Ferrovial, S.A.

Ferrovial reported a net cash position of EUR 1.3 billion excluding infrastructure projects at the end of the first half of 2026. In the first half, construction operating cash flow was EUR 329 million, dividends collected from projects were EUR 378 million, and divestments were EUR 96 million; cash outflows included EUR 63 million for the final JFK equity injection and EUR 398 million of cash dividends and treasury purchases. On 407 ETR, revenue rose 18.7% in the first half, total revenue increased 20.2%, traffic grew 1.8%, and EBITDA increased 24.4%; in Q2 traffic was 2.7% lower year over year. Construction revenue grew 7.1% reported and 9.7% like-for-like, with a 3.5% adjusted EBIT margin, and the order book reached EUR 18 billion, up 2.8% like-for-like versus December 2025. For guidance, management reaffirmed only the long-term construction margin target of 3.5% and said JFK Phase DBO is now targeted for March 2027; no dividend, buyback, or detailed project guidance was given.

Ignacio Madridejos said the semester was strong, led by North American highways and construction, with the latter maintaining its profitability target. He emphasized that JFK Terminal 1 is being managed against a revised March 2027 schedule based on the best available information and that ongoing bids and data-center opportunities fit Ferrovial’s broader infrastructure strategy. His tone was constructive but cautious, especially on execution risks, and he repeatedly framed 407 ETR pricing and promotions as a long-term value-management exercise rather than a one-time rate move.

Ernesto Mozo focused on the cash bridge and below-EBITDA items. He said depreciation rose with higher construction capex and higher activity, divestments were smaller than last year, and infrastructure project financial results were roughly flat year over year. On cash, he broke out EUR 378 million of project dividends, EUR 329 million of construction operating cash flow, EUR 187 million of investments, EUR 96 million of divestments, and EUR 398 million of cash dividends and treasury share purchases; he also noted the EUR 1.3 billion net cash position. He would not give guidance on 407 ETR dividends or buybacks, and said the working-capital benefit in construction was partly timing-related though year-end seasonality may still help.

Analysts focused on JFK delay risk, whether Ferrovial would switch contractors for later phases, and whether the new March 2027 date had enough contingency; management said the schedule is based on the best current plan and that liquidated damages of USD 500,000 per day start in July, though the contractor could challenge causation. On the U.S. managed lanes, management said traffic remains supported by local economic strength, with little visible oil-price effect, and that construction completion should improve traffic at LBJ while NTE35 West benefits from higher utilization. Several questions centered on 407 ETR promotions, loyalty programs and dividend/buyback capacity; management said promotions are being used more selectively and learned over time, but declined to disclose traffic splits, dividend guidance, buyback guidance or a timetable for the loyalty program.