# Auckland International Airport (AIA.AU)

Canonical: https://gigainvestors.com/s/AIA.AU

Analysis as of: 2026-10-16T07:36:23.643Z. Financial observations: FY1999–FY2026.

Listing currency: AUD. Reporting currency: NZD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 6.66 per share; close as of 2026-10-15.

Estimated value: low AUD 1.76 per share, central AUD 2.01 per share, high AUD 2.33 per share. Buy at or below the central value AUD 2.01 per share. Valuation as of 2026-10-16T07:36:23.643Z; scenarios are not confidence intervals.

Expected annual return: 5.0% at the stated quote. About 5.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.21×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.81×

- FY2018: 0.64×

- FY2019: 0.63×

- FY2020: 0.50×

- FY2021: 0.63×

- FY2022: 0.60×

- FY2023: 0.37×

- FY2024: 0.48×

- FY2025: 0.46×

- FY2026: 0.46×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 29.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 2.6%

- ROIC, second-lowest year: 1.8%

- Typical minus recent gross margin: 29.3 pp

- Typical gross margin (annual median): 78.5%

- Recent gross margin (lower of latest and 3-year median): 49.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 68.5%

- ROIC including acquisitions, ten-year median: 2.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 6.2%

- FY2018: 4.4%

- FY2019: 4.6%

- FY2020: 3.3%

- FY2021: 1.7%

- FY2022: 1.8%

- FY2023: 2.1%

- FY2024: 2.3%

- FY2025: 2.6%

- FY2026: 2.6%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: NZD 995M

- Net income, five-year total: NZD 995M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 3.3 pp

- Working capital / revenue, final three-year average: 9.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 1.00×

- FY2026: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 4.6% vs 2.6%

- Per-share earnings: 0.28 to 0.20 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.6%

- Ordinary dilution, 5-year annual growth: 2.9%

- Market cap gain: NZD 4.6B

- Cumulative retained earnings: NZD 1.7B

- Diluted shares, 10-year annual growth: 3.6%

- Diluted shares, 5-year annual growth: 2.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -4.3%

- Per-share value change: NZD -0.08

- Per-share value, starting three-year median: NZD 0.28

- Per-share value, ending three-year median: NZD 0.20

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 8.3%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: NZD 0

- Cumulative net income, 10 years: NZD 3.2B

- ROIC, first three-year median: 4.6%

- ROIC, last three-year median: 2.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: NZD 0.28

- FY2018: NZD 0.54

- FY2019: NZD 0.43

- FY2020: NZD 0.13

- FY2021: NZD 0.32

- FY2022: NZD 0.13

- FY2023: NZD 0.03

- FY2024: NZD 0.00

- FY2025: NZD 0.25

- FY2026: NZD 0.20

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -0.8%

- Receivables to sales index (DSRI): 1.54×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.35×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 0.4%

- FY2018: 4.0%

- FY2019: 1.7%

- FY2020: 0.2%

- FY2021: 4.1%

- FY2022: 0.9%

- FY2023: -2.6%

- FY2024: -4.0%

- FY2025: -0.4%

- FY2026: -0.8%

## Holders

## Price story

Down 1% since Oct 2023 · sales +9%

Story as of 2026-10-16T10:00:07.399Z; price observation 2026-10-15.

Price needs cash profits to grow 16.2% a year for ten years

### Sales · FY2025–2026

sales +9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: NZD 604M 

- FY2018: NZD 650M 

- FY2019: NZD 717M 

- FY2020: NZD 542M 

- FY2021: NZD 268M 

- FY2022: NZD 282M 

- FY2023: NZD 591M 

- FY2024: NZD 837M 

- FY2025: NZD 929M 

- FY2026: NZD 1.0B 

### Gross margin · FY2026

gross margin 49.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 85.4% 

- FY2018: 84.5% 

- FY2019: 82.9% 

- FY2020: 78.0% 

- FY2021: 63.1% 

- FY2022: 62.0% 

- FY2023: 76.4% 

- FY2024: 78.9% 

- FY2026: 49.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in airports & air services; annual sales are NZD 1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); FY2026: revenue 1013107520; grossProfit 497810598; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AIA.AU: Auckland International Airport Limited provides airport facilities, supporting infrastructure, and aeronautical services in New Zealand. The company operates through Aeronautical, Retail and Carparking, and Property segments. The Aeronautical segment provides services that facilitate the movement of aircraft, passengers, and cargo, as well as utility services, which support the airport. This segment also leases space for facilities, such as terminals. The Retail and Carparking segment offers services to the retailers within the terminals; and car parking facilities for passengers, visitors, and airport staff. The Property segment leases space on airport land outside the terminals, including cargo buildings, hangars, and stand-alone investment properties. The company was founded in 1966 and is based in Manukau, New Zealand.

### Why customers stay

Margins ranged from 49.1% to 100% during 2024–26; it earns 2.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); FY2024: grossProfit / revenue = 78.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); FY2026: grossProfit / revenue = 49.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); 10-year return on capital observations [[2017,0.06155998068812228],[2018,0.0440012646689022],[2019,0.04564288969541713],[2020,0.03307131126966096],[2021,0.01713925869147752],[2022,0.017661515391344192],[2023,0.02142360264863943],[2024,0.023487824037706207],[2025,0.026248524664911288],[2026,0.02558687452675946]]; median 0.025917699595835376. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 0% on new investment; paid dividends in 7 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); FY2017: growth capex 179900000; upkeep 77900000; owner earnings 332900000. Growth capex / owner earnings = 0.5404025232802644.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); FY2018: growth capex 229574651; upkeep 89525349; owner earnings 650100000. Growth capex / owner earnings = 0.35313744193201047.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); FY2019: growth capex 143900000; upkeep 102200000; owner earnings 523500000. Growth capex / owner earnings = 0.27488061127029606.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); FY2020: growth capex 0; upkeep 240500000; owner earnings 66100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); FY2021: growth capex 0; upkeep 148000000; owner earnings 436213362. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); FY2022: growth capex 119700000; upkeep 113100000; owner earnings 191600000. Growth capex / owner earnings = 0.6247390396659708.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); FY2023: growth capex 339200000; upkeep 145300000; owner earnings 43200000. Growth capex / owner earnings = 7.851851851851852.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); FY2024: growth capex 681510675; upkeep 165689325; owner earnings 5500000. Growth capex / owner earnings = 123.91103181818181.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); FY2025: growth capex 732829570; upkeep 204970430; owner earnings 420700000. Growth capex / owner earnings = 1.741929094366532.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); FY2026: growth capex 661382648; upkeep 241611005; owner earnings 334438392. Growth capex / owner earnings = 1.9775918788653906.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); Incremental return on capital 0.00037341955411922105, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); Dividend observations: [[2017,210800000],[2018,198200000],[2019,201600000],[2020,104300000],[2021,0],[2022,0],[2023,0],[2024,99800000],[2025,153000000],[2026,137992058]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 4.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AIA.AU SharesStats.PercentInsiders = 4.727 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 16.2% yearly over ten years; actual decline was 1.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.643Z); Ten-year compound average after fade. Initial solved rate 0.2214267410233265. Price 6.66; FX 0.8124078517533463; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.22039381956599888 → FY2026 0.19686532202209747. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 6.19 per share

- 2016-11: AUD 5.91 per share

- 2016-12: AUD 6.15 per share

- 2017-01: AUD 6.57 per share

- 2017-02: AUD 6.87 per share

- 2017-03: AUD 6.19 per share

- 2017-04: AUD 6.32 per share

- 2017-05: AUD 6.61 per share

- 2017-06: AUD 6.77 per share

- 2017-07: AUD 6.53 per share

- 2017-08: AUD 6.16 per share

- 2017-09: AUD 5.93 per share

- 2017-10: AUD 5.56 per share

- 2017-11: AUD 5.80 per share

- 2017-12: AUD 5.90 per share

- 2018-01: AUD 6.07 per share

- 2018-02: AUD 5.99 per share

- 2018-03: AUD 5.81 per share

- 2018-04: AUD 5.92 per share

- 2018-05: AUD 6.12 per share

- 2018-06: AUD 6.23 per share

- 2018-07: AUD 6.17 per share

- 2018-08: AUD 6.56 per share

- 2018-09: AUD 6.68 per share

- 2018-10: AUD 6.45 per share

- 2018-11: AUD 6.68 per share

- 2018-12: AUD 6.73 per share

- 2019-01: AUD 6.96 per share

- 2019-02: AUD 7.41 per share

- 2019-03: AUD 7.78 per share

- 2019-04: AUD 7.55 per share

- 2019-05: AUD 8.24 per share

- 2019-06: AUD 9.32 per share

- 2019-07: AUD 8.97 per share

- 2019-08: AUD 9.02 per share

- 2019-09: AUD 8.50 per share

- 2019-10: AUD 8.58 per share

- 2019-11: AUD 8.58 per share

- 2019-12: AUD 8.51 per share

- 2020-01: AUD 8.34 per share

- 2020-02: AUD 7.63 per share

- 2020-03: AUD 4.95 per share

- 2020-04: AUD 5.74 per share

- 2020-05: AUD 6.04 per share

- 2020-06: AUD 6.16 per share

- 2020-07: AUD 5.83 per share

- 2020-08: AUD 6.09 per share

- 2020-09: AUD 6.71 per share

- 2020-10: AUD 6.54 per share

- 2020-11: AUD 7.31 per share

- 2020-12: AUD 7.17 per share

- 2021-01: AUD 6.83 per share

- 2021-02: AUD 7.04 per share

- 2021-03: AUD 7.09 per share

- 2021-04: AUD 7.11 per share

- 2021-05: AUD 6.85 per share

- 2021-06: AUD 6.76 per share

- 2021-07: AUD 6.80 per share

- 2021-08: AUD 6.90 per share

- 2021-09: AUD 7.53 per share

- 2021-10: AUD 7.50 per share

- 2021-11: AUD 7.52 per share

- 2021-12: AUD 7.20 per share

- 2022-01: AUD 6.70 per share

- 2022-02: AUD 6.68 per share

- 2022-03: AUD 7.23 per share

- 2022-04: AUD 7.20 per share

- 2022-05: AUD 6.72 per share

- 2022-06: AUD 6.48 per share

- 2022-07: AUD 6.67 per share

- 2022-08: AUD 6.77 per share

- 2022-09: AUD 6.31 per share

- 2022-10: AUD 6.96 per share

- 2022-11: AUD 7.45 per share

- 2022-12: AUD 7.39 per share

- 2023-01: AUD 7.75 per share

- 2023-02: AUD 8.03 per share

- 2023-03: AUD 8.16 per share

- 2023-04: AUD 8.21 per share

- 2023-05: AUD 8.17 per share

- 2023-06: AUD 7.85 per share

- 2023-07: AUD 7.78 per share

- 2023-08: AUD 7.17 per share

- 2023-09: AUD 7.32 per share

- 2023-10: AUD 6.74 per share

- 2023-11: AUD 7.43 per share

- 2023-12: AUD 8.13 per share

- 2024-01: AUD 7.85 per share

- 2024-02: AUD 7.56 per share

- 2024-03: AUD 7.67 per share

- 2024-04: AUD 7.16 per share

- 2024-05: AUD 7.16 per share

- 2024-06: AUD 7.06 per share

- 2024-07: AUD 6.80 per share

- 2024-08: AUD 6.95 per share

- 2024-09: AUD 6.80 per share

- 2024-10: AUD 6.61 per share

- 2024-11: AUD 7.02 per share

- 2024-12: AUD 7.76 per share

- 2025-01: AUD 7.90 per share

- 2025-02: AUD 7.34 per share

- 2025-03: AUD 7.40 per share

- 2025-04: AUD 6.92 per share

- 2025-05: AUD 7.00 per share

- 2025-06: AUD 7.10 per share

- 2025-07: AUD 6.98 per share

- 2025-08: AUD 6.83 per share

- 2025-09: AUD 6.81 per share

- 2025-10: AUD 7.12 per share

- 2025-11: AUD 7.01 per share

- 2025-12: AUD 7.21 per share

- 2026-01: AUD 7.12 per share

- 2026-02: AUD 7.68 per share

- 2026-03: AUD 6.62 per share

- 2026-04: AUD 6.72 per share

- 2026-05: AUD 6.85 per share

- 2026-06: AUD 6.97 per share

- 2026-07: AUD 7.24 per share

- 2026-08: AUD 7.23 per share

- 2026-09: AUD 6.79 per share

- 2026-10: AUD 6.61 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 2.62 per share, central AUD 3.61 per share, high AUD 4.24 per share

- FY2018: low AUD 2.83 per share, central AUD 3.90 per share, high AUD 4.56 per share

- FY2019: low AUD 3.57 per share, central AUD 5.09 per share, high AUD 5.98 per share

- FY2020: low AUD 2.23 per share, central AUD 2.48 per share, high AUD 2.81 per share

- FY2021: low AUD 1.22 per share, central AUD 1.39 per share, high AUD 1.60 per share

- FY2022: low AUD 1.25 per share, central AUD 1.42 per share, high AUD 1.65 per share

- FY2023: low AUD 2.47 per share, central AUD 2.81 per share, high AUD 3.25 per share

- FY2024: low AUD 0.69 per share, central AUD 0.77 per share, high AUD 0.88 per share

- FY2025: low AUD 2.50 per share, central AUD 2.86 per share, high AUD 3.29 per share

- FY2026: low AUD 1.76 per share, central AUD 2.01 per share, high AUD 2.33 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.