Grupo Aeroportuario del Sureste (GMK): A High-Conviction Play in Latin America's Aviation Infrastructure Boom

In the dynamic landscape of Latin American aviation, few companies have demonstrated the strategic foresight and operational resilience of Grupo Aeroportuario del Sureste (GMK). As the operator of 16 airports across Mexico, Colombia, and Puerto Rico, GMK has positioned itself at the intersection of regional infrastructure development and global connectivity. For investors seeking a high-conviction growth play, GMK's dual focus on expanding its physical footprint and optimizing margins through diversified revenue streams makes it a compelling case study in long-term value creation.

Infrastructure as a Catalyst for Regional Dominance

GMK's dominance in Latin America's aviation sector is underpinned by its aggressive infrastructure investments. In 2025, the company allocated 46% of its capital expenditures (capex) to Puerto Rico alone, where the Luis Muñoz Marín International Airport (SJU) has become a model of efficiency. SJU's 15.2% year-over-year increase in international traffic and 12.3% rise in commercial revenue per passenger (as of Q2 2025) underscore the success of GMK's infrastructure-driven strategy.

In Colombia, GMK's Airplan subsidiary is advancing two major road projects under the 5G infrastructure program: the Avenida Longitudinal de Occidente Tramo Sur and the Buenaventura-Loboguerrero-Buga Corridor. These projects not only enhance connectivity to Bogotá and the critical port of Buenaventura but also align with regional efforts to integrate trade routes and boost cross-border commerce. Such initiatives position GMK as a key enabler of Latin America's economic integration, a trend poised to accelerate in the coming decade.

Margin Expansion Through Diversification and Pricing Power

While infrastructure projects often strain short-term profitability, GMK has mitigated these pressures through strategic diversification. Non-aeronautical revenue—derived from retail, concessions, and parking—now accounts for 16% of GMK's total income, up from 12% in 2023. This shift is partly attributable to its dual-till system in Puerto Rico, which grants the government limited tariff-setting authority while preserving GMK's flexibility to maximize ancillary revenue.

Analysts project that GMK's EBITDA margins will stabilize in the mid-60s by 2027, despite near-term volatility. The company's adjusted EBITDA margin, which excludes construction-related costs, has remained above 67% in 2025, outperforming peers in the aviation sector. This resilience is further supported by GMK's low debt-to-EBITDA ratio of 0.1x and its robust liquidity position (Mex$19.8 billion in cash and equivalents).

Geographic Diversification as a Buffer Against Volatility

GMK's geographic spread across Mexico, Colombia, and Puerto Rico acts as a natural hedge against regional economic fluctuations. While Mexico's passenger traffic dipped 1.8% in June 2025, Colombia's airports saw a 1.7% increase, and Puerto Rico's international traffic grew by 15.2%. This balanced performance highlights the company's ability to capitalize on growth in high-potential markets while insulating itself from downturns in others.

Moreover, GMK's expansion into Puerto Rico—a U.S. territory—provides access to North American consumer spending and tourism trends. The dual-till model, combined with Puerto Rico's strategic location as a gateway to the Caribbean, creates a unique value proposition for GMK. Analysts at Needham note that this diversification “positions GMK to outperform peers in a fragmented Latin American aviation sector.”

Investment Thesis: A Calculated Bet on Long-Term Value

For investors, GMK represents a calculated bet on infrastructure-driven growth in a sector with structural tailwinds. The company's 20% annualized revenue growth projections (2025–2027) contrast sharply with the industry's 8.7% forecast, driven by its focus on construction services, margin-optimized operations, and regional expansion.

Key risks include near-term margin compression from capex and potential regulatory shifts in Puerto Rico. However, GMK's strong balance sheet, disciplined debt management, and consistent dividend policy (with a Mex$80 per share payout in 2025) provide downside protection.

Conclusion: A High-Conviction Growth Play

Grupo Aeroportuario del Sureste is not just building airports—it is constructing a bridge between Latin America's economic potential and global markets. By leveraging infrastructure investments to enhance connectivity, diversifying revenue streams to stabilize margins, and strategically expanding into high-growth regions, GMK has positioned itself as a leader in a sector poised for decades of growth.

For investors with a five- to seven-year horizon, GMK offers a rare combination of tangible assets, recurring revenue models, and macroeconomic alignment. With a consensus price target of Mex$654 (as of Q2 2025) and a narrow analyst range, the stock appears undervalued relative to its long-term potential. In an era where infrastructure is the backbone of economic progress, GMK is a name to watch—and a compelling addition to a high-conviction portfolio.