LATAM Airlines Group S.A. (LTM) Achieves Capacity and Profitability Growth as Goldman Questions Upside

LATAM Airlines Group S.A. (NYSE:LTM) is one of the high-growth industrial stocks to buy. On February 4, LATAM Airlines Group S.A. (NYSE:LTM) delivered impressive fourth-quarter and full-year 2025 results, affirming robust financial performance across various metrics. In addition, the company touted expansion in both capacity and profitability as it enjoyed margin improvements across key business segments.

Fourth-quarter revenue was up 16.3% year over year to $3.95 billion, driven by a 20.3% increase in passenger revenue to $3.45 billion. Cargo revenue was up 9.6% to $425 million. Operating income increased 42.7% to $661 million, while net income increased 78.15% to $484 million. Full-year revenue was up 11.2% to $14.5 billion as net income increased 49.4% to $1.46 billion.

During the year, LATAM Airlines Group SA generated $1.4 billion in cash before shareholder returns, while also executing $585 million in share repurchases and distributing $605 million in dividends. The company ended the year on a strong cash position of $2.15 billion.

On February 12, Goldman Sachs downgraded LATAM Airlines Group SA to Neutral from Buy and cut the price target to $64.10 from $66.20. The downgrade comes amid concerns about the airline stock’s limited upside.

LATAM Airlines Group S.A. (NYSE:LTM) is the largest airline group in South America, providing extensive passenger and cargo air transportation services across five domestic markets (Brazil, Chile, Colombia, Ecuador, and Peru) and international routes to Europe, North America, Oceania, and Africa.

While we acknowledge the potential of LTM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Emerging Markets Stocks to Buy Right Now and 10 Best Debt-Free Mid-Cap Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.