ACS, Actividades de Construcción y Servicios, S.A.

For 2025, ACS reported sales of EUR 49.8 billion, up 19.7% year on year, EBITDA of EUR 3.1 billion, up 25%, profit before tax of EUR 1.7 billion, up 67.3%, and ordinary net profit of EUR 857 million, up 25.3% or 32.4% FX adjusted. Reported net profit was EUR 950 million. Net operating cash flow was EUR 2.2 billion, up EUR 320 million adjusted for factoring variations, and the group ended the year with a net cash position of EUR 17 million. New orders were EUR 62.5 billion and backlog was EUR 92.9 billion, with digital infrastructure representing about 28% of orders, or EUR 17.6 billion. For 2026, management set an ordinary net profit growth target of 20% to 25% to up to EUR 1.070 billion.

Juan Cases framed the year as evidence that ACS is executing well in strategic growth markets, especially data centers, defense, critical minerals and energy. He said the group has already achieved key 2024 CMD goals for 2026 a year early and emphasized that the company is shifting from a pure contractor model toward an end-to-end platform model that captures both EBITDA and asset value. His tone was confident and expansionary, with repeated references to long-term optionality, disciplined capital allocation and strong visibility from backlog plus pipeline.

Emilio Grande and management emphasized strong cash generation and capital allocation discipline. Net operating cash flow was EUR 2.2 billion, with the company saying this was above the EUR 1.5 billion level used in planning, and net cash improved by EUR 719 million versus December 2024 to EUR 17 million at year-end. Capital deployed included EUR 564 million in data center projects, EUR 436 million for Dornan, EUR 200 million to Abertis, and EUR 448 million for shareholder remuneration; management also cited EUR 32 million of restructuring costs. On guidance, they said the 2026 profit target assumes a weaker U.S. dollar and that they are being prudent on free cash flow despite the stronger-than-planned cash generation.

Analysts focused on capital allocation, including whether ACS might sell down stakes in Turner or HOCHTIEF, whether the energy assets held for sale would be disposed of, and how much pipeline sits beyond the current backlog. Management said there are no current plans to reduce the Turner or HOCHTIEF stakes, arguing the businesses and related assets still have significant growth potential and that there is enough firepower from operating cash flow and possible divestments to fund investments. Questions also covered Turner’s large cash balance, dividend policy, Thiess timing, and the sustainability of Abertis dividends; management said Turner needs cash for bonding and growth investments, the dividend is likely to rise above EUR 2 per share this year, Thiess cannot be put until end-2026, and Abertis’ dividend could be sustainable if current renegotiations and transactions improve FFO leverage metrics.