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

ACS said Q1 2026 sales rose 12.5% FX adjusted to EUR 12.3 billion, EBITDA increased close to 16% FX adjusted to EUR 772 million, and profit before tax was EUR 410 million, up approximately 24% FX adjusted. Operational net profit reached EUR 239 million, up 25%, while net profit nominal was EUR 232 million, up 30% FX adjusted. Backlog was almost EUR 100 billion, up 16.1% FX adjusted on a comparable basis, with new orders of EUR 17.5 billion and a last 12 months book-to-bill of 1.3x. Net operating cash flow over the last 12 months was EUR 2.3 billion, net debt ended March 2026 at EUR 1.5 billion, and the company reiterated 2026 operational net profit guidance of around EUR 1.07 billion to EUR 1.30 billion, implying growth of 20% to 25%.

Juan Cases struck a confident tone and framed the quarter as evidence that ACS’s strategy is working across AI, digital, energy, critical minerals and defense. He emphasized that the group is shifting toward higher-growth, higher-value markets, while maintaining strict risk management and disciplined capital allocation. He also highlighted that data centers, modularization and a broader AI stack are becoming central to the company’s medium-term growth.

The CFO commentary focused on cash generation, balance sheet strength and capital deployment. Management said last 12 months net operating cash flow was EUR 2.3 billion, pre-factoring cash flow was EUR 2.1 billion, and net debt improved to EUR 1.5 billion, down EUR 1.4 billion year-on-year. They also noted financial investments of EUR 508 million in data centers over the last 12 months, EUR 232 million invested in Q1, EUR 536 million of divestment collections in the quarter, and EUR 441 million allocated to shareholder remuneration over the last 12 months. On dividends, management said EUR 2.4 per share implies about a 65% payout ratio and fits the goal of balancing shareholder returns, investment-grade rating protection and future investment needs.

Analysts pressed management on whether the cash flow strength is sustainable and how excess cash will be used; management said the drivers are growth, better project quality and some recovery of positions, and that the same factors should continue supporting cash generation. Questions also focused on Turner’s data center momentum, guidance conservatism, and backlog visibility: management said Turner has EUR 19.6 billion of data center backlog in dollars plus another EUR 15.5 billion not yet in backlog, and that visibility extends to 2029 because clients are planning ahead. Investors asked about potential U.S. listing, dividend policy, HOCHTIEF stake changes, and AI data center bottlenecks; management said no additional HOCHTIEF shares were bought, a U.S. listing remains an option with no decision made, and supply-chain bottlenecks have improved versus 2023-2024 as SourceBlue, modularization and early planning reduce execution risk.