Grupo Aeroportuario del Pacífico (NYSE: PAC) Navigates Revenue Growth Amidst Rising Costs and Currency Headwinds
Grupo Aeroportuario del Pacífico (PAC) has reported its fourth-quarter 2025 financial results, showcasing resilience in revenue generation while grappling with increased operational expenditures and the impact of foreign exchange fluctuations. The company posted total revenues of Ps. 9,894.8 million, a modest 2.8% increase year-over-year. This growth was primarily fueled by a robust performance in both its aeronautical and non-aeronautical segments, which saw increases of 12.6% and 13.3%, respectively.
The aeronautical segment benefited significantly from the implementation of new airport tariffs in Mexico for the 2025-2029 period, coupled with the introduction of new flight routes. These factors collectively boosted passenger revenues and traffic. However, the company’s Jamaican operations experienced a notable downturn, with aeronautical revenues at its Jamaican airports plummeting by 35.7%. This decline is directly attributed to the severe impact of Hurricane Melissa in October 2025, which caused substantial damage to infrastructure, led to operational suspensions, and disrupted passenger traffic. The recovery of Jamaica’s tourism sector, and consequently its airport traffic, is intrinsically linked to the pace of restoration of the island’s hospitality and tourism infrastructure.
The non-aeronautical segment also demonstrated strong momentum, with revenues climbing 13.3%. This growth was propelled by an expansion in businesses operated directly by PAC, particularly in the cargo and bonded warehouse sectors, which saw significant contributions. Furthermore, revenues from third-party operated businesses showed healthy growth, bolstered by the opening of new commercial spaces and renegotiated contracts. Key performing business lines within this segment included food and beverage, retail, ground transportation, and space leasing.
Despite the top-line growth, PAC’s profitability was impacted by a substantial increase in operating costs. The cost of services surged by 28.1% year-over-year. This rise, coupled with increased expenses in areas such as maintenance, employee costs, and utilities, put pressure on the company’s margins. Consequently, while EBITDA saw a 7.5% increase to Ps. 5,114.3 million, the EBITDA margin (excluding IFRIC-12 impacts) contracted by approximately 310 basis points to 63.8%.
The bottom line was further affected by a significant 34.3% decrease in comprehensive income, which fell to Ps. 1,493.3 million. This decline was primarily driven by adverse currency translation effects, as the appreciation of the Mexican peso against the U.S. dollar negatively impacted the reported value of revenues and profits from the company’s Jamaican operations. Additionally, increased financial expenses, largely due to higher debt levels and interest payments, contributed to the reduced profitability.
Looking at the company’s financial health, PAC maintained a robust liquidity position, with cash and cash equivalents totaling Ps. 10,453.2 million as of December 31, 2025. This strong cash balance provides a cushion against operational headwinds and supports ongoing investment in infrastructure development.
In terms of passenger traffic, the company experienced a slight 0.9% decrease in total terminal passengers in the fourth quarter of 2025 compared to the prior year, totaling 15.88 million. For the full year 2025, total passengers were up 2.5% compared to 2024, reaching 63.69 million, indicating a positive overall trend for the year despite quarterly fluctuations.
The company also detailed new route additions across its network, reflecting ongoing efforts to expand connectivity and stimulate passenger and cargo movement. These include new domestic routes from Guadalajara to Zihuatanejo, Puebla, Villahermosa, and Durango, as well as international services connecting Guadalajara to Bogota, and Puerto Vallarta to Toronto.
**Technical and Market Perspective:**
The stock’s performance reflects a complex interplay of operational strength and external pressures. While PAC’s core business drivers, such as aeronautical and non-aeronautical revenue growth, remain intact, the company is navigating challenges associated with rising operating costs and currency depreciation. The significant drop in comprehensive income and the contraction in EBITDA margins warrant close monitoring by investors.
Furthermore, the company’s historical performance indicates a pattern where earnings releases, despite showcasing revenue and EBITDA growth, have often been followed by negative stock price reactions. The current 4Q25 results, with a notably sharper decline in comprehensive income compared to previous quarters, may reinforce this trend. The stock’s reaction to these results, set against the backdrop of broader market sentiment and peer performance, will be a key indicator of investor confidence in PAC’s ability to manage its cost structure and mitigate currency risks in the coming periods. The reported decline of 7.07% in PAC’s stock price, while peers also saw declines but to a lesser extent, suggests that company-specific factors are playing a significant role in its recent market performance.
Original article, Author: Jam. If you wish to reprint this article, please indicate the source:https://aicnbc.com/19224.html
