Ferrovial SA’s Earnings Call Highlights Strong Growth

Ferrovial SA ((ES:FER)) has held its Q2 earnings call. Read on for the main highlights of the call.

Ferrovial SA’s recent earnings call revealed a generally positive sentiment, with the company reporting strong revenue and profitability growth, particularly driven by its North American assets. Despite these achievements, challenges in the U.S. Managed Lanes due to adverse weather and a negative operating cash flow slightly dampened the overall performance.

Strong Performance in Highways Division

The Highways Division of Ferrovial SA showcased impressive growth, with revenues increasing by 14.9% on a like-for-like basis in the first half of 2025. This was accompanied by a 17.1% improvement in adjusted EBITDA. Notably, U.S. highways contributed significantly, with revenue growth of 15.9% and adjusted EBITDA rising by 14%.

Significant Growth in 407 ETR

The 407 ETR demonstrated robust performance, with revenue growing by 19.7% and EBITDA increasing by 13% in the first half of the year. This growth underscores the asset’s importance in Ferrovial’s portfolio.

Solid Construction Profitability

Ferrovial’s Construction division reported an adjusted EBIT margin of 3.5%, aligning with its long-term targets. Revenue in this division reached EUR 3,453 million, marking a 2.6% increase on a like-for-like basis.

Successful Capital Allocation

The company made strategic capital allocation decisions, including acquiring an additional stake in 407 ETR for EUR 1.3 billion and divesting its stake in AGS Airports for EUR 533 million. Additionally, EUR 334 million was distributed to shareholders in the first half of the year.

Progress on New Terminal One at JFK Airport

The New Terminal One project at JFK Airport is progressing well, with 72% of construction completed. The project remains on schedule and within budget, highlighting Ferrovial’s effective project management.

Challenges in U.S. Managed Lanes

Adverse weather conditions impacted the performance of U.S. Managed Lanes, with NTE traffic declining by 4.8% in the first half of 2025. Despite the traffic decline, revenue per transaction increased by 13.5%.

Negative Operating Cash Flow

Ferrovial reported a negative operating cash flow of EUR 104 million in the first half, compared to negative EUR 53 million in the same period last year. This represents a challenge that the company needs to address moving forward.

Schedule 22 Provision Impact

The 407 ETR accrued a provision of CAD 45.2 million for expected Schedule 22 payments in the first half of the year, impacting the financial results.

Forward-Looking Guidance

Ferrovial’s forward-looking guidance highlights robust performance across its business divisions, particularly in Highways, with significant revenue and EBITDA growth driven by U.S. assets. The company ended the first half with a net debt position of negative EUR 223 million, excluding infrastructure project companies. Ferrovial also emphasized a strong pipeline for U.S. highway projects, including bids for the I-24 in Nashville and the I-285 East in Atlanta.

In summary, Ferrovial SA’s earnings call conveyed a positive outlook, driven by strong growth in its North American assets and strategic capital allocation. While challenges such as adverse weather in U.S. Managed Lanes and negative operating cash flow were noted, the company’s overall performance and future prospects remain promising.