Grupo Aeroportuario del Sureste SA de CV Sponsored ADR Class B Stock

Good day, ladies and gentlemen, and welcome to ASUR's Second Quarter 2026 Results Conference Call. My name is Christine, and I will be your operator. [Operator Instructions] As a reminder, today's call is being recorded. Now Mr. David Barlow, Corporate Governance Strategic Planning Manager and IRO at ASUR.

Thank you, Christine, and thank you, everyone, for joining us today to discuss ASUR's results for the second quarter 2026. With me on today's call is Adolfo Castro, Chief Executive Officer.

Additional details about our results can be found in our press release, which was issued yesterday after market close and is available on our website. As usual, all comparisons discussed on this call will be year-on-year and all figures are expressed in Mexican pesos unless specified otherwise.

As a reminder, certain statements made during the call today may constitute forward-looking statements, which are based on current management's expectations and beliefs and are subject to several risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our company's control.

Please refer to the forward-looking statements disclosure included in this earnings presentation for additional information. With that, I'll turn the call to Adolfo.

Thank you, David, and good morning, everyone. I'm going to start today's conference call with a discussion on the strategic initiatives that are setting the foundation of ASUR's next stage of development and growth. Then I will briefly review quarterly results.

Our objective is to continue building the leading airport group in the Americas. We are doing this by expanding into attractive markets, diversifying our geographic and revenue mix, diminishing the dependence on one market, increasing our exposure to commercial revenues and improving the efficiency of our operational model.

The Motiva transaction, ASUR with U.S. airports, investment program at Cancun Airport and the proposed internalization of the technical assistance services are key components to achieving our growth. Let me begin with the proposal that we propose to the shareholders' meeting that is going to take place on August 20.

First, we are asking shareholders to consider approving ASUR's plan to internalize the special technical assistance and technology transfer services currently provided by our strategic partner, ITA. We believe this is an important step in ASUR's evolution. We will bring these capabilities, personnel, expertise and know-how into ASUR, simplify our corporate structure and better align our operational model with the scale and complexity of our growing international platform.

The transaction would be implemented through a merger and would involve the issuance of approximately 7.3 million net new ASUR shares to ITA shareholders, equivalent to approximately 2.4% of the current shares of stock.

As a reference, ASUR recognized approximately MXN 401 million in technical assistance fees during 2025. If transaction is approved, the services will be performed by ASUR while we will assume the related operating cost, the recurring external fee will be eliminated and the future economic benefits of these activities will remain within the company.

The proposal was reviewed and negotiated under the leadership of the Audit and Corporate Practices Committee, which is composed exclusively of independent directors and supported by independent financial and legal advisers. Separately, the Board has proposed two extraordinary cash dividends to be paid MXN 10 per share on November 24 and December 15, respectively. The proposal reflects ASUR's strong financial position, solid cash generation and disciplined approach to capital allocation.

During the first half of the year, we generated MXN 7.3 billion in operating cash flow, an increase of 21% year-on-year. This cash generating the capacity allow us to return excess capital to shareholders while preserving the flexibility to fund our investment commitments and pursue future growth opportunity.

Shareholders will also be asked to approve amendments to the bylaws. First, to align them with the current regulatory framework. And second, if internalization is approved to reflect the changes resulting from the merger. We encourage shareholders to review the information statement for additional details.

Turning to Motiva, we are actively progressing to complete the acquisition during the second half of 2026. The transaction remains subject to remaining regulatory approvals and customary closing conditions. Once completed, the transaction will add a portfolio of concession of 20 airports across Brazil, Ecuador, Costa Rica and Curaçao, including entry into Brazil, the largest aviation market in Latin America. The core portfolio handles approximately 45 million passengers annually and will significantly increase the source of scale and geographic diversification.

Our underlevered balance sheet enables to fund the transaction with debt, while at the same time, preserving financial flexibility for the other high-return projects, including dividend payments. Moving next to the ASUR U.S.

ASUR U.S. provides direct exposure to the nonregulated dollar-denominated commercial revenues at the three major U.S. airports. With over 35 million annual customers and revenues above U.S. benchmarks. ASUR U.S. also is a platform, which from we will continue to further developing our commercial capabilities in the U.S.

On April 2, ASUR U.S. completed the $125 million commercial transformation of JFK Terminal 8, opening more than 60 dining, retail, duty-free and experiential concepts. At JFK the new Terminal 1, commercial development continues ahead of an expected opening towards the first quarter next year. As a result, the current financial contribution does not yet represent the earnings potential of the U.S. platform.

At LAX, we continue remodeling and developing commercial spaces ahead of the Super Bowl in '27 and the Olympics and Paralympic Games in '28. In Mexico, construction of the new Terminal 1, continues at Cancun which we plan to be open during the fourth quarter. Once operational, Terminal 1 will allow to begin rebalancing passenger flows, including moving most of South American operations from Terminal 2, this should reduce pressure on Terminal 2 and improve the passenger experience and create additional commercial capacity.

In parallel, we continue executing to broad Master Development Program. This includes the second phase of Terminal 4 expansion, which will add onboarding new gates and connecting taxiway together with the related airside and roadway infrastructure. The project is expected to be fully operational by the end of '28 and is designed to expand capacity, improve passenger and aircraft roads and support longer-term growth.

Together, these initiatives support the same objective, a larger and more geographically balanced airport platform in markets with attractive long-term demand, greater contribution from commercial revenues and more efficient operating and equity structure.

Turning to passenger traffic. Total traffic declined 2.7% year-over-year to approximately 17 million passengers, reflecting softer performance in Mexico and Puerto Rico partially offset by continued growth in Colombia. In Mexico, traffic declined some, primarily reflecting continued pressure at Cancun where, international traffic remains softer particularly from the United States, our largest international source market.

Airline capacity constraints, Spirit's bankruptcy and higher airfares partially reflected elevated jet fuel prices also affected demand. In addition, the World Cup did not generate incremental tourism flow into Mexican cities. Most of our other Mexican airports performed better and partially offset the decline at Cancun. Passenger volumes flown from the United States, Europe, South America and Mexico decreased by 11.7%, 11.8%, 6.5%, 1.9%, respectively while Canada increased in some part. Puerto Rico traffic declined 3.5%, reflecting the effects of the Spirit bankruptcy together with subdued domestic and international demand. Domestic remain affected by airline capacity and fare dynamics in the U.S. market, while international remained comparatively more resilient. It will take time for other airlines to absorb the Spirit passengers lost since May 2.

Colombia traffic increased 3.6%, supported by a healthy demand and improved connectivity. Growth moderated against a strong comparison base with continued growth of the rest of our portfolio. While near-term conditions in Mexico and Puerto Rico remain challenging, we continue to view much of the current pressure as capacity and affordability-related rather than a change in the long-term fundamentals of the travel demand. Fleet availability should gradually improve as aircraft return to service, although the timing remains uncertain.

Turning to financial performance. As usual, the figures I will disclose exclude construction revenue and construction costs, unless otherwise noted. Revenues were broadly stable at MXN 7.4 billion. Non-aeronautical revenues increased nearly 10%, supported by the contribution from ASUR U.S. airports, which added MXN 444 million and 30% growth in Colombia. By contrast, aeronautical revenues contracted by mid-single digit, mainly reflected the softer traffic in Mexico and Puerto Rico and the translation effect of the stronger Mexican peso in our international operations and local operations with the U.S. dollar [ component ].

Commercial revenues per passenger increased nearly 13% to MXN 153 per passenger, primarily reflecting the addition of the U.S. commercial base, a single-digit decline to MXN 145.7 per passenger in Mexico was offset by a low and high single-digit increases in Puerto Rico and Colombia, respectively. Again, softer performance in Mexico and Puerto Rico resulted from lower traffic and FX headwinds given the strength of the Mexican peso.

The expansion of our commercial footprint is ongoing with 40 new commercial spaces in Colombia, 8 in Puerto Rico and 3 in Mexico over the past last 12 months. At the same time, as previously mentioned, we completed the commercial transformation of JFK Terminal 8 during the quarter.

Moving on to profitability. Consolidated EBITDA decreased nearly 9% to MXN 4.6 billion. By region, EBITDA declined 9% in Mexico, 17% in Puerto Rico, while increasing 1% in Colombia. ASUR U.S. airports contributed to MXN 20 million of EBITDA reflecting the platforms were in development stage. This contribution is not yet representative of its earnings potential as JFK Terminal 8 continues to ramp up and JFK new Terminal 1 is expected to open during the first quarter next year, while commercial spaces at LAX and Chicago O'Hare have been expanded and upgraded.

Adjusted EBITDA margin declined 565 basis points year-over-year to 62% due to lower revenues in Mexico and Puerto Rico, and the consolidation of the U.S. commercial business, which is operating at a lower margin. Net majority income increased 7% to MXN 2.3 billion as lower foreign exchange loss in Mexico lower income tax expenses in Mexico and Colombia was offset by the benefit from the amortization of the fair value adjustment related to the Colombian acquisition loan following its repayment.

Turning to the balance sheet. We ended the quarter with cash and cash equivalents of nearly MXN 12 billion and net debt-to-EBITDA of 0.9x last 12 months EBITDA. Our balance sheet remains strong and provides flexibility to execute and fund our committed capital program, complete the Motiva transaction and continue pursuing our broader strategic priorities. Lastly, during the quarter, we stepped up capital expenditures to MXN 2.0 billion with the majority of this fund in Mexico as we advance in our capital program, including the project at Cancun that I already discussed.

Summing up, while the operating environment remains challenging, particularly in Mexico, ASUR is moving in the right direction as we are making progress executing our strategic growth initiatives, better equity derisk, structure and diversification and with our expansion through the Motiva acquisition, our U.S. ASUR operations, and the ongoing cost efficiency efforts are strengthening our business and positioning the company for the long term growth.

At the same time, we remain disciplined with the capital allocation and cautious that our outlook while continuing to create long-term sustainable value for our shareholders. Complemented with attractive dividend payments. With that, we are ready to take your questions.

[Operator Instructions] Our first question comes from the line of Rodolfo Ramos with Bradesco BBI.

A couple here, if I may, include my follow-up there. We saw softer implicit tariff in your aeronautical revenues. I wanted to check on your maximum tariff compliance and where you expect to end the year given today's FX?

And the second is on your cost side, whether you think that this quarter represents a good base going forward? And how does the internalization might play there? I don't know if you're seeing still extraordinary expenses on the Motiva acquisition and how can those evolve going forward?

Yes, of course, we are seeing some pressure in the maximum tariff due to the fact that the passenger mix is changing in comparison with last year. So the decrease in the U.S. traffic had an impact. But of course, as always, we will have a very clear objective, which is 99% in that compliance by the end of the year.

In terms of the cost, yes, we have onetime cost during the quarter, related to Motiva, related to the U.S., some additional fees, legal fees due to the internalization of the project, nothing that will be there in the future. It's true.

Any way that we can get a sense of sizing of these expenses that you expect to...

Those are, I would say, in general terms, not so important. The clear problem we had during the quarter was the loss of 0.5 million passengers in the case of Cancun Airport and 135,000 in the case of Puerto Rico. So the problem is in the revenue side.

Our next question comes from the line of Guilherme Mendes with JPMorgan.

I have a couple regarding Motiva's airports. The first is on the approval. You said the expectation for the second half of the year. I recall on the last call, you mentioned about the second quarter of the year. If you can share which of the four regions are taking longer than expected.

And also regarding synergies, I recall you guys talking about not expecting a lot of synergies on the transaction, if anything has changed on that front?

And lastly, if I may, if you somehow consider a potential partial divestment of those assets once you incorporated on your portfolio?

Yes. The region that is holding up is the case of Brazil. We are very close to and, I would say, I said second half, I would say third quarter in the case of synergies, I don't see any important synergy. As I said before, we are basically expecting the same business as usual.

And in terms of selling some pieces, not for the moment.

Our next question comes from the line of Jens Spiess with Morgan Stanley.

Yes. Thank you on the administrative expenses in Mexico, they remain quite elevated. Should we -- I mean, I think they increased more than around 30% year-over-year. But should we expect this level to be more or less the new normal? And what's driving it? Is it mostly like labor cost, minimum wage increases and so on? Or what is it?

Yes, it's minimum wages and also there was an issue with medical insurance costs that have increased significantly in the case of Mexico due to that tax reform by the Mexican government.

Our next question comes from the line of João Frizo with Goldman Sachs.

I have a quick question around Cancun traffic, right? Just wanted to hear a bit your thoughts on why the weakness in that airport specifically. In the past, we had the issue with Tulum ramping up. I think that's behind us right now. So I just wanted to hear your expectations for growth there going forward? And what is driving the weakness we saw in June, but also in the months prior to that?

Well, the softness is a cocktail of matters. So one of the important ones is, of course, the jet fuel increase, just to say jet fuel that increased 42% during the month of June due to the conflicts in the Middle East. That's one of the things. The second one, of course, the bankruptcy of Spirit and it's going to take time for the other airlines to recuperate this. Of course, the case of sargassum, which has been very high during this year, almost at the levels of last year to end the summer.

In terms of the recuperation process, my opinion is that the summer is lost. And we are expecting the recuperation process up to the end of summer season or winter season, we see a better outlook and I would say, more seats, more offered seats than what we had last year. But that will be up to November, December this year.

Our next question comes from the line of Abraham Fuentes with Banco Santander.

Sorry, I think my question was already answered. Sorry for that.

Our next question comes from the line of Pablo Ricalde with Itau.

Talking about the recent increase in tariff in Mexico, which is like the maximum tariff that you're charging now after July hike? Have we met that?

The betting that is not what you collect on every single rate making in tariffs or the to comply the maximum tariff is the whole year from the first of January to December last year -- at the end of the year. So what I said is what we are expecting is that the maximum tariff compliance for this year should be close to 99%.

Our next question comes from the line of [ Enrique Cantú ] with GBM.

I just have one quick question. During the quarter, ASUR U.S. got only another repo contribution despite a full quarter of consideration. Could you provide more color on when you expect the business to reach a more normalized EBITDA level?

I am really sorry but I cannot hear you well. Could you repeat your question, please?

I will hang up and then call again.

Our next question comes from the line of Anton Mortenkotter with GBM.

One of my questions, I'm not sure if you can provide some color on how the current traffic curve looks against the expectations that you said during the last MDP revision. That is one.

And another one which I think is the one that Enrique was trying to ask is regarding ASUR U.S. EBITDA contribution. I think in previous calls, you mentioned you were expecting somewhere closer to $20 million in EBITDA normalized. I'm not sure if you are still expecting those same levels.

Thank you for the question. Of course, we are below our expectation of the previous MDP. We were not expecting all of these things that are happening today. And in the case of the U.S., the MXN 20 million is not going to happen this year. Moreover, when we are not going to open a new Terminal 1 this year. So originally, it was expected to be open us from June 1. Now we are expecting at the end of first quarter next year.

Our next question comes from the line of Gabriel Himelfarb with Scotiabank.

Just two questions. What's the EBITDA margin level we should consider sustainable for ASUR U.S. once the IFRS 16 effects normalize? And also, should we think about ASUR U.S. as an asset or as a platform for future U.S. expansions?

Gabriel, today's EBITDA margin in the U.S. operation is around 9%. It's a completely different business in comparison with what we have in Mexico, Puerto Rico and Colombia. Even though I do believe that this margin will increase in the future, of course, we'll never be comparable with the margin in the case of Mexico. It is important to say also that today, we have some expenses in relation with the projects we are progressing we're doing in the case of new Terminal 1, some of the cost is related to this project that is not generating gaps in revenue. Of course, what we have said is we want this be a platform to grow in the U.S. airports. That's the most important objective we have with this future.

Our next question comes from the line of Alan Macias with Bank of America.

Just a follow-up on Cancun traffic. Just focusing on domestic traffic. It has also been weak. The same factors apply for domestic traffic in Cancun?

The problem with the domestic has been the engine problem of Pratt & Whitney with Viva Aerobus, but basically the case of Volaris This has been improved during the quarter and the opportunity to hear from the CEO of Volaris on that. And he's saying that now Pratt & Whitney are delivering their aircraft faster than what they have before. So I have -- I am confident that this -- that we will see some increase in the coming quarters at this respect.

Our next question is a follow-up from Jens Spiess with Morgan Stanley.

Our next question comes from the line of Alberto Valerio with UBS.

Sorry, if you can repeat the question, my line dropped before, but if you could provide some details and when it comes the Terminal 1 in operation said in the second half of the year, but should be mid of the third quarter to much the end, much of the fourth quarter? And should we consider in the second quarter as a bottom for ASUR in terms of traffic in margins, costs, tariffs, should we see an improvement for the following quarters?

Okay. In the case of you are talking about new terminals, well, the Terminal 1 in Cancun Airport. I'm expecting that for the fourth quarter. New Terminal 1 at JFK is first quarter next year. In terms of this quarter the bottom line, that's what I hope. Not so sure, of course, in terms of the traffic. I do not expect something different for the quarter. I expect some improvement during the fourth quarter.

Perfect. And if I may, a follow-up. In terms of dynamic of airlines, do you see that change something with given Volaris being one than it was before. You see a more bargaining power from them negotiated tariffs or not because you see the cheapest one.

Well, basically, what I understand of their merger is that they will continue working separately independent so that the merge is just giving them the power to be able to negotiate better with the aircrafts. But in terms of the traffic -- in terms of the routes they should be independent.

Our next question is a follow-up from Rodolfo Ramos with Bradesco BBI.

Just a couple of follow-ups, allowed if I may. The insurance costs that you mentioned, are these expected be recurring? Or was this a onetime off. So again, if we -- if this is a good base to go off?

And second, I mean, you started to talk about a recovery in the fourth quarter and the winter season being the next test for Mexican traffic. I mean do you have any visibility today as to how the winter season is looking? I don't know if it's early, but vis-a-vis other years, either bookings or just conversations with their airlines.

Well, some insurance, it is not onetime. It's basically bad luck with the renewal, the cost of insurance increased by 39%. And it's going to be there. It's not going to change.

In terms of the recovery, yes, we have some information using the database of the feeds that are published by the airlines. And we see some increase partially with last year for November and December this year. So the winter season -- the beginning of the winter season.

[Operator Instructions] Our next question is a follow up from Gabriel Himelfarb with Scotiabank.

Just a quick question. You mentioned that the new terminal of the JFK will be on the third quarter 2027, I think I didn't get well and also for the new terminal in Cancun it fourth quarter this year?

Yes. Terminal 1 in Cancun, fourth quarter this year, terminal -- new Terminal 1 at JFK just for next year.

[Operator Instructions] Thank you. That concludes our question-and-answer portion of today's conference call. I would like to turn the call back over to Mr. Barlow for closing remarks.

Thank you, Christine, and we would like to thank you all again for joining us on today's call. We look forward to speaking to you again in the next quarter, and have a nice day. Thank you very much.

Ladies and gentlemen, that concludes ASUR's Second Quarter 2026 Results Conference Call. We would like to thank you again for your participation. You may now disconnect.

Good day, ladies and gentlemen, and welcome to ASUR's First Quarter 2026 Results Conference Call. My name is Sachi, and I'll be your operator. [Operator Instructions] As a reminder, today's call is being recorded. Now Mr. David Barlow, Corporate Governance, Strategic Planning Manager and IRO at ASUR. Please go ahead, sir.

Thank you, Sachi, and thank you, everyone, for joining us today to discuss ASUR's results for the first quarter 2026. With me on today's call is Adolfo Castro, Chief Executive Officer. Additional details about our results can be found in our press release, which was issued yesterday after market close and is available on our website.

As usual, all comparisons discussed on this call will be year-on-year, and all figures are expressed in Mexican pesos, unless specified otherwise. As a reminder, certain statements made during the call today may constitute forward-looking statements, which are based on current management expectations and beliefs and are subject to several risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our company's control.

Please refer to the forward-looking statements disclosure included in this earnings presentation for additional information. With that, I will now turn the call to Adolfo. Please go ahead, Adolfo.

Thank you, David, and good morning, everyone.

Before I begin, I would like to note that David Barlow has assumed the responsibility for Investor Relations. David has been with ASUR for more than 20 years and knows the company and operations very well.

He attends our Board of Directors meeting and committee sessions. Now let me start by turning the quarter. We expected the first quarter of 2026 to reflect a period of transition for ASUR. We were operating in an environment where the traffic trends and our Mexican market were stabilizing after a period of normalization.

Puerto Rico entering a more mature phase following strong post-pandemic growth and Colombia in a growth momentum. Recall that the first quarter for Mexico is the seasonality at the strongest. Then we were negatively affected by the security-related events beginning on February 22 and after that, by the TSA-related disruptions in the U.S. airports, which also impacted Puerto Rico.

This effect contributed to increased volatility in traffic trends, particularly towards the end of the quarter. On the positive side, we've made progress on 2 key priorities. The first one, the integration of ASUR's U.S. airports. This makes the first full quarter of consolidation of our U.S. commercial platform. The business contributed to non-aeronautical revenues, while profitability reflects the early ramp-up operations.

We expect gradual improvement as the platform scales, supported by the new commercial openings in Terminal 8 and the upcoming opening of the Terminal 1 this year, both at GF which will further expand the commercial base. Second, continued execution of our regional expansion strategy. We remain focused on completing the Motiva transaction, which is now pending remaining regulatory approvals and is expected to close in the second quarter this year.

This transaction will significantly expand our footprint and reinforce our long-term growth profile. This transaction represents a step change in scale and geographic diversification. Expanding our presence in new markets and further balancing our portfolio.

Our strategy remains consistent, diversifying our revenue base, including a greater focus on nonregulated revenue, selecting expanding into markets with attractive long-term demand and deploying capital in a disciplined and value-accretive manner.

Let me now review ASUR's operational performance for the quarter. Total passenger traffic increased 1.9% year-on-year, reaching nearly 90 million passengers, driven by strong traffic in Colombia, stabilization in Mexico and short-term softness in Puerto Rico.

Colombia remains our fastest-growing market with traffic up 11%, supported by increased connectivity and solid demand. Domestic traffic growth 12%, outpacing 7% growth in international passengers. Mexico remained broadly stable with international traffic showing modest growth, while domestic traffic remained slightly below prior year's levels.

Traffic in Cancun declined 2% during the quarter, while the other 8 airports in Mexico grew by 5%. Positive trends in January and February were offset by weaker March. Beginning on February 22, traffic was affected by the security-related events in Mexico, which impacted traffic to and from the United States through mid-March.

Later that month, traffic was affected by the TSA-related screening disruptions in the U.S. airports. We believe these factors were temporary and do not reflect a change in the underlying demand. As we move through the year, we expect to see difficult operating conditions, including higher fuel prices and recent capacity reductions.

Passenger volumes from the United States, our largest international service market, decreased 4.6%, while South America contracted 1.4%. On the positive note, Canada and Europe increased by 11% and 11.4%, respectively.

In Puerto Rico traffic trends declined low single digits, driven primarily by domestic demand and the effects of TSA while international traffic continued to grow. Turning now to financial performance. As a reminder, all figures exclude construction revenue and cost and comparisons are year-on-year unless otherwise noted.

Total revenues increased 2.2% year-on-year, reaching MXN 8.4 billion. This performance was primarily driven by a nearly 9% increase in non-aeronautical revenues, supported by the first full consolidation of the U.S. airports, which added approximately MXN 438 million in non-aeronautical revenue during the quarter.

In turn, aeronautical revenues declined low single digits, mainly reflecting the FX conversion impacts in Puerto Rico and Colombia, together with a lower traffic in Puerto Rico. Commercial revenues increased nearly 7%, primarily reflecting the new commercial operations in the U.S. and mid single-digit organic growth in Colombia.

Performance in Mexico and Puerto Rico remained softer during the quarter, reflecting a combination of FX headwinds given the strength of the Mexican peso against the U.S. dollar, combined with lower traffic in Puerto Rico. We continue to execute on our strategy to enhance and diversify our revenue base with a growing contribution from nonregulated and dollar-denominated sources.

The integration of the U.S. commercial platform is an important step in that direction. And while still in its early stages, it already represents an attractive addition to our portfolio. Over the past year, we also continued to actively expand our commercial footprint across the network, opening 47 new retail and service units, including 34 in Colombia, 8 in Puerto Rico and 5 in Mexico.

On a per passenger basis, commercial revenue increased mid-single digits to MXN 153.6, benefited from a full quarter of operations from the U.S. commercial operations. Despite the impact of the depreciation of the Mexican and Colombian pesos against the U.S. dollar and a mixed traffic environment, by geography, Puerto Rico delivered the highest levels with MXN 163.3 per passenger despite the 5% decline driven by FX conversion and the slight reduction in traffic levels.

Mexico saw a 4% decline, mainly reflecting the impact of the peso appreciation over the U.S. dollar denominated commercial revenues. Lastly, Colombia posted a mid-single-digit decline despite the strong traffic growth, reflecting FX and mix effects given higher growth domestic traffic.

Turning to operation costs. Total expenses increased 25% year-on-year, mainly driven by the integration of U.S. commercial operations, higher depreciation and amortization in Colombia, professional fees related to the U.S. acquisition together with the ongoing inflationary pressures.

Excluding these effects, underlying operating cost was moderate. By region, Mexico recorded a 6% increase in expenses. Excluding production of fees associated with the U.S. commercial acquisition, expenses would have grown just 0.9%, mainly reflecting modest increases in labor and service-related costs.

In Puerto Rico, expenses declined nearly 7%, benefiting from the depreciation of the Mexican peso against the U.S. dollar. Expenses in Colombia increased 33%, largely driven by the higher depreciation and amortization following the change in amortization methodology.

Recall this change reflects the expected evolution of the concession, including the phaseout of regulated revenues starting in '27 and the remaining life of the asset through 2032. Excluding depreciation and amortization, expenses in Colombia would have increased by just 2.6%.

In the U.S., we recorded approximately MXN 368 million in operating costs during the quarter. Of this, approximately MXN 70 million related to items attributable to 2025 that were recognized in this period, including lease-related adjustments, account reconciliation of items, provisions for uncollectible accounts and prior year employees bonus.

Moving on to profitability. Consolidated EBITDA decreased nearly 6% to MXN 5.4 million in the quarter. EBITDA was lower across regions, down mid-single digits in Mexico and Colombia, high single digits in Puerto Rico while our U.S. commercial operation posting a negative EBITDA of MXN 50 million in the quarter.

The adjusted EBITDA margin declined nearly 600 basis points to 64.1% year-on-year, mainly reflecting the ramp-up of the U.S. operations and the impact of amortization changes in Colombia I just mentioned. Net majority income declined 20% year-on-year to MXN 2.8 billion, mainly reflecting higher depreciation and amortization, increased interest expenses following the recent financings and the lower interest income.

Importantly, the reported profitability of ASUR's U.S. airport this quarter is not yet indicative of the underlying earnings capacity of the business and costs associated to sell out the business. As disclosed in our 20-F report on a pro forma basis, full year consolidation, this commercial operation generated approximately MXN 2.1 billion in revenues and MXN 711 million in net income in the fiscal year 2025.

In addition, the launch of the new Terminal 1 at JFK Airport expected to come online during the third quarter this year which further support commercial revenue growth as it ramps up, further enhancing the performance of this business. Moving into the balance sheet. We closed the quarter with cash of MXN 13.8 billion and net debt to EBITDA of 0.8x.

Our balance sheet continues to prove significant flexibility to fund growth while maintaining conservative leverage. Capital expenditures totaled MXN 544 million, primarily focused on Mexico, where our investment under the [ mass ] development program continue to advance, including the construction of Terminal 1 in Cancun on track to open on the third quarter this year, which will increase capacity, improve passenger flow and optimize commercial mix, supporting higher commercial revenues over time. Note that the CapEx for the full year as per our master development plan totaled MXN 7.9 billion. In Puerto Rico, we remain focused on operational improvements and while capital deployment in Colombia remain limited.

At the end of March, Airplan signed an addendum to transition agreement authorizing immediate interventions at José María Córdova Airport to address unexpected demand with an estimated investment of approximately COP 165 billion. The project covers a series of capacity expansions and service level improvement works, including domestic and international check-in facilities, and the parking baggage handling system, security checkpoints, remote boarding areas and aircraft plans and immigration facilities.

In summary, ATU is becoming a more diversified platform with increased exposure to U.S. dollar-denominated revenues, a clear visibility on key growth drivers, including the ramp-up of U.S. commercial operations and the expected closing of Motiva transaction. While in the near-term traffic trends remain mixed across regions, we continue to see healthy underlying demand for air travel and remain focused on execution, cost discipline and long-term value creation. The final comment is that ASUR shareholders meeting will take place at 10:00 a.m. Mexico City Time today with a proposed dividend payment of MXN 10 per share to be paid at the end of May.

Now I will open the floor for questions. Sachi, please open the floor.

[Operator Instructions] The first question is from Rodolfo Ramos from Bradesco BBI.

David, congratulations on your new responsibilities, all the success there. I have a couple of questions. The first one is in regards with your U.S. commercial business. I'm assuming there is some level of seasonality. Can you give us a sense of how much should ASUR U.S. should be contributing in EBITDA on a 12-month rolling basis, considering this new commercial space in JFK?

And if you expect any material extraordinary expenses in the coming quarter as you close the Motiva acquisition. So that would be my first one. And the second one on traffic, and let me perhaps take a little bit of a different approach here. I mean the Cancun, Mexico route has been an important bottleneck for you guys. I mean, do you see a scenario where we could see a short-term pressure during the World Cup as Guadalajara and Monterrey routes are prioritized?

In the case of the U.S., it's important to say that the current operation we have is not exactly what we will have, what we expect to have at the end of this year. Just to say on the 21st of April, new openings took place at John F. Kennedy Terminal 8, and we are expecting the opening of new Terminal 1 at the end of this year. New Terminal 1 today is a project that is under construction. It is a new terminal. So it's not in operation.

So even though -- even if I tell you the 12-month number, I will not meant anything to size representation of what this business could be next year. Basically, I would say the EVA this year should be close to, let's say, MXN 20 million that we will be basically investing or reinvesting in the projects we have.

In the case of the traffic in Cancun, yes, you are right. Mexico City Airport is or has been a bottleneck for a while. If they are going to relocate some traffic because of the workup, I don't think so. Remember that the workup at the end of the day in Mexico is just 30 days. The most important ones here in Mexico City, and probably there's one that is particularly important in the case of Guadalajara.

Apart from that, nothing else. On the other side, I have to say that Cancun Airport is probably the only one in the world that has daily connection to the 16 venues of the world, if that is a different story for some other people that lives outside Mexico.

The next question is from Guilherme Mendes from JPMorgan.

A follow-up on traffic performance. You mentioned that the trends remain kind of mixed in the near term. If you can help us try to understand what to expect, especially in Mexico. I know there's a lot of moving parts, but it looks like some of the negative impact of the first quarter seems to be fading away.

So is it fair to assume some kind of increase in traffic on a year-over-year basis going forward? And the second one is a follow-up on the Motiva's Airport. If you can share what kind of synergies of upside on the commercial front you expect to get once you integrate the business into this platform.

Yes, of course. Well, in the case of traffic, I have to say that in the case of Mexico traffic and particularly in the case of the most important source of traffic for the first quarter, which is the U.S. Everything went well up to February 22 and then basically collapsed. That collapsed up to March 14 that we were back on track again and then the TSA thing appear.

So I have to say that the quarter was severely affected by these 2 things. Going forward, the only thing I can say is Holy Week is in a different date as it was last year. So probably the beginning of April is something that we can see on the positive side. On the other side, I'm saying that we will be facing difficult operational conditions going forward, and we don't know how much.

But basically, with the oil price of $100 per barrel is not the best for the airlines. No. We have received some capacity reduction from Spirit so far, the only one. But we don't know how much this is going to last.

So it is not an easy moment to be saying how the year is going to end up. In terms of Motiva, the synergy is not probably the right one. They have a business that is operating well. We have some common customers. Yes, it's true. The large ones. They are also in the U.S. But I don't see synergy as an important piece of this.

The next question is from Anton Mortenkotter from GBM.

Just 2 quick ones. One is related to the investments in Colombia. I was wondering if this investment will trigger any amendment to concession or any adjustment or any kind of compensation on that front? And the second one is related to the maximum tariff. Just wondering if due to the lower -- the peso appreciation, maybe there are some places where you are still slightly below the maximum tariff that we should see some adjustments going forward? Or if you could give us some color on that front?

Absolutely. In the case of Colombia on March '26, we signed an amendment to our concession agreement that was [indiscernible] the important of this document is that once again, we are able to invest in the for the moment as an emergency plan for the case of the airport [ Olaya in Medellín. ] And this will improve the level of service there, which is really back to place.

But for the moment, what this document allows is to invest COP 165 billion. And of course, that will be moving the day when our regulated revenues will pay down. So far, we were expecting that to happen on February 27 with this investment, and we are making all the places with the current conditions, probably will be up to the end of '27.

But again, this will give us the opportunity -- this is giving us the opportunity to invest more and to solve some issues that we have there. So we will keep you posted on how these things evolve in the future. But for the moment, this is a very good news in the case of Colombia.

In our maximum tariff, the objective we have this year is 98%. And for the moment, we do not see why we should not be reaching the 98%.

The next question is from Alberto Valerio from UBS..

Adolfo a follow-up on the maximum tariff and also on the expenses for this quarter. Remind us how is the methodology for maximum tariffs from the MDP on the international flights, if you can adjust later because the FX appreciated or not?

And also if you could tell us from the leases that you paid this quarter, if there is any one of those that is nonrecurring. We saw MXN 9 million in the Mexican airport as well $120 for the U.S. operations.

Yes, in the case of maximum tariff, the level of maximum tariff is [indiscernible] passenger basis or on a workload unit basis that we can charge in a year. So when you're saying international traffic, that is part of the maximum time. So if peso to dollar or dollar to peso, we will have to adjust in accordance to try to reach the amount in pesos. So there is no different treatment for international flights versus domestic flights. It's one basket and it's peso denominated.

In the case of the onetime events, yes, you're right, MXN 91 million is what we have paid as a professional fees to get the U.S. acquisition. And also, I have mentioned that in the case of the U.S., we have recorded things that were related to last year. So onetime events as well of approximately MXN 70 million more.

[Operator Instructions] The next question is from Gabriel Himelfarb from Scotiabank.

Just a quick question. Have you seen any shift on traffic or seat or capacity from airlines from both perhaps U.S. and domestic airlines? And what could be like the outlook or the drivers for the traffic ahead?

Well, the only shift that we have seen or we have been informed is what I just mentioned. It's the case of Spirit. Spirit has decreased its capacity for the case of May in comparison of what they have scheduled before. That is the only one we have so far. As I said before, it's difficult times with the level of fuel prices we have today and the uncertainty that we have about the situation in the Middle East and look at the situation in the Middle East results and just affects, let's say, the end of April and some pieces of May.

That's it. But of course, difficult for me to say when is this going to be over.

Okay. And if I may, another question and perhaps in the terms of commercial revenues, what is like the trend on the passenger profile? Is there like lower expenditure on terminals, lower time on the terminals? Or what's driving the trends on the commercial revenues?

Well, let me say -- let me start with Puerto Rico because we were facing difficult times, let's say, in the third week of March, the PSA lines over the weekend reached 4.5 hours, lost 1 hour more for the case of the agricultural filter.

So you have to be there more than 6 hours before you flight. And of course, that has an impact on everything and also on the commercial side. A lot of people lost their flights and a lot of flights had to be rescheduled, et cetera.

But we are not seeing, let's say, low spending people some other effects that have been affecting the situation. The effects that I have mentioned during my call during my initial remarks, remember last year, the peso versus dollar was MXN 20-something and today MXN 17 something. So the difference was important, it's around 14% difference. And it's very clear that you can see the results of the quarter.

The next question is from Andres Cardona from Citigroup.

I's have one question about the EBITDA contribution of the U.S. business. If you can share how much do you expect on an annual basis from there?

Could you repeat your question again? How much...

How much EBITDA contribution you expect from the U.S. business on an annual basis?

For the moment, what I was saying is this year so far, $30 million in EBITDA. And of course, next year should be more as a result of the opening of the new terminal...

The next question is from Francisco Suarez from Scotiabank.

David, congrats on the new appointments. The question that I have relates with -- also with the U.S. operations, it is about excluding Terminal 1, what would be the overall occupancy rates that you see over there? And also a related question, what is the overall outlook, again, excluding Terminal 1 on potential increases in the overall leases that you may see there and your overall strategy to manage those assets?

Well, round numbers, I would say, Francisco, we have more than 400 contracts there so 400 units. If you see some of them in the case of LAX are empty, but that doesn't mean that those does not have a contract. Some of them are empty because they are in the process of being remodeled or in the process of new spaces. So basically, I would say we have all or almost all the spaces contracted.

And also, if you can discuss a little bit about your overall average life on those leases and what would be the potential to see further increases in rents? Do you have any idea of how likely is to see an improvement on rents once the leases are expire?

Well, average life basically, I would say between 15 to 17 years. I would invite you to see some news related to Terminal 8, and you can see the new spaces that were opened recently -- those spaces were for a long time. Those were in severe remodeling process.

But now we have finished that piece. We are focused now on 2 major projects. One is, of course, the new Terminal 1. And the other one we have is a new agreement that we reached with last year where we will be preparing the terminals for the Olympics in '28. Some spaces are going to be remodeled for the Super Bowl that is going to the first quarter next year. But the most important event, of course, is the Olympics in '28.

Great color. So in other words, I think that the overall tenant improvements and all these investments and the remodelation are linked towards better rents and rate because you will be recovering those investments, isn't it?

Absolutely.

This concludes the question-and-answer session of today's conference call. I would like to turn it back over to Mr. Castro for closing remarks.

Thanks, David, and thanks, Sachi. Ladies and gentlemen, that concludes ASUR's First Quarter 2026 Results Conference Call. We would like to thank you again for your participation. Now you may disconnect.

Ladies and gentlemen, that concludes ASUR's First Quarter 2026 Results Conference Call. We'd like to thank you again for your participation. You may now disconnect.

Good day, ladies and gentlemen, and welcome to ASUR's Fourth Quarter 2025 Results Conference Call. My name is Dave, and I'll be your operator. [Operator Instructions] As a reminder, today's call is being recorded. Now I'd like to turn this call over to Mr. Adolfo Castro, Chief Executive Officer. Please go ahead, sir.

Thank you, Dave, and good morning, everyone, and thank you for joining us today to discuss ASUR's results for the fourth quarter and full year 2025. Before I begin discussing our results, let me remind you that certain statements made during the call today may constitute forward-looking statements, which are based on current management expectations and beliefs and are subject to several risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our company's control.

Additional details of our quarterly and full year 2025 results can be found in our press release, which was issued yesterday after market close, and is available on our website in the Investor Relations sector.

Following my presentation, I will be available for Q&A. As usual, all comparisons discussed on this call will be year-on-year, and all figures are expressed in Mexican pesos, unless specified otherwise.

Before getting into the discussion of traffic and financial results, let me start today's call with a recap of the key business developments during the fourth quarter and over the course of the year. The fourth quarter marked an important inflection point for ASUR. While traffic trends in certain markets moderated, we remain focused on strengthening our long-term platform through diversification, disciplined capital allocation and continued operational excellence. Strategically, we completed our expansion into the U.S. airport, commercial market and advanced transformational Latin American growth opportunity.

As previously discussed, on December 11, we completed the acquisition of URW Airports, renamed as ASUR U.S. at an enterprise value of $295 million. This transaction established ASUR a direct participation in the U.S. nonregulated commercial airport segment, with operations in major U.S. hubs, including Los Angeles International Airport, Chicago O'Hare and New York John F. Kennedy International Airport. From December 11 through December 31, ASUR U.S. contributed approximately to $133 million in revenues and $86 million in EBITDA. We are excited about what this acquisition brings to ASUR's portfolio. First, it adds exposure to high-traffic dollar-denominated commercial revenues. Second, it diversifies our revenue mix beyond regulated income. And third, creates a scalable platform for future growth in the United States.

Revenue and EBITDA for the ASUR U.S. were included within the results of our Mexican operations this quarter. Starting our first quarter 2026 earnings report, we plan to provide more detailed disclosure regarding on the business so that the investment community can better assess revenue profile, margin structure and growth prospectus as fully consolidated operation. In parallel, as disclosed in November, we signed a purchase agreement to acquire Motiva's stake in its airport portfolio, which holds interest in 20 airports across Brazil, Ecuador, Costa Rica and Curacao, for a purchase price of BRL 5 billion, which at the moment represented approximately $936 million. Upon closing this transaction would add approximately 45 million passengers annually to our network, bringing total annual passenger traffic over 116 million.

It also provides entrance to Brazil, the largest aviation market in Latin America, while further strengthening our presence in Central and South America. This acquisition enhances our geographic diversification, increases scale and creates long-term operational opportunities, giving ASUR's track record as an efficient airport operator and more important, the opportunity to use the balance sheet.

The Motiva transaction remains subject to customary closing conditions and regulatory approvals, while closing expected in the first half of 2026. We intend to fund the acquisition with debt. Together, these initiatives reflect a deliberate expansion, strengthening our position in the U.S. commercial segment while deepening our footprint across high-growth markets in the Americas. Importantly, we continue to adhere to our long-standing strategy of pursuing disciplined accretive acquisitions that increase long-term shareholders' value while preserving balance sheet strength.

Lastly, reflecting the strength of ASUR's cash generation model, we returned value to shareholders in form of dividends. During 2025, dividend payment totaled $24 billion. At the same time, we supported our selective expansion strategy and preserve our financial flexibility.

Let me now review ASUR's operational performance for the quarter and full year. During the fourth quarter, we handled 17.9 million passengers, up nearly 1% year-on-year with nearly 72 million passengers traveling through our airports during the year.

Looking at the quarter performance by region, Mexico was essentially flat with domestic traffic slightly below prior year levels, while international traffic showed modest improvement. We believe this reflects the early stages of normalization following aircraft availability constraints and softer regional demand in earlier year. In addition, traffic in Cancun declined 2% during the quarter, while our 8 other Mexican airports grew middle-single digit. In Puerto Rico, traffic declined 3%, primarily driven by domestic market demand softness, while international traffic remained positive. Colombia once again delivered the strongest performance with our portfolio with fourth quarter traffic increased nearly 6% to 4.7 million passengers, reflecting high single-digit growth in international traffic and mid-single digit in domestic traffic, supported by improving connectivity and resilient demand.

Overall, we are seeing gradual stabilization in Mexico and sustained structural growth in Colombia. Passenger volumes from the United States, our larger international source market decreased just 0.6%. While South America contracted 10.9%, on the positive note, Canada and Europe increased by 12.9% and 1.1%, respectively. Looking ahead, we expect a more balanced operation environment across our portfolio.

In Mexico, we expect traffic to gradually stabilize over the year as aircraft availability improves. In Cancun, we continue to monitor the dynamic with Tulum Airport. As comparables ease, and airline networks adjust, we believe traffic trends should progressively improve during the year. In Puerto Rico and Colombia, we continue to expect sustained positive momentum, supported by healthy international demand and improved connectivity.

Turning now to financial performance. As a reminder, all figures exclude construction revenue and costs and comparisons are all year-on-year, otherwise noted. Total revenue were flat year-on-year at MXN 7.3 billion, reflecting the softer traffic environment in Mexico and the FX impact from the appreciation of the Mexican peso on the commercial activity. Aeronautical and non-aeronautical revenues were essentially unchanged during the quarter. By region, Mexico, revenues were flat due to softer traffic trends and the FX impact from the appreciation of the Mexican peso against the U.S. dollar on commercial revenues.

Puerto Rico's revenues declined nearly 6%, affected by the FX impact, while Colombia revenues increased nearly 5%, broadly in line with traffic growth and improved commercial performance. As part of our strategy to increase and enhance commercial offering, we opened 41 additional retail and service units across the network over the past year. This includes 31 in Colombia, 8 in Puerto Rico and 6 in Mexico. These additions contributed to a low single-digit increase in commercial revenues with solid momentum in Colombia, partially offset by softer results in Puerto Rico and Mexico.

Commercial revenue per passenger increased 1% year-on-year to nearly MXN 132. By geography, Colombia posted the strongest performance with a 12% gain, followed by Puerto Rico, which rose nearly 4%, while Mexico remained broadly stable at MXN 159 per passenger.

Turning to operating costs. Total expenses increased 25% year-on-year. In Mexico, expenses rose 10%, primarily driven by professional fees associated with the ASUR U.S. and the Motiva Airport project, along with the high minimum wages and increased service-related costs. Puerto Rico recorded a 6% increase, mainly due to security expenses and inflationary pressures. In Colombia, expenses doubled largely due to a change in the concession amortization methodology implemented in the previous quarter. As a reminder, we expect the regulated revenues to phase out by 2027 with the concession running through 2032.

Starting in the third quarter 2025, we aligned amortization with the updated revenue generation. This is a structural adjustment and will continue going forward. Excluding this account adjustment, costs will have increased just by 1%.

Turning to profitability. Consolidated EBITDA decreased nearly 5% to MXN 4.9 billion during the quarter, with adjusted EBITDA margin declining 330 basis points to 66.4% year-on-year, reflecting the dynamics I just explained. Colombia delivered EBITDA growth of 2%, while EBITDA declined by 3% in Mexico and 19% in Puerto Rico, mainly reflecting lower traffic and higher operating costs.

Net majority income for the fourth quarter decreased 22% to MXN 2.7 billion, primarily driven by 2 factors: a noncash foreign exchange loss of MXN 155 million in connection with the appreciation of the Mexican peso against the U.S. dollar, while in the fourth quarter 2024 we recorded a MXN 773 million gain. Second, the MXN 407 million adjustment in amortization methodology in Colombia introduced in the third quarter 2025 that I just mentioned.

For the full year, total revenues increased nearly 19% to MXN 37 billion. EBITDA rose 2% to MXN 20.2 billion with adjusted EBITDA margin of 67.8% in '25 compared with the 69.7% in '24. In turn, net income declined 20% year-on-year to MXN 10.9 billion, mainly reflecting a noncash foreign exchange loss of MXN 1.9 billion this year versus a MXN 2 billion gain in '24.

Moving on to the balance sheet. We closed the year with cash and cash equivalents with MXN 11 billion and net debt of MXN 16 billion, equivalent to 0.8x last 12 months EBITDA. This reflects 2 loans obtained during the second half of 2025, which were secured to pay CapEx projects and fund our strategic U.S. initiative. Even after incorporating these financings, leverage remains at a conservative level and well below global airport peers, presenting ample flexibility to fund regulatory CapEx commitments and future growth.

Capital expenditures during the fourth quarter were MXN 3.9 billion invested across our airport network, of which MXN 3.5 billion were invested in Mexico under our master development plan, and the remainder in Colombia and Puerto Rico. For the full year, we invested MXN 7.8 billion in CapEx with a similar geographic breakdown. Investments under our Master Development Programs across our Mexican airports, ensuring the capacity, service quality and regulatory compliance continue to advance. In Puerto Rico and Colombia, we remain focused on operational improvements and commercial optimization initiatives aimed at enhancing non-aeronautical revenue generation.

In Mexico, we expect to reopen Terminal 1 in Cancun in the third quarter of this year, which is anticipated to provide a commercial tailwind. New facility will help rebalance passenger flows across terminals and improve the passenger experience, which over time should support higher commercial spending.

Wrapping up, ASUR enters 2026 with a strengthened platform, greater diversification, disciplined capital allocation, robust balance sheet and proven operational model. While near-term traffic trends in some markets have moderated, the structural demand drivers for air travel in our region remains intact, and we are confident in our ability to generate long-term value for our shareholders.

With that, now we are ready to take your questions. Dave, please open the floor for questions.

[Operator Instructions] The first question comes from Andressa Varotto with UBS.

I have 2 questions. I can make the first one and then the next one. Starting with if you could share any additional color and projections about the recent ASUR U.S. acquisitions or if we can try to calculate how much it could add on revenue and EBITDA for the year based on the results showed in this quarter? And also, if you have any update on the process of the Motiva Airports acquisition?

Well, in the case of the U.S., 2 comments. First of all, you have the numbers for the first 20 days, which are, I will say, not something that we can consider as a normalized for the full year in '26. Due to the fact that during the third quarter this year, we're expecting the opening of the new Terminal 1 in New York at the JFK Airport, which is an important element of the equation of this transaction. So more or less the same for the first 3 quarters and then the jump because of the new Terminal 1.

In the case of the process for Motiva, everything is -- it's going well. Of course, it's going to take time. There are some process that are slow in the case of aeronautical approvals. But we expect to conclude this during the end, maybe the beginning of the third quarter this year.

Very clear. And my other question would be regarding the tax rate. We noticed a lower tax rate this quarter. I would like to understand if this is something that we can expect for upcoming quarters or was more of a one-off effect?

No, that is related to the results of the year.

[Operator Instructions] Our next question comes from Anton Mortenkotter with GBM.

I mean we saw really good performance on the commercial side on Puerto Rico and Colombia operations using local currency. So I was just wondering what kind of initiatives were you pushing in those markets? And should we expect to see that non-aero [ part ] continue growing?

Thank you for your question, Anton. Yes, the appreciation of the Mexican peso was for the quarter, 13.4%. So if you see the results in their currency, they were very good. In the case of Puerto Rico, we have worked in the second half of the year very hard on a new strategy into the convenience stores, and there are some other adjustments to improve the operational performance of the duty free. In the case of Colombia, I would say, apart from what I mentioned in terms of the new units we have established there, nothing else.

[Operator Instructions] This concludes our question-and-answer portion of today's call. I would like to turn back over to Mr. Castro for closing remarks.

Thank you, Dave. Ladies and gentlemen, that concludes ASUR's Fourth Quarter 2025 Results Conference Call. We would like to thank you again for your participation. You may now disconnect.

Ladies and gentlemen, that concludes ASUR's Fourth Quarter 2025 Results Conference Call. We would like to thank you again for your participation. You may now disconnect.

Good day, ladies and gentlemen, and welcome to ASUR's Third Quarter 2025 Results Conference Call. My name is Latanya, and I'll be your operator. [Operator Instructions] As a reminder, today's call is being recorded.

Now I'd like to turn the call over to Mr. Adolfo Castro, Chief Executive Officer. Please go ahead, sir.

Thank you, Latanya, and good morning, everyone. Before I begin discussing our results, let me remind you that certain statements made during the call today may constitute forward-looking statements, which are based on current management expectations and beliefs and are subject to several risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our company's control. Additional details about our third quarter 2025 results can be found in our press release, which was issued yesterday after market close and is available on our website in the Investor Relations section.

Following my presentation, I will be available for Q&A. As usual, all comparisons discussed on this call may be -- will be year-on-year and figures are expressed in Mexican pesos, unless specified otherwise.

Before discussing our results, I would like to begin today's call with an important strategic development. As recently announced, we entered into a definitive agreement to acquire URW Airports for an enterprise value of $295 million. This transaction marks a significant step forward in ASUR's international expansion strategy, building our established presence in the U.S., which began with the operation of San Juan Puerto Rico Airport in 2030. URW airports managed commercial programs are 3 most iconic and high-traffic airports in the United States. URW airports manage commercial programs at 3 of the terminals -- 3 of the airports in the United States, Los Angeles International Airport with 6 terminals, Chicago O'Hare International Airport at Terminal 5. And in the case of John F. Kennedy International Airport covering terminals 8 and the upcoming new terminal 1.

Together, these terminals process around 14 million enplanements annually. This acquisition provides ASUR with a strategic foothold in the 3 of the largest U.S. air travel markets and strengthens our position in the high-growth nonregulated commercial segment in the U.S. airport industry. The acquisition will be financed by JPMorgan Chase. As with all our strategic decisions, we are approaching this opportunity with a financial discipline and operational rigor that has long defined ASUR's execution. Closing is expecting during the second half of the 2025. Subject to customary regulatory approvals, we look forward to keeping you updated on our progress in the quarters ahead.

Now turning to our third quarter performance. We serve over 17 million passengers across our airports, with traffic remaining practically flat as continued growth in Colombia and Puerto Rico helping to offset persistent headwinds in Mexico. Starting with Colombia, passenger traffic rose 3% to close to 5 million, supported by a solid 11% increase in international traffic and a modest growth just under 1% in domestic volumes. In Puerto Rico, total traffic was up 1%, reaching over 3 million passengers. Growth was driven by international passengers, which increased nearly 12% year-on-year, offsetting the 0.5% decrease in domestic traffic.

In Mexico, traffic declined 1% to nearly 10 million passengers for the quarter. The decrease reflects softer demand, domestic traffic, which was down nearly 2% and international which saw a slight contraction of 0.3%. Passenger volumes from the United States, our largest international source market decreased just 0.2%, while South America contracted 7.2%. On the positive note, Canada and Europe increased 9.3% and 1.3%, respectively. Looking ahead, we anticipate a more balanced operating environment across our portfolio. In Mexico, we expect traffic to gradually stabilize over the next year as aircraft ability improves. In Puerto Rico and Colombia, we expect continuous positive momentum supported by the healthy international demand and improving productivity.

Now turning to review our financial results. As a reminder, all figures exclude construction revenues and costs, unless otherwise noted. Comparisons are all year-on-year unless otherwise noted. Total revenues increased in the mid-single digits, reaching over MXN 7 billion, driven by growth in Puerto Rico and Colombia. Mexico at 70% of total revenues posted a slight low single-digit decline with aeronautical revenues practically flat and non-aeronautical revenues down in the mid-single digits.

Revenue growth was limited by softer passenger volumes and the stronger peso, which continues to weigh on the U.S. linked revenue streams. Puerto Rico at nearly 18% of total revenues reported revenue growth in the high single digit driven by increases in 5% in aeronautical revenues and 10% in non-aeronautical revenues. This performance reflects positive passenger traffic trends and sustained demand across commercial activities. Colombia, which accounted for a total of [ 30% ] of the total revenues, delivered revenue growth in the high single digits, reflecting a mid-single digit increase in aeronautical revenues while non-aeronautical revenues were up in the high teens. This good performance was supported by passenger traffic growth and solid -- partially offset by the strong Mexican peso.

Continue our ongoing focus on commercial development. We added 45 new commercial spaces across our airports over the last 12 months, including 31 in Colombia, 8 in Puerto Rico and 6 in Mexico. This supported a low single-digit increase in commercial revenues as solid growth in Puerto Rico and Colombia was partially offset by a weaker performance in Mexico. On a per passenger basis, commercial revenue rose 1% to MXN 126. By region, Colombia led a 14% increase followed by Puerto Rico, up 10%, while Mexico posted a 4% decline, reaching MXN 144 per passenger.

Turning to costs. Total expenses were up nearly 17% year-on-year. By region, Mexico posted a 4% increase, largely due to higher maximum -- minimum wages and service costs. Puerto Rico reported expense increase of nearly 8%, reflecting inflationary pressures and higher operating activity. While Colombia cost increased 76%, mainly driven by an adjustment in amortization method of the concession. Without this increase would have been 5.4%. Lastly, in Puerto Rico and Colombia cost benefited from depreciation of Mexican peso against the U.S. dollar.

On the profitability front, consolidated EBITDA declined just over 1% year-on-year to MXN 4.6 billion in the quarter. Puerto Rico and Colombia delivered EBITDA growth of nearly 5% and 10%, respectively, while EBITDA in Mexico declined close to 4%, mainly reflecting lower traffic and higher operating costs. The adjusted EBITDA margin, which excludes construction related revenues and costs under IFRIC 12 declined by 157 basis points to 66.7%. This reflects lower margin contribution from the Mexican and Puerto Rico operations, where the margin contracted 152 and 151 basis points, respectively. In contrast, Colombia reported an 81 basis points margin expansion.

On our bottom line, this quarter was negatively impacted by depreciation of the Mexican peso against the U.S. dollar, which resulted in a foreign exchange loss of nearly MXN 1 billion compared to the reverse effect during the third quarter of last year. Profitability was also affected by the MXN 333 million adjustment in the concession amortization method in Colombia that I just explained.

Now moving to our balance sheet. We closed the quarter with a solid cash position of MXN 16 billion, down 19% from December 31, 2024, primarily reflecting dividend payments made during the period. Our net debt-to-EBITDA ratio remained at healthy 0.2x. In terms of capital deployment, in September, we paid an extraordinary dividend of MXN 15 per share funded from retained earnings. Note that in November, we will be paying an additional dividend of MXN15 per share.

Lastly, we invested close to MXN 1.9 billion during the quarter, primarily directed to projects our Mexican airports, including the reconstruction and expansion of Terminal 1 at Cancun Airport, and the terminal expansion in [indiscernible]. In Puerto Rico, we are progressing on the new pedestrian bridge for Terminal A, while in Colombia, we invested in maintenance CapEx.

In closing, our third quarter results reflect the resilience of multi-country platform and the value of our disciplined execution amid a more tempered demand environment. While traffic in Mexico continued to face near-term headwinds, we are encouraged by the ongoing momentum in Puerto Rico and Colombia. We remain focused on advancing on our commercial strategy, investing in infrastructure and maintaining a strong financial profile. These conclude my prepared remarks. Latanya, please open the floor for questions.

[Operator Instructions]. The first question comes from Rodolfo Ramos with Bradesco BBI.

I have a couple, if I may. The first one is in regards to the URW acquisition. Can you shed a bit of light on the economics, revenue per pax, how much EBITDA contribution you're expecting from these assets on an annualized basis?

And the second is on Colombia. Can you elaborate on this adjustment to the concession amortization method that we saw during the quarter, was this a one-off? Or should it be a new level going forward? I don't know if it has to do something with the economics of your concession title there?

Thank you for your questions. In the case of URW, I cannot yet share numbers with you until [indiscernible]. In the case of Colombia, basically, what we have done is to change amortization method because in accordance with our estimates, during 2027, we will not receive regulated revenues anymore, and the concession should be over by 2032. So we are aligning amortization in accordance with revenue generation there. And it's going to be not one-off. It's going to be from now the same level.

The next question comes from Emst Mortenkotter with GBM.

I wanted to follow up a little bit on URW. I understand you cannot discuss the financials. But leaving that aside, it seems like a great way to gain some strategic insight into the consumer that goes from your airports to the U.S. I just was wondering if you could discuss a little bit what kind of synergies do you see? Or what is the strategic rationale behind this acquisition?

Thank you, Anton. Well, basically, the most important for us is to get -- to put a foot in the U.S. market. The U.S. market represents 22% of the aviation market of the world. And these terminals are extremely important for the U.S. market. So pulling our name there is extremely important, and this should be the platform for future growth in the United States, probably in the same kind of contracts that we are entering right now. That is the most important thing.

Our next question comes from Andressa Varotto with UBS.

I have 2 here on my side. The first one is about Motiva Airports that are for sale. We've been seeing the news source that ASUR is [indiscernible] interested in this airport. So just wondering if you could provide some more information, if you're looking, for example, at all of the airports are just a subside of them. And how would the company finance this?

And my next question is regarding the traffic trends that you've been seeing for Mexico. We've been seen recently on news as well that Tulum airport has been facing some cancellations. And if you think that this could help Cancun airport in the near future. These are my 2 questions.

In the case of Motiva, I cannot comment. In the case of the traffic trends, what I see today, it's a slow recuperation in the domestic market because of Pratt & Whitney engines, something that should improve in my opinion during the next year. For the moment, the traffic is really weak and the demand is weak in the case of the region. If we see Cancun and Tulum together for the first 8 months of the year, and I'm saying that months because that is the latest public figure or the case of the airport of Tulum. The traffic for the region is a decrease of 3.1%. If we go to the latest month that has been published for the case of the airport of Tulum which is the month of August this year. August versus August last year, the traffic of the region was a decrease of 5.1%. So the traffic is soft. Nevertheless, what you are saying in terms of the recent cancellations to the airport of Tulum.

[Operator Instructions] Our next question comes from...

Sorry, could you repeat?

Our next question comes from Pablo Ricalde. The next question comes from Pablo Ricalde with Itau.

My question is related to the [indiscernible] Cancun? Is it still expected to be open around Q3 2026 or there are delays on that construction of that one?

What we are expecting is to open this new facility during the third quarter 2025 -- 2026, sorry.

Okay. So as expected.

The next question comes from Gabriel [indiscernible] with Deutsche Bank.

[indiscernible] Just 2 questions. First, is there any way or some how that capacity allocation from carriers has been shifting from Cancun? And the second one is the decrease in traffic could somehow make the pace of writing the tariffs towards the maximum tariff faster for either this year or next year?

Well, in terms of capacity, we are not -- we're not seeing a shift in capacity. What we are seeing basically is a weak demand, as I said, from the domestic resulted from Pratt & Whitney and some other elements. And in the case of the U.S., the numbers for the quarter is 0.2% decrease, which is small, but it's the largest market we have. Let's see how the winter comes. And I hope that the winter will be very strong in the north part of the Americas, and then they come. Positive side is the case of Canada, which is up for the quarter, and I thought that it will be up during the fourth quarter as well.

And in the case of the traffic that has somehow decreased, that could accelerate the pace on which tariffs are increased up to the maximum tariff?

No. I don't see that. Our maximum tax compliance this year should be similar of what it was last year, so more than 99%.

[Operator Instructions] At this time, we'll turn the call back over to Mr. Adolfo Castro for closing comments.

Thank you, Latanya, and thank you all of you again for joining us on our conference call for the third quarter 2025. We wish you a good day, and goodbye.

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.