Ferrovial (NASDAQ:FER) executives told investors the company delivered a “robust performance” across its divisions in 2025, led by strong growth in North American toll road assets and an “outstanding” year in construction, while maintaining a net cash position and continuing to rotate capital through divestments and reinvestment in growth projects.
Chairman Rafael del Pino said the company ended the year with negative net debt excluding infrastructure projects of EUR 1.3 billion, supported by record dividends received from infrastructure assets totaling EUR 968 million. Ferrovial also reported EUR 533 million in proceeds from the sale of AGS and EUR 539 million from divesting a 5% stake in Heathrow Airport. The company combined those inflows with growth investments, including buying an additional 5% stake in 407 ETR for CAD 1.3 billion and making $236 million of equity injections into New Terminal One (NTO) at New York’s JFK Airport.
North American growth and project pipeline
CEO Ignacio Madridejos said the company’s strategy remains centered on key North American infrastructure assets, highlighting “double-digit EBITDA growth” at 407 ETR and revenue growth “significantly above inflation” at U.S. managed lanes. Ferrovial increased its stake in 407 ETR to 48.29% and said it remains confident in the Greater Toronto Area’s long-term growth prospects.
On expansion opportunities, management described a “record pipeline” of U.S. infrastructure projects and emphasized managed express lanes as a proven congestion solution. Madridejos said Ferrovial was shortlisted for two projects expected to be awarded in 2026 (I-285 East Express Lanes in Georgia and I-24 Southeast Choice Lanes in Tennessee) and noted that in February 2026 the consortium was shortlisted for the I-77 South Express Lanes project in North Carolina, with award estimated for 2027.
Management also said it is monitoring opportunities beyond highways, including airports, greenfield data centers, and energy infrastructure projects, citing examples such as solar photovoltaic development in Texas and land acquisitions for data center development in Spain and Poland. Executives reiterated they will remain selective and maintain financial discipline.
Highways: 407 ETR and managed lanes performance
Madridejos said highways revenue rose 13.7% like-for-like in 2025 and adjusted EBITDA increased 12.2%, driven by U.S. assets. He added that fourth-quarter highways adjusted EBITDA declined 2.9% year-over-year, citing foreign exchange and higher bidding costs.
U.S. highways revenue increased 14.2% like-for-like and adjusted EBITDA rose 12.4%. Dividends from North American highways totaled EUR 855 million, slightly below 2024, when I-77 paid an “extraordinary” first dividend after five years of operation.
At 407 ETR, management reported:
- Traffic up 6.1% in 2025, supported by targeted rush-hour offers and return-to-office trends, partially offset by unfavorable winter weather.
- Revenue up 17.8% year-over-year, with toll revenue up 17.6% following higher toll rates effective Jan. 1, 2025.
- EBITDA up 14.2%, impacted by a Schedule 22 expense provision (CAD 14.9 million) and an “extraordinary” higher provision for lifetime expected credit losses.
- Distributions of CAD 1.5 billion in 2025.
On the credit-loss provision, management said it reflected provisioning for “some old accounts” after a process change; they said new collections are now “back to normal.”
For Dallas-Fort Worth managed lanes, executives said results were solid despite construction-related traffic impacts and higher revenue-sharing payments tied to overperformance. Notable metrics included:
- NTE: traffic down 4.7%, revenue up 8.1%, adjusted EBITDA up 5.5% (including $8.1 million of revenue share). Management said corridor construction is expected to be largely completed by year-end, excluding two ramps that started last year.
- LBJ: traffic flat, revenue up 8.6%, adjusted EBITDA up 9.2%. Management said nearby construction not under its control has created quarter-to-quarter variability and is expected to finish by the end of 2026.
- NTE 35W: traffic up 2.9% for the year but down 0.4% in Q4 due to bottlenecks; revenue up 14.7% and adjusted EBITDA up 10.6% (including $26.4 million of revenue share). Management said it is evaluating solutions, though implementation could take years.
Elsewhere, management highlighted I-66 traffic up 7.4% and revenue per transaction up 13.3%, with adjusted EBITDA up 25.7%. Management attributed a softer Q4 revenue-per-transaction trend to adverse weather and a federal government shutdown, along with a tougher comparison due to prior-year dynamic pricing changes. On I-77, the company reported adjusted EBITDA up 16.5% and revenue per transaction up 24.7%, while traffic declined versus a period that benefited from hurricane-related lane closures in late 2024.
Airports and construction: NTO schedule update and record backlog
On NTO at JFK, management said the project’s focus has shifted toward operational readiness and that the contractor has communicated an updated target completion date for the first phase of construction of fall 2026. Ferrovial said the project was 82% complete at year-end and has secured commitments from 25 airlines (16 executed agreements and nine letters of intent). The company reiterated that Phase A refinancing was completed in July through the issuance of a $1.4 billion long-term bond.
Asked about cost and funding implications of the schedule change, Madridejos said the project is “substantially close to the budget numbers,” deviations are not expected to be material, and no additional equity is expected for Phase A. He said the delay is “a few months” and not expected to affect the project’s IRR in a meaningful way.
At Dalaman Airport in Turkey, Ferrovial said passenger numbers fell 1.1% in 2025, while revenue rose 3.6% and adjusted EBITDA increased 2.5%. Ferrovial received EUR 7 million in dividends from Dalaman.
In construction, Ferrovial reported revenue of EUR 7.7 billion (+7.5% like-for-like), adjusted EBITDA of EUR 511 million (+19.9%), and adjusted EBIT of EUR 352 million (+24.2% like-for-like), with an adjusted EBIT margin of 4.6%, above its long-term target. Budimex posted a 9.2% adjusted EBIT margin, Webber 3.2%, and Ferrovial Construction 2.4%. Management noted some fourth-quarter one-offs tied to change orders and later-stage contracts with mitigated risk, while reiterating its long-term average margin target of 3.5%.
The construction order book reached an all-time high of EUR 17.4 billion, up 10.1% like-for-like, with “almost 50%” coming from North America. Management added the backlog does not include roughly EUR 2.5 billion of contracts that are pre-award or pending financial close.
Cash flows, shareholder returns, and dividend proposal
CFO Ernesto López Mozo detailed cash movements, including construction operating cash flow of EUR 596 million and total investments of EUR 1,170 million, driven mainly by the additional 407 ETR stake purchase and EUR 236 million invested in NTO. Divestments totaled EUR 1,158 million, largely from Heathrow and AGS sales. He also noted an agreement to exit the Isle of Wight waste treatment contract by the end of March 2026, with no additional P&L impact beyond what was recognized in the first nine months, and reiterated the company’s intention to fully exit the U.K. waste treatment business “in due course.”
Ferrovial said it will propose EUR 1.0 billion in dividends this year, which management described as a EUR 400 million “top-up” versus a comparable dividend level of EUR 600 million in past years. Management said aggregate dividends for 2024 through 2026 would total EUR 2.2 billion.
In Q&A, executives said they see leverage “headroom” at 407 ETR and potentially I-66 that could support dividend capacity, while noting they do not expect a “big bang” increase. They also said the company is not planning to switch to U.S. GAAP in the short term, adding the market is not currently asking for it.
About Ferrovial (NASDAQ:FER)
Ferrovial, SA is a Spanish multinational infrastructure company headquartered in Madrid that develops, constructs, operates and maintains transport and urban infrastructure. Its core activities include the design and construction of large civil engineering projects, the development and operation of transport concessions such as toll roads and airports, and the provision of urban and industrial services and maintenance. The company typically operates through long-term concession and public-private partnership models, combining construction expertise with asset management and operations.
Within its operating model, Ferrovial’s business spans construction contracting, concession management and services.
