Atlas Arteria Limited

Atlas Arteria said proportional toll revenue increased 9.4% and proportional EBITDA increased 9.3% in 2025, with EBITDA margin steady at 75%. Total revenue from Dulles Greenway and Warnow Tunnel was up 10%, and cash received from businesses was $549 million, 2% lower than 2024. Cash distributions paid to investors during the year were $580 million, or $0.40 per security across the second half 2024 and first half 2025 distributions; corporate cash balance was $151 million at year-end 2025. Traffic rose 1.4% at APRR, 1.5% at ADELAC, 8.2% at Dulles Greenway, while Chicago Skyway was down 0.3% and Warnow Tunnel traffic fell 3%. For 2026, management confirmed a $0.40 per security distribution and said free cash flow could be at the top or slightly outside the 90% to 110% payout range if the TST remains in place; they also expect total cost in 2026 to be in line with 2025 and growth-related costs to average $5 million to $10 million per year over the next 2 to 3 years.

Hugh Wehby framed the year as one of simplification and strategic reset, with a new leadership structure, broader executive responsibilities, and a sharper focus on partnerships, portfolio optimization, and disciplined growth. He emphasized that the company is looking to unlock value from existing assets, pursue selective organic opportunities in France such as the A412, and prepare for future French concession opportunities, while keeping flexibility in funding. His tone was constructive and confident, repeatedly stressing resilience, stability, and the ability to deliver through varied economic and political conditions.

Vincent Portal-Barrault highlighted that the capital allocation framework is unchanged and is designed to balance distributions with reinvestment. He pointed to 2025 revenue up 9.4%, EBITDA up 9.3%, and EBITDA margin steady at 75%, while noting cash received from businesses of $549 million and year-end corporate cash of $151 million. He also said the company priced $1.4 billion of bonds and notes at APRR and Chicago Skyway during the year, that the FX hedging program has 0 upfront cost and covers a portion of the expected euro distribution over the next 12 months, and that growth-related costs should average $5 million to $10 million per year over the next 2 to 3 years, funded from corporate cash.

Analysts pressed on why APRR and Skyway margins were not showing more operating leverage; management said APRR’s flat EBITDA margin reflected the above-EBITDA TST, while Skyway’s costs were affected by CEO transition costs, executive team changes and legal costs tied to disputes that are expected to unwind. Questions also focused on the distribution policy and whether $0.40 is the base case; Hugh said it is the baseline for assessing growth opportunities, and that any acquisition or growth capital must be accretive, preserve valuation discipline and support portfolio balance. On French concessions and APRR retenders, management said the framework is not finalized, likely won’t be settled until after the 2027 presidential election, and could involve smaller perimeters, shorter durations and different regulation. For Dulles Greenway, they said the Virginia timetable now points to an August public hearing and that they intend to keep filing rate cases annually.