Ferrovial SE

Overview Key strengths Key risks Diversified geographic and sector exposure due to presence in construction and transportation infrastructure segments. Exposure to the cyclical construction industry increasing potential earnings volatility over economic cycles. Historically stable and solid contributions from toll road assets. Earnings sensitivity to cost inflation potentially leading to cost overruns and underperformance in construction. Healthy construction order book at a record €17 billion. Ambitious growth strategy leading to potentially high investments as part of the asset rotation strategy. High standing in credit markets and solid balance sheet in net cash position, with exceptional liquidity. Weighted average adjusted funds from operations (FFO) to debt comfortably above 60% in our base case, which provides some ratings headroom. Ferrovial delivered strong results

...We expect Ferrovial SE's strong performance to extend into 2025. Ferrovial delivered strong results in 2024, with company-reported revenue reaching 9.1 billion, reflecting a 6.7% like-for- like growth. Reported revenue from toll roads increased by 19.6%. Managed lanes showed strong traffic performance, notably underpinned by the NTE 3C opening to traffic in June 2023....

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