Atlas Arteria Limited

In 2025, proportional toll revenue increased 9.4% and proportional EBITDA increased 9.3%, with EBITDA margin stable at 75%. Cash received from businesses was $549 million, down 2% versus 2024, and cash distributions paid to investors during the year were $580 million, or $0.40 per security across the second half of 2024 and first half of 2025. Total revenue from the company’s rolled-up operating businesses (Dulles Greenway and the Warnow Tunnel) increased 10%. The company ended 2025 with $151 million of corporate cash, and management said it expects total costs in 2026 to be in line with 2025. Forward guidance was a 2025 distribution of $0.40 per security, a 2026 distribution of $0.40 per security, and expected growth-related costs of $5 million to $10 million per year on average over the next 2 to 3 years. Management also said it expects to be able to grow free cash flows over the next few years, while noting 2026 could fall at the top or slightly outside the 90% to 110% payout range because the TST has been extended for 2026.

Hugh Wehby framed 2025 as a year of simplification, sharper accountability and a more disciplined strategy built around partnerships, value creation and capital allocation. He emphasized three priorities: improving existing businesses, optimizing the portfolio, and pursuing growth only where it is distribution-accretive, valuation-supportive and improves portfolio balance. On France, he said the long-term outlook for toll road concessions remains positive and that APRR is well placed to participate, while at Dulles Greenway he highlighted the new CEO and a more active rate-case strategy. His tone was constructive and confident, but disciplined rather than aggressive.

Vincent Portal-Barrault said the business delivered steady traffic and higher toll revenue in 2025, with proportional revenue up 9.4%, proportional EBITDA up 9.3% and EBITDA margin stable at 75%. He pointed to the TST as the main reason cash from businesses was $549 million, 2% lower than 2024, and noted that corporate cash ended the year at $151 million. He also said $1.4 billion of bonds and notes were priced at APRR and Chicago Skyway during the year, the FX hedge program has 0 upfront cost, and 2026 total costs should be in line with 2025. He added that growth-related spend will likely average $5 million to $10 million per year over the next 2 to 3 years and be funded from corporate cash.

Analysts focused on whether APRR and Skyway were showing enough operating leverage, and management said APRR’s flat EBITDA margin reflects the TST sitting above EBITDA, while Skyway’s costs were affected by CEO transition costs and legal costs tied to disputes with the grantor that are expected to roll off. Questions also centered on the $0.40 distribution, the payout range, and whether buybacks might be more accretive; management said the $0.40 distribution remains the baseline and that they preferred keeping distribution stability after investor consultation. On France, management said the framework for future concessions is still not finalized, but smaller perimeters, shorter durations and reinforced regulation appear likely; they remain interested, but timing and tax settings will matter. On Dulles Greenway, management said the Virginia timetable now points to an August public hearing and that they expect to keep filing annually.