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Actividades de Construccion y Servicios SA (ACSAY)
OTHER OTC:ACSAY
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Actividades de Construccion y Servicios SA
(OTC:ACSAY)
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Rating:64Neutral
Price Target:
$26.00
▲(20.59% Upside)
Action:DowngradedDate:03/04/26
The score is supported by strong technical momentum and a very positive earnings outlook (guidance, backlog strength, and cash generation). It is held back by elevated balance-sheet leverage and thin margins, and by a relatively high P/E with no dividend support.
Positive Factors
Cash Generation
Materially stronger free cash flow (FCF up ~42% in 2025 and FCF/net income ~0.76x) and EUR 2.2bn net operating cash flow provide durable internal funding. This improves capacity to fund strategic investments, JV rollouts and shareholder actions while bolstering resilience to project timing swings.
Backlog and Order Intake
A record backlog of EUR 92.9bn with EUR 62.5bn of new orders (book-to-bill ~1.3x) gives multi-year revenue visibility across geographies and segments. High contracted work reduces top-line volatility, supports margin planning and underpins medium-term cash flow predictability.
Digital Infrastructure Momentum
Digital infrastructure now represents a large, growing share of intake (~EUR17.6bn) with data-center wins and a 1.7GW JV with BlackRock GIP. This exposes the firm to structural hyperscaler demand, recurring platform opportunities and higher-growth, less cyclical revenue streams versus traditional construction.
Negative Factors
High Leverage
Elevated leverage (debt/equity ~2.9x) is the principal balance-sheet constraint. High debt amplifies sensitivity to cost overruns, interest-rate moves and downturns, limits financial flexibility for opportunistic investments or buybacks, and means ROE is partly leverage-driven rather than pure operating strength.
Thin Net Margins
Net margins remain very thin (~1.9% in 2025), offering limited buffer against inflation, contract disputes or execution slips. Low absolute margins make profits and cash generation sensitive to small project variances, increasing structural earnings and cashflow volatility in this project-based industry.
Abertis & Disposal/Timing Risks
Significant Abertis net debt (EUR 22.7bn) and protracted asset disposals create structural financing and execution risks. Large associate indebtedness and slow sales timelines can pressure group FFO/net debt ratios, constrain dividend capacity and force tradeoffs in capital allocation over the medium term.
Actividades de Construccion y Servicios SA (ACSAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.39B
Dividend YieldN/A
Average Volume (3M)279.00
Price to Earnings (P/E)30.7
Beta (1Y)0.58
Revenue Growth26.19%
EPS Growth9.88%
CountryUS
Employees157,284
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.27
Shares Outstanding1,474,215,300
10 Day Avg. Volume0
30 Day Avg. Volume279
Financial Highlights & Ratios
PEG Ratio-1.48
Price to Book (P/B)22.59
Price to Sales (P/S)2.18
P/FCF Ratio46.93
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit1.70
Enterprise Value/Ebitda10.15
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.92
Revenue Forecast (FY)$64.96B
Actividades de Construccion y Servicios SA Business Overview & Revenue Model
Company DescriptionACS, Actividades de Construcción y Servicios, S.A. provides construction and related services in Spain and internationally. The company undertakes construction activities related to development of highways, railways, maritime, airport works, hydraulic infrastructures, coasts, ports, civil engineering, educational and sports facilities, residential, and social infrastructures and facilities; undertakes contracts for the provision of mining services and infrastructure required for mining activities; and offers maintenance services for buildings, public places, and organizations. It also engages in the operation and maintenance activities, and development of real estate infrastructures; design, development, construction, and operation of infrastructure projects, real estates, and facilities; and promotion and development of transport and public facilities, as well as management of different public-private collaboration models. In addition, the company offers services for people, such as care for elderly citizens, dependent people, disabled people, and children aged up until the age of three; and manages playschools and collective restoration. Further, it provides services for building, such as maintenance, energy efficiency, cleaning, security, and logistics and auxiliary services; and services for public spaces comprising managing public lighting, which includes investing in changing light fittings, environmental services, and airport services. ACS, Actividades de Construcción y Servicios, S.A. was founded in 1997 and is based in Madrid, Spain.
How the Company Makes MoneyACSAY generates revenue primarily through contracts for construction projects, which include bidding for government and private sector contracts. The company earns money by providing specialized services such as project management, engineering, and construction supervision. Key revenue streams include construction fees, service contracts, and consultancy services. Additionally, ACSAY may engage in partnerships with other firms to combine resources for larger projects, enhancing its capacity and competitiveness in the market. Factors contributing to its earnings also include the company's reputation for quality and reliability, enabling it to secure repeat business and long-term contracts.
Actividades de Construccion y Servicios SA Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial performance: double-digit revenue growth, robust EBITDA expansion, record backlog and very strong cash generation supported a series of strategic investments and major data center, energy and defense awards. Key challenges are manageable and primarily execution/timing and balance-sheet composition risks — notably Abertis' high net debt, some assets held for sale, cash timing at CIMIC and conservative FX assumptions in guidance. Overall, the positives (broad-based growth, exceptional data center momentum, Turner outperformance and strong cash conversion) materially outweigh the lowlights.Q4-2025 Updates
Positive Updates
Strong Revenue and Profit Growth
Sales rose 19.7% to EUR 49.8 billion and reported ordinary net profit increased 25.3% to EUR 857 million (32.4% FX-adjusted); reported net profit was EUR 950 million. EBITDA grew 25% to EUR 3.1 billion with margin expansion across segments.
Exceptional Cash Generation and Improved Net Cash
Net operating cash flow reached EUR 2.2 billion in the last 12 months (up EUR 320 million adjusted for factoring), enabling a group net cash position of EUR 17 million at end-2025 (improvement of EUR 719 million year-over-year) after EUR 2.1 billion in strategic investments and shareholder remuneration.
Record Backlog and Accelerating New Orders
Order backlog hit an all-time high of EUR 92.9 billion (up 14.6% FX-adjusted). New orders totaled EUR 62.5 billion, up ~26.6-27% FX-adjusted, delivering a book-to-bill ratio of 1.3x.
Digital Infrastructure Surge (Data Centers)
Digital infrastructure represented ~28% of new orders (~EUR 17.6 billion), up around 130% year-on-year FX-adjusted. Global data center intake more than doubled in 2025 to EUR 17 billion, and the group secured multiple large awards (902 MW Wisconsin, 1 GW Meta India, 160 MW Netherlands, 58 MW Malaysia).
Turner Outperformance
Turner posted sales of EUR 25.8 billion, up 33.9%, with profit before tax of EUR 921 million (up >61%) and margin expansion of ~80 bps to 3.6%. Turner net operating cash flow rose by EUR 523 million to EUR 1.2 billion and net cash reached EUR 3.3 billion. Turner new orders were EUR 33.6 billion (up 44.2% FX-adjusted) and backlog a record EUR 37.7 billion.
Broad Segment Momentum and Margin Expansion
Engineering & Construction sales rose ~15.1% to >EUR 10.6 billion with EBITDA margin up 53 bps to 5.9% and PBT +45.2% FX-adjusted to EUR 275 million. CIMIC sales grew 11.2% with ordinary PBT +12.3% FX-adjusted; Iridium sales increased 45% and Abertis recurring business grew >6%.
Strategic Wins in Energy, Defense and Critical Minerals
Selected for Amentum/Rolls-Royce SMR delivery team and secured up to EUR 685 million nuclear/civil framework contract; defense backlog stood at EUR 3.5 billion including a EUR 1 billion German contract; critical minerals progress with Vulcan investment and EPCM appointment.
Capital Allocation and Platform Progress
Deployed EUR 1.7 billion in financial investments (EUR 564 million data centers, EUR 436 million Dornan acquisition, EUR 200 million Abertis contribution), completed strategic JV with BlackRock GIP targeting >1.7 GW, with 100 platform sites grid-connected and ~80% power secured; commercialization and lease negotiations under way (target first lease H1).
Negative Updates
Limited Group Net Cash Despite Strong Cash Flow
After significant strategic spend and shareholder payouts the group's net cash position was only EUR 17 million at year-end 2025, highlighting high capital deployment despite excellent operating cash generation.
Abertis Financial Headwinds and High Net Debt
Abertis operationally resilient but impacted by non-operational results; net debt stands at EUR 22.7 billion and dividend sustainability/expansion depends on renegotiations and pending transactions to improve FFO/net debt ratios.
CIMIC Cash Drag from Winding-down Large Transport Projects
CIMIC faces a cash-flow timing issue as legacy large civil/transport projects wind down (reduced advanced payments) and new high-tech projects are not yet replacing cash generation fully; attributable net profit grew only 1.4% FX-adjusted.
Assets Held for Sale and Disposals Progressing Slowly
Certain assets labelled 'held for sale' (energy/industrial assets) remain on the balance sheet longer than expected; management noted deliberate timing to maximize value rather than hasty disposals.
FX Assumptions and Conservative Guidance
Management built 2026 guidance conservatively assuming U.S. dollar devaluation, which could limit upside in reported results; guidance targets ordinary net profit growth of 20-25% to up to EUR 1.07 billion but is tempered by FX risk.
Dependency on Hyperscaler Demand and Regional Variability
Data center opportunity is heavily tied to hyperscaler planning and regional constraints (Europe slower due to regulatory/power issues); commercialization timing for parts of the platform is critical and remains a near-term execution risk.
Company Guidance
Management guided 2026 ordinary net profit growth of 20–25% to a target of up to EUR 1.070 billion, noting that this view is conservative (it assumes US dollar weakness); Turner was given up to ~30% growth (implying roughly EUR 1.3–1.4 billion PBT in 2026), and capital allocation plans remain based on a prudent net‑operating‑cash‑flow assumption of about EUR 1.5 billion p.a. (despite delivering EUR 2.2 billion net operating cash flow LTM and reaching a group net cash position of EUR 17 million at Dec‑25 after EUR 2.1 billion of strategic investments and EUR 448 million of shareholder remuneration). Management also reiterated longer‑term targets and pipeline metrics that underpin the guidance: Turner data‑center revenues of ~EUR 25 billion by 2030, a defense revenue ambition of EUR 10 billion by 2030, the 1.7 GW BlackRock GIP data‑center JV, ~EUR 17.6 billion digital‑infra intake in 2025, advanced lease talks covering ~150 MW IT (first lease targeted in H1) and near‑term commercialization goals of ~14 MW IT in Spain and ~250 MW in the U.S. this year.Actividades de Construccion y Servicios SA Financial Statement Overview
Summary
Improving revenue momentum and solid recent free cash flow support fundamentals, but consistently thin net margins and a leveraged balance sheet (high debt-to-equity) raise downside risk in an execution- and cycle-sensitive industry.Income Statement
Revenue growth accelerated meaningfully in 2025 (annual report: ~6.1%) after being essentially flat in 2024, supporting a stronger top-line trajectory. Profitability, however, remains thin: 2025 net margin is ~1.9% (similar to 2024), which leaves limited buffer versus project/contract volatility typical in construction. Operating profitability improved in 2025 versus 2024 (higher operating and cash earnings margins), but results show uneven quality across the period (including an unusually high 2021 net margin not sustained thereafter), pointing to some earnings variability.62
Positive
Balance Sheet
Leverage is the key constraint. Total debt remains high and the debt load is large versus equity (debt-to-equity ~2.9x in 2025), with leverage rising from 2022–2023 levels and staying elevated versus many peers. Equity is positive and returns on equity are solid (about ~19.7% in 2025), but that strength is partly leverage-driven, increasing sensitivity to downturns, cost overruns, or tighter credit conditions. Asset base expanded alongside revenue, but balance-sheet risk is still the main watch item.45
Neutral
Cash Flow
Cash generation is a relative strength recently: operating cash flow and free cash flow were solid in 2024–2025, and 2025 free cash flow rose sharply (about ~42% growth) while remaining strongly positive. Free cash flow covered a meaningful portion of earnings (free cash flow to net income ~0.76x in 2025), suggesting decent earnings-to-cash conversion. The main weakness is historical volatility—2021 showed weak operating cash flow and negative free cash flow—so working-capital swings and project timing can still create lumpiness.66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 47.00B | 49.85B | 41.63B | 35.74B | 33.62B | 27.84B |
| Gross Profit | 18.71B | 15.61B | 13.35B | 11.28B | 10.25B | 8.84B |
| EBITDA | 3.14B | 3.52B | 2.70B | 1.12B | 897.79M | 805.65M |
| Net Income | 861.20M | 950.34M | 827.58M | 780.12M | 668.23M | 3.05B |
Balance Sheet | ||||||
| Total Assets | 41.30B | 45.19B | 42.03B | 36.50B | 37.58B | 35.66B |
| Cash, Cash Equivalents and Short-Term Investments | 10.87B | 14.32B | 12.34B | 9.82B | 10.42B | 12.29B |
| Total Debt | 14.24B | 13.94B | 14.20B | 10.39B | 11.00B | 11.08B |
| Total Liabilities | 36.88B | 40.01B | 36.91B | 30.87B | 31.20B | 28.64B |
| Stockholders Equity | 4.19B | 4.82B | 4.71B | 5.33B | 5.55B | 6.33B |
Cash Flow | ||||||
| Free Cash Flow | 1.63B | 2.32B | 2.18B | 1.01B | 1.46B | -183.07M |
| Operating Cash Flow | 2.45B | 3.05B | 2.79B | 1.50B | 1.74B | 203.14M |
| Investing Cash Flow | -839.90M | -1.65B | -1.25B | -15.75M | -198.10M | 3.40B |
| Financing Cash Flow | -636.92M | 47.58M | 496.66M | -1.65B | -3.54B | -770.95M |
Actividades de Construccion y Servicios SA Technical Analysis
Positive
21.56
Price Trends
22.30
Positive
19.96
Positive
17.03
Positive
Market Momentum
1.04
Negative
69.35
Neutral
90.65
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACSAY, the sentiment is Positive. The current price of 21.56 is below the 20-day moving average (MA) of 24.10, below the 50-day MA of 22.30, and above the 200-day MA of 17.03, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 69.35 is Neutral, neither overbought nor oversold. The STOCH value of 90.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACSAY.
Actividades de Construccion y Servicios SA Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $32.77B | 25.70 | 38.50% | 0.16% | 14.11% | 26.26% | |
76 Outperform | $85.68B | 82.84 | 12.65% | 0.09% | 18.72% | 23.97% | |
74 Outperform | $24.03B | 60.03 | 12.93% | ― | 12.99% | 274.10% | |
69 Neutral | $12.58B | 22.49 | 27.11% | 1.06% | 0.21% | 53.80% | |
67 Neutral | $16.33B | 37.84 | 12.01% | 0.94% | -23.00% | -61.88% | |
64 Neutral | $33.39B | 30.74 | 19.17% | ― | 26.19% | 9.88% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
ACSAY
Actividades de Construccion y Servicios SA
24.28
13.82
132.15%
ACM
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96.17
3.04
3.27%
EME
EMCOR Group
736.30
349.02
90.12%
J
Jacobs Solutions
138.88
18.58
15.45%
MTZ
MasTec
300.74
176.85
142.75%
PWR
Quanta Services
566.00
316.66
127.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.