Ferrovial SE

Financial Performance

5Y price score: 138

10Y return: 212.7%

DATE RANGE:

EUR Per
Share

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45.6

52-week range

63.5

49.66

Your model inputs

Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

5.8 %

Dividend Yield TTM

2.2 %

Market cap

35,803

Price / Earnings TTM

57.7

Price / Book TTM

6.3

PEG TTM

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

10.5 %

109.4 %

212.7 %

Free cash flow per share growth

1,248.7 %

51.9 %

52.6 %

Earnings per share growth

28.6 %

313.8 %

36.3 %

Founded: 1,952

Employees: 25,264

Business Summary:Ferrovial, S.A., together with its subsidiaries, operates as an infrastructure and mobility operator in the United States, Poland, Spain, the United Kingdom, Canada, and internationally. The company engages in the design and construction of various public and private works; and development, finance, and operation of toll roads. Its construction activities include highways, tunnels, railways, bridges and viaducts, airports, intelligent toll systems, port and airport infrastructures, buildings, energy restoration, aqueducts, water treatment plants, desalination plants, digesters, thermal drying plants, chimneys and silos, caissons, storage tanks, solar power towers, oil facilities, and other construction. The company is also involved in the operation and maintenance services of urban and industrial waste water treatment plants, and water treatment and desalination plants. In addition, it develops, manufactures, and markets asphalt and bitumen products; develops, finances, and operates airports; provides integrated solutions for the development and management of electrical transmission networks; provides mobility services, including ZITY, an electric carsharing service application; undertakes engineering works; and sells hydraulic equipment. The company was founded in 1952 and is based in Madrid, Spain.

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q2 (Jul 29, 2026)

1) Strategy & Leadership
- Ferrovial's CEO, Ignacio Madridejos, highlighted strong performance in North American highways and construction, maintaining profitability targets.
- The company is actively pursuing new managed lane projects, with bids submitted for i24 in Tennessee and I-85 in Georgia, with results expected in Q3 2026.
- The JFK Terminal 1 project is progressing, with a completion plan submitted, targeting March 2027 for Phase DBO.

2) Financial & Segment Results
- Ferrovial reported a net cash position of EUR 1.3 billion, driven by operating cash flow of EUR 329 million and dividends collected from projects totaling EUR 378 million.
- Revenue from the 407 ETR grew by 20.2% YoY, with EBITDA increasing by 24.4%. Traffic was up 1.8% in H1 2026, although Q2 traffic saw a 2.7% decline YoY.
- Construction revenue grew by 7.1% in reported terms, with stable margins at 3.5% adjusted EBIT. The order book reached an all-time high of EUR 18 billion.

3) Problems / Headwinds
- Adverse weather and construction works impacted traffic across several managed lanes, with NTE and NTE35 West experiencing declines in traffic due to congestion and construction bottlenecks.
- The Dalaman Airport faced an 8.1% decline in total passengers due to regional conflicts, affecting adjusted EBITDA negatively by 13.7% YoY.
- The JFK project is facing delays, with potential penalties for the contractor of EUR 500,000 per day for delays beyond the new target date.

4) Operational or Product Plans
- Ferrovial is focusing on enhancing its managed lanes through technology improvements, such as vehicle classification, which has positively impacted revenue per transaction.
- The company is piloting a loyalty program for frequent users of the 407 ETR, with plans to evaluate its effectiveness before wider deployment.
- Future pricing strategies will consider inflation adjustments and traffic mix, with expectations for continued growth in managed lane revenues.

5) Guidance & Outlook / Investor Angle
- Ferrovial did not provide specific guidance on dividends for the second half of 2026, but the board will review this in October.
- The company expects to maintain a favorable working capital performance, though it noted that the first half's results were exceptional and may not fully repeat in H2.
- The strategic focus remains on maximizing EBITDA through effective pricing and promotions, while navigating economic uncertainties.

Bottom line: Ferrovial's strong financial position and strategic focus on infrastructure projects, particularly in North America, position it well for future growth, despite facing some operational headwinds and project delays. Shareholders can expect continued emphasis on profitability and cash generation, with potential for enhanced returns through dividends and strategic investments.

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