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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on FER

Ferrovial's recent performance was driven by strong full-year 2025 results, marked by an 8.6% revenue increase to €9.6 billion and a 12.2% rise in adjusted EBITDA to €1.5 billion. Robust growth in North American toll road assets and construction drove the results. The company secured new contracts, including a £80 million upgrade project for Slough Sewage Treatment Works and a $699m rail tunnel contract in Poland. A €1 billion scrip dividend plan was also backed by shareholders, demonstrating confidence in the company's financials.

1.c. Company Highlights

2. Ferrovial's 2025 Earnings: A Robust Performance Across Divisions

Ferrovial delivered a robust performance in 2025, with revenue reaching EUR 9.6 billion, up 8.6% year-over-year on a like-for-like basis, driven mainly by higher revenues in highways and construction. Adjusted EBITDA stood at EUR 1.5 billion, representing a 12.2% year-over-year increase on a like-for-like basis. The company's earnings per share (EPS) came in at 0.4829, significantly beating estimates of 0.13.

Publication Date: Mar -03

📋 Highlights
  • Revenue Growth: EUR 9.6B (+8.6% YoY) driven by highways and construction.
  • Adjusted EBITDA Increase: EUR 1.5B (+12.2% YoY) with highways contributing 12.2% growth.
  • Construction Order Book Record: EUR 17.4B, 50% from North America, and USD 1.3B negative net debt.
  • Dividend Milestone: EUR 968M (+2.2% YoY) and EUR 501M share repurchases boosting 38.6% shareholder return.
  • 407 ETR Performance: Revenue up 17.8% YoY and traffic growth of 6.1%, with 36% dividend increase in 2025.

Segmental Performance

The highways segment was a key driver of growth, with revenue increasing by 13.7% like-for-like, driven by a strong double-digit growth from U.S. assets, particularly the 407 ETR, which saw traffic increase by 6.1% and revenue grow 17.8% year-over-year. The construction order book reached a new all-time high of EUR 17.4 billion, with almost 50% coming from North America.

Cash Flow and Dividend

The company closed the year with a solid cash position, with negative net debt excluding infra projects of $1.3 billion, supported by record dividends received from infra assets and proceeds from divestments. Ferrovial returned EUR 156 million in cash and repurchased shares totaling EUR 501 million to shareholders, and proposes a dividend of EUR 1 billion, representing a EUR 400 million top-up from previous years.

Valuation and Outlook

With a P/E Ratio of 50.61 and an EV/EBITDA of 25.69, the market appears to be pricing in significant growth expectations. Analysts estimate next year's revenue growth at 4.7%. The company's growing presence in the North American market and investor confidence in its long-term strategy are reflected in its U.S. listing in 2024 and joining the NASDAQ-100 Index in December. Ferrovial's financial results were driven by the sale of 19.75% of Heathrow in 2024 and the divestment of AGS and Heathrow in 2025.

Operational Highlights

The New Terminal One at JFK Airport progressed towards operational readiness, with 82% construction progress as of the end of the year. The company expects continued growth supported by a record pipeline of U.S. infrastructure projects, and has firepower for growth with leverage headroom allowed by its BBB rating.

3. NewsRoom

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Ferrovial AGM: 2025 Revenue Jumps 9%, EBITDA Up 12%, €1B Scrip Dividend Plan Backed by Votes

Apr -09

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Ferrovial (FER) 2025 Revenue Rises 8.6% to €9.6B With Adjusted EBITDA Reaching €1.5B

Mar -10

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Ferrovial and Budimex win $699m rail tunnel contract in Poland

Mar -09

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Is It Too Late To Consider Ferrovial (BME:FER) After Its Strong Multi‑Year Share Price Rally?

Feb -28

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Ferrovial SE (FER) Full Year 2025 Earnings Call Highlights: Strong Growth in North American ...

Feb -26

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Ferrovial Q4 Earnings Call Highlights

Feb -26

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Ferrovial reports strong full-year 2025 results, boosted by robust performance in all businesses

Feb -25

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Ferrovial SE (FER) Lands £80 Million Contract To Upgrade the Slough Sewage Treatment Works

Feb -24

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.48%)

6. Segments

Construction

Expected Growth: 4.5%

Ferrovial SE's construction segment growth of 4.5% is driven by increased infrastructure investments, government projects, and a recovering European construction market. The company's diversified portfolio, strong project pipeline, and efficient project execution also contribute to this growth. Additionally, Ferrovial's expertise in sustainable and innovative construction solutions supports its expansion.

Toll Roads

Expected Growth: 3.8%

Ferrovial SE's toll roads segment growth of 3.8% is driven by increased traffic volume, higher toll rates, and strategic investments in road infrastructure. Strong economic conditions and government partnerships also contribute to the growth, with a focus on efficient operations and customer satisfaction.

Other

Expected Growth: 2.9%

Ferrovial SE's 'Other' segment growth of 2.9% is driven by increased construction activity, particularly in airports and highways, partly offset by lower energy services revenue. This growth is supported by the company's diversified portfolio and strategic investments in key markets, positioning it for long-term stability and expansion.

Unallocated Adjustments

Expected Growth: 0.0%

Unallocated adjustments from Ferrovial SE show 0.0% growth, driven by stable corporate costs and absence of significant one-off effects. This suggests that the company's central operations and overheads remain under control, with no major adjustments needed, resulting in a neutral impact on the financial performance.

Energy

Expected Growth: 6.2%

Ferrovial SE's energy segment growth of 6.2% is driven by increased investment in renewable energy projects, particularly wind and solar, as well as a focus on sustainable infrastructure development. Government policies supporting clean energy and a strong project pipeline contribute to this growth.

Airports

Expected Growth: 5.5%

Ferrovial SE's airport segment growth of 5.5% is driven by increasing air passenger traffic, driven by tourism and business travel, and efficient operations. The company's strategic focus on optimizing airport services, investing in digital transformation, and expanding capacity through smart investments also contribute to growth.

7. Detailed Products

Airport Services

Ferrovial SE's airport services include managing and operating airports, providing services such as security, ground handling, and retail management.

Highways and Motorways

Ferrovial SE's highways and motorways segment involves managing and operating toll roads, highways, and motorways.

Urban Services

Ferrovial SE's urban services segment involves providing waste collection, street cleaning, and other municipal services to cities.

Water Management

Ferrovial SE's water management segment involves providing services such as water treatment, supply, and distribution.

Rail and Metro

Ferrovial SE's rail and metro segment involves managing and operating rail and metro systems.

8. Ferrovial, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ferrovial SE operates in the infrastructure and services sector, specifically in transportation, which has limited substitutes. The company's diversified portfolio across different geographies and sectors reduces the threat of substitutes.

Bargaining Power Of Customers

Ferrovial SE's customers include governments, private companies, and individuals. While some customers, such as governments, may have significant bargaining power, the company's diversified customer base and long-term contracts mitigate this risk.

Bargaining Power Of Suppliers

Ferrovial SE has a large and diversified supplier base, which reduces the bargaining power of individual suppliers. Additionally, the company has a strong track record of negotiating favorable contracts with its suppliers.

Threat Of New Entrants

The infrastructure and services sector has significant barriers to entry, including high capital requirements and regulatory hurdles. However, Ferrovial SE faces competition from established players and potential new entrants in specific markets.

Intensity Of Rivalry

Ferrovial SE operates in a highly competitive market with numerous established players. The company's main competitors include other large infrastructure and services companies, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.50%
Debt Cost 4.31%
Equity Weight 34.50%
Equity Cost 8.92%
WACC 5.90%
Leverage 189.83%

11. Quality Control: Ferrovial, S.A. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Aena

A-Score: 7.2/10

Value: 6.2

Growth: 7.1

Quality: 7.7

Yield: 6.9

Momentum: 6.0

Volatility: 9.3

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Vinci

A-Score: 6.7/10

Value: 6.3

Growth: 6.1

Quality: 4.7

Yield: 6.9

Momentum: 7.0

Volatility: 9.0

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Ferrovial

A-Score: 5.7/10

Value: 0.9

Growth: 6.2

Quality: 6.1

Yield: 3.1

Momentum: 8.5

Volatility: 9.3

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Volvo

A-Score: 5.6/10

Value: 3.7

Growth: 6.4

Quality: 4.3

Yield: 8.8

Momentum: 4.0

Volatility: 6.3

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BAE Systems

A-Score: 4.9/10

Value: 2.4

Growth: 6.8

Quality: 4.9

Yield: 5.0

Momentum: 4.5

Volatility: 6.0

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Saint-Gobain

A-Score: 4.8/10

Value: 4.7

Growth: 5.8

Quality: 4.5

Yield: 4.4

Momentum: 4.0

Volatility: 5.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

60.9$

Current Price

60.9$

Potential

-0.00%

Expected Cash-Flows