Ferrovial S.A (FER) Q1 2026 Earnings Call Transcript

Bullish Industrial - Infrastructure Operations 53.33B Spain

Next Earnings

2026-07-28

Ferrovial, S.A., together with its subsidiaries, develops transport infrastructure, mobility solutions, civil works, and buildings projects in Spain and internationally. It operates in four segments: Construction, Toll Roads, Airports, and Energy Infrastructures and Mobility. The company designs and builds various public and private works; and develops, finances, and operates toll roads. Its construction activities include highways, tunnels, bridges, and airports; designs, constructs, operates and maintains potable water treatment plants, urban and industrial waste water treatment plants, and desalination plants. In addition, the company manufactures and markets asphalt and bitumen products; develops, operates, and manages airports; and promotes, constructs, and operates energy generation and transmission infrastructures. Further, it provides mobility services, include ZITY, an electric carsharing service application; invests in electric vehicle sector, including cars and associated charging infrastructures; and sells, rents, and maintains hydraulic equipment, jacks, and floating caisson equipment. The company was founded in 1952 and is based in Madrid, Spain.

Ferrovial delivered a solid 2025 with revenue/EBITDA growth, a record construction backlog, strong cash generation, and a robust North American pipeline, while advancing JFK/NTO and maintaining financial discipline.

⭐ Key Highlights

Robust 2025 performance across all divisions

Ferrovial reports solid revenue growth (EUR 9.6B, +8.6% like-for-like) and adjusted EBITDA of EUR 1.5B (+12.2% like-for-like), led by North American highways and strong construction results.

Record order book and strong cash generation

Construction order book reached EUR 17.4B (near all-time high) with ~50% from North America; project dividends totaled EUR 968M, supporting a solid cash position with negative net debt ex infra of USD 1.3B.

Strategic progress in North America

Key assets (407 ETR, US Managed Lanes) show durable growth; increased stake in 407 ETR to 48.29%; NTO at JFK progressing toward operational readiness with a fall 2026 opening target.

Active capital allocation and shareholder returns

Disposals completed (AGS EUR 533M, Heathrow stake sale EUR 539M); equity investments in NTO EUR 236M; dividends and buybacks totaled EUR 657M; net cash position strengthened.

Strong long-term visibility with a high pipeline

Shortlisted for I-285 East (GA) and I-24 Southeast (TN) with probable awards in 2025; I-77 South shortlisted in Feb 2026; ongoing US pipeline supports future growth despite project-by-project variability.

✔Positive Signals

Record Construction order book of EUR 17.4B, ~50% from North America
Strong 2025 revenue/EBITDA growth with USD 1.3B net debt ex infra improvement
North American assets (e.g., 407 ETR, Managed Lanes) delivering durable growth and higher toll revenue per transaction
Progress on New Terminal One (NTO) at JFK toward operational readiness with 25 airlines commitments
Shortlisting for major US toll projects (I-285 East, I-24 Southeast; I-77 South shortlisted in Feb 2026) indicating a strong pipeline

✖Negative Signals

Q4 weakness in traffic on certain corridors (NTE, LBJ, I-66/I-77) due to construction and weather-related headwinds
Schedule 22 expense/incremental promotions driven by EBITDA focus can compress near-term toll revenue per transaction
NTO opening timing introduces execution risk and potential near-term volatility in numbers until stabilization
No 2026 guidance for specific metrics; some volatility in toll-rate dynamics and regulatory approvals
Credit-loss provision for 407 ETR (one-off in late 2024/2025 accounting treatment) could recur if collection conditions deteriorate

📊Financial Results

Revenue EUR 9.6B, +8.6% YoY like-for-like, driven by highways and construction
Adjusted EBITDA EUR 1.5B, +12.2% YoY like-for-like; strengthened by Managed Lanes and construction performance
Construction segment: revenue EUR 7.7B, +7.5% like-for-like; Adjusted EBIT EUR 352M, +24.2% YoY; margin 4.6% (target long-term 3.5%)
Dividends from projects EUR 968M, +2.2% YoY; 407 ETR and other assets contributed to cash flow
Net debt ex infra negative USD 1.3B; divestments raised EUR 1.158B (Heathrow, AGS); cash dividends and buybacks EUR 657M

🔮Future Guidance

No 2026 quantitative guidance provided for metrics beyond reaffirming Construction's long-term EBIT margin target of 3.5%
NTO opening targeted for fall 2026; first numbers to be communicated upon opening and airline commitments (currently 25 airlines with 16 executed, 9 LOIs)
Pricing for I-66 and I-77 expected to reflect value to users; no explicit guidance on 2026 revenue per transaction growth
Promotions/loyalty program for 407 ETR to continue, aiming to maximize EBITDA with learnings from 2025; no explicit 2026 uplift guidance

💡Interesting Insights

Loyalty/promotions program for 407 ETR being tested as a potential driver of higher sustained EBITDA through better customer segmentation, with a cautious approach to not shrink toll revenue per transaction excessively
Significant capital recycling in India (IRB InvIT and TOT concessions) suggesting Ferrovial is monetizing assets in faster-growing markets to fund U.S. opportunities
Management emphasizes leveraging headroom within BBB rating to fund future US toll-road and airport expansions without over-leveraging

Detailed Analysis

AI-generated summary of Ferrovial S.A earnings call transcript.

Ferrovial posted a robust 2025 with 8.6% like-for-like revenue growth to EUR 9.6B and 12.2% like-for-like adjusted EBITDA growth to EUR 1.5B, led by North American highways and a strong construction performance. The Construction division achieved a record order book of EUR 17.4B, with roughly half from North America, and the group generated EUR 968M in dividends from projects. The company enhanced its North American portfolio (increasing its stake in 407 ETR to 48.29%) and progressed the New Terminal One project at JFK toward operational readiness, with a fall 2026 opening target. Ferrovial executed meaningful divestments (AGS, Heathrow stake) and returned capital to shareholders via dividends and share buybacks, while maintaining a solid net cash position (negative net debt ex infra of USD 1.3B). The outlook centers on a record US pipeline and continued promotions-driven EBITDA optimization, though management did not provide 2026 guidance for specific metrics beyond long-term targets (3.5% average EBIT margin in Construction) and highlighted ongoing opportunities in US toll roads, airports, and data centers. The balance of risks includes project execution in North America, regulatory/political dynamics around toll increases, and the cadence of awards in the US Express Lanes program.

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