US increases accounts for Ferrovial, which earns 3.7% more

US projects are the engine of growth for Ferrovial, which ended the first quarter of the year with adjusted gross operating profit (EBIDTA) of 254 million euros, up 37.6%, the company announced at the close of trading yesterday.in the US, where the company was listed last week (which forced it to bring its reporting into line with SEC standards), as well as in Madrid and Amsterdam.

Yesterday the company explained that the growth was mainly driven by “solid growth” in its highways and construction divisions. The income of the infrastructure group increased by 3.5% by March and amounted to 1.879 million euros.

“The first quarter results reflect the strong performance of our core infrastructure assets, particularly in the United States. Revenue from our express lanes has grown above inflation and GDP, demonstrating the value we bring to users through faster, less congested highways,” he said. This was announced yesterday by Ignacio Madridejos, CEO of Ferrovial.

The executive emphasized that “listing on the US Stock Exchange allows us to access the best financial sources, opening up new development opportunities to continue to provide critical infrastructure to communities, helping them prosper as their populations increase.”

However, there is light and shadow in its evolution on the Nasdaq. After a very volatile few days, especially the first two days, the company’s shares have remained little changed since their debut on the US stock market, although analysts have revised their forecasts upward and the consensus is for medium-term upside of about 19%. term.

As can be seen from the reports presented yesterday, Ferrovial ended the first quarter with a strong financial position. Excluding infrastructure projects, its liquidity level reaches 4.908 million euros with a negative consolidated net debt of 667 million euros. In global terms (including infrastructure), net debt increased in the first three months of the year by 556 million euros, reaching a total of 6.535 million.

During this period, cash consumption was spent on shareholder benefits (€254 million) and investments, including the capital contribution to the New York JFK mega-terminal and investments following the refinancing of the AGS loan. Equally controlled by Ferrovial and Macquarie, including Aberdeen and Glasgow airports in Scotland, and Southampton south of London.

Among the milestones achieved in the first quarter is the agreement to acquire 24% of IRB Infrastructure Trust for €740 million, as the group continues to make progress in repositioning its airport assets in the United Kingdom following an agreement to sell its assets. a 25% stake in Heathrow to Saudi Arabia’s PIF and France’s Ardian, and that it would continue to sell AGS.

Broken down, toll road revenue increased by 30.1% on a like-for-like basis to reach €277 million, particularly driven by projects in the US. Adjusted EBITDA increased by 36.2% to €203 million.

Of note was a 7.1% improvement in traffic on Canadian Highway 407 ETR, resulting in an 11.8% increase in revenue. The board of directors of this infrastructure a few days ago approved the payment of dividends in the amount of 175 million Canadian dollars (119 million euros), which will be paid in the second quarter.

Meanwhile, expressways in the United States have seen significant revenue increases, in some cases over 80%, such as the I-66 Express in Virginia. But those living in Texas and North Carolina also increased their activity and results by double digits.

Construction and airports

The construction division ended the quarter with a record order book of €15.39 billion. Revenue amounted to €1.476 million, representing growth of 0.4% on a like-for-like basis, of which North America accounted for 33%. This area contributed an adjusted operating result of €32 million in the quarter, up 77.1% compared to the same period the previous year.

On the other hand, the airport business also improved its performance. Heathrow welcomed a historical record 18.5 million passengers between January and March, up 9.5% on the first quarter of 2023. With this development, it raised its 2024 traffic forecasts to a new high of 82.4. million passengers.

Aberdeen, Glasgow and Southampton airports also performed favorably in the first quarter, with traffic volumes increasing by 8.4%, while performance at Dalaman Airport in Turkey remained stable on a like-for-like basis.