Fraport Frankfurt Airport Services Worldwide AG

XMUN:FRA

Frankfurt traffic: Passenger traffic is weaker than expected, mainly because Lufthansa is reducing capacity and grounding CityLine aircraft. Full-year Frankfurt traffic is expected to be around the previous year's level, while international assets remain broadly on plan.

Cash flow: Free cash flow guidance remains robust, although lower Frankfurt traffic will reduce EBITDA and free cash flow by a double-digit million-euro amount. Temporary working-capital effects hurt Q2 but are expected to reverse later in the year.

CapEx: Management remains confident in the EUR 900 million full-year CapEx target. High first-half spending reflected runway refurbishment and Terminal 3 contract settlements, with lower spending expected in the second half.

Retail: Terminal 3 spend per passenger is about 30% higher than Terminal 2, despite the loss of Middle Eastern travelers. Management still targets a 50% improvement as those passengers return and retail and food-and-beverage operations mature.

Leverage: Net debt to EBITDA is expected to be around 5x by 2027, with the exact outcome depending mainly on Frankfurt traffic recovery. The company will pay a EUR 1 dividend next year, while future payouts remain under review.

International portfolio: Greece, Brazil and Ljubljana are outperforming, while Antalya and Lima are weaker. Management is reviewing potential Egyptian and regional Greek airport opportunities but stressed that limited balance-sheet capacity constrains M&A.