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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
Ferrovial continues to be impacted by low traffic on its infrastructure, as reflected in the low income and dividends from these assets (-40% yoy). Additionally, management reassured that there is a limited risk of a Heathrow capital injection. Revenues were up by 11% lfl courtesy of the construction business which benefited from a low comparison base. However, NI was unsurprisingly low due to a negative contribution from equity-accounted assets and discontinued business. We will revise our num
Companies: Ferrovial SE
Ferrovial posted lfl growth of 12.2% on the back of a weak comparison base. The net result, which includes the equity-accounted result, stood at €-379m (vs €-6m in H1 19). Heathrow has a strong cash position but AGS is suffering and may require an equity injection. All toll roads except LBJ are well above the dividend lockup ratio. LBJ might join this club too if Ferrovial executes a favourable refinancing. Lastly, Ferrovial sold a 5% stake in Budimex but should retain the rest.
Ferrovial announced Q1 20 results showing significant growth in the construction business and a stable contribution from managed lanes. EBITDA was affected by the €-39m restructuring provision and the bottom-line was significantly affected by the weak airport assets. Ferrovial is financially stable with Heathrow capable of surviving 12 months with no revenues.
Ferrovial Group has published its consolidated results which came in better than our expectations but broadly in line with the consensus. The Toll Roads segment outperformed our expectations, while the losses in Construction were greater than anticipated due to an additional standalone loss of €-49m reported by Ferrovial Agroman. The possibility of Heathrow’s expansion has diminished, yet management has expressed its interest of keeping its stake in this asset. The company has proposed a scrip d
Research Tree provides access to ongoing research coverage, media content and regulatory news on Ferrovial SE. We currently have 9 research reports from 2 professional analysts.
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth
Companies: Strix Group PLC
Zeus Capital
Companies: Yu Group PLC
Liberum
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Cavendish
Cohort announces that its subsidiary SEA (Systems Engineering and Assessment Ltd.) has been awarded a major contract by the UK’s Ministry of Defence to provide Electronic Warfare Counter Measures (Increment 1a) (EWCM 1a) to the Royal Navy with a total value of at least £135m. This includes provision and support of SEA’s Trainable Decoy Launcher System, Ancilia. At the FY 24 interim results Cohort had commented on an overall “increased tempo” of order intake. The Group reported a closing order b
Companies: Cohort plc
Equity Development
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
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik
Companies: Luceco PLC
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Quadrise continues to advance towards commercial revenues for its innovative fuel and biofuel technologies, with each of its projects approaching key milestones in 2024. Preparatory steps for the MSC Shipmanagement (MSC) fuel trials are now complete and fuel supply agreements are nearing finalisation. Quadrise will achieve its first licensing revenues on the successful completion of Valkor’s project financing (timing uncertain). Quadrise also successfully concluded its Morocco trial, paving the
Companies: Quadrise PLC
Edison
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Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base, total revenue increased an impressive 20.2% to £136.1m (organic +15%), with adj. PBT +7.5% to £31.7m (FY2022: £28.3m), 3.1% ahead of our estimate of £30.5m. Fully diluted (FD) adjusted EPS increased a more muted 2.6% (impacted by anticipated tax headwinds) to 368.5p (basic adj EPS 374.5p), 3.4% ahead of
Companies: Judges Scientific plc
WHIreland
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Canaccord Genuity
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Gelion has reported in line H1 FY24 results that demonstrate continued strong cash management and steady progress in its pursuit of next generation lithium-sulphur battery technologies. Encouraging early test results justify last year’s IP acquisitions and validate Gelion’s Li-S battery technology plan, with additional progress expected to be reported in H2 alongside its pursuit of a strategic partner for its planned Advanced Commercial Prototyping Centre (ACPC) facility in Australia. There is a
Companies: Gelion PLC
Forterra’s FY23 (to 31 December) earnings were slightly higher than guidance, which was raised in January, with resilient pricing partly offsetting a steep fall in demand among its main end users, large housebuilders. Our estimates are broadly unchanged, other than reflecting a more conservative stance on the final dividend. Despite a cautious tone in the outlook statement, we believe the largest housebuilders may now rebound more strongly than smaller peers.
Companies: Forterra Plc
Progressive Equity Research
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