for the fourth quarter and maybe your early thoughts on 2026, taking into account the World Cup.

Yes. Thank you, Pablo. So we're looking for the rest of the year to finish in our traffic overall for the year between 7% and 8% growth. And our expectation at this point in time for next year, it's traffic to be in the low to mid-single digits for next year growth.

[Operator Instructions] Our next question comes from the line of Enrique Cantu with GBM.

I have a quick question. Commercial revenue per pass declined this quarter, the first contraction since early 2023. Could you elaborate on the main drivers behind this softness? And how do you plan to reaccelerate this [ known ] area of growth?

Enrique, so yes, commercial revenue per passenger mainly reflects -- in the quarter reflects the impact of onetime revenues recorded in the previous year. And in the following quarters, we expect commercial revenues per passengers to gradually increase in line with inflation from current levels.

Okay. Perfect. And just another one, if I may. SG&A and utility costs rose this quarter, eroding margins despite strong top line growth. Do you view these cost pressures as temporary? Or should we expect a structurally higher cost base heading into 2026?

Sorry, could you repeat that? Maybe you're too close to the microphone.

Yes, sorry. So it's regarding SG&A and utility costs. We saw that this quarter they erode margins. Do you view these cost pressures as temporary? Or should we expect this higher cost base heading into 2026?

So yes, as we mentioned, there are some specific line items that are facing some pressures like cleaning and security, where the total level of cost in the following quarters should be similar to the level of cost that we are facing right now. However, we do have started to analyze different alternatives to continue maintaining cost at check, and it's part of the history of the company to be very cost conscious, and we expect pressures not to be permanent.

Our next question comes from the line of Gabriel Himelfarb with Scotiabank.

A quick question on capital allocation. First, for the next MDP, I think you have mentioned that almost all the capital will go to Monterrey. It will be focused on, perhaps, increasing the capacity of the airport or developing more the commercial spaces, the commercial portion of the business? And my second question, are you seeking or have you considered expanding gap -- sorry, OMA's portfolio towards outside Mexico?

Yes. Thank you, Gabriel. Regarding the last part, we're always looking for opportunities to expand internationally. At this point in time, we don't have a concrete transaction that we could share. In terms of the MDP, it's around half of the MDP will be allocated to Monterrey, given that half of the traffic is allocated in Monterrey. We're looking to expand in most of -- in capacity that will generate commercial opportunities as well. There's pavement, there's technology, there's environmental and sustainability projects as well.

Thank you. There are no questions at this time. I'll turn the floor back to Mr. Duenas for any final comments.

We would like to thank you, everyone, for participating in today's call. We appreciate your insightful questions, engagement and continued support. Ruffo, Emmanuel and I remain available should you have any further questions or require additional information. Thank you once again, and have a great day.

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Greetings, and welcome to OMA's Second Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Emmanuel Camacho, Investor Relations. Thank you, sir, you may begin.

Thank you, Thierry, and hello, everyone. Welcome to OMA's Second Quarter 2025 Earnings Conference Call. We are delighted to have you joining us today as we discuss our company's performance and financial results for the past quarter. Joining us today are CEO, Ricardo Duenas; and CFO, Ruffo Perez del Castillo. Please be reminded that certain statements made during the course of our discussion trade may constitute forward-looking statements which are based on current management expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our control.

And with that, I will turn the call over to Ricardo Duenas for his opening remarks.

Thank you, Emmanuel. Good morning, everyone. This morning, I will briefly comment on several key developments during the quarter including highlights of our upcoming master development program negotiation. Then I will review our operational performance and financial results. And finally, I will be pleased to answer your questions.

Let me begin with an update regarding our senior management team. During August and September, we will implement changes in two key leadership positions. First, our Chief Operating Officer, Enrique Navarro will be retiring in August after 21 years of dedicated service to OMA. On behalf of the entire team, I want to express our gratitude of his leadership commitment and contributions throughout this years. We are pleased to announce that Raful Zacarias will succeed him as Chief Operating Officer. Raful has been with OMA since 2006 in various operational positions, most recently as airport administrator at our Monterrey Airport.

Second, in September, Pierre Grosmaire will join OMA as Chief Commercial Officer, taking over from Alvaro Leite who will be assuming new responsibilities within VINCI Airports. We thank Alvaro for his valuable contributions to our commercial strategy. Pierre brings extensive commercial experience in the airport sector. He served as Chief Commercial Officer of Lyon Airports from 2018 to 2025. He also served as Global Aviation Development Director at VINCI Airports. Under Pierre's leadership, we will continue to grow our extra aeronautical activities.

Moving on. On June 27, we successfully completed our MXN 2.75 billion issuance in long-term notes in the Mexican market. Proceeds will be used to repay MXN 600 million in short-term loans and the remainder will be used to fund committed investments as well as for general corporate purposes.

Finally, let me provide an update of the ongoing negotiation process of the 2630 master development program. At the end of June, we submitted our proposed MDP to Mexico's Federal Civil Aviation Agency, or AFAC. The total committed investment is similar in real peso terms to the amount committed under our previous MDP program, '21 to '25. From early August through late September, AFAC will be conducting technical visits to our 13 airports to review and discuss the proposed projects.

Following that, we would expect negotiation of the tariff model to take place between October and November. Final approval of the MDP and the new maximum tariff is expected in early December, at which point, we also anticipate disclosing the outcome to the market. Our investment proposal is designed to enhance efficiency and optimize operations while maintaining the high standards of safety and service quality. Approximately 49% of the investment will be allocated to our Monterrey Airport. Key projects there include the third phase expansion of Terminal A, payment reconfigurations such as platform expansions, the construction of fast taxiways and several others as well as a number of technology upgrades across our airport network.

Other airports with significant investments include Culiacan, [ Ciudad Juarez ], Mazatlan. This proposal reflects a balanced and disciplined approach with a strong emphasis on optimizing capacity of our current infrastructure as well as enhancing passenger experience and long-term value creations. In terms of tariff expectation, based on our proposal, we anticipate low single-digit increase in the maximum tariff in real terms.

Moving on to our main quarterly operational highlights. In the second quarter of '25, OMA's passenger traffic totaled $7.2 million, an 11% increase year-over-year. Seat capacity during the quarter increased 12%. On the domestic front, passenger traffic grew by 10%, driven primarily by the Monterrey Airport which saw increase on routes to the metropolitan area of Mexico City, including the Mexico City, AIFA and Toluca Airports. Guanajuato, Hermosillo, [indiscernible]. These routes collectively added over 360,000 passengers during the quarter, representing 65% of the total domestic passenger growth. International passenger traffic increased by 19%. This growth was also driven by Monterrey Airport with passenger traffic increase on routes to Los Angeles, Miami, Chicago, San Francisco, San Antonio and Denver.

This routes collectively added more than 106,000 passengers during the quarter, accounting for 66% of the total international passenger traffic increased in the quarter. In terms of airline participation, [ VivaAerobus ] represented 51% of our total traffic during the quarter, with a 14% increase in terminal passenger numbers compared to the second quarter of '24 while Volaris, which accounted for 24% of our total traffic, recorded a 31% passenger increase during the quarter.

Moving on to OMA's second quarter financial highlights. Aeronautical revenues increased 17% with aeronautical revenue per passenger rising 5% in the quarter. Commercial revenues had a strong 20% growth with commercial revenue per passenger increasing by 8% to MXN 62 in the quarter as compared to the second quarter of last year, mainly driven by restaurants, parking, VIP lounges and retail.

The occupancy rate for commercial space stood at 96% at the end of the quarter. On the diversification front, revenues increased 11% with industrial service contributing most to this growth. During the quarter, we completed the construction of a 5,000 square meter warehouse as part of the expansion plan of one of our tenants. OMA second quarter adjusted EBITDA increased by 19% to MXN 2.6 billion and adjusted EBITDA margin of 74.6%.

On the capital expenditures front, total investments in the quarter, including MDP investments, major maintenance and strategic investments were MXN 965 million.

I would now like to turn the call over to Ruffo Perez Pliego, who will discuss our financial highlights for the quarter.

Thank you, Ricardo, and good morning, everyone. I will briefly walk you through our financial results for the quarter, after which we will open the call for your answers. Aeronautical revenues increased 17% relative to 2Q '24, driven primarily by higher aeronautical yields as well as the increase in both domestic and international passenger traffic. Non-aeronautical revenues increased 16%.

Commercial revenues increased 19.7%. The line items with the highest growth were restaurants, parking, VIP lounges and retail. Restaurants increased 41.1%, driven by a greater customer penetration and the opening or replacement of outlets in previous quarters in airports, such as Monterrey, Ciudad Juarez and Durango. Parking grew 12.7%, mainly due as a result of higher domestic and international passenger traffic.

VIP lounges rose 34.6%, mainly due to an increase in rates and higher number of users as well as the opening and consolidation of the [indiscernible] launch, which started operations on last year's July. Retail increased 27.4% and similar to restaurant revenues -- this was mainly due to a greater customer penetration and the opening or replacement of spaces in previous quarters in airports like Ciudad Juarez, Monterrey, Torreon and Culiacan.

Diversification activities increased 10.7%, mainly due to higher revenues from industrial services and hotel services. Industrial Services grew over 100%, mainly due to an increase in leased square meters in our industrial park as compared to the second quarter of 2024. Revenue from hotel services increased 4% year-over-year, reaching MXN 112 million, primarily driven by an increase in average run rates in both of our hotels, partially offset by lower occupancy rates.

Total aeronautical and non-aeronautical revenues grew 16.8% to MXN 3.4 billion during the quarter. Construction revenues amounted to MXN 916 million in 2Q '25, an increase of 64.7% as a result of increased MDP investments. The cost of services and G&A expense increased 5.6% year-over-year. Primarily due to an 11% rise in payroll, contracted services rose 8.2%, mainly due to higher costs for security and cleaning services following contract renewals in prior quarters.

Concession tax increased 18.1% to MXN 283 million, in line with the increase in revenues. Major maintenance provision was MXN 50.4 million compared to MXN 43 million last year. As Ricardo mentioned, OMA second quarter adjusted EBITDA reached MXN 2.6 billion and the adjusted EBITDA margin was 74.6%. Our financing expense increased by $184 million, reflecting a $185 million variation in noncash interest expense related to major maintenance provision as a result of lower discount rates used for it calculation.

Consolidated net income was MXN 1.3 billion in the quarter, an increase of 3.8% versus 2Q '24. Turning to our cash position. Cash generated from operating activities in the second quarter amounted to MXN 1.8 billion and investing activities used cash for MXN 575 million. Financing activities reflect interest expense payments, the first installment of the ordinary dividend of EUR 2.25 billion, the long-term debt placement of EUR 2.75 billion and the prepayment of MXN 600 million of short-term loans, resulting in a net cash outflow of EUR 138 million.

As a result, our cash position at the end of the quarter stood at EUR 3.4 billion. At the end of June and including the latest debt issuance, total debt amounted to MXN 13.6 billion. We maintained a strong balance sheet, ending the quarter with a net debt to adjusted EBITDA ratio of 1x.

This concludes our prepared remarks. Thierry, please open the call for questions.

[Operator Instructions] Our first question is from Guilherme Mendes with JPMorgan.

The first one is a follow-up on the MDP and thanks for providing more color. Just wanted to confirm if I got it right, Ricardo, you mentioned about a similar level of CapEx in absolute perfect.

And then the second point is on the traffic outlook. We have been seeing a very strong performance month after month. On the previous call, you guys mentioned about an expectation for a mid-single-digit increase for the year, which looks conservative at this point. So I just wanted to get a fresh view on what you're expecting for the second half of this year.

Yes. Thank you, Guilherme. Yes, so we had a very good first half of the year. So we anticipate for the rest of the year to be in the mid to high single-digit traffic growth. We expect some of the growth that we've seen in the first half of the year to reduce as we move along for the rest of the year based on the reduced capacity announced by some of the airlines, and also by tougher comps compared to last year. But in the mid- to high single digits would be a fair and accurate.

Perfect. And if I may have a follow-up on what is driving the traffic performance. So we have seen the new routes coming into Monterrey -- but is this related to near shoring in some way? Or if there's anything else explaining the strong performance.

This is Ruffo. So certainly Monterrey has been the airport that has grown most dynamically during this year. Both in domestic and international terms. And certainly, industrial activity -- we continue to see very strong industrial activity and low occupancy -- very high occupancy factors in the industrial park business, which is an indicator of a very strong economic performance in the region. So yes, we attribute traffic growth to strong economic performance in that market.

Our next question is from Juan Ponce with Bradesco BBI.

Monterrey's international traffic has been increasing a lot new routes, et cetera. What are you expecting in terms of the network development in this airport over the next 12 months?

So we still see new openings particularly in the domestic side in the Monterrey Airport in the second half. And we expect consolidation of some of the routes that were opened recently, particularly since last November. But as you -- as we mentioned, there are some capacity cuts being announced and they started to kick in, in June. So therefore, we don't expect that much acceleration in the second half of the year in terms of passenger growth in the international market in Monterrey, but we do still see a pretty good growth for the full year.

Our next question is from Alberto Valerio with UBS.

Thanks Ricardo, Emmanuel. One follow-up on the MDP question. You mentioned about the high single-digit tariffs. Should we expect any concentration in an airport or there should be some divergence between among the own airports on tariffs?

I'm sorry, could you repeat your question, Alberto.

Yes. About the tariff for MDP, Ricardo mentioned in the initial remarks that probably will be high single digits. Is that correct? And so low single digits. And should we see difference between -- among the airports. Some airports with higher increase in tariffs, some others with maybe a decrease in tariffs?

It's still part of the negotiation, Alberto. We don't see a decrease in any of them. So -- but we're still work in progress with the authorities. But it's in the growth we expect is in the low single digits. And we believe that would maximize -- and this -- we believe that this is what maximizes the net present value of the company.

Our next question is from [ Abraham Jens ] with Banco Santander.

I wonder if you can give us more color about the growth in the commercial revenue per passenger that you are expecting in the mid- to long term specific with your MDP that you are in good...

So commercial revenues obviously have increased by a number of measures that we have been implementing over the last couple of years. Renegotiation of contracts, opening of new outlets, refresh of the decoration and the feel and look of the stores as well as some use of technology to maximize passenger I would say, exposure to retail outlets and food and beverage outlets. We expect those activities to continue and -- but just in the second part of your question, you mentioned MDP, remember that MDP refers to aeronautical investments. So therefore, we don't see that much relationship between the MDP and the commercial growth of revenue per passenger.

Our next question is from Gabriel Himelfarb with Scotiabank.

Quick question. Are you perhaps looking at the possibility of new assets or investments perhaps in Brazil now that Motiva CCR is selling its airport assets. .

Thank you, Gabriel. We're not formally -- as OMA, we're not formally involved in that specific process. We're always looking for potential opportunities in airports, but we're not involved in that specific -- we're not involved in the formal process as of today.

Our next question is from Federico Galassi with TRG.

Two questions, if you can give us the number. But in general terms, how much of the commercial revenues are coming from Monterrey if you have a number for that, thinking that you will increase the commercial capacity at the end of this year and next year.

I don't have the specific number Federico, we'll get back to you. But yes, I'll look for you and get back to you.

Okay. And the second one Ruffo, is related to the MDP, the investment in Monterrey. Can you give us -- and I understand it's more related to aeronautical than commercial. But can you give us some clue of what are the focus of these new investments?

Yes. So we mentioned that about 49% of the next MDP will be focused on Monterrey. But we are doing is a lot of expansion in April and platform capacity to maximize the use of existing gates and be able to use also remote gates to service our airlines and passengers. We're doing new fast lane exit taxiways from the wrong way also to increase its efficiency.

And we are also expanding -- continue to expand the Terminal A of Monterrey throughout the 5-year period as well to be able to cope with the expected demand that we anticipate in Monterrey. So basically, that's the key highlights of those investment airport, coupled with a lot of technology operates. So we can also be able to process passengers more efficiently and provide better experience to passengers.

Our next question is from [ David Soto ] with Scotiabank.

Just a quick one. Do you see any upside risk on passenger growth due to the U.S. actions at Mexico?

Can you repeat, please?

My question was, do you see -- do you see any upside risk on passenger growth due to the recent U.S. DOT actions at Mexico? .

Your question is if we see risk on passenger outlook because of the DOT announcements recently.

Yes, correct. Sorry, for all the back noise.

Yes. So yes, we do not expect any major impact in the following months, but we will continue to monitor closely any measures taken by the U.S. DOT.

[Operator Instructions] Our next question is from Alan Macias with Bank of America.

Just a question regarding dividend policy. Given your expected CapEx for the next 5 years, could we expect the change in dividends, an increase there? .

Yes. In terms of the dividend policy, we have been in past recent years distributing between 85% to 95% of net income. And we would expect to continue with a similar policy for the foreseeable future. So as EBITDA and net income growth, yes, there will be available cash flow for distribution.

There are no further questions at this time. I would like to turn the floor back over to Ricardo for closing remarks.

We would like to thank everyone for participating in today's call. We appreciate your insightful questions, engagement and continued support. Ruffo, Emmanuel and I are always available, should you have any further questions or require additional information. Thank you once again, and have a great day.

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