Ferrovial's Q1 2025: Navigating Contradictions in U.S. Managed Lanes and 407 ETR Traffic Dynamics

U.S. managed lanes traffic and pricing dynamics, 407 ETR traffic and promotions are the key contradictions discussed in Ferrovial's latest 2025Q1 earnings call.



Strong Revenue Performance in North American Assets:
- Ferrovial's North American assets, particularly the 407 ETR and managed lanes, showed significant revenue growth, with the 407 ETR's toll revenue increasing by 23.6%.
- The growth was driven by increased toll prices that were implemented at the beginning of the year and favorable traffic comparisons due to construction impacts.

Construction Segment Profitability and Order Book:
- The construction segment achieved a solid adjusted EBIT margin of 3.3%, with an order book at peak levels and less exposure to macroeconomic uncertainty.
- This was attributed to a strong focus on local markets and reduced reliance on large design and build projects, ensuring stable cash flow from projects in the U.S. and Canada.

Assets in the U.S. and Canada:
- Ferrovial's U.S. managed lanes, such as NTE and LBJ, demonstrated outstanding performance with 14.1% revenue growth, driven by increased activity and better traffic mix.
- The growth was supported by dynamic pricing during peak hours, which maximized revenue per transaction and a higher percentage of heavy traffic.

Acquisition and Strategic Investments:
- Ferrovial announced an agreement to acquire up to a 5.06% stake in the 407 ETR, with the transaction expected to close in Q2 2025.
- This acquisition aligns with Ferrovial's strategy to increase its participation in profitable assets and leverage its existing stake in 407 ETR.