Ferrovial's Q4 2024: Key Contradictions in Financial Performance and Market Strategies

These are the key contradictions discussed in Ferrovial SE's latest 2024 Q4 earnings call, specifically including: Financial Performance, and Market Expansion Strategy:



Revenue and Earnings Growth:
- Ferrovial reported revenues of €9.5 billion for the full year 2024, marking a 6.7% year-over-year increase on a like-for-like basis, driven primarily by higher revenues in Toll Roads and Construction.
- Adjusted EBITDA surged to €1.3 billion, showing a 38.9% year-over-year increase on a like-for-like basis, mainly due to a higher contribution from US Toll Road assets and the Construction business.

Toll Road Performance:
- The company's Toll Roads division experienced significant growth, with North American assets showing a 19.6% increase in like-for-like revenues and EBITDA by 19.5%.
- This was primarily due to robust traffic performance and revenue per transaction growth that outpaced inflation.

Construction Profitability:
- Ferrovial's Construction segment achieved an adjusted EBIT margin of 3.9% for the year, surpassing its target of 3.5%.
- The improvement in profitability was driven by the absence of losses from large projects and a solid performance across its divisions, including Budimex.

Investment and Divestiture Activities:
- Ferrovial received €947 million in dividends from its infrastructure assets, including €2.6 billion from divestments, primarily from the sale of a 19.75% stake in Heathrow Airport for €2 billion.
- The company invested €1.6 billion, with major acquisitions including a 24% stake in IRB Infrastructure Trust for €710 million.