Investing.com -- Fraport AG posted a 6.7% fall in full-year net profit for 2025 despite record operating earnings, and warned profit would fall to between €300 million and €400 million this year, down from €468.1 million, when its new Terminal 3 opens at Frankfurt Airport next month.
Group net profit fell to €468.1 million from €501.9 million, as the financial result widened to a loss of €228.7 million from €87.8 million. Earnings before interest, tax, depreciation, and amortisation rose 10.4% to a record €1.44 billion.
"Rising interest costs and higher depreciation and amortization, particularly as a result of the inauguration of the new Terminal 3, will lead to a Group result that will be well below the level reported in 2025," chief executive Stefan Schulte said in the annual report.
The financial result deteriorated mainly due to a €108.4 million decline in equity-method earnings, driven by a €99.3 million loss at the two Antalya operating companies after the devaluation of the Turkish lira hit deferred tax positions.
The prior year's result also included a one-off €45.0 million fair value gain on the exit from Pulkovo Airport in St. Petersburg.
A pension contribution refund provided a one-off net boost of around €50 million to both personnel expenses and the interest result in the third quarter. Basic earnings per share fell to €4.67 from €4.88.
Total revenue was broadly flat at €4.43 billion. Adjusted for construction revenue under IFRIC 12, revenue rose 8.2% to €4.21 billion.
Net financial debt edged down to €8.19 billion from €8.39 billion, with the debt-to-EBITDA ratio improving to 5.7 from 6.4. Free cash flow turned positive for the first time since 2018, at €24.4 million versus negative €674.7 million in 2024.
Fraport proposed a dividend of €1 per share, its first since 2019, representing a yield of 1.4% on the year-end share price of €69.95 and a total distribution of €92.5 million.
Frankfurt Airport handled 63.2 million passengers, up 2.6% but still below pre-pandemic levels, with Schulte citing high German aviation taxes, aircraft delivery delays, and the war in Ukraine.
Total group passengers rose 5.3% to approximately 184 million, surpassing 2019 levels for the first time, led by growth at the Greek regional airports, Lima, and Antalya.
Terminal 3, one of Europe's largest privately financed infrastructure projects, is scheduled to open on April 23. Fraport targets an EBITDA of around €2 billion and free cash flow approaching €1 billion by 2030.