Ferrovial's Q2 2025 Earnings Call: Unpacking Contradictions in Payment Estimates, Pricing Strategies, and Reporting Standards

Schedule 22 payment estimates, toll pricing strategy, Schedule 22 provision methodology, and U.S. GAAP reporting consideration are the key contradictions discussed in Ferrovial's latest 2025Q2 earnings call.



Strong Revenue and EBITDA Growth in North American Assets:
- Ferrovial's Highways business reported a 14.9% like-for-like revenue increase and a 17.1% EBITDA improvement for the first half of 2025.
- This growth was driven by the strong performance of U.S. assets, particularly in North America, which represented 88% of total highways revenues and 97% of total adjusted EBITDA.

407 ETR Performance and Dividend Growth:
- Revenue for the 407 ETR grew by 19.7% in the first half of 2025, with a 25.4% increase in fee revenue, driven by higher account fees and lease fees.
- The asset's dividends increased by 12.5% year-on-year, with CAD 200 million paid in the first half and another CAD 250 million approved for the third quarter.
- The growth is attributed to increased traffic volumes and higher toll rates, despite Schedule 22 provisions.

Airport Projects and Capital Investments:
- Ferrovial's New Terminal One project at JFK Airport is on schedule and budget, with 72% construction completed by the end of Q2.
- The company invested EUR 244 million in the first half of 2025, with additional investments planned for 2026.
- The project advancement is crucial for key milestones and integrations to secure long-term revenue and growth.

Impact of Weather and Construction on U.S. Managed Lanes:
- Adverse weather conditions, particularly heavy rain, negatively impacted U.S. Managed Lanes' traffic, affecting assets like the NTE and LBJ.
- Construction activities in nearby corridors also led to traffic declines in some assets, such as LBJ and NTE.
- Despite these disruptions, revenue per transaction increased, driven by favorable traffic mix and pricing strategies that capture added value for users.