Fomento de Construcciones y Contratas, S.A.

The company reported EBITDA of over EUR 1.4 billion and said the parent-company result fell by EUR 267 million, with one-off pressure from exchange rates and provisions. Net financial debt was EUR 2.3 billion, down 23%, and the group made EUR 1.23 billion gross investments, with net investments of EUR 1.2 billion. Portfolio/backlog closed above EUR 51 billion, up 11.4%. By segment, Environment revenue rose 9.1% to EUR 4.74 billion with EBITDA of EUR 789.8 million and a 16.7% gross margin; Water revenue rose 6.9% to EUR 1.7 billion with EBITDA of EUR 450 million and a 25% margin; Construction revenue rose 3.4% to over EUR 3 billion, but EBITDA fell 49.9% to EUR 85.8 million and gross margin was 2.8%; Concessions revenue rose 45.5% to EUR 112 million and EBITDA rose 10.8% to EUR 60.4 million. For 2026, management pointed to a recovery in environmental provisions, while saying Construction revenue growth should continue but be more moderate than the portfolio expansion suggests.

Miguel Coronel Granado emphasized that the group’s core story was operational resilience plus balance-sheet strength: solid growth in Environment and Water, a significant step-up in portfolio visibility, and lower leverage even after heavy investment. He highlighted Construction as the main source of growth in the backlog, but also said the quarter included preventive adjustments on some international projects, which hurt reported construction profitability. His tone was constructive and careful, stressing prudence, project visibility, and medium- to long-term robustness rather than near-term margin expansion.

He focused on cash generation, investment intensity, and the leverage picture. Operating cash flow reached EUR 1.2 billion, helped by EUR 27 million of working-capital contribution, while gross investments totaled EUR 1.23 billion and divestitures were limited, aside from a EUR 40 million sale in Spain. He noted the EUR 1 billion sale of an additional minority stake in FCC Enviro helped financing cash flow, and said total financial debt was EUR 5.3 billion, with net debt at EUR 2.3 billion and leverage down 23%. He also pointed to EUR 90 million in environmental provisions during 2025 and said 2026 should see a higher volume of provisions/endowments, with some recovery in EBIT.

Analysts pressed on the level and cash impact of environmental and construction one-offs, the sustainability of the 5.7% historical construction margin, working-capital trends, and dividend capacity as debt falls. Management said the environmental provision level was about EUR 90 million in 2025, that 2026 should see recovery, and that the fourth-quarter construction adjustments were preventive, not litigation-related, and did not imply specific cash outlays. On dividends, the company reiterated that it gives no guidance and uses a flexible dividend policy. It also said construction sales should keep growing in 2026, but more moderately than the backlog increase implies.