Ferrovial increased adjusted EBITDA by 37.6% in the first quarter

Rhea-AI Summary

Ferrovial (Nasdaq: FER) reported a 37.6% increase in adjusted EBITDA for Q1 2024, reaching $276 million. Revenue rose by 3.5% to $2 billion, driven by Toll Roads and Construction divisions. The company's Express Lanes in North America saw significant traffic growth, particularly North Tarrant Express 35W and I-66. Heathrow Airport achieved a record 18.5 million passengers. Ferrovial maintains high liquidity of $5.3 billion with a consolidated net debt of $-720 million. Key investments included a 24% stake in IRB Infrastructure Trust for $803 million and contributions to JFK's New Terminal One. A $129.8 million dividend was approved for Q2. The company was also recognized by CDP for its environmental efforts.

Positive

• Adjusted EBITDA increased by 37.6% to $276 million in Q1 2024.
• Revenue grew by 3.5% to $2 billion.
• Express Lanes in North America showed significant traffic growth.
• Heathrow Airport achieved a record 18.5 million passengers.
• High liquidity of $5.3 billion and net debt of $-720 million.
• Investment in IRB Infrastructure Trust for $803 million.
• Record order book of $16.4 billion in the Construction division.
• Recognized by CDP for environmental efforts.

Negative

• Cash consumption was high due to $275.8 million in shareholder remuneration.
• Investments led to notable cash usage, including contributions to JFK's New Terminal One.
• Revenue from the Construction division increased by only 0.4%.

Financial Analyst

Ferrovial’s Q1 financial results demonstrate a robust performance, particularly in its key revenue-generating divisions like Toll Roads and Construction. The company achieved a 37.6% increase in adjusted EBITDA to $276 million, which is significant. This growth is mainly attributed to the solid performance in North America, driven by increased traffic on Express Lanes and the opening of Segment 3C on the North Tarrant Express 35W. The revenue increase by 3.5% to $2 billion also underscores the company’s ability to generate stable income from its diversified portfolio.

Ferrovial’s liquidity of $5.3 billion and net debt of $-720 million reflect a strong financial position, indicating sound financial management and the ability to fund future investments and shareholder returns. The company’s strategic investments, such as the $803 million acquisition of a 24% stake in IRB Infrastructure Trust, shows a commitment to expanding its infrastructure footprint, which could offer long-term growth opportunities.

For retail investors, these results suggest financial stability and strong growth potential. The consistent performance across various infrastructure assets, coupled with the expansion in North America, gives confidence in the company's capability to deliver sustainable returns.

Market Research Analyst

The Toll Roads division experienced an impressive 30.1% increase in revenue, driven by a notable rise in traffic and revenue across North American assets. This is indicative of the strong demand for efficient transportation infrastructure and the company’s ability to cater to this demand effectively. The significant year-over-year increases in traffic on major assets, such as the I-66 Express (+82.2%) and the North Tarrant Express 35W (+44.7%), highlight the value and convenience provided by these infrastructures.

A noteworthy aspect is the record order book of $16.4 billion in the Construction division, which signals a robust pipeline of future projects. This provides visibility into future revenue streams and demonstrates the company's competitive positioning in securing high-value contracts.

For retail investors, the strong performance of the Toll Roads division and the healthy order book in the Construction division bode well for the company’s future earnings potential. It reflects the company’s strategic positioning in high-growth markets and its ability to capitalize on infrastructure development trends.

Aviation Analyst

Heathrow Airport achieved a remarkable milestone by welcoming 18.5 million passengers in Q1 2024, marking an all-time record and a 9.5% increase year-over-year. The strong performance led to an upward revision of the airport’s traffic projections for 2024 to 82.4 million passengers. This performance is a testament to the recovery and growth in the aviation sector, driven by increasing travel demand post-pandemic.

The growth in passenger traffic at Aberdeen, Glasgow and Southampton airports, along with stable traffic at Dalaman airport, underlines the company's diversified portfolio and resilience in different markets. This robust performance in the Airports division is important for generating stable cash flows and supporting overall profitability.

Retail investors should note the positive outlook for the Airports division, which can provide consistent revenue growth and complement the company's performance in its other divisions. The recovery in air travel and the strategic importance of Heathrow as a major hub position Ferrovial well for future growth.

• Express Lanes in North America saw a significant increase in traffic, while Heathrow Airport surpassed its all-time passenger record
• Revenue increased by 3.5% to $2 billion, driven by Toll Roads and Construction divisions

AMSTERDAM, May 13, 2024 /PRNewswire/ -- Ferrovial (Nasdaq: FER), a leading global infrastructure company, today announced Q1 results for the first time after being listed simultaneously in Spain, the Netherlands and the U.S. Adjusted EBITDA amounted $276 million in the first quarter of 2024, a 37.6% like-for-like growth versus Q1 2023, due to the solid growth of the Toll Roads and Construction divisions. Revenue increased by 3.5% in like-for-like terms to $2 billion in the period. 

"Once again, the first quarter results reflect the strong performance of our key infrastructure assets, particularly in the United States. Revenues from our Express Lanes grew above inflation and GDP, demonstrating the value we bring to travelers with faster and less congested highways," said Ferrovial CEO Ignacio Madridejos. "Listing on the U.S. stock market gives us access to greater financial resources, enabling new development opportunities to continue providing critical infrastructure to communities, helping them to flourish as their populations grow." 

Ferrovial ended the first quarter with a solid financial position, with high liquidity levels reaching $5.3 billion and consolidated net debt of $-720 million, excluding infrastructure projects in both cases. During the period, cash consumption was driven by shareholder remuneration ($275.8 million) and investments, including equity contributions in New Terminal One at JFK International Airport and the investment in AGS following its debt facility refinancing. 

Milestones in the first quarter include the agreement to acquire a 24% stake in IRB Infrastructure Trust for $803 million and Ferrovial recognized as one of the world's leading environmental companies by CDP (formerly the "Carbon Disclosure Project"). 

Operating results 

The Toll Roads division saw revenue increase by 30.1% in like-for-like terms to $301 million as a result of solid growth in North America, where both traffic and revenue grew notably. Adjusted EBITDA increased by 36.2% to $220 million. 

Traffic grew 7.1% on the 407 ETR in Canada, supported by increased mobility, combined with more favorable weather conditions. Revenue increased by 11.8%. The company's Board of Directors approved a $129.8 million dividend in April to be paid in the second quarter. 

Express Lanes in the U.S. saw strong year-over-year growth in traffic, with the most significant increases on the North Tarrant Express 35W (+44.7%) thanks to the opening of Segment 3C in June, as well as on I-66 (+17.8%). Revenue grew above inflation in all assets. In particular, I-66 Express (Virginia) registered an 82.2% increase, North Tarrant Express 35W (Texas) a 72.8% growth, I-77 Express (North Carolina) a 24.9%, LBJ Express (Texas) an 16.3% and NTE (Texas) an 8.2%. 

The Construction division ended the quarter with a record order book of $16.4 billion. Revenue amounted to $1.6 billion, an increase of 0.4% on a like-for-like basis, with revenue from North America accounting for 33% of total revenue and Poland 26%. The division reported $35 million in adjusted EBIT, a 77.1% year-over-year hike, and an adjusted EBIT margin of 2.1%. 

The Airports division registered a strong growth in traffic in the period. Specifically, Heathrow welcomed an all-time record of 18.5 million passengers between January and March, a 9.5% gain year-over-year.  As a result of the solid demand, the airport upgraded its traffic projections for 2024 to a new record of 82.4 million passengers. 

Aberdeen, Glasgow and Southampton airports also performed well in the first quarter, with traffic up 8.4%, while traffic performance at Dalaman airport in Turkey was stable year-over-year in the first quarter. 

Webcast and conference call information 

Ferrovial will host a conference call on May 14 at 9:00 a.m. ET to discuss its first quarter 2024 financial results. To access the webcast of the earnings call, click here or visit the Investor Relations section of the Company's website at https://ferrovial.com/ir-shareholders  

About Ferrovial  

Ferrovial is one of the world's leading infrastructure companies. The Company operates in more than 15 countries and has a workforce of over 24,000 worldwide. Ferrovial is triple listed on Euronext Amsterdam, the Spanish Stock Exchanges and Nasdaq, and is a member of Spain's blue-chip IBEX 35 index. It is part of the Dow Jones Sustainability Index and FTSE4Good, and all its operations are conducted in compliance with the principles of the UN Global Compact, which the Company adopted in 2002. 

KEY FIGURES (million dollars)
	Mar. 2024	Mar. 2023	Change1/3
Revenue	2.040	1,960	3.5 %
Adjusted EBITDA3	276	205	37.6 %
Adjusted EBIT3	165	102	63.2 %
	Mar. 2024	Dec. 2023
Consolidated net debt3	7,051	6,461
Net debt, excluding infrastructure projects3	-720	-1,210
	Mar. 2024	Mar. 2023	Change2
Construction order book1/3	16,606	16,378	0.3 %
1 In like-for-like terms
2 In like-for-like terms, vs December 2023
3 Non-IFR financial measure. For the definition and reconciliation to the most directly comparable IFRS measure, refer to the Alternative Performance Measures appendix of the Q12024 results report
*The company reports its results in euros. The figures in this press release have been converted to USD using the closing exchange rate on December 31, 2023, or the average exchange rate in the first half of 2023, as appropriate.

Press Contacts
North America
Rebecca Rountree
+1 512 568 5015
rrountree@ferrovial.com 

Europe
Isabel Muñoz
+34 660528832
mimunoz@ferrovial.com 

Investor Relations
+34 91 586 25 65 (Spain)
+31 20 798 3724 (Netherlands)
ir@ferrovial.com

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SOURCE Ferrovial

FAQ

What was Ferrovial's adjusted EBITDA growth in Q1 2024?

Ferrovial's adjusted EBITDA grew by 37.6% in Q1 2024, reaching $276 million.

How much did Ferrovial's revenue increase in Q1 2024?

Ferrovial's revenue increased by 3.5% to $2 billion in Q1 2024.

What was the passenger record achieved by Heathrow Airport in Q1 2024?

Heathrow Airport achieved a record of 18.5 million passengers in Q1 2024.

What is Ferrovial's liquidity and net debt as of Q1 2024?

Ferrovial has high liquidity of $5.3 billion and a consolidated net debt of $-720 million as of Q1 2024.

What were the key investments made by Ferrovial in Q1 2024?

Key investments included a 24% stake in IRB Infrastructure Trust for $803 million and contributions to JFK's New Terminal One.

How much dividend was approved by Ferrovial's Board in Q1 2024?

Ferrovial's Board approved a $129.8 million dividend to be paid in Q2 2024.

What recognition did Ferrovial receive for its environmental efforts?

Ferrovial was recognized by CDP as one of the world's leading environmental companies.