Fraport anticipates a resurgence in dividend payouts, following a six-year period of decrease. - Fraport anticipates a potential dividend distribution following a six-year financial decline.
After a six-year hiatus, Fraport, the operator of Frankfurt Airport, has hinted at the potential resumption of dividend payouts. The company's CEO, Stefan Schulte, announced during the annual general meeting in Frankfurt that a reduced dividend might be resumed as early as the current fiscal year 2025.
The absence of dividends since 2018 was due to the significant disruption brought about by the COVID-19 pandemic and the concurrent expansion projects at Frankfurt Airport, Antalya, Turkey, and Lima, Peru. Among these projects, the 4 billion euro Terminal 3 in Frankfurt is scheduled to open after Easter 2026, signaling the end of the high-investment phase. The state of Hesse (31.31 percent) and the city of Frankfurt (20.03 percent) collectively hold the majority shares in the MDAX-listed company.
As of the end of 2024, Fraport's net debt stood at 8.3 billion euros, unchanged from the previous year. To institute full dividends, the board aims for a maximum factor of 5.0, which would mean no dividend for 2024. Despite this, Fraport reported a consolidated net profit of 502 million euros on revenues that increased by 10.7 percent to 4.43 billion euros—the second-highest result in the company's history, following 2018.
The annual general meeting saw shareholders approve the discharge of the board and supervisory board, carry forward the retained earnings, and elect three new members to the supervisory board. The prospect of dividend payments indicates a positive development for Fraport after grappling with the impact of the pandemic and intensified infrastructure development efforts.
The Commission has not yet adopted a decision on the granting of aid to Fraport for its finishing phases of expansion projects, while the potential resumption of reduced dividends is under consideration by the company's board, possibly in fiscal year 2025. Amid this, investing in Fraport's business could mean an opportunity for finance seekers looking for positive developments in a company that has reported a consolidated net profit and shown resilience despite challenges.
