Fraport Q2 Net Profit Drops, EBITDA Edges Up; Confirms FY26 Outlook

(RTTNews) - German airport operator Fraport Group (FRA.DE, 0O1R.L, FPRUF.PK) reported Thursday lower net profit in its second quarter, as expected, while EBITDA, a key earnings metric, slightly increased from last year with higher revenues. Further, the firm confirmed fiscal 2026 outlook.

Fraport CEO Stefan Schulte said, "While passenger volumes in Frankfurt are stagnating due to strikes and the current geopolitical situation in the Middle East, traffic is growing at most of Fraport Group's airports outside Germany. Financially, we remain on track. We are therefore maintaining our forecast for the full year, in terms of our financial guidance."

In the second quarter, Group result fell 32.2 percent to 84.7 million euros from last year's 125.0 million euros. Basic earnings per share declined 37.5 percent to 0.75 euro from 1.20 euros last year.

The anticipated drop in net profit reflected accounting effects, particularly in relation to the commissioning of the new terminals in Lima and Frankfurt.

Operating result or EBITDA edged up 0.7 percent to 386.3 million euros from prior year's 383.7 million euros.

In the quarter, the airport company's revenue grew 5.8 percent to 1.187 billion euros from 1.122 billion euros in the prior year. Revenue adjusted for IFRIC increased 3.9 percent.

The company noted that most of the airports in Fraport's international portfolio experienced positive passenger growth in the first half.

In contrast, passenger numbers in Frankfurt slipped by 0.8 percent in the first half of the year. At FRA, nearly 700,000 passengers were affected by strikes at Lufthansa alone.

The company added that the geopolitical situation in the Middle East led to significant oil price increases and reduced demand for travel to the region, prompting airlines to cut capacities.

Looking ahead for fiscal 2026, the company continues to expect net profit to decline, primarily due to increased interest expenses and higher depreciation and amortization following the completion of major expansion projects, and Group EBITDA to increase, reaching up to approximately 1.5 billion euros from last year's 1.44 billion euros.

Due to strikes, geopolitical tensions in the Middle East, and associated reduced airline capacities, Fraport now expects passenger volumes in Frankfurt to remain at roughly the previous year's level, at about 63.2 million.

The slightly weaker traffic performance will have a restraining effect on earnings performance.

However, Fraport's Executive Board continues to expect largely positive performance for the Group's international airport portfolio.

The company previously said it expects Group traffic to rise to around 188-195 million passengers.

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