Ferrovial shares drop over 2% as Q4 earnings miss, €500 mln buyback announced

Published 28/02/2025, 12:48
© Reuters.

Investing.com -- Ferrovial SE (BME:FER) shares fell more than 2% on Friday after the company reported weaker-than-expected fourth-quarter 2024 earnings. 

EBITDA came in at €334 million, missing consensus estimates by 10%, mainly due to underperformance in the construction division and provisions related to a Colombian project. 

However, the core toll roads business remained relatively stable, coming in just 3.5% below consensus.

Despite the earnings miss, Ferrovial announced an incremental share buyback program of up to €500 million, a move seen as a net positive, though below BofA Securities’ earlier expectations of over €1 billion. 

The Spanish company indicated the buyback could be increased depending on reinvestment opportunities.

Ferrovial’s U.S. managed lanes segment continued to perform well, with strong year-over-year revenue growth across key assets, including I-66, I-77, NTE, LBJ, and NTE35W. 

Traffic volumes were up across most assets except for NTE, which saw a slight decline due to construction. I-77 and I-66 distributed their first dividends, totaling $307 million and $172 million, respectively.

The company’s financial position remains solid, with net cash (excluding infrastructure) at €1.79 billion, compared to a net debt position of €418 million in Q3. 

This includes proceeds from the €2 billion sale of its Heathrow stake, completed in December 2024, though proceeds from the €500 million AGS airports sale (closed in early 2025) are yet to be factored in. 

On February 26, Ferrovial announced the sale of its remaining 4.75% Heathrow stake, which will generate an additional €500 million.

Attention has also turned to Ferrovial’s stake in Canada’s ETR407 toll road, which accounts for 34% of BofA’s valuation. 

ETR407 reported a 17% year-over-year increase in Q4 EBITDA to CAD370 million, with traffic improving slightly but still 9.9% below 2019 levels. 

The road’s operator expects EBIT growth in 2025, though Schedule 22 penalties remain a concern. 

BofA estimates a CAD215 million EBIT decline for ETR407 this year due to penalties, though recent guidance suggests they may be lower than initially expected.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.