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Ferrovial’s divestment of Heathrow at a good price allows it to reinvest the funds in assets offering greater growth potential. The proceeds could be redeployed to invest in other airports, to rebalance its toll-road-heavy portfolio.
Companies: Ferrovial (FER:BME)Ferrovial SE (FER:MCE)
AlphaValue
Ferrovial reported impressive 9M results, attributable to a strong rebound in traffic. The MLs experienced growth of at least high single digits, with rev/transaction surpassing the soft cap. Traffic on the 407ETR also registered a strong double-digit increase, although it remained below the 2019 levels. Heathrow Airport witnessed a substantial traffic surge, prompting a 2023 traffic forecast revision. Meanwhile, the construction business, affected by higher H1 operational costs, began showing i
Ferrovial posted Q1 results which missed the consensus EBITDA estimate by 8%. Traffic at its MLs exceeded the 2019 levels and experienced double-digit growth. The 407ETR traffic also rose by 28%, but remained below the 2019 levels. Meanwhile, Heathrow airport witnessed a significant surge in traffic, leading to a revised traffic forecast for 2023, ranging between 70 million to 78 million passengers. However, the construction business was affected by higher operational costs, which partly offset
Ferrovial announced better-than-expected results for the fiscal year, with revenues and EBITDA above the consensus and our estimates. Revenue growth was supported by the recovery in airport and highway traffic as well as the construction activities. Ferrovial is planning a reorganization of the company’s structure in order to apply for a listing in the United States.
Ferrovial reported a good set of results, with a strong traffic recovery at 407ETR and airports partially offset by margin erosion in its construction activities. While the traffic growth at its MLs softened in Q3, higher toll rates and a higher proportion of heavy vehicles led to a strong revenue performance.
Ferrovial reported a good set of results, with a strong traffic recovery at 407ETR and airports partially offset by margin erosion in its construction activities. While the traffic growth at its MLs softened in Q2, higher toll rates and a higher proportion of heavy vehicles led to a strong revenue performance.
Ferrovial posted its Q1 results, missing the consensus EBITDA estimate by 12%. Traffic at its MLs is already above the 2019 level (except for LBJ) but it is still behind at 407ETR due to the low voluntary return to office. Heathrow saw a sharp increase in traffic in March after the unexpectedly quick removal of UK travel restrictions, but Heathrow’s management believes this recovery to be temporary. The construction business was impacted by inflation and saw its EBITDA margin halved.
Ferrovial announced better than expected FY results, with the bottom-line figures positively impacted by disposals and impairments. The recovery at managed lanes is good but 407ETR and Airports continue to suffer. Ferrovial has divested the majority of its Services business, divested non-core construction activities, increased its stake in I-66, acquired a minority stake in IRB, and has proposed a total scrip dividend of €0.715/share.
While the motorway (407ETR in particular) and airport concessions continue to struggle, Ferrovial has managed to reduce its losses in H1 21, largely due to a robust construction sector and a recovery in the Services activities. With limited cash inflow from its crown assets – 407ETR and Heathrow, all eyes are mainly on the divestment of the Services activities.
Ferrovial posted weak Q1 results, with its crown assets – 407 ETR and Heathrow still under pressure from travel restrictions. However, the managed lanes in the US have seen a sharp recovery in traffic after the upliftment of restrictions on 10 March, with traffic on the NTE35W for Q1 even above the 2019 level. Construction and Services businesses continue to show resilience with margin improvements.
Ferrovial reported top-line figures which were better than expected due to the favourable construction market. However, the slower traffic recovery, especially on its motorways, led to lower equity-accounted contributions. Ferrovial expects traffic to recover soon on its motorways once the situation is normal and anticipates a 67% yoy increase in traffic at Heathrow, but has not provided any further quantifiable guidance. It has completed divestments worth €501m, and has proposed a total scrip d
Research Tree provides access to ongoing research coverage, media content and regulatory news on Ferrovial. We currently have 21 research reports from 3 professional analysts.
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Plant Health Care announced it has signed a distribution agreement with AMVAC, an American Vanguard Company, to support commercialisation of novel fertiliser products incorporating Plant Health Care's Harpinαβ in China starting in 2024. The novel product combines Harpinαβ technology with an AMVAC fertiliser and is expected to help growers improve crop quality and yield as part of an integrated and environmentally responsible crop production programme. AMVAC continues to evaluate Plant Health Car
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Canaccord Genuity
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SP Angel
Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.
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Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appear
Edison
Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.
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The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
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Hardman & Co
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