Ferrovial, S.A.

For the first half of 2026, 407 ETR revenue increased 18.7% and total revenue rose 20.2%, with traffic up 1.8% and EBITDA up 24.4%; in Q2, 407 traffic was 2.7% lower year over year. Construction revenue grew 7.1% reported and 9.7% like-for-like, with a stable 3.5% adjusted EBIT margin; the order book reached EUR 18 billion, up 2.8% like-for-like versus December 2025. Ferrovial ended the semester with net cash of EUR 1.3 billion excluding infrastructure projects, supported by EUR 329 million of construction operating cash flow, EUR 378 million of dividends collected from projects, and EUR 96 million of divestments, while cash outflows included EUR 63 million for JFK equity, EUR 398 million of cash dividends and treasury purchases, and other financing items. For guidance, management reiterated only the long-term 3.5% construction margin target and said it does not provide guidance on dividends or buybacks; JFK Phase DBO is now targeted for March 2027.

Ignacio Madridejos framed the half as strong overall, driven by North American highways and construction, while noting JFK’s schedule reset to March 2027. He emphasized that Ferrovial continues to bid selectively for new managed lane projects, pursue data center opportunities through power-land sites in Madrid and Warsaw, and keep capital deployment disciplined through recycling and partnering. His tone was constructive but measured, repeatedly stressing that pricing, promotions, and project timing are being managed with a focus on value capture and EBITDA.

Ernesto Mozo focused on the cash bridge and the below-EBITDA lines. He said the company ended H1 with EUR 1.3 billion of net cash, driven by EUR 378 million of project dividends, EUR 329 million of construction operating cash flow, EUR 96 million of divestments, EUR 187 million of investments, EUR 398 million of cash dividends and treasury share purchases, and EUR 20 million of FX effects on cash equivalents. He also said 407 ETR financial expense was affected by additional debt/issuers and inflation-linked bonds and derivatives, and he would not extrapolate the Q2 expense as a run rate. On capital returns, he declined to give guidance on dividends or buybacks.

Analysts pressed on JFK’s new March 2027 target, asking about contingency, recourse, and whether the contractor or another builder would handle later phases; management said the plan is based on best available information, the contractor will pay CAD 500,000 per day in liquidated damages from July, and they are currently focused on the design/work already underway. On the U.S. managed lanes, questions centered on LBJ traffic, mandatory modes, traffic resilience, and oil prices; management said the local economies in Dallas-Fort Worth, Washington, and Charlotte remain healthy, oil prices have not had a significant impact so far, and mandatory modes are present in some segments but are not expected to have a meaningful short-term impact. Analysts also pressed repeatedly on 407 ETR promotions, dividend timing, and buybacks; management said promotions are now used as a more selective yield-management tool to capture user value and reduce Schedule 22 payments, but they would not disclose traffic splits or provide guidance on dividends or repurchases.