Core Viewpoint - Grupo Aeroportuario del Pacífico (GAP) is currently focused on resuming airport operations in Jamaica following the impact of Hurricane Melissa, a Category 5 storm, which led to the suspension of operations at Kingston and Montego Bay airports [1][2]. Group 1: Impact of Hurricane Melissa - Hurricane Melissa caused the suspension of operations at Kingston Airport on October 25 at 9:00 p.m. and at Montego Bay Airport on October 26 at 12:00 p.m. due to deteriorating weather conditions [1]. - GAP is assessing the damage to airport facilities and is coordinating with authorities to restore normal operations as soon as possible [2]. Group 2: Company Response and Priorities - The CEO of GAP emphasized that the priority is the safety and well-being of employees, their families, stranded passengers, and local communities [2]. - GAP's airport terminals in Kingston and Montego Bay have remained closed since the weekend, and the company is committed to safely reopening them to facilitate humanitarian aid [2]. Group 3: Financial Significance - During the first nine months of 2025, the airports in Jamaica accounted for 11.0% of GAP's total passenger traffic and 8.8% of consolidated EBITDA [2]. Group 4: Company Overview - Grupo Aeroportuario del Pacífico operates 12 airports in Mexico's Pacific region, including major cities and tourist destinations [4]. - GAP has been involved in airport operations in Jamaica since acquiring a majority stake in MBJ Airports Limited in April 2015 and taking control of the Norman Manley International Airport in October 2019 [4]. Group 5: Future Monitoring - GAP will continue to monitor the situation and provide updates on damage assessments, operating conditions, and the timeline for resuming operations [3].

Financial Data and Key Metrics Changes - Total passenger traffic across GAP's 14 airports increased by 2.5% year-over-year, reaching 15.8 million passengers in Q3 2025, despite a decline in international passenger traffic [5][4] - Total revenues increased by 17.4% compared to Q3 2024, driven by both aeronautical and non-aeronautical business performance [7] - EBITDA grew by 12.8%, reaching MXN 5.1 billion, with an EBITDA margin of 64.3% [9][10] - The cost of services increased by 14.1% year-over-year, primarily due to operational changes in managing jet bridges and airport buses [9] Business Line Data and Key Metrics Changes - Aeronautical revenue grew by 18.3%, reflecting the implementation of new maximum tariffs [7] - Non-aeronautical revenues increased by 15.6%, with significant contributions from food and beverages, retail, duty-free, ground transportation, and timeshares [8] - Revenue from business operated directly by GAP rose by 30.1%, mainly due to the consolidation of the cargo and bonded warehouse business [7] Market Data and Key Metrics Changes - International passenger traffic faced challenges due to immigration-related issues and a more restrictive perception under the current U.S. administration [4] - Domestic demand showed sustained recovery, supported by new routes and additional frequencies [5] Company Strategy and Development Direction - The company is focused on connectivity and diversifying its network, with plans to launch eight new international routes to Canada in Q4 2025 [5][6] - GAP aims to strengthen its position as a regional hub by connecting Los Cabos directly to Panama, expanding its network into Central America [6] - The company continues to optimize its commercial offerings and leverage passenger flow growth to enhance value creation across all airports [8] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic despite macroeconomic uncertainty and exchange rate volatility, citing a resilient domestic market and disciplined financial management [11] - The company expects to maintain its leadership position in the region and generate long-term value for shareholders [11] Other Important Information - The company paid a dividend of MXN 8.42 per share in Q3 2025 and issued two new bond certifications totaling MXN 8.5 billion [10] - The process related to the Turks and Caicos tender is ongoing, with no resolution announced yet [12] Q&A Session Summary Question: Can you talk about the traffic dynamics currently experienced? - Management noted a decline in international traffic, particularly in VFR routes, but expressed optimism for recovery in the coming months as capacity increases [15][16] Question: On the commercial side, how far off are we from seeing top-line revenue growth stabilize? - Management indicated that double-digit growth in directly operated businesses is expected to continue, with new commercial areas contributing to revenue growth [18][19] Question: Can you clarify the expected level of costs for the coming quarters? - Management confirmed that the current level of costs is expected to persist due to increased facilities and headcount [24][25] Question: What is the expected effect of next year's World Cup on traffic figures? - Management anticipates a positive impact on traffic, particularly in Guadalajara, but noted that the exact effect will depend on the lottery of national teams [54][55] Question: Can you provide details on the commercial areas coming online in the next few years? - Management outlined plans for significant expansions in terminal buildings, which will increase commercial space by 55% by 2029 [56][58]

Financial Data and Key Metrics Changes - Total passenger traffic increased by 2.5% year-over-year, reaching 15.8 million passengers in Q3 2025, despite a decline in international passenger traffic [5][4] - Total revenues grew by 17.4% compared to Q3 2024, driven by both aeronautical and non-aeronautical business performance [7] - Aeronautical revenue increased by 18.3%, while non-aeronautical revenues rose by 15.6% [7][8] - EBITDA grew by 12.8%, reaching $5.1 billion pesos, with an EBITDA margin of 64.3% [9][10] - Cash and cash equivalents stood at $11.7 billion as of September 3, 2025 [10] Business Line Data and Key Metrics Changes - Revenue from business operated directly by the company rose by 30.1%, mainly due to the consolidation of the cargo and bonded warehouse business [7] - Revenue from third-party operators increased by 4.7%, supported by new commercial spaces and renegotiated contracts [8] - The strongest performing business lines included food and beverages, retail, duty-free, ground transportation, and timeshares [8] Market Data and Key Metrics Changes - International passenger traffic faced challenges due to immigration-related issues and a more restrictive perception under the current U.S. administration [4] - Domestic demand showed sustained recovery, helping to offset the decline in international travel [5] Company Strategy and Development Direction - The company plans to launch eight new international routes to Canada in Q4 2025, enhancing connectivity and supporting demand during the winter season [5][6] - The company is focused on diversifying its network and expanding commercial areas to strengthen its long-term revenue base [8][10] - The ongoing process related to the Turks and Caicos tender and potential acquisition of Motiva Airports indicates the company's strategic expansion efforts [12][41] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future growth, despite macroeconomic uncertainties and exchange rate volatility [11] - The company continues to benefit from a resilient domestic market and disciplined financial management [11] - Management anticipates a recovery in the VFR markets in the coming years, driven by increased seat capacity from airlines [16] Other Important Information - The company paid a dividend of $8.42 per share in Q3 2025 and issued two new bond certifications totaling $8.5 billion pesos [10] - The company invested approximately $7 billion pesos in capital expenditures during the first nine months of 2025, focusing on major infrastructure projects [11] Q&A Session Summary Question: Can you talk about the traffic dynamics currently experienced? - Management noted a decline in international traffic, particularly in VFR routes, but expressed optimism for recovery as airlines increase capacity [14][15] Question: On the commercial side, how far off are we from seeing top-line revenue growth stabilize? - Management indicated that double-digit growth in directly operated businesses is expected to continue, with new commercial areas contributing to revenue growth [17][18] Question: Can you clarify the expected level of costs and expenses for the coming quarters? - Management confirmed that the current level of costs is expected to persist due to increased facilities and headcount [23][24] Question: What is the expected effect of next year's World Cup on traffic figures? - Management anticipates a positive impact on traffic, particularly in Guadalajara, but noted that the exact effect will depend on the lottery of national teams [52][54] Question: Can you provide details on the commercial areas coming online in the next few years? - Management outlined plans for significant expansions in terminal buildings, which will increase commercial space by 55% by 2029 [55][56]

Financial Data and Key Metrics Changes - Total passenger traffic increased by 2.5% year-over-year, reaching 15.8 million passengers in Q3 2025 despite a decline in international traffic [4][3] - Total revenues grew by 17.4% compared to Q3 2024, driven by both aeronautical and non-aeronautical business performance [5][6] - EBITDA increased by 12.8%, reaching $5.1 billion pesos, with an EBITDA margin of 64.3% [8][9] Business Line Data and Key Metrics Changes - Aeronautical revenue rose by 18.3%, influenced by a new maximum tariff implementation [5] - Non-aeronautical revenues increased by 15.6%, with significant contributions from food and beverages, retail, duty-free, ground transportation, and timeshares [6][7] - Revenue from business operated directly by the company surged by 30.1%, primarily due to the consolidation of cargo and bonded warehouse operations [5] Market Data and Key Metrics Changes - International passenger traffic faced challenges due to immigration-related issues and a restrictive perception under the current U.S. administration [3] - Domestic demand showed sustained recovery, helping to offset the decline in international travel [4] Company Strategy and Development Direction - The company plans to launch eight new international routes to Canada in Q4 2025, enhancing connectivity and supporting demand during the winter season [4] - The focus remains on diversifying the network and optimizing commercial offerings to enhance long-term value creation [7][10] - The company is actively managing its capital structure to support long-term investment commitments and potential organic growth [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future performance, citing macroeconomic uncertainty and exchange rate volatility as short-term challenges [10] - The company continues to benefit from a resilient domestic market and disciplined financial management, maintaining its leadership position in the region [10] Other Important Information - The company remains in a strong liquidity position with $11.7 billion in cash and cash equivalents as of September 30, 2025 [9] - The ongoing process related to the Turks and Caicos tender and potential acquisition of Motiva Airports is under analysis [11] Q&A Session Summary Question: Can you talk about the traffic dynamics currently experienced? - Management noted a decline in international traffic, particularly in VFR routes, but expressed optimism for recovery in the coming months as airlines increase capacity [13][15] Question: What is the expected level of costs and expenses for the coming quarters? - Management indicated that the current cost levels are expected to persist due to increased facilities and headcount, impacting EBITDA margins [21][23] Question: Can you elaborate on the Motiva Airports assets acquisition plans? - Management stated they are exploring options for the acquisition, considering both partnerships and independent bids, with financing likely to come from leverage [27][28] Question: What is the expected effect of next year's World Cup on traffic figures? - Management anticipates a positive impact on traffic, particularly in Guadalajara, but noted that the exact effects depend on the lottery of national teams [46][47] Question: Can you provide details on the commercial areas coming online in the next few years? - Management outlined plans for significant expansions in terminal buildings, which will increase commercial space and opportunities for revenue growth [48][49]

Financial Data and Key Metrics Changes - Total passenger traffic across GAP's 14 airports increased by 2.5% compared to the same period of 2024, reaching 15.8 million passengers in the quarter [6] - Total revenues increased by 17.4% versus Q3 2024, driven by strong performance in both aeronautical and non-aeronautical businesses [7] - EBITDA grew by 12.8%, reaching ARS 5.1 billion, with an EBITDA margin of 64.3% excluding IFRIC 12 [11] - Cash and cash equivalents stood at ARS 11.7 billion as of September 30, 2025 [12] Business Line Data and Key Metrics Changes - Aeronautical revenue grew by 18.3%, reflecting the new maximum tariff adjustments [8] - Revenue from business operated directly by GAP rose by 30.1%, mainly due to the consolidation of cargo and warehouse operations [8] - Revenues from third-party operators increased by 4.7%, supported by new commercial spaces and renegotiated contracts [9] Market Data and Key Metrics Changes - Passenger traffic decline was attributed to immigration-related challenges and a more restrictive perception under the current U.S. Administration [6] - Domestic demand showed sustained recovery, helping to offset declines in international travel [7] Company Strategy and Development Direction - The company remains focused on connectivity and diversifying its network, with plans to launch eight new international routes to Canada [7] - Strategic expansion opportunities include ongoing processes related to TORX and CAICO's tender, as well as potential acquisition of Motiva Airports [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding macroeconomic uncertainty and exchange rate volatility, while highlighting the benefits from a diversified portfolio of airports [13] - The company anticipates continued growth in both aeronautical and non-aeronautical revenues, maintaining its leadership position in the region [13] Other Important Information - The company paid a second and final dividend installment of ARS 8.42 per outstanding share during the quarter [12] - Significant investments of approximately ARS 10 billion were made in major infrastructure projects under the master development program [12] Q&A Session Summary Question: Can you talk about the traffic dynamics currently experienced? - Management noted a deceleration in VFR markets but expressed optimism about recovery in the coming years due to fixed capacity announcements by airlines [19][21] Question: How far off are we from seeing top-line revenue growth stabilize? - Management indicated that double-digit growth is expected to continue in directly operated businesses, with new commercial areas contributing to revenue growth [23][24] Question: Can you provide details on the expected cost levels for the coming quarters? - Management confirmed that the current cost levels are expected to persist due to increased facilities and headcount [29] Question: What is the expected effect of the next year's World Cup on traffic figures? - Management anticipates a positive impact on traffic, particularly in Guadalajara, but noted that the exact effects depend on the lottery of national teams [62] Question: Can you elaborate on the tariff increases expected for 2026? - Management confirmed that multiple tariff increases are planned for 2026, with expectations of reaching 93% to 97% fulfillment of the maximum tariff by the end of the year [40][42]

Core Insights - Grupo Aeroportuario del Pacífico (GAP) reported a consolidated revenue increase of Ps. 1,343.9 million, or 16.3%, for the third quarter of 2025 compared to the same period in 2024, driven by growth in both aeronautical and non-aeronautical services [6][17][31] - The company experienced a total passenger traffic increase of 386.5 thousand, representing a 2.5% growth year-over-year [4][11] - Comprehensive income decreased by Ps. 162.8 million, or 6.2%, primarily due to increased foreign currency translation losses [26][27] Financial Position - As of September 30, 2025, GAP reported cash and cash equivalents of Ps. 11,699.5 million [3] - The company issued long-term bond certificates totaling Ps. 8,500.0 million to finance capital investments and repay a bank loan [3] - GAP refinanced its credit line with Banco Nacional de México for USD$40.0 million, extending the maturity to September 18, 2030 [3] Passenger Traffic - Total passenger traffic across GAP's 14 airports increased by 386.5 thousand, or 2.5%, compared to 3Q24 [4][11] - New domestic and international routes were inaugurated, contributing to the growth in passenger numbers [4][5] Revenue Breakdown - Aeronautical services revenues increased by Ps. 846.4 million, or 18.3%, while non-aeronautical services revenues rose by Ps. 327.6 million, or 15.6% [17][31] - Revenues from improvements to concession assets increased by Ps. 169.9 million, or 11.3% [20][31] - The fastest-growing non-aeronautical revenue segments included food and beverage, retail stores, and ground transportation [19] Operating Costs - Total operating costs increased by Ps. 914.3 million, or 20.3%, compared to 3Q24, driven by higher technical assistance and concession fees [21][23] - The cost of services rose by Ps. 201.8 million, or 14.1% [21][23] Profitability Metrics - Income from operations increased by Ps. 429.6 million, or 11.5%, with an operating income margin decrease from 45.2% in 3Q24 to 43.3% in 3Q25 [25][31] - EBITDA increased by Ps. 578.0 million, or 12.8%, with an EBITDA margin decline from 54.8% to 53.1% [25][31] Net Income - Net income for 3Q25 increased by Ps. 713.2 million, or 36.0%, compared to 3Q24 [27][31] - Income before income taxes rose by Ps. 827.8 million, or 31.1% [26][27]

Core Insights - Lockheed Martin Corporation (LMT) is enhancing its PAC-3 Missile Segment Enhancement (MSE) system by integrating artificial intelligence and machine learning to improve air and missile defense capabilities [1][11] - The AI-driven PAC-3 MSE system can detect, track, and respond to targets more quickly, adapting in real-time to changing threat patterns, thereby enhancing accuracy and decision-making on the battlefield [2][11] - Lockheed Martin is expanding the use of AI across various defense systems to improve threat identification and resource utilization, aiming to provide warfighters with a stronger defense advantage [3][11] Importance of AI - Artificial intelligence is rapidly evolving, with technologies like machine learning and computer vision transforming industry operations and increasing the need for effective data management and insights [4] - In the defense sector, AI enhances surveillance, security, and decision-making in complex situations, while also aiding in the development of autonomous systems and real-time threat detection [5] Other Stocks to Watch - Northrop Grumman Corporation (NOC) is leveraging NVIDIA technology to advance AI-driven space operations, with a long-term earnings growth rate of 3.85% and a projected 2.7% decline in 2025 EPS [6][7] - RTX Corporation (RTX) signed a 10-year Memorandum of Understanding with Singapore's Economic Development Board, aiming for a long-term earnings growth rate of 9.07% and a 3.7% increase in 2025 EPS [7][8] - AeroVironment (AVAV) acquired BlueHalo, enhancing its capabilities in AI and autonomy, with a long-term earnings growth rate of 16.23% and a projected 4.6% increase in fiscal 2026 EPS [8][9] LMT Stock's Price Performance - Over the past three months, Lockheed Martin's shares have increased by 7.1%, outperforming the industry's growth of 4.8% [12]

Core Insights - Grupo Aeroportuario del Pacífico (GAP) reported a 1.0% increase in total terminal passenger traffic across its 12 Mexican airports for September 2025 compared to September 2024 [2][3] - The overall passenger traffic for the year-to-date (January to September) increased by 6.4% compared to the same period in 2024 [3] Passenger Traffic Summary - **Total Terminal Passengers**: - September 2025: 2,821.1 thousand, up from 2,731.9 thousand in September 2024, representing a 3.3% increase [3] - Year-to-date (Jan-Sep 2025): 27,071.6 thousand, compared to 25,452.6 thousand in 2024, a 6.4% increase [3] - **Domestic Terminal Passengers**: - September 2025: 1,580.8 thousand, down from 1,632.4 thousand in September 2024, a decrease of 3.2% [5] - Year-to-date (Jan-Sep 2025): 20,736.8 thousand, slightly up from 20,684.7 thousand in 2024, a 0.3% increase [5] - **International Terminal Passengers**: - September 2025: 1,240.3 thousand, down from 1,188.8 thousand in September 2024, a decrease of 4.2% [5] - Year-to-date (Jan-Sep 2025): 6,334.8 thousand, compared to 6,267.5 thousand in 2024, a 1.1% increase [5] Airport-Specific Performance - **Guadalajara Airport**: - September 2025: 990.4 thousand, up 1.3% from 977.6 thousand in September 2024 [3] - Year-to-date (Jan-Sep 2025): 9,295.2 thousand, a 5.9% increase from 8,779.7 thousand in 2024 [3] - **Tijuana Airport**: - September 2025: 675.4 thousand, a 2.2% increase from 660.8 thousand in September 2024 [3] - Year-to-date (Jan-Sep 2025): 6,434.0 thousand, a 2.3% increase from 6,288.3 thousand in 2024 [3] - **Los Cabos Airport**: - September 2025: 208.4 thousand, down 5.7% from 220.9 thousand in September 2024 [3] - Year-to-date (Jan-Sep 2025): 2,170.7 thousand, a 2.4% increase from 2,119.7 thousand in 2024 [3] - **Puerto Vallarta Airport**: - September 2025: 235.2 thousand, a 7.4% increase from 219.0 thousand in September 2024 [3] - Year-to-date (Jan-Sep 2025): 2,354.6 thousand, an 11.0% increase from 2,121.6 thousand in 2024 [3] Operational Metrics - **Seats and Load Factors**: - Available seats in September 2025 increased by 1.3% compared to September 2024 [9] - Load factors decreased from 81.0% in September 2024 to 80.7% in September 2025 [9]

Group 1 - The company Grupo Aeroportuario del Pacífico (GAP) has refinanced a USD $40.0 million credit line with Banco Nacional de México for a five-year term, maturing on September 18, 2030 [1] - The interest on the new credit line will be paid monthly at a variable rate equivalent to SOFR plus 81 basis points, with no additional commissions [1] Group 2 - GAP operates 12 airports in Mexico's Pacific region, including major cities like Guadalajara and Tijuana, as well as tourist destinations such as Puerto Vallarta and Los Cabos [2] - The company was listed on the New York Stock Exchange in February 2006 and acquired a majority stake in MBJ Airports Limited in April 2015 [2] - GAP entered into a concession agreement for the Norman Manley International Airport in Jamaica in October 2018 and took control of operations in October 2019 [2]

Core Insights - Grupo Aeroportuario del Pacífico (GAP) reported a 3.3% increase in total terminal passenger traffic across its 12 Mexican airports in August 2025 compared to August 2024 [2][3] - The total number of terminal passengers for August 2025 reached approximately 3.28 million, up from 3.12 million in August 2024 [3][6] - The year-to-date passenger traffic from January to August 2025 increased by 6.7% compared to the same period in 2024, totaling approximately 24.25 million passengers [3][6] Passenger Traffic by Airport - Guadalajara airport saw a 4.7% increase in passenger traffic, with 1.1 million passengers in August 2025 compared to 1.05 million in August 2024 [3][7] - Puerto Vallarta experienced the highest growth at 12.8%, with 314,000 passengers in August 2025 [3][7] - Tijuana airport reported a slight decrease of 1.6%, with 785,600 passengers in August 2025 [3][7] Domestic and International Passenger Trends - Domestic terminal passengers increased by 0.8% to approximately 2.15 million in August 2025 [5][6] - International terminal passengers decreased by 6.3% at Puerto Vallarta and 6.8% at Tijuana, while Montego Bay saw a 5.3% increase [5][6] Load Factors and Capacity - Available seats in August 2025 increased by 3.6% compared to August 2024, while load factors slightly decreased from 84.3% to 84.0% [9] - The overall capacity utilization remains stable despite the increase in available seats [9] Company Overview - Grupo Aeroportuario del Pacífico operates 12 airports in Mexico's Pacific region, including major cities and tourist destinations [10] - The company has been publicly traded since February 2006 on both the New York Stock Exchange and the Mexican Stock Exchange [10]