How Does Ferrovial Company Work?

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How Does Ferrovial Operate?

Ferrovial, a global infrastructure leader, has shown strong financial performance in 2024 and the first half of 2025. The company focuses on developing, financing, building, and operating key transportation infrastructure.

Its strategic internationalization, including a Nasdaq listing in May 2024, highlights its commitment to global markets. Understanding its revenue generation and operational model is key for stakeholders.

Ferrovial's business model centers on long-term infrastructure projects. The company reported adjusted EBITDA of €1.3 billion in 2024, a 38.9% increase year-over-year. Revenue reached €9.1 billion in 2024, up 6.7%. Net profit in 2024 was €3.2 billion, boosted by asset sales. For the first half of 2025, revenue was €4.5 billion, a 5% increase, with adjusted EBITDA at €655 million, up 9.2%. This growth reflects its strategic approach to infrastructure development and management, offering a comprehensive view of its Ferrovial BCG Matrix.

Ferrovial company operations focus on the complete lifecycle of transportation infrastructure, from initial development and financing through construction and ongoing operation. The company's primary offerings are centered on highways, airports, and a substantial construction division, catering to both public and private clients to enhance connectivity and quality of life.

Core Business Sectors

Ferrovial's main business sectors include highways, airports, and construction. These divisions work together to deliver comprehensive infrastructure solutions globally.

Value Proposition

The company's value proposition lies in its integrated approach to infrastructure development and management. This allows for participation across the entire project lifecycle, differentiating it from specialized firms.

Public-Private Partnerships (PPPs)

Ferrovial heavily utilizes Public-Private Partnerships, especially in high-growth regions like North America. This model is key to delivering complex infrastructure projects efficiently.

Key Projects Showcase

Notable projects include the U.S. Express Lanes, such as the TEXpress Lanes, and the New Terminal One at JFK International Airport. These demonstrate expertise in managed lanes and large-scale airport development.

Understanding Revenue Streams & Business Model of Ferrovial reveals a strategic advantage in its integrated business model. This model enables Ferrovial to engage in greenfield and yellowfield projects, taking equity stakes in concessions, which sets it apart from pure infrastructure funds and traditional construction companies. This comprehensive approach, combined with a focus on high-growth assets and strategic asset rotation, results in tangible benefits such as reliable travel options, improved mobility, and significant economic contributions to the regions where its projects are located.

Operational Strengths and Market Position

Ferrovial's operational strategy is built on a strong foundation of PPPs and a diversified portfolio. The company's global presence is a significant asset, allowing it to leverage expertise across different markets.

• The Construction division maintained a record order book of €17.3 billion in H1 2025, with 45% originating from North America.
• The New Terminal One at JFK International Airport, a $9 billion venture, was 66% complete as of Q2 2025 and had secured 18 airline agreements.
• Ferrovial's U.S. Express Lanes are prime examples of its success in implementing innovative managed lane models for congestion relief.
• The company's ability to participate in the entire infrastructure lifecycle, from development to operation, is a key differentiator.

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Ferrovial's revenue generation is multifaceted, primarily stemming from its core divisions: Highways, Airports, and Construction. These are further supported by income from infrastructure asset dividends, showcasing a robust and diversified business model.

Highways Division Performance

The Highways division is a significant revenue driver for Ferrovial. In Q1 2025, revenue increased by 14.1% to €324 million, and in H1 2025, it reached €676 million, a 14.9% rise. This growth is largely attributed to strong performance in North America.

407 ETR Toll Revenue

The 407 ETR in Canada demonstrated exceptional growth, with revenue up 16.3% in Q2 2025 to CAD 523 million and 19.7% in H1 2025 to CAD 933 million. Toll revenue constituted 94% of this total.

Construction Division Revenue

In 2024, the Construction division reported revenue of €7.2 billion, reflecting a 3.8% increase on a like-for-like basis. This highlights the division's consistent contribution to the company's overall financial performance.

Airport Operations Monetization

Revenue in the Airports division is generated through various operational activities. This includes fees, concessions, and agreements with airlines, as exemplified by the JFK New Terminal One project.

Asset Rotation Strategy

Ferrovial actively monetizes its investments through asset rotation, selling mature assets to fund new, high-growth projects. This strategic approach ensures continuous capital deployment into promising ventures.

Dividend Income and Reinvestment

The company received €947 million in dividends from infrastructure assets in 2024 and €323 million in H1 2025. These funds are strategically reinvested, such as the €710 million investment in IRB Infrastructure Trust in 2024.

Ferrovial's monetization strategies extend to divesting stakes in major infrastructure. In 2024, the company sold a 19.75% stake in Heathrow Airport for €2 billion. Furthering this, in Q1 2025, a 50% stake in AGS Airports was sold for €538 million (or €533 million in H1 2025). These capital events support strategic reallocation, including equity injections into projects like the JFK New Terminal One, which received €244 million in H1 2025. The company is also actively diversifying its revenue streams by expanding into emerging sectors such as renewable energy, with a €72 million solar plant in Texas, and digital infrastructure, reflecting a forward-looking approach to its business model.

Revenue Diversification and Future Growth

Ferrovial is strategically expanding its revenue base beyond traditional infrastructure. This includes investments in renewable energy and digital infrastructure, demonstrating a commitment to innovation and sustainable development.

• Expansion into renewable energy projects, such as a solar plant in Texas.
• Development of digital infrastructure to create new revenue streams.
• Continued focus on core sectors like Highways and Airports for sustained growth.
• Strategic asset rotation to optimize capital allocation and fund new ventures.
• Leveraging expertise in public-private partnerships for project development.

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Ferrovial's recent history is marked by significant strategic moves and milestones that have shaped its operations and financial performance, including its Nasdaq listing in May 2024 and active asset rotation. The company has focused on high-growth markets and an integrated business model to navigate global challenges.

Strategic Asset Management

Ferrovial has strategically divested mature assets, such as its 19.75% stake in Heathrow Airport for €2 billion in 2024 and its 50% stake in AGS Airports in Q1 2025. This is part of a broader asset rotation strategy.

Key Investment Initiatives

Concurrently, the company has made significant investments, including a 24% stake in IRB Infrastructure Trust in India for €710 million in 2024 and increasing its stake in Canada's 407 ETR to 48.29% for €1.3 billion in June 2025.

Operational Achievements

Operational milestones include the opening of the Silvertown Tunnel in London in Q1 2025. Progress on the New Terminal One at JFK was 66% complete by Q2 2025, with an expected opening in 2026.

Competitive Strengths

Ferrovial's competitive edge lies in its deep expertise in Public-Private Partnerships (PPPs) and its integrated business model, covering the entire infrastructure lifecycle. This allows for efficient management of complex projects.

Innovation and Sustainability

Innovation is a core pillar, with an 'Innovation as a Service' model supported by a Digital Hub and global alliances. Ferrovial is also a leader in sustainability, ranking highly in the Dow Jones Best in Class Index in 2024, aiming for significant emission reductions by 2030.

• Nasdaq listing in May 2024.
• Divestment of Heathrow Airport stake for €2 billion in 2024.
• Acquisition of a 24% stake in IRB Infrastructure Trust for €710 million in 2024.
• Increased stake in 407 ETR to 48.29% for €1.3 billion in June 2025.
• Opening of Silvertown Tunnel in Q1 2025.
• New Terminal One at JFK 66% complete by Q2 2025.
• Commitment to reduce direct emissions by 42% and indirect emissions by 25% by 2030.
• Recognized for its approach to Target Market of Ferrovial and public-private partnerships.

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Ferrovial holds a significant position in the global infrastructure sector, operating across more than 15 countries with a team of over 25,000 employees. Its primary focus is on North America, with the U.S. and Canada representing the most crucial markets for EBITDA, particularly within its highways division. The company is recognized as a leader in the U.S. managed lanes sector, and it has a robust pipeline of opportunities in states like Georgia, Virginia, North Carolina, and Tennessee for 2025-2026. As of December 2024, Toll Roads and Airports constituted approximately 91% of Ferrovial's valuation, highlighting the importance of these segments to its overall business model.

Industry Position and Market Focus

Ferrovial is a global leader in infrastructure, with a strong presence in North America, especially in the U.S. managed lanes sector. Its valuation is heavily weighted towards toll roads and airports, reflecting its core business areas.

Key Risks and Challenges

The company faces risks including geopolitical instability, economic downturns, and regulatory shifts. Project execution challenges, financial volatilities, and labor shortages also present significant concerns.

Strategic Growth Initiatives

Ferrovial's 'Plan Horizon 24' aims for 11% annual EBITDA growth by focusing on sustainable infrastructure development. A significant portion of investments, 80% by 2027, will be directed towards the U.S.

Future Outlook and Financial Strength

Expansion into renewable energy and digital infrastructure, alongside projects like the JFK New Terminal One, are key growth drivers. The company's strong liquidity of €3.7 billion and commitment to shareholder returns through dividends and buybacks underscore its positive outlook.

Ferrovial's Operational Strategy and Financial Health

Ferrovial's operational strategy is centered on sustainable infrastructure, with a significant emphasis on the U.S. market. The company's financial health is robust, evidenced by its liquidity and debt management, supporting its ambitious growth plans and Growth Strategy of Ferrovial.

• Focus on sustainable infrastructure development.
• Targeting 80% of investments in the U.S. by 2027.
• Expansion into renewable energy and digital infrastructure.
• Maintaining strong liquidity and managing debt effectively.
• Commitment to shareholder returns through dividends and buybacks.

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