Grupo Aeroméxico, S.A.B. de C.V. (AERO) AI Stock Analysis

NYSE: AEROAI research summary: business, growth, valuation, analysts, bull and bear case.

AERO AI stock analysis summary

AI Research

Grupo Aeroméxico, S.A.B. de C.V. (AERO) is an airline operator providing scheduled passenger and cargo air carrier services across Mexico and global destinations. In FY2025, revenue contracted 4.6% to $5.36B, while net income totaled $351.9M. The balance sheet reflects net debt of $3.03B and negative shareholders' equity of -$640.0M as of June 30, 2026.

Market cap
$2.33B
Revenue (TTM)
$5.68B
P/E
1.2x
fwd 69.9x
1Y return
—
S&P 500 16.8%
Avg. target
$26.60
66.5% vs last close

Bull case

  • Quarterly revenue rose 12.6% year-over-year in the period ended June 30, 2026.
  • Free cash flow remained positive at $589.9M in FY2025, supporting $205.3M in share buybacks.
  • The consensus analyst price target of $26.60 reflects a 66.5% premium to the last closing price of $15.98.

Bear case

  • Shareholders' equity was negative at -$640.0M with net debt of $3.03B as of June 30, 2026.
  • Quarterly earnings fell 56.3% year-over-year in the latest quarter ended June 30, 2026.
  • Consensus estimates project FY2026 EPS to decline 64.9% to $0.98.

What Grupo Aeroméxico, S.A.B. de C.V. does

Grupo Aeroméxico, S.A.B. de C.V., through its subsidiaries, provides public air carrier services for passengers and goods. It offers scheduled passenger air carrier services, cargo air carrier services, and other services. The company also offers loyalty program management, training, franchise systems, and investment management services. Its network of destinations includes Mexico, the United States, South America, Central America, the Caribbean, Canada, Europe, and Asia. Founded in 1934, the company is based in Mexico City, Mexico, and employed 16,895 people.

Growth and profitability

Annual revenue reached $5.62B in FY2024 before decreasing 4.6% to $5.36B in FY2025. Gross margin was 27.6% in FY2025, down from 31.2% in FY2024, while operating margin reached 15.7%. Net income was $351.9M in FY2025, down from $617.4M in FY2024, with net margin at 6.6% and diluted EPS at $1.84. Free cash flow decreased from $947.6M in FY2024 to $589.9M in FY2025. Over the trailing twelve months ended June 30, 2026, revenue stood at $5.68B with an operating margin of 4.2% and EPS of $13.80. In the latest quarter ended June 30, 2026, quarterly revenue grew 12.6% year-over-year, while quarterly earnings fell 56.3%.

AERO income statement →

Balance sheet and cash flow

As of June 30, 2026, Grupo Aeroméxico held $1.04B in cash and short-term investments against total debt of $4.07B, resulting in net debt of $3.03B. Total assets were $7.38B, and shareholders' equity was -$640.0M. The current ratio stood at 0.62. In FY2025, the company generated $925.5M in operating cash flow, directing $335.6M toward capital expenditures and $205.3M toward share buybacks.

AERO balance sheet →

Valuation and performance

AERO traded at a trailing P/E of 1.2x and a forward P/E of 69.9x as of October 16, 2026. Its price-to-sales ratio was 0.4x and EV-to-EBITDA was 3.8x, compared to the median of its US-listed Industrials peers of 1.5x price-to-sales and 13.9x EV-to-EBITDA. The stock closed at $15.98, reflecting a year-to-date return of -27.2% and trading 3.4% below its 200-day average. Over the past year, the S&P 500 (SPY) returned 16.8%.

AERO key metrics →

What analysts expect

Wall Street analysts hold 4 Strong Buy, 4 Buy, 1 Hold, and 0 Sell ratings on AERO. The mean price target of $26.60 sits 66.5% above the last close of $15.98. For the fiscal year ending December 31, 2026, the consensus EPS estimate is $0.98, representing a 64.9% decline, on revenue of $107.36B. For the following fiscal year, 5 analysts project EPS of $1.85 and revenue of $112.87B. AERO beat EPS estimates in 3 of the last 4 quarters, with its next earnings date scheduled for October 19, 2026.

AERO forecast and price target →

Key risks and what to watch

  • The current ratio stood at 0.62 as of June 30, 2026, indicating short-term liquidity constraints.
  • Net income contracted from $617.4M in FY2024 to $351.9M in FY2025 as revenue declined 4.6%.
  • Total debt of $4.07B significantly exceeds cash and short-term investments of $1.04B.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this AERO AI stock analysis

This page is an AI-written research summary of Grupo Aeroméxico, S.A.B. de C.V. (AERO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: AERO income statement, AERO balance sheet, AERO key metrics, AERO analyst forecast, AERO chart. See the AERO stock overview for the latest quote and news.

AERO AI stock analysis FAQ

What is Grupo Aeroméxico's net debt?

As of June 30, 2026, Grupo Aeroméxico had $1.04B in cash and short-term investments and $4.07B in total debt, resulting in net debt of $3.03B.

What are analysts' price targets for AERO?

Analysts have a mean price target of $26.60 for AERO, which is 66.5% above its closing price of $15.98 on October 16, 2026.

Does AERO have positive shareholders' equity?

No, Grupo Aeroméxico reported negative shareholders' equity of -$640.0M as of June 30, 2026.

When is Grupo Aeroméxico's next earnings report?

The company's next earnings report date is listed as October 19, 2026.

More Industrials AI stock analysis