Ferrovial shares on the stock market: global expansion strategy and growth prospects.
Spanish infrastructure giant Ferrovial, surprises the market by reporting an impressive 147% increase in net profit for the 2023 financial year, reaching 460 million euros. This notable achievement coincides with the company’s strategic decision to move its headquarters from Spain to the Netherlands, marking an important milestone in its corporate history.
The change of headquarters, as well as the launch of simultaneous share listings in Spain and the Netherlands, reflects Ferrovial’s desire to expand its global presence and diversify its investor base. This bold move appears to have paid off, with all divisions of the company delivering strong results and significant growth in financial results.
Of particular note is the remarkable growth in road and highway assets, as well as the construction business. The infrastructure group’s revenues increased by 13.2% to €8.514 million, while adjusted gross operating result (Ebitda) increased by an impressive 40.6% to €991 million.
Ferrovial’s construction portfolio reached its all-time high, ending the year at €15.632 million, underlining confidence in future demand for infrastructure projects. In addition, the Airports division saw increased traffic across its assets, with London Heathrow recording a record number of passengers.
Ferrovial President Rafael del Pino and CEO Ignacio Madridejos expressed satisfaction with the results and optimism for the future. Strong asset performance was noted in North America and growth potential in key markets, particularly the US, was noted.
In line with its expansion strategy, Ferrovial is exploring new investment opportunities, especially in the US market, where it plans to list its shares on Nasdaq. In addition, the company plans to bid for another airport project in the United States, highlighting its commitment to innovation and continued growth.
2023 has been a transformative year for Ferrovial, marked by significant growth, bold strategic decisions and a clear vision for the future. With its strong financial position and diversified portfolio of projects, the company is well positioned to continue to lead the infrastructure sector globally and create long-term value for its shareholders.
Technical analysis.
Ferrovial stock has remained in a strong uptrend since it confirmed a breakout to the upside of a wide sideways range in April 2023, and it has rallied very strongly since then. However, in the short term, shares are consolidating sideways between EUR 33.75 (key support) and EUR 36.10.
As long as it remains above key support, the stock can be held in the portfolio; its loss will presage the start of a broader corrective phase as the most likely scenario.