Fraport Stock Gains On FY26 EBITDA, Traffic Growth View, Despite Weak FY25 Profit

(RTTNews) - Shares of Fraport AG were gaining around 6 percent in Germany after the airport operator issued Tuesday fiscal 2026 outlook, expecting higher EBITDA, a key earnings metric, and passenger traffic growth, while net income will be lower than last year on certain costs. In fiscal 2025, the operator of Frankfurt Airport had recorded weak net profit, but higher EBITDA amid broadly stable revenue.

Looking ahead for fiscal 2026, Fraport expects Group net profit to decline, but Group EBITDA to increase to around 1.5 billion euros.

Frankfurt Airport's new Terminal 3 (T3) is scheduled to begin operating on April 23. While the new Terminal will have a positive impact on Fraport over the long term, rising depreciation and amortization, as well as higher interest expenses, will lead to a lower result of around 300 million euros to 400 million euros in the short term.

Fraport expects full-year traffic for the whole Group to grow to around 188-195 million passengers. At FRA, growth to approximately 65-66 million passengers is forecast.

By 2030, a total of around 187 million passengers are expected to use the fully consolidated Fraport airports Group-wide.

Fraport added that it is maintaining its proposed dividend of 1.00 euro per share this year.

During the fourth quarter, the company had announced plans to resume dividend payments for the first time since 2019.

In fiscal 2025, net income attributable to shareholders declined to 431.8 million euros from 450.6 million euros last year, and earnings per share fell to 4.67 euros from 4.88 euros a year ago.

Profit before tax fell to 656.7 million euros from 681.7 million euros a year ago, mainly due to a negative contribution from companies accounted for using the equity method, compared with a gain last year.

Operating profit, however, rose to 885.4 million euros from 769.5 million euros last year.

EBITDA increased 10.4 percent to 1.437 billion euros from 1.302 billion euros in the prior year.

Revenue edged up 0.1 percent to 4.432 billion euros from 4.427 billion euros last year. Adjusted revenue increased 8.2 percent year-over-year to 4.211 billion euros, boosted by growth across all four business segments.

Revenue adjusted for IFRIC 12 was benefited by increased passenger numbers across the Group, as well as price effects and higher demand for ground handling services.

In the full year, Fraport saw improved passenger numbers both at Frankfurt and across all of its international markets.

The number of passengers at Fraport's airports increased 5.3 percent in total to around 184 million passengers. Overall Group traffic was slightly above pre-pandemic levels seen in 2019.

With traffic of around 63.2 million passengers, Frankfurt Airport recorded an increase of 2.6% in the 2025. Meanwhile, passenger numbers in Frankfurt were still well below pre-pandemic levels.

CEO Schulte stated, "We would be significantly better placed in Frankfurt if we did not have the excessive regulatory costs that continue to limit passenger growth in the German market. A major step forward has come with the Government's announcement to withdraw the latest increase in aviation tax. This step now needs to be implemented. If further cost reductions follow, a reversal of the trend is possible."

Cargo volumes at Frankfurt increased 1.1 percent year-on-year, to around 2.1 million metric tons.

On the XETRA, the shares were trading at 75.85 euros, up 5.86 percent.

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