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Tue September 21 2021

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Ferrovial reports 89% jump in earnings

28 Jul Ferrovial’s results for the first half of this year show €251m in pre-tax earnings.

The figure for earnings before interest, taxes, depreciation and amortisation (EBITDA) represents an 89% increase in like-for-like terms on the €136m reported in the same period of 2020. Revenue increased by 6.3% in like-for-like terms to €2.965bn due to growth in its construction and toll roads businesses.

The period’s figures were impacted by the restrictions on air traffic. Between January and June, the company booked a net loss of €177m, down from €384m in the same period of last year.

Between January and June, Ferrovial collected €65m in dividends from projects in which it is invested, including €48m from two of its US managed lanes projects in Texas.

The construction backlog amounted to €9,724m; that figure does not include recently awarded major projects such as Sydney Metro and the I-35 in San Antonio. The services backlog stands at €12,836m.

The main new contracts obtained in the period include two in the USA - the I-35 expansion in San Antonio, Texas, worth US$1.5bn, and the US$229m contract to upgrade a section of I-16/I-75 in Macon, Georgia. The company was also recently awarded a project in Sydney Metro worth €620m.
During the period, Ferrovial was selected to develop projects in some of its other markets, such as the design and construction of Norwich Western Link, worth £107m.

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The company also carried out divestments in the period, including the sale of Budimex Nieruchomości, the real estate arm of Polish subsidiary Budimex, to CP Developer for approximately €330m after transaction expenses. Upon completion, the deal had a positive impact on Ferrovial’s consolidated accounts in the amount of €131m.

Ferrovial also agreed the sale of some non-strategic assets, such as SCC, Webber’s recycled aggregate business (US$140m). The company has also announced the agreement to sell its environment business in Spain and Portugal to PreZero, as part of the divestment of Ferrovial Services.

Ferrovial also applied for funding under the Next Generation EU programme. There are 38 projects in which it is the promotor, and 24 in which it is a partner. The 38 projects represent a total investment of over €5bn. They range from urban refurbishment and upgrades to industry parks, through the circular economy, production of renewable energy from waste and digitalisation, to connectivity in transport corridors and urban mobility.

Construction registered solid performance, said the company, The division obtained €66m in EBIT and an EBIT margin of 2.4%. Its backlog amounted to €9.724bn, not including some projects such as the I-35 in San Antonio and construction of a section of Sydney Metro. The division increased revenue by 6.3% in like-for-like terms to €2.71bn due to good progress with its projects in the United States and Spain. International business, notably in Poland and the United States, accounted for 84% of revenue. Ferrovial Construction reported double-digit growth in revenue: +15.4% like-for-like. Budimex achieved an EBIT margin of 8.3% due to the €15m contribution from the sale of its real estate business. Excluding that impact, the EBIT margin would have been 6.2%, up from 2.8% in the same period last year. Webber increased revenue by 1% in like-for-like terms.

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