Ferrovial (FER) Q3 2024 earnings summary

Executive summary

• Strong results in Q3 and 9M 2024, with toll roads and airports driving growth, and construction profitability improving year-over-year.

• Net debt ex-infrastructure projects reduced to €418 million, supported by dividends, asset divestments, and disciplined capital allocation.

• Major corporate actions included the acquisition of a 24% stake in IRB Infrastructure Trust, sale of a 5% stake in IRB Infrastructure Developers, and partial divestment of Heathrow.

• Shareholder distributions, mainly buybacks and dividends, totaled €749 million, with additional buyback programs announced.

• Ferrovial began trading on Nasdaq in May 2024 and announced two scrip dividends.

Financial highlights

• Revenue for 9M 2024 reached €6,643 million, up 6.8% year-over-year; adjusted EBITDA rose 50.0% to €1,008 million; adjusted EBIT increased 79.2% to €667 million.

• Q3 2024 revenue was €2.4 billion (+4.2% vs. Q3 2023); Q3 adjusted EBITDA €0.4 billion (+35.7%), adjusted EBIT €0.3 billion (+45.5%).

• Dividends from projects reached €490 million in nine months, with significant inflows from toll roads and asset sales.

• Cash flows from operating activities totaled €1,896 million; liquidity at €3,501 million.

• Shareholder distributions totaled €749 million, including dividends and share buy-backs.

Outlook and guidance

• Guidance for 2024 EBIT margin at 3.5% is on track; construction profitability and order book support targets.

• Heathrow revised its 2024 traffic forecast to 83.8 million passengers, reflecting strong demand.

• Pipeline of growth investments and new projects is accelerating, with focus on the US market.

• Schedule 22 provisions for 407 ETR will start accruing in Q1 2025, with higher impact in Q2 and Q3.