Initial Equity Research: Corporación America Airports

Corporación América is one of the world’s leading airport operators. Founded in 1998 by the Eurnekian family (who currently own 82% of the company) after winning the concession to operate 33 Argentine airports (including the country’s two largest), it has grown over the years to manage 52 airports today. In addition to Argentina (35 airports), it has a presence in Italy (Florence and Pisa), Brazil, Uruguay, Ecuador, and Armenia.

The company went public in February 2018, floating approximately 20% of its shares (a mix of $200 million in new shares and $290 million in existing ones) at a valuation of $2.62 billion, positioning itself as one of the world’s top airport operators. It currently trades at a market cap of $3.19 billion with net debt of just $600 million ($1 billion in debt and $400 million in cash), and an EBITDA of around $650 million.

Its business model is straightforward, featuring stable revenues thanks to long-term concessions at most of its airports (ranging from 10 to 30 years), and growing revenues due to Argentina’s recovery, growth in other countries, investments in airport expansions, and applications for new concessions abroad. In fact, as of late June this year, passenger traffic is up more than 10% vs. 2024.Despite all that, it trades at an EV/EBITDA multiple of under 6x, well below its peers, which we analyse in detail.

Today we take a deep dive into:

• The company’s history and business model
• Each country where it operates and the economics of the different concessions
• Its main competitors, both qualitatively and quantitatively
• Its financials, capital allocation, and valuation
• Our thoughts on the company