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Avolta's Growth Surges Despite Global Headwinds
31 Jul
Summary
- H1 2026 saw 3.7% organic growth and strong Q2 cash flow.
- Major contracts secured in Shanghai and JFK airports.
- EBITDA margin dipped to 9.1% due to crises and ramp-up costs.
Avolta AG achieved 3.7% organic growth in the first half of 2026, reporting robust equity-free cash flow of CHF 370 million in the second quarter. The company secured substantial strategic contracts, including a significant duty-free agreement in Shanghai Pudong and new terminals at JFK airport.
Despite these positive developments, Avolta's EBITDA margin decreased to 9.1%. This was attributed to the impact of the Middle East crisis, which reduced organic growth by 1.5 percentage points, and initial cost escalations related to the new concessions in Shanghai and JFK.
Operational challenges were also noted in North America due to airline strategies and in Latin America from security concerns and currency fluctuations. The full normalization of operations at the new Shanghai and JFK concessions is not anticipated until 2027, with ongoing ramp-up effects expected throughout the remainder of 2026.
In parallel, Avolta continued its deleveraging efforts, reaching a net debt-to-EBITDA ratio of 2.07x, the lowest in a decade. The company also reinforced its commitment to shareholders through a dividend increase and a CHF 225 million share buyback program.
