Fomento de Construcciones y Contratas, S.A.

FCC said 2025 group EBITDA was over EUR 1.4 billion, while net financial debt ended at EUR 2.3 billion, down 23%. The company reported EUR 1.2 billion in cash flow from operations, EUR 1.23 billion in gross investments, and a year-end portfolio of over EUR 51 billion, up 11.4%. Environment revenue rose 9.1% to EUR 4.74 billion and EBITDA was EUR 789.8 million with gross margin at 16.7%; Water revenue rose 6.9% to EUR 1.7 billion and EBITDA increased to EUR 450 million with margin at 25.0% versus 25.4% last year; Construction revenue rose 3.4% to over EUR 3 billion, but EBITDA fell 49.9% to EUR 85.8 million and gross margin fell to 2.8%; Concessions revenue rose 45.5% to EUR 112 million and EBITDA rose 10.8% to EUR 60.4 million. Management did not provide formal next-quarter or full-year numerical guidance, but said 2026 should see a significant recovery in environmental provisions and more moderate Construction growth with higher visibility.

Miguel Coronel Granado emphasized that the year was defined by robust operations, a stronger balance sheet, and a larger backlog rather than headline profit growth. He repeatedly highlighted the importance of the group’s project portfolio, calling the 11.4% increase in backlog essential for visibility, and pointed to Construction, Water, and Environment as the main operating engines. His tone was confident but cautious, especially around project-based margin volatility and the need for preventive provisioning in Construction.

He stressed that profitability was hit by a few identifiable items: a EUR 267 million contraction in the parent company result, EUR 96 million of full-year one-off provisions for water treatment and U.K. assets, and a negative FX impact from euro strength. He also noted that operational cash generation was strong at EUR 1.2 billion, gross investments were EUR 1.23 billion, and leverage improved with net debt down 23% to EUR 2.3 billion; total financial debt ended at EUR 5.3 billion. He added that the sale of an additional minority stake in FCC Enviro brought in EUR 1 billion and helped support a net financing inflow of EUR 800 million.

Analysts focused on the size and cash effect of environmental and construction one-offs, the sustainability of Construction margins, working-capital trends, and dividend potential as debt falls. Management said environmental provisions were about EUR 90 million in 2025, expected to be higher in endowments this year, and that 2026 should see a significant recovery; it also said the Construction adjustments were preventive, tied to projects in progress, and did not reflect litigation or specific cash outflows. On dividends, management declined to give guidance, saying the company uses a flexible dividend policy and prioritizes profitable growth.