Flughafen Wien AG Posts Strong Q1 Results with Increased Guidance for 2024

According to a recent report by NuWays AG, Flughafen Wien AG (FWAG) exhibited significant growth in Q1 2024, with notably robust financial outcomes aligning with analyst estimates. The report emphasized a 17% year-over-year increase in sales, reaching €210 million, driven by a 14% rise in passenger numbers and higher airport charges.

Operational costs benefitted from reduced material costs, thanks to efficient power production and lower energy prices, which helped escalate EBITDA by 19% to €80 million. Additionally, the net income surged by 49% to €37 million, boosted by a strong financial result and a constant depreciation and amortization rate.

With these positive results, FWAG has raised its 2024 full-year guidance: sales are now expected to exceed €1 billion, with EBITDA over €400 million and net profit before minorities anticipated to top €220 million. The company also highlighted a solid free cash flow of €31 million during the first quarter, despite increased capital expenditures linked to ongoing airport expansion projects.

Despite the operational successes and raised forecasts, NuWays AG continues to rate FWAG as "Hold" with an unchanged target price of €58.00. The valuation reflects the strong operational performance, suggesting that much of the positive news is already priced in.