Ferrovial S.E.

Strong Revenue Growth: Ferrovial reported a 7.4% increase in revenue for Q1 2025, with an impressive 19.1% rise in adjusted EBITDA and a 28.3% boost in adjusted EBIT, driven predominantly by North American infrastructure assets, especially U.S. managed lanes which saw revenue growth of 19.1% compared to Q1 2024.

Traffic and Pricing Dynamics: The 407 ETR experienced a considerable 23.6% growth in toll revenue driven by prior toll increases and promotional traffic initiatives, showcasing strong pricing power. However, traffic performance is expected to normalize after the high figures in Q1, making the 22% increase in revenue per trip not sustainable in the long term.

Expansion and Investment Opportunities: Ferrovial is taking steps to enhance its portfolio, including a planned acquisition of a 5.06% stake in the 407 ETR for CAD2.09 billion, expecting the transaction to close in Q2 2025. Additionally, their focus on international airports such as JFK offers potential for future growth in traffic and revenues.