Ferrovial reached $447 million net profit in the first half of the year

Rhea-AI Summary

Ferrovial (Nasdaq: FER) reported a $447 million net profit for the first half of 2024, a significant increase from $123 million in the same period of 2023. The company's strong performance was driven by:

- 56% increase in Adjusted EBITDA to $652 million
- 7.5% revenue growth to $4.6 billion in like-for-like terms
- Strong growth in North American infrastructure assets
- Record-breaking passenger numbers at Heathrow Airport

Ferrovial's shares are now traded on Nasdaq, Spanish, Dutch, and U.S. markets. The company maintains a solid financial position with $4.6 billion in liquidity and $-38 million in consolidated net debt (excluding infrastructure projects). The Construction division reported a record order book of $17 billion, with a 3.2% adjusted EBIT margin, on track to meet its 3.5% target for 2024.

Positive

• Net profit more than tripled to $447 million in H1 2024
• Adjusted EBITDA increased by 56% to $652 million
• Revenue grew 7.5% in like-for-like terms to $4.6 billion
• Strong performance across all business units, especially in North American infrastructure assets
• Construction division's order book reached a record $17 billion
• Heathrow Airport welcomed a record 39.8 million passengers in H1 2024
• Successful listing on Nasdaq, expanding market presence

Negative

• NTE (Texas) saw a 1.8% decline in traffic due to construction works

Insights

Financial Analyst

Ferrovial's first-half results for 2024 demonstrate robust financial performance across all business segments. The company's net profit surged to $447 million, a significant increase from $123 million in the same period last year. This impressive growth is underpinned by strong operational performance and strategic divestments.

Key financial highlights include:

• Adjusted EBITDA increased by 56% to $652 million
• Revenue grew by 7.5% in like-for-like terms to $4.6 billion
• Solid liquidity position of $4.6 billion
• Consolidated net debt of $8.047 billion, with a negative net debt of $38 million excluding infrastructure projects

The company's construction division shows promising signs, with an adjusted EBIT margin of 3.2%, progressing towards its 3.5% target for 2024. The record order book of $17 billion in construction provides a strong foundation for future revenue streams.

Ferrovial's strategic moves, including its Nasdaq listing and the agreement to sell a 19.75% stake in Heathrow airport, position the company for further growth and international expansion. The strong performance across all business units, particularly in North American toll roads and airports, indicates a positive outlook for the company's core infrastructure assets.

Infrastructure Expert

Ferrovial's H1 2024 results underscore the company's strong position in the global infrastructure sector. The standout performance of its North American assets, particularly the Express Lanes, demonstrates the company's ability to capitalize on increasing urbanization and mobility trends.

Notable infrastructure highlights include:

• Solid growth in revenue per transaction across U.S. Express Lanes, with I-66 in Virginia leading at 42.5% increase
• Traffic growth of 5.6% on the 407 ETR in Canada
• Record-breaking passenger numbers at Heathrow Airport, with 39.8 million passengers in H1
• Progress on the New Terminal One Project at JFK airport, including a $2.55 billion Green Bond issuance

The company's diverse portfolio of infrastructure assets provides resilience and multiple growth avenues. The strong performance in toll roads and airports suggests a robust recovery in travel and commuting patterns post-pandemic. Ferrovial's ability to secure new projects, such as Lima's Peripheral Ring Road, further strengthens its global footprint.

The infrastructure sector is experiencing increased demand for sustainable and efficient solutions. Ferrovial's focus on green financing, as evidenced by the NTO Green Bond issuance, aligns well with this trend and positions the company favorably for future opportunities in sustainable infrastructure development.

• Adjusted EBITDA increased by 56% and revenue improved 7.5% in like-for-like terms, driven by positive performance in all business areas 

• Infrastructure assets in North America experienced strong growth in revenue per transaction, while Heathrow served a record-breaking number of passengers 

• During the period, Ferrovial's shares were listed on Nasdaq and are now traded simultaneously in the Spanish, Dutch and U.S. markets 

AMSTERDAM, July 30, 2024 /PRNewswire/ -- Ferrovial (Nasdaq: FER), a leading global infrastructure company, reported a $447 million net profit for the first half of 2024, compared with $123 million in the same period of 2023, driven by strong operating performance across all business areas. 

"Ferrovial more than tripled net profit in the first half of the year, an extraordinary result driven by excellent performance across all business units and profitable divestments. The construction division continues to improve profitability and is on track to achieve its ambitious annual target. In addition, the revenue per transaction on all our U.S. Express Lanes beat inflation and GDP growth levels, while airports experienced a strong performance in traffic," said Ignacio Madridejos, Ferrovial CEO. "Our operational strength, coupled with a solid financial position, puts us in the right place to continue taking advantage of strong global trends in infrastructure." 

Adjusted EBITDA amounted to $652 million in the period, an increase of 56% year-on-year, while revenue grew 7.5% in like-for-like terms to $4.6 billion. 

Ferrovial ended the first half with a solid financial position, with liquidity levels reaching $4.6 billion and consolidated net debt amounting to $-38 million, excluding infrastructure projects in both cases. Main cash outflows in the period included shareholder distributions, the acquisition of 24% of IRB Infrastructure Trust and equity investments in the New Terminal One. These were partially offset by the dividends received from infrastructure assets --the first one in the case of I-77 after five years of operation-- and the divestment of a 5% stake in IRB Infrastructure Developers. 

The company achieved strategic milestones in the first half of 2024. In April, it was awarded Lima's Peripheral Ring Road (Perú) as part of a consortium. In May, Ferrovial started trading on Nasdaq, becoming the first company of Spanish origin trading with ordinary shares in the U.S. stock market. In June, Ferrovial announ4ced a new agreement to sell a 19.75% interest in FGP Topco, parent company of Heathrow airport, to Ardian and The Public Investment Fund. 

Operating results 

The Toll roads division saw revenue increase by 25.2% in like-for-like terms to $643 million as a result of solid growth in North America. Adjusted EBITDA improved by 25.3% to $463 million in like-for-like terms. 

Traffic grew 5.6% on the 407 ETR in Canada, boosted by mobility and commuting patterns, while revenue rose 11.4% to CAD 780 million.   

Express Lanes in the U.S. experienced a solid growth in revenue per transaction during the period. In particular, I-66 (Virginia) registered a 42.5% increase, NTE 35W (Texas) 17.5%, I-77 (North Carolina) 12.7%, LBJ (Texas) 7.8% and NTE (Texas) 4.8%. With regards to traffic, the most significant increases were registered on NTE 35W (+38.7%), thanks to the opening of Segment 3C, as well as on I-66 (+16.6%). NTE saw a 1.8% decline due to construction works.  

The Construction division ended the first half of the year with a record order book of $17 billion, with North America accounting for 49% of contracts and Poland 22%. Revenue amounted to $3.6 billion, an increase of 4.9% on a like-for-like basis. The Construction division reported an adjusted EBIT of $116 million and an adjusted EBIT margin of 3.2%, placing the unit on track to meet the 3.5% target planned for 2024. 

The Airports division registered strong growth in traffic during the period. Specifically, Heathrow had its busiest first half-year ever welcoming 39.8 million passengers between January and June, a 7.3% gain year-over-year.  As a result of the solid demand, the airport upgraded its traffic projections for 2024 to a new record of 82.8 million passengers, from 82.4 million previously. 

Aberdeen, Glasgow and Southampton airports also performed well in the first half, with traffic up 7.8%, while Dalaman airport in Turkey reported a 10.4% increase. 

The New Terminal One Project (NTO) at JFK international airport is progressing within budget and schedule. In June, Scandinavian airline SAS committed to operating at NTO, marking the third airline partner added since the start of 2024, following EVA Air and Air Serbia. In the same month, NTO successfully concluded a $2.55 billion Green Bond issuance, the largest ever municipal bond financing for an airport project.  

KEY FIGURES
(million USD)
	June 2024	June 2023	Change 1/2
Revenue	4,613	4,259	7.5 %
Adjusted EBITDA2	652	434	56 %
Adjusted EBIT2	417	216	101.5 %
Net Profit	447	123
	June 2024	Dec. 2023
Consolidated net debt2	8,047	6,405
Net debt, excluding infrastructure projects2	-38	-1,200
			Change1
Construction order book/2	17,112	16,261	3.8 %

(1) In like-for-like terms

(2) Non-IFRS financial measure. For the definition and reconciliation to the most directly comparable IFRS measure, see the Alternative Performance Measures appendix to the 2024 First Half Results Report

^{*The company reports its results in euros. The figures in this press release have been converted to USD using the closing or the average exchange rate as of June 30, 2024, as appropriate.} 

Conference call information 

Ferrovial will host a conference call on July 31^st at 15:00 CEST / 9:00 a.m. ET to discuss its first half 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. 

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 net profit for the first half of 2024?

Ferrovial (FER) reported a net profit of $447 million for the first half of 2024, compared to $123 million in the same period of 2023.

How much did Ferrovial's Adjusted EBITDA increase in H1 2024?

Ferrovial's Adjusted EBITDA increased by 56% to $652 million in the first half of 2024.

What was the revenue growth for Ferrovial in H1 2024?

Ferrovial's revenue grew 7.5% in like-for-like terms to $4.6 billion in the first half of 2024.

How many passengers did Heathrow Airport serve in H1 2024?

Heathrow Airport welcomed 39.8 million passengers in the first half of 2024, marking its busiest first half-year ever with a 7.3% increase year-over-year.

What is the size of Ferrovial's Construction division order book as of H1 2024?

Ferrovial's Construction division ended the first half of 2024 with a record order book of $17 billion.