Prepared remarks
Greetings. Welcome to OMA's Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. A Q&A session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to Emmanuel Camacho. Thank you. You may begin.
Thank you, Leo, and hello, everyone. Thank you for standing by, and welcome to OMA's Second Quarter 2026 Earnings Conference Call. 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 del Castillo. 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 will 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 operational and financial results and then we will 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 2025. Our San Luis Potosí Airport was the main contributor to domestic passenger traffic growth with increases on the routes to AIFA and Cancún 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 Monterrey 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 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 Aeroméxico'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 Monterrey. The Paris route generated more than 14,000 passengers during the quarter. 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 effective in mid-April.
Commercial revenues continued to perform well during the quarter increasing 7% versus the second quarter of 2025. Commercial revenue per passenger reached Ps. 66.4, an increase of 6.3% 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 Carga business where revenues increased 29%, reflecting new client operations and additional high-value cargo handling in Monterrey as well as higher activity at our Chihuahua warehouse. Hotel services revenues grew by 6% supported by higher occupancy at the NH Hotel terminal 2 hotel and higher average daily rates at both hotels. Industrial services revenues reached Ps. 57 million, an increase of 9% mainly attributable to a greater number of square meters leased. OMA second quarter adjusted EBITDA increased 6.6% to Ps. 2.7 billion 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 Ps. 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 16, we issued Ps. 3 billion in long-term notes in the Mexican market. Proceeds were used to repay Ps. 1.7 billion of outstanding short-term bank debt as well as to repay the Ps. 640 million corresponding to our OMA 23 notes maturing on July 24. 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 del Castillo, 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 3.9% relative to the second quarter of 2025 mainly reflecting the tariff adjustments that took effect in April 2026. Domestic passenger charges grew in line with these new tariffs, while international passenger charges declined mainly due to the appreciation of the peso and lower international traffic. Other aeronautical services grew at a more moderate pace and tariff increase, reflecting fewer aircraft operations during the quarter. Together, these effects resulted in a 3.5% increase in aeronautical revenue per passenger. Non-aeronautical revenues increased 9.8%. Commercial revenues increased 6.7%, mainly driven by higher parking, restaurants, VIP lounges and retail revenues. Parking revenues increased 8.8% driven by higher passenger traffic as well as higher tariffs from longer stays across our airports.
Restaurants and retail revenues were up 11.3% and 4.2%, respectively, both mainly as a result of higher penetration rates and opening of new outlets. VIP lounges increased by 15.8% driven by higher capture rates in the Monterrey Airport as well as the recent start of operations of the VIP lounge in Torreón. Diversification activities grew by 17.4% in the quarter, mainly due to the increase in OMA Carga revenues. Total aeronautical and non-aeronautical revenues grew 5.4% to Ps. 3.6 billion in the quarter. Construction revenues amounted to Ps. 844 million in Q2 2026. The cost of airport services and G&A expense increased 3.6% versus 2Q 2025 supporting the expansion of adjusted EBITDA margin. The increase mainly reflected higher payroll, contracted services and materials and supply expenses. Payroll increased 9.5%, mainly reflecting inflationary adjustments and addition of new positions. Contracting services increased 10.7% primarily due to higher security and cleaning expenses, resulting from contract renewals and minimum wage increases, and materials and supplies increased 18.7%, mainly reflecting the higher operation requirements in our OMA Carga and our VIP lounge operations.
Concession tax increased 3.9% to Ps. 294 million. Major maintenance provision was Ps. 99 million compared to Ps. 50 million in 2Q 2025, reflecting new MDP provision requirements. As a result, adjusted EBITDA increased 6.2% to Ps. 2.7 billion, and the margin reached 75.2%. Our financing expense decreased by 17.4% to Ps. 337 million in the quarter mainly as a result of a lower effect from the change in present value of our major maintenance provision which was partially offset by higher interest expense on debt. Consolidated net income was Ps. 1.5 billion in the quarter, an increase of 10.2% versus 2Q 2025. Turning to our cash position. Cash generated from operating activities in the second quarter amounted to Ps. 1.8 billion, while investing and financing activities used Ps. 776 million and Ps. 2.1 billion, respectively. As a result, our cash position at the end of the quarter was Ps. 2.6 billion. At the end of June, total debt amounted to Ps. 14.3 billion and leverage measured as net debt to adjusted EBITDA ratio stood at 1.1x. This concludes our prepared remarks.
Theo, please open the call to questions.
Questions and answers
Thank you. We will now be conducting a Q&A session. You may press two if you would like to remove your question from the queue. Pick up your handset before pressing the star key. Moment while we pull for questions. Our first question is from Jens Spiess with Morgan Stanley Investment Management. Please proceed with your question.
Hi. Congrats on the results. I have a question on the maximum tariff compliance. What is your expectation throughout the year? And also, if you can give a bit more detail on your CapEx. We saw that you have spent so far about Ps. 1.4 billion in your Mexican airports through the first half of the year while your MDP investments are Ps. 1.2 billion. So what is going on there? Are you anticipating some of the investments that are in the MDP plan for 2027?
Sure. For the first part, Jens, we are planning to end the year— we just recently adjusted tariffs mid-April. So considering that, we believe by the end of the year we are going to be around 93% compliance with maximum tariffs. And as for the second part, maybe, Ruffo, you want to join?
Sure. Remember that we had some carryover investments from the previous MDP that were going to be completing in 2026 and 2027. So that has to be added to the actual 2026 commitment. For this year, we are expecting around Ps. 3.5 billion to Ps. 4 billion total investment for the year.
Okay. Perfect. Yeah. And just one additional question: it seems like flight schedules are pointing to some seat growth moderation in the fourth quarter, but very strong growth in the first quarter of next year. Are you seeing the same?
Not yet. The more definitive schedules for the winter season have yet to be published. Right now, we have an indication and we see some conservativeness from airlines in April. So I do not necessarily think that the first quarter yet reflects the expectations of airlines; they are just very indicative at this time.
Thank you. Our next question is from Rodolfo Ramos with Bradesco BBI. Please proceed with your question.
Thank you for taking my question. I have two. The first one is a follow-up: can you talk a little bit about your outlook on traffic growth? I know there are a lot of challenges on the horizon, but I wanted to get your sense and visibility and specifically if you can comment on the potential for developing Monterrey's route network. It is encouraging to see more regular services to New York, for example. Are there any other low-hanging fruit on the domestic market? And then on the second, it was very interesting to see OMA Carga with very strong top-line growth. One of your peers has also seen very active activity on the cargo side. I wanted to get a sense from the industries that are participating in your volumes. Is there any potential for you to go into bonded warehouses or try to capture more value out of the exports that Mexico is having? Thank you.
Sure. Thank you, Rodolfo, for your question. Regarding traffic growth, as a result of the jet fuel spike that we have seen in the first half of the year, we are seeing airlines adjusting some of their capacity for the rest of the year. We are still anticipating to be in positive numbers. We think traffic will be around flat to low single digits. I think that reflects the resilience of OMA's airport network. There are some Monterrey routes already announced that are in the pipeline, specifically with WestJet to Montreal, and other routes to Acapulco, Chihuahua, Culiacán, Vancouver, and Monterrey-related international connections. We are currently working with airlines to try to expand and take advantage of Monterrey's strategic location. In terms of cargo, we are seeing very good numbers. We are currently expanding our warehouse and plan to finish that expansion in the coming months. Some of the growth you have seen has been driven by new client operations as well as the handling of additional high-value cargo operations. In Chihuahua there was an interesting spike due to the implementation of handling service for UPS and FedEx. So we are investing in OMA Carga systems and processes and we expect good growth in the coming months.
Thank you. Our next question comes from Alberto Valerio with UBS. Please proceed with your question.
Hi, team. Thank you for taking my questions. My first question is related to the working capital of the company. We saw nice mid-double-digit growth on net income, but cash generation from operations is a bit softer than that. Can you explain the differences in receivables and payables? Is it recurring for the remainder of the year, or was it specific to this quarter?
Sure, Alberto. We have seen increased utilization of working capital because we are accelerating our CapEx execution versus last year. There are advanced payments of contracted works that are reflected as advances in working capital. As construction progresses, those advances will be amortized, but they signal our increased CapEx execution. The other factor is that our tax payments have been higher. We have a higher factor for calculation of provisional taxes versus the first half of last year. Even though provisional taxes are based on revenue and revenues are growing in the low single digits, our factor reflects that higher level of provisional payments. In the annual tax filing next year there will be less of an impact, but during this year we will see that type of increase in taxes paid.
Fantastic. So we should see this normalize as construction continues and the MDP CapEx is executed, and the tax factor is something more regular. Is that correct?
Yes. Starting next year, a new factor will be recalculated, so that should tend to normalize levels versus this year.
Fantastic. And one more if I may — when should we expect OMA to reach the maximum tariff again?
If we draw a linear line from implementation, this year we are expecting around 93% to 95% compliance with the maximum tariff for the full year. Next year will depend on expected growth in traffic as well as inflation adjustments; maximum tariff is adjusted every year with inflation. We will have to see how those vectors behave to get to our 99% target. We expect to reach the maximum tariff between two to three years after implementation of the MDP, so probably by the end of 2027 or mid-2028.
Thank you. Our next question is from Ernst Mortenkötter with GBM. Please proceed with your question.
Hi, guys. Thank you for taking my question. This is Abhishek with a follow-up on the maximum tariff question. If oil pressures remain, should we think that compliance with the maximum tariff could take longer, or are you indifferent to those pressures? Also, on the commercial side, excluding diversification activities, we saw a slight increase in non-aeronautical revenue per passenger slightly above inflation. What kind of growth should we expect in those business lines going forward? Thank you.
On the commercial side, yes, I think we will remain stable relative to current levels of around Ps. 66 per passenger. We expect to open the new areas in the Monterrey Airport and be fully operational by the end of next year, so we will see a pickup in commercial revenue per passenger up to 2028. For the following months, the Ps. 66 level is reasonable to assume.
Regarding the maximum tariff and the impact of higher oil prices, yes, that could be a headwind to fully passing through to the maximum tariff. We will see where we are at the beginning of the year as the situation becomes more stable and visible, and then we can start taking decisions on how to pass through the rest of the increase.
Very useful. Thank you.
Thank you. Our next question is from Gabriel Himelfarb with Scotiabank. Please proceed with your question.
Hi. Good morning, and thanks for the call. My question is regarding what is next for OMA beyond the MDP and how to support the long-term growth strategy for OMA.
Thank you, Gabriel. Regarding the contribution of VINCI, we have seen many advantages. Access to human capital has been a great advantage. Access to a larger network of airports has allowed us to bring best practices from around the world. We have seen that concretely in the last six months with technology projects implemented across our network and specifically in Monterrey. Our bargaining power with suppliers and with airlines has also been a great advantage. VINCI's know-how and expertise in the construction side of the business has been very valuable, and their knowledge in commercial planning has been effective — you have seen that in the numbers. As for drivers going forward, we are working on new projects: two new hotels, one additional in Monterrey and a new one in Ciudad Juárez. We are expanding our cargo operations and currently evaluating industrial park expansion as well. We will continue optimizing efficiency and trying to improve commercial revenue per passenger. By the end of next year we will have the new terminal in Monterrey that should add new commercial revenue to our airports.
Thank you. This concludes our Q&A session. I would like to turn the floor back over to Ricardo 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, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines and have a wonderful day.