Breaking Down Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) Financial Health: Key Insights for Investors

You're looking at Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) not just as an airport operator, but as a proxy for regional economic resilience, and honestly, the 2025 numbers show a story of strong operational execution despite macro headwinds. The core takeaway is that the company is converting passenger volume into impressive profitability, even with international travel facing some softness; for instance, Q2 2025 total revenues surged by a massive 49.9%, hitting Ps. 10.88 billion, while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew 31.1% to Ps. 5.5 billion. This isn't just a fluke, either, as Q3 2025 Earnings Per Share (EPS) came in strong at $5.34, supported by a quarterly passenger traffic of 15.8 million. Still, you have to map the near-term risks, like the ongoing Pratt & Whitney engine issues that could constrain carrier capacity, against clear opportunities like the strategic expansion into Brazil and the tailwind from the 2026 World Cup in Guadalajara, which should defintely boost future traffic and non-aeronautical revenue. The market consensus reflects this mixed but positive picture, with the average annualized price target for 2025 sitting around $275.39, suggesting a solid upside from recent trading levels if they can maintain this growth pace and manage foreign currency translation losses.

Revenue Analysis

You need to know where Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) makes its money, because an airport operator's revenue mix tells you everything about its resilience against economic cycles. The direct takeaway from the Q3 2025 results is that the company's core airport operations-both airside and commercial-are driving strong growth, with total revenue hitting Ps. 9,588.68 million for the quarter. That's a solid, double-digit 16.3% increase year-over-year (YoY). That's a good number.

The revenue structure is built on two primary pillars: aeronautical services and non-aeronautical services, plus a significant portion from construction revenue (IFRIC 12), which is a non-cash accounting adjustment for concession assets. For Q3 2025, the breakdown shows a healthy reliance on passenger-driven fees, but also a growing commercial side. Here's the quick math on the contribution of each segment:

• Aeronautical Services: 57.06% of total revenue.
• Non-Aeronautical Services: 25.32% of total revenue.
• Construction Revenue (IFRIC 12): 17.62% of total revenue.

The split is defintely favorable, with over three-quarters of the revenue coming from the actual operation of the airports in Mexico and Jamaica, giving us a clear view of the company's core business performance. For a deeper dive into the risks and opportunities behind these numbers, you should check out the full post: Breaking Down Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) Financial Health: Key Insights for Investors.

Segment Growth and Key Drivers

The year-over-year growth tells the real story of momentum. Aeronautical revenue, which includes passenger fees (TUA), landing, and parking charges, increased by an impressive 18.3% in Q3 2025. This surge was primarily driven by the implementation of a new maximum tariff, a regulatory mechanism that allows the company to adjust fees based on its Master Development Program investments. This is a predictable, regulated tailwind.

Non-aeronautical revenue, which is a key indicator of commercial strength, grew by 15.6% in the quarter. This segment is where the company captures value from passenger dwell time (duty-free, food and beverage, retail, car rental, etc.). The growth here is strong in both the Mexican and Jamaican airport operations, showing their strategy of expanding commercial areas is paying off. Specifically, non-aeronautical revenue from businesses operated directly by Grupo Aeroportuario del Pacífico (like cargo and fiscal deposits) saw a very strong boost, adding Ps. 327.6 million in new revenue for the quarter.

Here's the segment-by-segment performance for Q3 2025:

What this breakdown hides is the currency exposure. The company generates roughly 80% of its revenue in Mexican pesos and 20% in US dollars, which means a strong peso can create foreign currency translation losses, as seen in the drop in comprehensive income despite the revenue growth. Still, the underlying operational revenue is clearly on a strong, upward trajectory. The action item for you is to monitor the new tariff implementation and its full impact on Q4 2025 results.

Profitability Metrics

You're looking at Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) because you know airport operators are fundamentally high-margin businesses. The 2025 fiscal year data confirms this, but it also reveals some critical margin pressures you need to map to your investment thesis. The direct takeaway? PAC is a profitability powerhouse, but its margins are defintely contracting year-over-year due to regulatory changes and cost inflation.

For the third quarter of 2025 (3Q25), Grupo Aeroportuario del Pacífico, S.A.B. de C.V. posted a stellar Gross Margin of 82.55%, an Operating Margin of 43.33%, and a Net Margin of 29.16%. These percentages show the company's ability to turn revenue into profit is exceptional, which is typical for a concession-based infrastructure business. The company's total revenues for the quarter reached Ps. 9.58 billion.

Operational Efficiency and Margin Trends

While the absolute numbers are strong, the trend is what matters for a forward-looking analyst. We are seeing a clear compression in margins, driven by specific, non-recurring, and recurring factors. For instance, the Operating Income Margin fell from 48.4% in 2Q24 to 42.1% in 2Q25. Here's the quick math on the key drivers:

• Total operating costs increased substantially by 68.2% in the second quarter of 2025.
• EBITDA Margin (Earnings Before Interest, Taxes, Depreciation, and Amortization) dropped from 67.0% in 3Q24 to 64.3% in 3Q25.
• The primary cause for the 3Q25 EBITDA margin drop was the change in concession fees for the Mexican airports, which rose from 5% to 9% of gross revenue.

This is a perfect example of a regulatory change directly hitting the bottom line. You can see how this structural cost increase offsets the revenue growth from traffic and non-aeronautical services. To be fair, strong revenue growth still means more profit dollars, but the profit rate is lower.

PAC vs. The Industry Benchmark

When you compare Grupo Aeroportuario del Pacífico, S.A.B. de C.V.'s profitability to the broader sector, the company's financial health stands out. The industry average for US Airport Operations is a Net Profit (or Net Margin) of around 5.9% of revenue for 2025. PAC's 29.16% Net Margin is five times that benchmark, underscoring its dominant position and the high-profit nature of its concession contracts, especially those in Mexico and Jamaica. This is a massive competitive advantage.

What this estimate hides is the difference between airport operators like PAC and the airlines they serve. The global airline industry, for context, is expected to see a 2025 Net Profit Margin of only 3.6% to 3.7%, highlighting the superior financial model of airport infrastructure. This is why you invest in the toll collector, not the car.

We can summarize the core profitability metrics for the last reported quarter of 2025 in the table below:

The company's ability to maintain an 82.55% Gross Margin shows excellent cost management at the service level, but the drop to a 43.33% Operating Margin indicates that higher overhead and concession fees are the primary drags on operational profitability. You can learn more about the strategic focus that supports this performance in their Mission Statement, Vision, & Core Values of Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC).

Next step: Check the Q4 2025 guidance for any further expected impact from rising costs or regulatory changes.

Debt vs. Equity Structure

You're looking at Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) and wondering how they fund their massive infrastructure projects-it's a fair question for any capital-intensive business. The direct takeaway is that PAC relies heavily on debt financing, a normal practice for airport operators, but their strong operating cash flow and top-tier credit ratings make this leverage manageable. Their debt-to-equity ratio is high, but their net debt to EBITDA remains within a healthy range for the sector.

As of the most recent quarter (MRQ) in 2025, Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC)'s Total Debt to Equity ratio stood at approximately 228.06%, meaning the company uses over twice as much debt as shareholder equity to finance its assets. For a capital-intensive infrastructure company, a ratio above 1 is common, but this 2.28x figure is significantly higher than the US 'Airports & Air Services' industry average of -0.01 (which suggests net cash or very low debt for the US sample) or the general capital-intensive industry benchmark of up to 2.5. However, their Long-Term Debt to Equity ratio is also high at 189.02%, highlighting a structural reliance on long-term capital for their Master Development Program investments.

The company is defintely a trend-aware realist in how it manages this debt. Instead of letting short-term debt pile up, they are constantly refinancing. For example, in February 2025, PAC issued Ps. 6.0 billion (Mexican Pesos) in long-term bonds to pay off existing debt certificates, including the Ps. 2.5 billion 'GAP 21' bond that matured in May 2025. This is smart balance sheet management-it pushes maturity dates out and locks in rates.

Here's the quick math on their recent debt activity:

• February 2025 Issuance: Ps. 6.0 billion in long-term bonds.
• August 2025 Issuance: Ps. 8.5 billion in long-term bonds.
• Q2 2025 Refinancing: Secured a Ps. 3.375 billion credit facility from Banamex.

What this estimate hides is the purpose: the August issuance alone was earmarked to finance approximately Ps. 7 billion in capital investment and repay a Ps. 1.5 billion bank loan. This shows a clear balance: debt is for both growth (capital investments) and risk management (repaying near-term maturities). You can see their strategic focus on growth and long-term planning in their Mission Statement, Vision, & Core Values of Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC).

The quality of this debt is a key factor. Grupo Aeroportuario del Pacífico, S.A.B. de C.V. has consistently received the highest credit ratings in Mexico, specifically "Aaa.mx" from Moody's and "mxAAA" from S&P, both with a stable outlook. This top rating shows lenders trust the company's ability to service its debt, which is crucial for an infrastructure player. Their Net Debt to EBITDA ratio was reported at a healthy 1.8x as of Q2 2025, a much better indicator of debt sustainability than the D/E ratio alone, as it relates debt directly to operating cash flow.

The table below summarizes their financing approach for 2025:

The company is balancing debt financing with equity by using debt to fund its long-term, high-return concession assets, which generate predictable cash flows (EBITDA). This is a classic infrastructure model: borrow long-term at favorable rates against stable assets and use the cash flow to manage the debt. The recent refinancing of a USD 40 million credit line to a 2030 maturity further demonstrates their commitment to pushing out short-term risk. Your next step should be to monitor their EBITDA growth in Q4 2025; if it keeps pace, the 1.8x net debt ratio will continue to look very attractive.

Liquidity and Solvency

You want to know if Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) can cover its near-term obligations, and the short answer is yes, with a healthy, actively managed liquidity profile. As of the most recent reporting, the company maintains a strong cash position and its core liquidity ratios are well within comfortable limits for an infrastructure operator.

The company's ability to meet its immediate financial needs is reflected in its current and quick ratios (measures of short-term liquidity). The Most Recent Quarter (MRQ) data shows both the Current Ratio and the Quick Ratio at approximately 1.29. This is a solid position, meaning current assets exceed current liabilities by nearly 30%. For an airport operator, which has highly predictable revenue streams and minimal inventory, a ratio above 1.0 is defintely a sign of strength.

• Current Ratio: 1.29 (MRQ) - Current assets cover short-term debt.
• Quick Ratio: 1.29 (MRQ) - Strong, given the low inventory nature of the business.
• Cash Position: Ps. 11,699.5 million (as of September 30, 2025).

Working capital trends remain positive, anchored by substantial cash reserves. As of September 30, 2025, Grupo Aeroportuario del Pacífico, S.A.B. de C.V. reported cash and cash equivalents of Ps. 11,699.5 million. This sizable cash buffer provides significant operational flexibility, especially considering the company's ongoing, large-scale capital expenditure program. The company's net debt-to-EBITDA ratio of 1.8x as of Q2 2025 also indicates a healthy balance sheet, showing debt is manageable relative to earnings.

Here's the quick math on cash flow, which tells the real story of liquidity management:

The cash flow statement overview shows a classic, healthy profile for a growing concession operator: strong positive cash flow from operations is being strategically channeled into high-value capital expenditures (Investing) and a mix of debt refinancing and shareholder returns (Financing). The company is actively issuing new long-term bonds-like the Ps. 8,500.0 million issuance in Q3 2025-to fund approximately Ps. 7,000.0 million in capital investment, which is a clear, deliberate action to maintain liquidity while funding the Master Development Program. This debt is long-term, which mitigates near-term liquidity concerns.

The primary strength is the consistent, high-margin operating cash flow, which is the engine for everything else. What this estimate hides is the commitment of MXP 43,185 million for capital investments over the 2025-2029 period, meaning the negative cash flow from investing will continue to be a dominant feature. Still, the company's proactive refinancing, like extending a USD$40.0 million credit line to 2030 in Q3 2025, demonstrates a strong focus on managing its debt maturity schedule and avoiding any potential liquidity crunch. For a more detailed look at who is investing in this strong financial position, check out Exploring Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) and asking the core question: is it overvalued, undervalued, or fairly priced? The quick answer is that analysts see it as fairly valued right now, leaning toward a Hold consensus, but its premium multiples suggest investors are paying up for its quality and growth.

As of late 2025, the market is pricing in a lot of the company's expected growth. The consensus rating from eight Wall Street analysts is a Hold, with 5 Hold, 2 Buy, and 1 Sell recommendations. The average 12-month price target sits at $210.00, which implies a slight downside from the recent closing price of around $217.58 as of November 17, 2025.

Key Valuation Multiples (2025 Estimates)

When we look at the core valuation multiples, Grupo Aeroportuario del Pacífico, S.A.B. de C.V. trades at a premium to its peers, which is often the case for a high-quality, high-margin infrastructure asset. Here's the quick math on key 2025 forward estimates:

• Price-to-Earnings (P/E): The forward P/E ratio is approximately 18.2x. This is higher than some peers, suggesting investors expect stronger earnings growth or value the stability of this regulated business.
• Enterprise Value-to-EBITDA (EV/EBITDA): The forward EV/EBITDA is around 11.0x. This multiple is generally considered reasonable for a company with an outstanding EBITDA margin, which was reported at 60.9% in a recent 2025 period.
• Price-to-Book (P/B): The estimated P/B ratio is high at about 9.8x. This multiple tells you the market values the company's assets-its airport concessions-far above their accounting book value, reflecting the long-term, regulated cash flow stream those assets generate.

Stock Price and Dividend Health

The stock has seen significant volatility over the last year. Its 52-week trading range is wide, running from a low of $168.62 to a high of $259.33. The stock's performance has been strong, but the recent price near the middle of this range suggests a period of consolidation following the all-time high hit in September 2025.

For income-focused investors, the dividend profile is attractive but requires a closer look. The forward dividend yield is compelling, sitting in the range of 3.71% to 4.09%. However, the payout ratio based on trailing earnings is high at 75.72%. This means a large portion of earnings is returned to shareholders, which can limit capital for new projects, but it also confirms the company's strong cash generation capacity. Honestly, a payout ratio this high is something to defintely monitor, especially with ongoing capital expenditure (CapEx) commitments.

If you want to dig deeper into who is buying and selling this stock, you should check out Exploring Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) Investor Profile: Who's Buying and Why?

The key takeaway here is that Grupo Aeroportuario del Pacífico, S.A.B. de C.V. is a quality-income play with a premium price tag. Your action should be to wait for a dip closer to the 52-week low of $168.62 for a better margin of safety, or start a small position now if you are focused purely on the ~4% dividend yield.

Risk Factors

You're looking at Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) and seeing strong growth, but as a seasoned analyst, I focus on where the foundation might crack. The key takeaway is that PAC's primary risks in 2025 are regulatory and financial, specifically around concession fees and currency volatility, even with robust passenger traffic.

The company operates under a concession model (a long-term agreement with the government to operate public infrastructure), so regulatory changes are the biggest near-term risk. This materialized in 2025 with the new Master Development Program (MDP) for Mexican airports. The concession fee PAC pays to the Mexican government jumped from 5% to a significant 9% of regulated revenues. This change is what drove the Q3 2025 EBITDA margin down to 64.3%, a noticeable drop from 67.0% in the prior year, despite strong revenue growth. That's a direct hit to profitability you must factor in.

Here's the quick math on the operational and financial risks highlighted in their 2025 reports:

• Financial/Currency Risk: Comprehensive income decreased by Ps. 658.9 million, or 22.8%, in Q2 2025, primarily due to increased foreign currency translation losses.
• Operational/Cost Risk: Total operating costs saw a substantial increase by Ps. 2,555.4 million, or 68.2%, in Q2 2025, a figure that demands attention as it pressures margins.
• External/Traffic Risk: Q3 2025 saw a slowdown in international passenger traffic due to what management called 'immigration-related challenge and a more restrictive perception under the current U.S. [policy].' Still, overall passenger traffic managed a 2.5% increase to 15.8 million passengers for the quarter.

What this estimate hides is the potential for further regulatory pressure, but their mitigation strategies are clear and data-driven. The company is tackling capacity risk head-on with a massive capital investment: a committed MXP 43,185 million for the 2025-2029 Master Development Program to expand capacity, which is defintely a long-term positive.

For the financial risks, their strong liquidity is a buffer. As of September 3, 2025, PAC reported a cash and cash equivalents position of Ps. 11.7 billion. Plus, they are actively managing debt, issuing long-term bonds for Ps. 6,000.0 million in Q1 2025 to refinance existing obligations. They are also diversifying revenue; non-aeronautical services revenue grew by 41.8% in Q2 2025, which helps offset the higher concession fee impact on aeronautical revenue. This is how you manage concession risk-you grow the unregulated side of the business.

To dive deeper into the shareholder structure that influences these strategic decisions, you should read Exploring Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking for a clear map of where Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) goes from here, and the answer is simple: capacity expansion and tariff power are the main drivers. The company's growth trajectory for 2025 is defintely tied to strategic capital investments and the new regulatory framework for its Mexican airports.

The core of the near-term opportunity comes from the recently approved tariff increases. The higher airport tariffs implemented in March 2025 for the new regulatory period, plus an additional adjustment in September 2025, are already translating directly into better revenue per passenger. This is a powerful lever in a regulated industry, and it's why analysts project a significant 30% growth in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the full fiscal year 2025.

• Hike tariffs: New regulatory period tariffs boosted aeronautical revenue.
• Expand terminals: MXP 43,185 million committed for 2025-2029 capital investments.
• Diversify revenue: Non-aeronautical services hit 29% of total revenue in Q1 2025.

The company is Mexico's largest airport operator, controlling 14 airports across Mexico and Jamaica, a key competitive advantage. They operate five of Mexico's ten busiest airports. This market dominance allows them to capture the lion's share of passenger traffic recovery, which is forecasted to grow between 3.9% and 5% for 2025.

Here's the quick math on recent performance and future estimates, based on 2025 data:

The strategic capital expenditure (CapEx) plan is the long-term play. Grupo Aeroportuario del Pacífico has committed a huge sum of MXP 43,185 million for 2025-2029, with 37% going to terminal building expansions. This is not just maintenance; it's a capacity boost targeting a 54% increase in terminal space, which directly translates to more passengers and more non-aeronautical revenue from retail and services. The expansion of Guadalajara Airport, positioned as a major logistics hub, is a prime example of this strategy.

Also, keep an eye on their non-aeronautical revenue diversification. This includes the consolidation of the cargo and bonded warehouse business, which contributed Ps. 477.1 million to non-aeronautical revenues in Q2 2025 alone. That's a smart way to smooth out the cyclicality of passenger traffic. They are even launching 8 new international routes to Canada in Q4 2025, a clear sign of aggressive network expansion. To understand the investor profile backing these moves, you should read Exploring Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) Investor Profile: Who's Buying and Why?