TORONTO, Aug. 6, 2025 /CNW/ - The Greater Toronto Airports Authority ("GTAA") today reported its financial and operating results for the second quarter and the first half of 2025. Toronto Pearson, Canada's busiest airport, saw slight growth in its overall passenger volumes, which increased by 0.3 million or 1.5% to 12.0 million for the second quarter and 0.1 million or 0.1% to 22.7 million year-to-date, when compared to the same periods of 2024. This was largely driven by strong growth in both the domestic and international sectors. Overall international growth was offset by a decline in transborder travel. Year-to-date passenger volume was also impacted by extreme weather events, and a five-day runway closure due to a single aircraft incident in the first quarter.
"Q2 2025 was encouraging with growth in domestic and international sectors, which offset the decline in transborder U.S. travel. Amid ongoing uncertainties in the global economic and political landscape, year-to-date performance is as strong as 2024, and our long-term strategy remains firmly on track," said Deborah Flint, President and CEO.
"We continue to meet milestones in our infrastructure plans," added Ms. Flint. "Pearson is a national economic driver, and we remain focused on increasing our connectivity as a global hub airport that strengthens Canada's economy."
Toronto Pearson continues to monitor the global economic and political landscape closely, assessing risks and ready to adapt in economic uncertainty.
Key Passenger and Financial Information
|
Three months ended June 30 |
Six months ended June 30 |
|||||||
|
(millions) |
2025 |
2024 |
Change1 |
2025 |
2024 |
Change1 |
||
|
Passenger Activity |
% |
% |
||||||
|
Domestic |
4.4 |
4.1 |
0.3 |
5.6 |
7.7 |
7.5 |
0.2 |
2.5 |
|
International |
7.6 |
7.6 |
— |
— |
15.0 |
15.1 |
(0.1) |
(1.0) |
|
Total |
12.0 |
11.7 |
0.3 |
1.5 |
22.7 |
22.6 |
0.1 |
0.1 |
|
($ millions) |
||||||||
|
Total Revenues |
520.7 |
485.3 |
35.4 |
7.3 |
1,008.1 |
953.8 |
54.3 |
5.7 |
|
EBITDA2 |
260.9 |
240.5 |
20.4 |
8.4 |
477.8 |
460.0 |
17.8 |
3.9 |
|
EBITDA Margin |
50.1% |
48.9% |
47.4% |
47.9% |
||||
|
Net Income |
109.7 |
86.4 |
23.3 |
26.9 |
179.2 |
160.1 |
19.1 |
11.9 |
|
Free Cash Flow2 |
53.8 |
39.9 |
13.9 |
34.8 |
184.6 |
160.6 |
24.0 |
14.9 |
|
1 Percentage calculations are based on detailed actual numbers (not rounded as presented). |
||||||||
|
2 Please refer to Non-GAAP Financial Measures at the end of this document for further details. |
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Revenues for the second quarter were $520.7 million, an increase of 7.3%, year-to-date revenue was $1,008.1 million, an increase of 5.7%, compared to the same periods in 2024. The increase in the second quarter and year-to-date is primarily driven by rate and fee increases, aviation activity and a marginal increase in overall passenger traffic.
Earnings before interest and financing costs, and amortization ("EBITDA") for the second quarter was $260.9 million, an increase of 8.4%, year-to-date EBITDA was $477.8 million, an increase of 3.9%, compared to the same periods of 2024. Higher revenues associated with the increase in aeronautical fees and Airport Improvement Fees were offset by the increase in operating costs (before amortization), reflecting investments in the year to support customer experience and to prepare the GTAA for medium to long-term growth in passenger volumes.
Net income during the second quarter was $109.7 million, an increase of 26.9%, year-to-date net income was $179.2 million, an increase of 11.9%, compared to the same periods of 2024, driven by the increase in revenues being offset by the increase in expenses as mentioned above.
Free cash flow for the second quarter was $53.8 million, an increase of 34.8% compared to the same period in 2024 primarily driven by higher cash flow from operations partially offset by lower interest income. Year-to-date free cash flow was $184.6 million, an increase of 14.9% compared to the same period in 2024, driven by higher cash flow from operations partially offset by lower receipt of funds under the Airport Critical Infrastructure Program ("ACIP"). Cash flows from operations are used to fund capital expenditures focused on improving facilities and enabling growth, while maintaining quality customer experience.
The GTAA's June 30, 2025 financial results are discussed in more detail in the GTAA's Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis, each for the three and six-months ended June 30, 2025, which are available at www.torontopearson.com and on SEDAR at www.sedarplus.ca.
Caution Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable securities laws. This forward-looking information is based on a variety of assumptions and is subject to risks and uncertainties. These statements reflect GTAA Management's current beliefs and are based on information currently available to GTAA Management. There is a risk that predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that the GTAA's assumptions may not be correct and that actual results may differ materially from such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in the GTAA's securities regulatory filings, including its most recent Annual Information Form and Management's Discussion and Analysis, which can be found on SEDAR at www.sedarplus.ca.
NON-GAAP FINANCIAL MEASURES
Throughout this news release, there are references to the following performance measures which in Management's view are valuable in assessing the economic performance of the GTAA. While these financial measures are not defined by the International Accounting Standards Board and are referred to as non-GAAP measures which may not have any standardized meaning, they are common benchmarks in the industry, and are used by the GTAA in assessing its operating results, including operating profitability, cash flow and investment program.
EBITDA
EBITDA is earnings from operations before interest and financing costs, reversal or impairment of investment property, write-down of property and equipment, and amortization. EBITDA is a commonly used measure of a company's operating performance. This is used to evaluate the GTAA's performance without having to factor in financing and accounting decisions.
Free Cash Flow
Free Cash Flow ("FCF") is cash flows from operating activities per the consolidated statements of cash flows, and ACIP grants received less capital expenditures (property and equipment, investment property, and other) and interest and financing costs paid, net of interest income (excluding non-cash items). FCF is used to assess funds available for debt reduction or future investments within Toronto Pearson.
About Toronto Pearson
The Greater Toronto Airports Authority is the operator of Toronto Pearson International Airport, Canada's largest airport and a vital connector of people, businesses, and goods.
Toronto Pearson has been named "Best Large Airport in North America serving more than 40 million passengers" seven times in the last eight years by Airports Council International, the global trade representative of the world's airports. Toronto Pearson was also recognized in 2025 as one of "Canada's Best Employers" by Forbes.
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GTAA Media Office, media.relations@gtaa.com, (416) 776-3709