Ferrovial SE

Ferrovial reported first-half 2026 strength in its infrastructure portfolio and construction business, but did not provide consolidated revenue or EPS in the transcript. Key hard numbers included 407 ETR revenue up 18.7% in the first half and total revenue up 20.2%, with EBITDA up 24.4%; 407 ETR traffic up 1.8% in the first half but down 2.7% in Q2. Construction revenue rose 7.1% reported and 9.7% like-for-like, with adjusted EBIT margin at 3.5%, and the order book reached EUR 18 billion, up 2.8% like-for-like versus December 2025. The company ended the first half with EUR 1.3 billion of net cash excluding infrastructure projects, generated EUR 329 million of construction operating cash flow, collected EUR 378 million of dividends from projects, and made EUR 96 million of divestments. JFK New Terminal 1 was about 92% complete, with March 2027 set for Phase DBO; the company said contractor LDs are 500,000 per day starting in July. Management gave no numerical full-year or next-quarter financial guidance beyond reiterating the long-term 3.5% construction margin target and discussing expected seasonal working-capital effects.

Ignacio Madridejos framed the half as a strong period driven by North American highways and construction, emphasizing that the operating model is still producing growth while keeping construction profitability on target. He said the company is also advancing its pipeline, including bids for i24 and I-85, and is exploring new capital allocation avenues such as data centers, but with a measured approach and limited equity needs through partnerships and capital recycling. His tone was constructive but practical, especially on JFK, where he stressed the new March 2027 date is based on the best available information and paired with contractual remedies.

Ernesto Mozo focused on cash generation, debt, and below-EBITDA items. He said Ferrovial ended the semester with about EUR 1.3 billion of net cash, highlighted EUR 329 million of construction operating cash flow, EUR 378 million of project dividends, EUR 96 million of divestment proceeds, EUR 187 million of investments, and EUR 398 million of cash dividends and treasury share purchases. He also said 407 ETR’s higher financial expense reflected additional debt/issuers and inflation-linked effects, and cautioned that this should not be treated as a simple run rate. On capital returns, he repeated that the company does not give specific guidance on dividends or buybacks.

Analysts pressed on JFK timing, liquidated damages, and whether a different contractor might be used for later phases; management said the March 2027 plan is based on the current remedial schedule, that LDs of 500,000 per day apply from July, and that the contractor could challenge responsibility for the delay. On the U.S. managed lanes, questions centered on traffic resilience, mandatory modes, and the impact of oil prices; management said local economies in Dallas-Fort Worth, Washington and Charlotte remain healthy and that oil has not had a meaningful near-term impact. On 407 ETR, analysts asked about pricing, promotions, loyalty programs, Schedule 22 management, dividends, and buybacks; management said promotions are now part of a broader value-and-EBITDA strategy, that it is learning to target them better, and that no decisions have been made yet on broader loyalty program rollout or the timing of future capital-markets communication. On the I-77 South pipeline, management said the project is delayed and Ferrovial is awaiting the North Carolina DOT’s next steps.