speaker
Conference Operator
Operator

Greetings. Welcome to OMA's second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Emmanuel Camacho. Thank you. You may begin.

speaker
Emmanuel Camacho
Investor Relations

Thank you for 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 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 Thank you, Manuel.

speaker
Ricardo Duenas
Chief Executive Officer

Good morning, everyone, and thank you for joining us today. This morning, Ruffo and I will review our quarterly operational and financial results, and then we'll be pleased to answer your questions. During the second quarter of 2026, OMA served 7.2 million passengers, an increase of 0.4% versus the second quarter of last year, while available seat capacity decreased by 0.3%. Domestic passenger traffic grew by 0.6% as compared to the second quarter of 25. Our San Luis Potosi Airport was a main contributor to domestic passenger traffic growth, with increases on the routes to APSA and Cancun airports. These routes collectively added over 23,000 passengers during the quarter, representing 61% of the total domestic passenger growth. International passenger traffic decreased by 1.2%, mainly driven by our Monterey Airport, with lower traffic on the Los Angeles, Dallas, Fort Worth, and San Antonio routes. In terms of growth by airline, Volaris, which accounted for 25% of our total passenger traffic in the quarter, recorded a 7% growth versus the second quarter of 2025, while Viva, which accounted for 50% of our total passenger traffic, recorded a 2% decline. During the quarter, airlines opened 24 new routes across our airports, including 18 domestic and 6 international routes. This included the launch of Aeromexico's new route to Paris in April, as well as Iberia's new route to Madrid in June, marking the airline's first-ever operation in Monterey. The Paris route generated more than 14,000 passengers during the quarter, and following its strong initial performance, the route was converted from a seasonal to a permanent year-round operation, Further increasing Monterrey's connectivity with Europe. Turning to our financial performance, aeronautical revenues increased 4% during the quarter, mainly reflecting the tariff adjustment that became affected in mid-April. Commercial revenues continued to perform well during the quarter, increasing 7% versus the second quarter of 25. Commercial revenue per passenger reached 66.4 pesos, An increase of 60.3%, while occupancy of commercial space remained at 96% at the end of the quarter. Diversification revenues increased by 17% year-over-year, mainly driven by OMA cargo business, where revenues increased 29%, reflecting new client operations and additional high-value cargo handling in Monterey, as well as higher activity at Archibald Warehouse. Hotel services revenues grew by 6%, support by higher occupancy at the MH Hotel Terminal 2 Hotel, and higher average daily rates at both hotels. Industrial services revenues reached 57 million pesos, an increase of 9%, mainly attributable to a greater number of square meters leased. OMA's second quarter adjusted EBITDA increased 6.6% to 2.7 billion pesos, While the adjusted EBITDA margin expanded to 75.2%, reflecting revenue growth and disciplined cost management despite continued inflationary and labor cost pressures. Total investments in the quarter, including MDP investments, major maintenance, and strategic investments, were $949 million. Before concluding, I would like to highlight two relevant events during the quarter. First, OMA achieved the sustainability performance target linked to our sustainability-linked bonds, reaching an 88% reduction in Scope 1 and Scope 2 greenhouse gas emissions per passenger by the end of 2025, well above the 58% reduction target set against our 2018 baseline. The outcome reflects the company's ongoing investments in energy efficiency and decarbonization initiatives. Finally, on July 16th, we issued 3 billion pesos in long-term notes in the Mexican market. Proceeds were used to repay 1.7 billion pesos of outstanding short-term bank debt, as well as to repay the 640 million pesos corresponding to our OMA 23 notes maturing on July 24th. The remaining proceeds will fund committed investments under the Master Development Program and general corporate purposes, including working capital requirements. I would now like to turn the call over to Ruffo Perez Pliego, who will discuss the financial highlights for the quarter.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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