Ferrovial SA ((ES:FER)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for Ferrovial SA painted a largely positive picture of the company’s financial health and strategic achievements. The sentiment was buoyed by record dividends, robust revenue and EBITDA growth, and significant progress in construction and sustainability initiatives. Despite minor setbacks such as traffic decreases due to ongoing construction and the impact of natural disasters, the overall tone was optimistic, reflecting the company’s strong performance and strategic foresight.
Record Dividend Distributions
Ferrovial SA celebrated an all-time high in dividend distributions, receiving €947 million from its infrastructure assets. This impressive figure includes the inaugural dividend distributions from the I-66 and I-77 projects, amounting to €89 million and €205 million, respectively.
Strong Revenue and EBITDA Growth
The company reported revenues of €9.5 billion, marking a 6.7% increase on a like-for-like basis compared to the previous year. Adjusted EBITDA saw a significant surge of 38.9%, reaching €1.3 billion. This growth was primarily driven by the strong performance of US Toll Road assets and the Construction division.
Successful Asset Divestments
Ferrovial successfully collected €2.6 billion from asset divestments, including the sale of a 19.75% stake in Heathrow Airport for €2 billion and a 5% stake in IRB Infrastructure Developers for €211 million. These strategic divestments have bolstered the company’s financial position.
Significant Construction Milestones
The construction of the new Terminal One at JFK Airport has advanced significantly, with the project reaching 60% completion by the end of 2024. This milestone underscores Ferrovial’s commitment to expanding its construction portfolio.
Positive Shareholder Returns
In 2024, Ferrovial returned $831 million to shareholders and repurchased shares totaling €272 million. The total shareholder return for the year was an impressive 25.7%, reflecting the company’s commitment to delivering value to its investors.
Strong Performance of North American Toll Roads
North American toll roads exhibited strong performance, with revenues increasing by 22.8% and EBITDA by 22.2%. This growth was supported by significant increases in traffic and revenue per transaction across multiple assets.
High Sustainability Achievements
Ferrovial made notable strides in sustainability, achieving a 26% reduction in the serious injury and fatality frequency rate, a 35.8% reduction in Scope 1 and 2 CO2 emissions, and a 26.7% reduction in water consumption.
Traffic Decrease at NTE Due to Construction
The company reported a 2.2% decrease in traffic at the North Tarrant Express (NTE) due to ongoing capacity improvement construction works. This temporary setback is expected to be resolved as construction progresses.
Impact from Hurricane Helene on I-77
The revenue per transaction on I-77 was temporarily affected by a subsidy of toll rates to support recovery efforts following Hurricane Helene. This impact was primarily felt in the fourth quarter, highlighting the challenges posed by natural disasters.
Forward-Looking Guidance
Looking ahead, Ferrovial expects continued strong financial performance across its business divisions. The company anticipates further revenue growth driven by its Toll Roads and Construction segments. With a construction order book at an all-time high of €16.8 billion and robust shareholder returns, Ferrovial is well-positioned for future success. The company plans to continue its strategic investments and divestments to enhance its financial stability and growth prospects.
In conclusion, Ferrovial SA’s earnings call highlighted a period of significant achievements and financial successes. The positive sentiment was driven by record dividends, strong revenue and EBITDA growth, and substantial progress in construction and sustainability. Despite minor setbacks, the company’s forward-looking guidance suggests a promising future, making it an attractive prospect for investors.