Ferrovial's North American Highway Assets: A High-Yield Infrastructure Play in a Resilient Sector

In an era of economic uncertainty, infrastructure investments have emerged as a beacon of stability for income-focused investors. Ferrovial, the Spanish infrastructure giant, has positioned itself at the forefront of this trend through its North American highway assets, which delivered a 14.4% like-for-like revenue increase to €1 billion in the first nine months of 2025, according to Ferrovial's nine-month results. With a focus on toll roads like the U.S. Express Lanes and Canada's 407 ETR, the company's strategy combines long-term contractual security with inflation-resistant cash flows-a compelling proposition for those seeking sustainable dividend growth.

A Dual Engine of Growth: U.S. Express Lanes and 407 ETR

Ferrovial's North American highway portfolio is anchored by two flagship assets: the U.S. Express Lanes and the 407 ETR. The U.S. Express Lanes, a network of congestion-priced toll roads in states like Florida and Texas, reported revenue per transaction growth that significantly outpaced inflation in 2025, according to a Stocktitan article. This performance underscores the value of dynamic tolling models, which adjust pricing based on traffic demand, ensuring consistent revenue even in volatile economic conditions.

Meanwhile, the 407 ETR in Toronto, Ontario, has become a cash flow powerhouse. The toll road's double-digit EBITDA increase in 2025 is documented in Ferrovial's UK release, and was bolstered by its 99-year concession agreement with the Ontario government, as detailed in the 407 ETR settlement, which includes expansion obligations to address growing traffic demands. The 407 ETR's board also announced an additional €1.05 billion dividend for Q4 2025, bringing the total approved payout to €1.5 billion, according to a Stocktitan report. This dividend, combined with the company's strong liquidity position of €4.2 billion (reported earlier by Stocktitan), highlights the asset's role as a reliable income generator.

Strategic Infrastructure: Concessions and Expansion

Ferrovial's North American strategy extends beyond existing assets. The company's acquisition of a 5.06% stake in the 407 ETR for €1.3 billion in 2025 signals its commitment to deepening its footprint in the region. While specific concession terms for the U.S. Express Lanes remain undisclosed, the long-term nature of infrastructure contracts-often spanning decades-provides a buffer against short-term economic fluctuations.

Expansion projects, such as the New Terminal One at JFK Airport, further diversify Ferrovial's North American portfolio. With €239 million in equity injected in 2025, the project is on track for a 2026 opening and could unlock new revenue streams through airport infrastructure. However, the company's Q3 2025 results revealed a 3% miss in underlying EBITDA, as noted in a Reuters report. This volatility underscores the need for investors to balance the resilience of toll road assets with the cyclical risks of construction and development.

Dividend Growth and Risk Mitigation

Ferrovial's North American highway assets are not just growth drivers-they are dividend engines. The 407 ETR's €1.5 billion dividend payout in 2025 alone accounts for a significant portion of the company's total liquidity. For investors, this raises the question: How sustainable is this yield? The answer lies in the contractual structure of these assets. The 407 ETR's 99-year concession is described on the 407 ETR page, and the U.S. Express Lanes' inflation-linked tolling mechanisms provide a predictable revenue base, even as macroeconomic headwinds persist.

Yet, risks remain. The Schedule 22 payment-a regulatory obligation for the 407 ETR-could pressure EBITDA in the short term. Additionally, the New Terminal One project's success hinges on operational execution and timing of dividends. Investors must weigh these factors against the broader trend of infrastructure demand, driven by aging U.S. and Canadian infrastructure and government incentives for private investment.

Conclusion: A Resilient Play in a High-Yield Sector

Ferrovial's North American highway assets exemplify the appeal of infrastructure investing: long-term contracts, inflation protection, and consistent cash flows. While the company's construction segment faces near-term challenges, its toll road operations remain a cornerstone of its financial strength. For income-focused investors, the combination of a 14.4% revenue growth rate (reported in Ferrovial's nine-month results), a €4.2 billion liquidity buffer, and a dividend yield supported by assets like the 407 ETR makes Ferrovial a compelling case study in strategic infrastructure investment.

As global markets grapple with uncertainty, the resilience of toll roads and airport infrastructure offers a counterbalance to more volatile sectors. Ferrovial's North American portfolio, with its dual focus on growth and yield, is poised to deliver value for investors seeking stability in an unpredictable world.