Topic

: Yesterday, FWAG released Q2 results that were slightly better than expectations. In detail:

Q2 sales rose by 7.4% yoy to € 299m (eNuW: € 292m; eCons: 297m) on the back of higher group passenger numbers (+4.8% yoy) as well as higher fees. Noteworthy is the Malta segment, that continues to outperform the remaining group by having expanded sales by 10% yoy to € 43m.

Q2 EBITDA remained strong at € 130m (eNuW: € 128m, eCons: € 129m), but developed under proportionate to sales (+4% yoy; 43.7% margin, - 1.4pp yoy) on the back of higher personnel costs (€ 109m, +9% yoy). On a segment basis, the three most important EBITDA contributors all expanded their EBITDA (Airport: € 63.9, up +8.4% yoy; Retail & Properties: € 31.6m, up 8.5% yoy and Malta: € 28.6m, up 9.3% yoy) at slightly lower margins.

EBIT benefitted from slightly lower D&A of € 33m (-1% yoy) and thus arrived at € 97m (eNuW: € 95m; eCons: € 96m), up 5.6% yoy.

D&A remained

flat despite the ongoing, CAPEX heavy

southern

expansion, as the depreciation period will only start after completion. Therefore, we expect an uptick in D&A starting in FY’27e.

A key highlight remains cash generation. After a slightly negative WC swing in Q2, operating CF still stood at € 62m (H1: 157m). Due to the aforementioned

southern

expansion, as well as ongoing investments in Malta, CAPEX rose sharply by 88% yoy to € 79m (H1: € 125m). Unsurprisingly, FCF came in at € -17m (H1: € 32m). Thus, and following the dividend payout in Q2’25, net liquidity now stands at € 398m, but is nevertheless up 14% yoy.

FWAG continues to hoard cash until

its 3rd runway decision

is made. Again, this decision will either pose the need to use most cash plus outside capital (debt or equity are possible) for this project or pose the need to improve the capital structure and lower the high cash position in terms of shareholder returns (eNuW: elevated dividends over a period of time) if the project is not pursued.

Next to Q2 results, FWAG also reported July passenger numbers, showing a first glance into Q3. On group level, passengers grew by 1% to 4.45m, mainly driven by MLA (+8% yoy) and KSC (+1% yoy), whereas VIE showed a slight decline by -1% yoy, due to the 12 day war effect (see update from 17th July 2025).

As the release was well in line with our estimates and the decision for the 3rd runway still creates some uncertainty of the airport’s future (and implied shareholder returns), we maintain our HOLD recommendation and keep our PT of € 60.00 unchanged for the time being, However, after the fundamental 3rd runway decision, a revaluation of the case seems likely.