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Ferrovial SA (ES:FER)
BME:FER
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Ferrovial
(BME:FER)
Select Model
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Rating:78Outperform
Price Target:
€62.00
▲(9.81% Upside)
Ferrovial's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. Technical indicators support a bullish outlook, while valuation remains reasonable. The absence of notable corporate events does not impact the overall assessment.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for Ferrovial's infrastructure services, enhancing its market position and financial stability.
Cash Generation
Strong cash generation supports Ferrovial's ability to invest in growth opportunities and manage debt, ensuring long-term financial resilience.
Order Book Growth
A growing order book suggests sustained demand for Ferrovial's construction services, providing revenue visibility and supporting future growth.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, potentially impacting Ferrovial's ability to weather economic downturns.
Operational Cost Challenges
Rising operational costs could pressure margins, affecting profitability and necessitating efficiency improvements to maintain competitiveness.
Traffic Decline in NTE
Traffic decline in key corridors may impact toll revenue, necessitating strategic adjustments to mitigate potential revenue loss.
Ferrovial (FER) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€39.09B
Dividend Yield1.28%
Average Volume (3M)1.38M
Price to Earnings (P/E)11.7
Beta (1Y)0.78
Revenue Growth5.75%
EPS Growth346.20%
CountryES
Employees25,264
SectorIndustrials
Sector Strength72
IndustryIndustrial - Infrastructure Operations
Share Statistics
EPS (TTM)0.28
Shares Outstanding733,755,400
10 Day Avg. Volume2,205,499
30 Day Avg. Volume1,377,755
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)4.84
Price to Sales (P/S)3.21
P/FCF Ratio27.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€58.50Price Target Upside3.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ferrovial Business Overview & Revenue Model
Company DescriptionFerrovial, S.A., together with its subsidiaries, operates as an infrastructure and mobility operator in the United States, Poland, Spain, the United Kingdom, Canada, and internationally. The company engages in the design and construction of various public and private works; and development, finance, and operation of toll roads. Its construction activities include highways, tunnels, railways, bridges and viaducts, airports, intelligent toll systems, port and airport infrastructures, buildings, energy restoration, aqueducts, water treatment plants, desalination plants, digesters, thermal drying plants, chimneys and silos, caissons, storage tanks, solar power towers, oil facilities, and other construction. The company is also involved in the operation and maintenance services of urban and industrial waste water treatment plants, and water treatment and desalination plants. In addition, it develops, manufactures, and markets asphalt and bitumen products; develops, finances, and operates airports; provides integrated solutions for the development and management of electrical transmission networks; provides mobility services, including ZITY, an electric carsharing service application; undertakes engineering works; and sells hydraulic equipment. The company was founded in 1952 and is based in Madrid, Spain.
How the Company Makes MoneyFerrovial generates revenue through multiple streams aligned with its core business activities. The Construction division contributes significantly by undertaking large-scale infrastructure projects, including roads, airports, and buildings, often funded by public-private partnerships (PPPs) and government contracts. The Airports division earns income by managing and operating airport facilities, collecting fees from airlines and passengers. In the Toll Roads sector, Ferrovial acquires and operates toll highways, generating steady revenue from toll collections. Their Services division offers facilities management, environmental services, and other support services, which also contribute to recurring revenue through long-term contracts. Strategic partnerships with governments and private entities, along with a focus on sustainable and innovative practices, further enhance their revenue potential.
Ferrovial Earnings Call Summary
Earnings Call Date:Oct 28, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
The earnings call highlighted robust growth in highways and strong performance in the 407 ETR, contributing to a solid cash position. However, there were challenges in specific areas like traffic decline in the NTE and increased operational costs.Q3-2025 Updates
Positive Updates
Strong Highway Revenue Growth
U.S. highway revenue grew 16.4% like-for-like in the first 9 months of the year, with adjusted EBITDA up nearly 15.1%.
407 ETR Performance
Traffic growth of 9.4% in Q3, leading to a revenue increase of 18.6% and an EBITDA surge of 20.1%. Total dividends for the year expected to rise 36% from 2024.
Construction Division Profitability
Maintained solid profitability with an adjusted EBIT margin of 3.7% for the first 9 months and a 4.2% margin in Q3.
Net Cash Position
Net cash of EUR 706 million at the end of Q3, reflecting strong cash generation and disciplined investment.
Order Book Growth
The construction order book stands at EUR 17.2 billion, up 9.1% like-for-like compared to December 2024.
Negative Updates
Traffic Decline in NTE
Traffic in the NTE corridor declined 3.7% in Q3 and 4.4% in the first 9 months due to capacity improvement construction works.
Dalaman Airport Traffic Decline
Traffic declined by 1.5% in the first 9 months, affected by geopolitical situations in the Middle East.
Challenges in Operational Costs
Increased costs related to bidding and IT systems in the construction division, potentially impacting future margins.
Company Guidance
During the call, Ferrovial provided an extensive overview of its financial performance for the third quarter of 2025, highlighting strong metrics across various divisions. The company's adjusted EBIT margin reached 3.7% in the first nine months, while its net debt, excluding infrastructure projects, stood at a positive EUR 706 million. Significant cash inflows were driven by EUR 406 million in dividends from projects and proceeds of EUR 534 million from the sale of AGS Airports. Moreover, the U.S. highways segment showed robust growth, with revenue up 16.4% and adjusted EBITDA rising by 15.1% like-for-like. The 407 ETR asset reported a 9.4% traffic increase in the quarter, driving a 19.3% revenue growth over nine months. Additionally, the 407 Board approved a CAD 1.05 billion dividend for Q4, marking a 50% increase from last year. These metrics collectively indicate Ferrovial's continued financial resilience and strategic focus on North American assets.Ferrovial Financial Statement Overview
Summary
Ferrovial demonstrates strong financial performance with significant revenue and profit growth. The company maintains high margins and improved equity returns, despite high leverage and EBIT volatility. Cash flow generation is robust, supporting financial stability.Income Statement
Ferrovial shows strong revenue growth, with a 7.43% increase from 2023 to 2024. The gross profit margin remains robust at around 87.85%, and the net profit margin improved significantly to 35.42%. Both EBIT and EBITDA margins have shown improvement, indicating efficient operational management. However, fluctuations in EBIT over the years suggest potential volatility.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio is high, reflecting significant leverage with a ratio of approximately 1.90 in 2024. Despite this, return on equity has improved, reaching 53.33%, indicating effective use of shareholders' funds. The equity ratio stands at 20.94%, suggesting moderate reliance on equity financing.78
Positive
Cash Flow
Free cash flow growth is slightly negative at -9.35%, but the company maintains a strong operating cash flow to net income ratio of 0.40, reflecting solid cash generation capability. The free cash flow to net income ratio is healthy at 0.33, indicating good cash conversion efficiency.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.47B | 9.15B | 8.51B | 7.55B | 6.78B | 6.34B |
| Gross Profit | 3.95B | 8.03B | 7.47B | 6.35B | 5.70B | 5.34B |
| EBITDA | 655.00M | 4.30B | 1.48B | 924.00M | 1.51B | 116.00M |
| Net Income | 540.00M | 3.24B | 460.00M | 188.00M | 1.20B | -424.00M |
Balance Sheet | ||||||
| Total Assets | 26.56B | 29.00B | 26.32B | 26.28B | 24.90B | 23.13B |
| Cash, Cash Equivalents and Short-Term Investments | 2.83B | 4.81B | 4.76B | 5.09B | 5.48B | 6.42B |
| Total Debt | 10.34B | 11.53B | 11.56B | 11.84B | 10.75B | 9.76B |
| Total Liabilities | 18.91B | 20.88B | 20.44B | 19.93B | 19.06B | 19.30B |
| Stockholders Equity | 5.90B | 6.08B | 3.77B | 4.11B | 4.05B | 3.19B |
Cash Flow | ||||||
| Free Cash Flow | 99.00M | 1.07B | 1.18B | 907.00M | 686.00M | 977.00M |
| Operating Cash Flow | 370.00M | 1.29B | 1.26B | 1.00B | 810.00M | 1.09B |
| Investing Cash Flow | -1.15B | 1.31B | -531.00M | -732.00M | 457.00M | 382.00M |
| Financing Cash Flow | -1.05B | -2.59B | -1.30B | -316.00M | -2.22B | 430.00M |
Ferrovial Technical Analysis
Positive
56.46
Price Trends
52.92
Positive
49.47
Positive
45.94
Positive
Market Momentum
0.86
Negative
63.26
Neutral
86.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:FER, the sentiment is Positive. The current price of 56.46 is above the 20-day moving average (MA) of 55.05, above the 50-day MA of 52.92, and above the 200-day MA of 45.94, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 63.26 is Neutral, neither overbought nor oversold. The STOCH value of 86.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:FER.
Ferrovial Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | €39.09B | 11.69 | 69.30% | 1.28% | 5.75% | 346.20% | |
70 Outperform | €19.06B | 21.68 | 19.75% | 2.52% | 25.47% | 7.63% | |
70 Outperform | €5.39B | 22.76 | 5.28% | 4.33% | 5.00% | -64.19% | |
68 Neutral | €1.83B | 14.73 | 14.10% | 2.47% | 6.84% | 16.03% | |
65 Neutral | €2.98B | 32.17 | 10.80% | 5.25% | 2.03% | -32.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | €2.44B | ― | -6.79% | 28.07% | 11.61% | -212.68% |
* Industrials Sector Average
ES:FER
Ferrovial
56.46
17.35
44.37%
ES:ACS
Actividades de Construccion y Servicios SA
79.65
36.72
85.54%
ES:CAF
Construcciones y Auxiliar de Ferrocarriles
54.30
22.06
68.42%
ES:ENO
Elecnor
29.55
15.09
104.29%
ES:FCC
Fomento de Construcciones y Contratas
11.56
2.82
32.25%
ES:SCYR
Sacyr SA
3.85
0.86
28.82%
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.