TRANSCRIPT
July 29, 2026 – Q2 & H1 2026 Earnings Conference Call
Amsterdam July 29, 2026 – 15:00 CEST – Edited Transcript of the Q2 & H1 2026 Earnings Conference Call
CORPORATE PARTICIPANTS
Ignacio Madridejos, Ferrovial, N.V. - CEO
Ernesto López, Ferrovial, N.V. – CFO
Silvia Ruiz, Ferrovial, N.V. – Global Head of Investor Relations
ANALYST PARTICIPANTS
Marc Ip, Analyst, Citi
Cristian Nedelcu, Analyst, UBS
Elodie Rall, Analyst, JP Morgan
Ruairi Cullinane, Analyst, RBC Capital Markets
Graham Hunt, Analyst, Jefferies
Luis Prieto, Analyst, Kepler Cheuvreux
Dario Maglione, Analyst, BNP Paribas
Marcin Wojtal, Analyst, Bank of America
Harishankar Ramamoorthy, Analyst, Deutsche Bank
Silvia Ruiz, Ferrovial, N.V. – Global Head of Investor Relations
Good afternoon, everybody. This is Silvia Ruiz speaking, and I would like to thank you and welcome you to Ferrovial's
conference call to discuss the company's financial results for the first half of 2026. I'm joined here today by our CEO,
Ignacio Madridejos; and our CFO, Ernesto Lopez Mozo.
Just as a reminder, both the results report and presentation were made available on our website yesterday evening after
the US market was closed. At the end of the presentation today, there will be a Q&A session. (Operator Instructions)
Before starting, please take a moment to look at the safe harbor statement included in the presentation. And please
bear in mind that the presentation contains forward-looking statements and expectations that are subject to certain risks
and uncertainties, so actual figures may differ.
During this call, we will discuss non-IFRS financial measures, which are defined and reconciled to the most comparable
IFRS measures in our results report and in our website. With all this, I will hand over to Ignacio. Ignacio, the floor is
yours.
Ignacio Madridejos, Ferrovial, N.V. – CEO
Thank you, Silvia, and hello, everyone, and thank you for joining us today to review Ferrovial's results for the first half
of 2026.
Overall, the semester saw a strong performance driven by our North American highways that show an outstanding
revenue growth and our Construction business, which delivered revenue growth while maintaining its profitability target.
In airports, New Terminal One at JFK has submitted a completion remedial plan with March 2027 as the date for Phase
A DBO.
In terms of cash, we closed the first six months of the year with a net cash position of EUR1.3 billion, excluding
infrastructure projects. The primary sources of cash included construction, operating cash flow of EUR329 million,
dividends collected from projects of EUR378 million and divestments of EUR96 million, mainly from Silvertown Tunnel in
the UK and transmission lines in Chile. The cash outflows consisted mainly of the equity injection in NTO that amounted
to EUR63 million, together with EUR398 million of cash dividends and treasury purchases.
Regarding recent developments, we submitted bids for two new managed lanes projects. The I-24 in Tennessee and
the I-285 in Georgia. We'll know the results in the third quarter of the year. Additionally, our bid for the D35 highway in
the Czech Republic, an availability project, was noted as the most cost-effective and the bid's technical evaluation process
is currently ongoing.
Moving now to our main infrastructure assets and starting with 407 ETR.
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July 29, 2026 – Q2 & H1 2026 Earnings Conference Call
The 407 ETR grew revenue by 18.7% in the first half of the year compared with the same period last year. Toll revenue
increased 20.2%, primarily driven by higher toll rates, which went into effect on January 1, 2026. The traffic grew by
1.8% in the first half of the year, driven by targeted commercial promotions. As a result, EBITDA increased by 24.4%
versus the first half of 2025, including a Schedule 22 provision of CAD5.5 million, significantly lower than the CAD45.2
million in 2025.
In the second quarter of 2026, traffic was 2.7% lower than in 2025, reflecting softer economic activity, reduced
rehabilitation construction on alternative highways and adverse weather conditions. While commercial promotions
continue with a more targeted approach that enhances customer value while supporting EBITDA. In terms of dividends,
CAD500 million was paid in the first half and another CAD550 million was approved to be distributed in the third quarter
of the year.
Moving on to Dallas-Fort Worth managed lanes, in terms of traffic, the area remains strong, while traffic in our managed
lanes was impacted by construction works and less favorable weather. In terms of operating results, the three projects
posted solid growth versus last year, both in terms of revenue and EBITDA despite the increase in revenue share.
Looking at each of the assets at NTE, traffic was impacted by the capacity improvement construction works and declined
0.6% in the second quarter and 2% in the first half of the year. Adjusted EBITDA grew by 14.7% in the first half, and
it was impacted by $6.5 million of revenue share.
LBJ grew transactions by 2.9% in the first half of the year with traffic increasing by 6.9% in the second quarter, reflecting
greater utilization of the managed lanes as construction works on the I-635 East feeder corridor approach completion.
Adjusted EBITDA grew by 15.2% in the first half.
NTE35 West traffic was affected by the increased congestion and managed lanes entry/exit points, which created
bottlenecks, as well as by the finalization of capacity restrictions due to construction works on nearby road 121.
Transactions decreased by 0.2% in the second quarter and grew by 0.4% in the first half of the year. Adjusted EBITDA,
which grew by 18.6% in the first half was impacted by $15.8 million of revenue share.
All our Dallas-Fort Worth managed lanes registered double-digit growth in revenue per transaction well above inflation.
This was driven by several factors: a favorable traffic mix with higher heavy vehicles volumes, thanks mostly to
technology enhancements in camera recognition that started to be implemented in 2025 which improved vehicle
classification, as well as higher number of mandatory mode events at NTE and NTE35 West.
In the first half of 2026, revenue per transaction grew by 18.9% in NTE, 11.7% in LBJ and 17.3% in NTE35 West.
Following this robust operating performance, all three Dallas-Fort Worth managed lanes deliver higher dividend
distributions in the first half of the year. NTE distributed $118 million, LBJ $61 million and NTE35 West $143 million. All
these figures are at 100% level.
Now moving to I-66. Traffic grew by 8.5% in the first half of the year, driven by increased traffic in the corridor and
despite adverse weather conditions. Revenue per transaction grew by 8.7% in the first half of the year, and total revenue
increased by 17.9%, driven by higher toll rates with adjusted EBITDA up 20.4%. In terms of dividends, I-66 distributed
$80 million at 100% level.
At I-77, traffic declined by 4.8% in the second quarter and 5.2% in the first half, primarily reflecting lower congestion
in the corridor. Performance was also affected by a challenging comparison against early 2025 when traffic benefited
from alternative lane closures following Hurricane Helene, as well as adverse weather conditions throughout first half of
2026.
Despite this, revenue per transaction increased by 11.8% in the first half of the year reflecting higher toll rates. However,
adjusted EBITDA declined by 5.4% compared to first half of 2025, negatively impacted by the step-up in revenue share
band from 25% to 50%. This is largely a first-year effect and is expected to normalize as revenues continue to grow
within the new share band. First half adjusted EBITDA included the accrual of $15.6 million of revenue share. Additionally,
I-77 distributed $18 million in dividends.
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July 29, 2026 – Q2 & H1 2026 Earnings Conference Call
Turning to airports, starting with New Terminal One at JFK. NTO has submitted a completion remedial plan with March
2027 as the date for Phase A Date of Beneficial Occupancy. As of the end of the first half of 2026, the project had
reached approximately 92% construction progress. Remaining activities are mainly systems integration, testing and
commissioning. Airline engagement continues with commitments to date from 32 airlines, including 24 executed
agreements and 8 letters of intent. In terms of equity, we injected the remaining EUR63 million, completing all equity
commitments and bringing total investment to EUR1,041 million.
At Dalaman Airport, the first half of the year was impacted by the Middle East conflict resulting in total passengers of
1.8 million, showing a decline of 8.1% compared to the first half of 2025, mainly international passengers. Adjusted
EBITDA was 13.7% lower than the first half of last year.
Moving to Construction. The business posted solid results with revenue growing by 7.1% in reported figures and 9.7%
in like-for-like terms for the first six months of the year, while margins remained stable at 3.5% adjusted EBIT margin.
Budimex maintained healthy margins at 6.9% adjusted EBIT and delivered higher like-for-like revenues. Webber
continued to benefit from strong growth with a 24.2% like-for-like increase in revenues, leading to higher profitability
with 3.4% adjusted EBIT margin due to positive operating leverage. Ferrovial Construction margins were stable with
higher revenues increasing by 4% in like-for-like terms compared to the first half of last year.
The order book remained at an all-time high of EUR18 billion, up 2.8% like-for-like versus December 2025, excluding
approximately EUR2.6 billion of additional pre-awarded contracts pending financial close as of June 2026.
The operating cash flow of the division was EUR329 million for the first half of the year compared to a negative operating
cash flow last year, mainly driven by prepayments and compensations received in North America.
Now Ernesto will continue with main financial information.
Ernesto López Mozo, Ferrovial, N.V. – CFO
Thanks, Ignacio, and hello everybody attending the call. Well, I shall start with the consolidated P&L. I shall cover the
lines below the EBITDA level. Depreciation has increased in line with higher CapEx in construction. Here, we have higher
activity and also increasing sales performance, and also with a traffic profile in highways where we have higher weight
of traffic in the earlier years in the current business plan.
The line of disposal and impairments, here, we have smaller divestments in 2026 versus 2025. Mainly in '26, we have a
transmission line in Chile that was sold and also Silvertown Tunnel an availability payment concession in the UK. In 2025,
remember that we had the sale of AGS in airports.
In financial results from infrastructure projects, I mean, that is a number that's pretty much unchanged year-on-year
with some small impacts canceling each other. I mean, we have some lower expenses from a lower US dollar FX rate,
but we have some higher inflation expense in the Autema concession.
Ex-Infrastructure Projects financial results were favored in 2025 by the ticking fee of the sale of the last stake in Heathrow
that was sold. This stake was accounted for as a financial investment throughout 2025. In the equity accounted affiliate
results, we have the growth that is in line with the 407 operating results growth.
The line of tax reflects a corporate tax rate of 22% on profit before taxes. Here, I mean, if you exclude the equity
accounted line that is already post tax and you take into account that the tax on the US concessions is accrued or
accounted for already at our percentage ownership. You don't need to deduct minorities, you come to this level. The
net P&L from discontinued operations reflects earnouts from businesses from the Divested Services division.
Okay. So let's move on to review the consolidated net debt. We ended the semester with a solid net cash position or
negative net debt of EUR1.3 billion roughly. Here, starting from the left, we have dividends from projects that were
EUR378 million. This is mainly highways with EUR150 million from the 407, EUR158 million in from the Dallas-Fort Worth
managed lanes, and then we have EUR38 million from I-66 and I-77 last comes with EUR11 million of dividends.
Then we have the construction operating cash flows, ex tax payments and ex dividends, this reached EUR329 million.
This is driven by prepayments and payments that were pending from Canada, the Ontario line. So prepayments in the
US and is catching up in Canada. Tax payments reached EUR48 million. And here, we have the main component, this
EUR26 million from Budimex, the corporate income tax there.
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July 29, 2026 – Q2 & H1 2026 Earnings Conference Call
In terms of investments, we had EUR187 million of investments. The main one as was commented before by Ignacio is
the last equity increase here in Phase A of EUR63 million. And we also have investments in energy, some projects in
Leon County in Texas, EUR65 million that we are considering here, EUR35 million are from this solar project that I
mentioned. And then in construction, we have EUR49 million.
Then we go on with the interest received on other investing activities cash flow. This is EUR57 million, and this is basically
cash remuneration on the liquidity we have. Then we have divestments that reached EUR96 million, and this is largely
driven by the Silvertown Tunnel I mentioned in the last slide, and also the transmission in Chile, right, this is the most
important part, EUR78 million in total, these two divestments.
Then in terms of cash dividend and treasury share purchases. We have EUR398 million, and here, EUR98 million was
from the cash dividend and the rest, the EUR300 million is share purchases in the buyback progress that we have since
December 2025.
And then we have other cash flows used in financing activities. Here, this is basically a bond that was raised, another
one was repaid. And also, we have dividends to minorities in Budimex or financial leases. And last, in this cash
breakdown, we have the effect of the exchange rate on cash equivalents of EUR20 million.
Okay. So after this review, then we are ready to open the Q&A session.
Silvia Ruiz, Ferrovial, N.V. – Global Head of Investor Relations
Okay. Thank you, Ignacio and Ernesto. Let's start with the Q&A session. Operator, please go ahead.
Q&A SESSION
Operator
(Operator Instructions)
Q - Marc Ip, Analyst, Citi
Hi, guys. Thanks for taking my questions. I've got a couple. The first one, just on the JFK New Terminal One delay. Can
I ask how much contingency is built into the new March ‘27 target? And if there are any other critical parts within that
time frame that could slip or how prudent are you being with that time line basically?
And then the second one on that is around -- is there any sort of recourse or compensation available from the design
builders as a result of this delay?
And then I've got another question on the construction business. I've seen the margins have returned, gone to your
3.5% long-term EBIT target -- EBIT margin target.
Can you share how much in the first half, how much of that margin offset is from the elevated bid costs? And maybe, is
there a potential tailwind in the second half if your bids have now gone in for the I-24 and the I-285 tenders? Thank
you.
A - Ignacio Madridejos, Ferrovial, N.V. – CEO
Thank you for your questions, and I'll take both of them now. Regarding the JFK, what we have is this remedial plan
that is with the new schedule of March 2027, it is based on the best available information today. So it's what is expected
according to the plan, that has been prepared together with the contractor that we have there. So this is the best
available information that we have today.
About what we have, as you know, the date was June '26 and starting July, there are LDs that the contractor should
pay for because of the delay. This is EUR500,000 per day that will maintain until it is open, and it could be, of course,
challenged by the contractor if they think that some of the delays is not because of their cause.
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July 29, 2026 – Q2 & H1 2026 Earnings Conference Call
In the case of construction, yes, we have been -- we have the effect in this first half of the year of bidding cost for -especially for the two large projects that we have submitted offers in July, both the I-24 in Nashville and the I-285 in
Atlanta. We continue bidding for other projects, and we'll start to have other costs that it will have some effect in the
bottom line, but I think that starting will be lower than the spend so far, but we'll see what is the effect at the end of
the year. But as usual, the only guidance that we give about the Construction is 3.5% as an average for the long term.
Q - Marc Ip, Analyst, Citi
Very clear. Thank you.
Q - Cristian Nedelcu, Analyst, UBS
Hi. Thank you very much for taking my questions. The first one on LBJ, with the construction almost finalized on the
635 and having in mind the fact that LBJ traffic has been lagging the other US lanes over the last few years. Could you
tell us a bit more how do you think about volume supports in traffic going forward? And if you can comment if you are
anywhere close to triggering mandatory modes in any segments of the LBJ currently?
The second one, there are some press articles recently suggesting that you may be looking to invest in a data center
project in Alcobendas in Madrid at around EUR1 billion. Could you tell us a bit more about this project? And in general,
from the perspective of capital allocation, is this a segment you are willing to allocate more capital on the midterm?
And maybe the last one, if I could kindly of ask you, I think over the last few weeks, the Washington Airport Authority
gave a green light for $20 billion-plus CapEx program for one of the airports there. I believe you made an unsolicited
offer a while ago on this project. Could you tell us a little bit more based on what's publicly available. What are the next
steps in this process and the timeline from here? Thank you.
A - Ignacio Madridejos, Ferrovial, N.V. – CEO
Thank you, Cristian. Yes, for the questions. I'll start with LBJ. Yes, you commented, yes, we saw some improvement in
traffic in the last quarter, thanks to that's two of the segments, that are feeding the LBJ and at the 635, were almost
finished. Although the new managed lanes in the 635 will be completed in the first quarter of next year, but we are
seeing some benefit coming from some almost finalization of some segments of these new managed lanes.
Also, it's not only impacted by 635 but also 35 East, there were some work and other works in the area that all of them
will be finalizing in the following months, and we expect not to have any impact from construction activity in the area in
the first quarter of next year. Part of this benefit, we are seeing today with some of the segments that have been
finalized, but the full effect we'll see in the first quarter of next year.
Regarding the data center as we commented previously that we purchased two power lands, one in Alcobendas in Madrid
and other was in Warsaw in Poland. The news that you could, you read in, a few weeks ago about this project is a
special project as part of the Comunidad de Madrid. And it's a first phase that we are doing first totally 75 megawatts
IT. The first part will be close to 45 megawatts IT to start with. And what you have to consider that the total, this is a
total investment for all phases, and on top of that, there will be some leverage and we can bring partners to participate
with us and also contribute equity. And for us, in this business, we have a policy of recycling capital and rotating capital,
once it's a mature asset with a lease. So in total, the total amount of equity that we'll deploy in this business will be
limited because of that, especially because of we'll rotate once it is mature, that it means once it is finalized the
construction, and then we have a lease in place. We are starting with Madrid and Poland. And depending on we'll see
later how we progress and how successful we are with these two sites in which we are working first.
Regarding the Washington Airport, what was announced is that the Washington Airport Authority that they want to
develop a new project. It's true that we presented we participated in a request for ideas, and we presented some ideas
about how to develop this airport with a P3. But finally, it's not going to be done with a P3 project and it's going to be
done directly by the Washington Airport Authority. And we are looking at it as a pure construction project, but we don't
expect that this will be a P3 project in which we can allocate some capital.
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July 29, 2026 – Q2 & H1 2026 Earnings Conference Call
Q - Cristian Nedelcu, Analyst, UBS
It's very helpful. Could I just double-check on the LBJ mandatory modes. Are we close on any segment to that or not
really.
A - Ignacio Madridejos, Ferrovial, N.V. – CEO
Sorry, yes, yes. It's true that in the last month segment three of LBJ triggered some speed mandatory modes, but I will
say that these are non-significant and not relevant affecting the revenues at LBJ. And as we have commented several
times before, there is capacity available at LBJ and we don't expect that the mandatory modes will have a significant
impact in the following months or years. So we don't expect, although we may have some sporadic events, I think that
it will not have a significant impact in the short term.
Q - Cristian Nedelcu, Analyst, UBS
Thank you very much.
Q - Elodie Rall, Analyst, JP Morgan
Hi, good afternoon. Thanks for taking my questions. Just to jump back on the NTO. I was wondering if given the delays
to Phase 1, you would seek a different contractor to carry out the work in Phase B1 and B2.
Second question on the US managed lanes and generally on your tolls exposure. Generally, traffic seems to be quite
resilient despite all the macro headwinds. What do you think is causing this traffic strength generally? And should we be
mindful of gas & oil? I mean, it doesn't seem to have any impact. Can you share your view on correlation there between
traffic and oil price for your assets?
And lastly, I think you're planning a CMD at some point, but could you give us maybe like your agenda there, if it's going
to be and when it's likely to be and what it will be covering? Thank you.
A - Ignacio Madridejos, Ferrovial, N.V. – CEO
Thank you, Elodie. Now about the NTO phase B1, B2, still we are just working with the design and main focus of all the
teams are on, the focus is on DBO of Phase 1. So we have not decided yet about who will be the contractor of the next
phases. And just what we are doing today is working on the design.
Regarding managed lanes, what we see is good, the economy is performing well and especially in the places in which
we have our assets, Dallas-Fort Worth and Washington area and Charlotte, these areas are performing in general from
an economic point of view well.
We are not seeing a significant impact from oil prices at least for the time being. Although when you see in the long
term, I mean, the main correlation is with the local GDP and oil price is high for a long period of time, it may have an
effect in the local GDP. But for the time being, as commented, we have not seen a significant effect or impact from the
oil prices, and what we are seeing is a good local activity in the places where we have our assets.
And regarding the Capital Markets Day, we have not taken a decision when we are going to do it. What we commented
is that our strategic plan, Horizon 26, is finalizing this year, and we are internally working about a new horizon plan for
the next years, and we have not taken a decision yet about when and how we are going to communicate externally this
plan. And we'll let you know as soon as we take a decision about it.
Q - Elodie Rall, Analyst, JP Morgan
Okay. Thank you.
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July 29, 2026 – Q2 & H1 2026 Earnings Conference Call
Q - Ruairi Cullinane, Analyst, RBC Capital Markets
Hi. Yes. Good afternoon. First question would be, could you provide an update with regards to the I-77 South in the US
managed lane pipeline given the media reports on local vote against the project? And secondly, on the 407 ETR, net
financial expenses increased 25% in Q2, is that a reasonable run rate into third quarter? Or was there anything one-off
in that?
And also on the 407 ETR, the quarterly dividend increased by CAD300 million in Q2 and Q3. Is that sort of run rate we
should be thinking about potentially into Q4, which would leave the 407 ETR dividend less Q4-weighted than in 2025.
Thank you.
A - Ignacio Madridejos, Ferrovial, N.V. – CEO
Thank you for the questions. I will take the first one about the pipeline, and then Ernesto will answer the two about the
407, the financial expenses and the OpEx. Regarding the I-77 South, we have been communicated about a delay of this
project. But as you know, we prequalified together with other three groups and the information that we have today is
that this project is delayed for the time being, and we are waiting news from the North Carolina DOT about next steps
about this project and if they are going to issue an RFP and what is going to be the new timeline. So we still are waiting
about this project. And Ernesto.
A - Ernesto López Mozo, Ferrovial, N.V. – CFO
Okay. Regarding financial expenses on the 407, you have two effects here. One of them is, well, there's additional debt
and additional issuance that, of course, drives cost higher. Also, there's been the effect of inflation on the inflation-linked
bonds and derivatives of the concession. I wouldn't take like a running rate because of this last effect, I mean there
needs to be more detail into that analysis before extrapolating that inflation component.
Regarding dividends, I mean, there's no guidance provided by the 407. We don't provide guidance here. So I'm sorry
you have to leave it there. And then the last question, if you could basically rephrase that again, it was about OpEx.
Could you please redo that again?
Q - Ruairi Cullinane, Analyst, RBC Capital Markets
No, you've answered all my questions. It was linked to the question on the dividends.
A - Ernesto López Mozo, Ferrovial, N.V. – CFO
Okay. Thank you.
Q - Luis Prieto, Analyst, Kepler Cheuvreux
Good afternoon, everyone. Thanks a lot for taking my questions. A couple of them very quickly. The first one is regarding
the fact that you've recognized in the past the balance sheet headroom at the 407 ETR on top of which the Q3 dividend
grew very significantly year-on-year. Can we extrapolate this step-up in remuneration to the last quarter of 2026?
And the second question is regarding the favorable working capital performance which seems very meaningful given the
seasonality of this variable historically. Are we going to see more of the same in H2? Or this is purely exception? Thank
you.
A - Ernesto López Mozo, Ferrovial, N.V. – CFO
Okay. Hi Luis, I will take those. Well, regarding the dividend is like the last question. I mean, we don't provide any
guidance regarding the dividend for the year. The 407 doesn't provide that, right? So we keep it there.
Regarding the other question, if you - yeah, on the working capital, yeah, regarding the working capital in construction,
it's true that the first semester has been favorable from what I mentioned when I was reviewing the cash. I mean there's
been some, let's say, collections or payments that have been kind of delayed that were basically cashed in this semester.
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July 29, 2026 – Q2 & H1 2026 Earnings Conference Call
So this has been specific for this semester. And yes, the second half of the year usually have some positive working
capital effect at the end of the year. I mean we don't provide any guidance, but there's no reason to not expect some
sort of seasonality there at the very end of the year as other years.
Q - Luis Prieto, Analyst, Kepler Cheuvreux
Super clear. Thank you.
Q - Graham Hunt, Analyst, Jefferies
Yeah. Thanks. Thanks, team. And thanks for hosting the call. Just two questions. If we go back to the 407, I think
historically, you've talked about catching up some of the pricing that was lost during the price freezes over the COVID
period. And I wondered, does that still come into your thinking? Or are we in a different price regime now with a different
approach with the promotions and things? I'm just kind of looking for a bit of an update in your thinking there. We've
seen multiple years of very high pricing, obviously with the promotions. But yes, just an update in how you think about
the catch-up there in terms of real pricing.
And then the second question, I'll go again on dividends, but not for the 407. Maybe just for the group, Ernesto, any
help you can give us in terms of how you're thinking about the last part of your overall returns guidance for 2026 in the
second half, the shape of that, how we should be modeling it, that would be helpful. Thank you.
A - Ignacio Madridejos, Ferrovial, N.V. – CEO
Thank you, Graham. I will answer the first question about the 407 and then Ernesto will come back with the dividends.
So about the 407, the way we see it is about value for users and how we can capture that value for users at the same
time with relieving the congestion in the area. And that from a perspective, internal perspective of maximizing EBITDA.
So we have to take when we think about this, you have to take all of this into consideration. And as you know, there
are different parts and one of those parts, it is about the toll rate that we increased at the beginning of that we announced
in November, but we implemented in the beginning of the year. But also we offer promotions to different type of users
that is helping with the congestion relief, but this also help now with some users that have different point of elasticity.
And all of that combined with maximizing EBITDA and reducing Schedule 22 payments. And that's a different thing that,
as you know, it is traffic at the peak and is related to the thresholds and the different segments and how we are more
effective with promotions, reducing Schedule 22 payments as we have been able to achieve in the second year.
So yes, I think that because all this, we think differently to what we did in the past about pricing. It's not only about one
increase, it's also considering how promotions play there. And we maximize different effects of congestion relief of,
maximizing revenues and EBITDA in different ways.
So yes, I think that you should expect that this is the new rationale and how we it's where we are going to behave in
the future. And it will be based on these variables that I commented previously. And I think that is different to what we
used to do in the past, but the focus at the end will be maximizing EBITDA and that's related to value to users and more
growth, economic growth in Toronto area and population growth. And population will help us increase the value. Ernesto.
A - Ernesto López Mozo, Ferrovial, N.V. – CFO
Thanks, Graham. Regarding the question on dividends, I mean, there's no update now. I mean, we'll probably the Board
in October will take the decision on the second dividend, we'll update. But until then, we have no updates.
Q - Graham Hunt, Analyst, Jefferies
Got it. Thanks, guys. Very helpful.
Q - Dario Maglione, Analyst, BNP Paribas
Hi. Good afternoon. Three questions from me. The first one on the US Texas managed lanes, which posted quite an
impressive revenue growth in Q2, almost 20% for all the three assets, and that was despite bad weather. So you
mentioned various drivers for this growth. Could you maybe rank them or give them you mentioned, for instance, the
tech, technology to classify heavy vehicles. How significant was this?
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July 29, 2026 – Q2 & H1 2026 Earnings Conference Call
The second question related to the first question, and the tech classification for heavy vehicles. My understanding is that
it was implemented in 2025 at different dates for the different assets. Could you give us a bit more detail on this? And
the third question is on the 407 ETR. Traffic was down in the quarter in Q2, as you mentioned, some various effects.
You didn't mention really the promotion or the different type of promotions, but more of the impact of the macroeconomic
situation and traffic on alternative routes. So with that in mind, what is the implication for the potential for toll increase
in 2027 if traffic is not growing? Thanks.
A - Ignacio Madridejos, Ferrovial, N.V. – CEO
Thank you, Dario. So I will start by Texas managed lanes and the revenue growth that we have seen in the three assets.
I think in terms of importance, probably the most important has been the classification of vehicles. As you know, they
have a multiplier. So with this new technology that we have implemented in the different managed lanes, it has helped
us to identify more heavy vehicles that are paying more than they were paying before. And this has been the main effect
that we had.
In the case of also the NTE and the 35 West, also we had more mandatory modes than before that had a positive effect
in the revenue per transaction. And of course, always, we have some mix effects and always we have the impact of
inflation in which we increased the soft cap at the beginning of the year. So probably I mentioned those in terms of
priority, what has been most relevant and then the other effects that also were impacting this revenue per transaction
with that 20% growth.
It's relevant also what you mentioned about the classification of vehicles, yes, because we implemented that last year.
And we started with implementing new technology and in the different gantries, and we started with the 35 West
followed with NTE and we'll finalize with LBJ. But some of the information about the classification of these vehicles we
use just from the beginning in all the three managed lanes, so some of the effect is already included in all of them. But
it's true that the comparison in the second half, like-for-like will be already including this effect that we started to see at
the end of the second half of last year, and you have to take that into consideration.
Also, the other effect in the managed lanes about traffic is construction when we see the ending of the construction at
LBJ and also at NTE for the capacity improvement, the effects will be in the case of NTE, more traffic and less mandatory
modes. In the case of LBJ, once the construction is finished, it is expected that some traffic will come back to the
corridor.
And in the case of the 407, the effect of promotions has been very limited, I will say, slightly more than the previous
year in terms of traffic affected by promotions in the second quarter of '26 compared to the second quarter of '25. It's
true that with slightly more traffic affected by promotions, we have been more effective in Schedule 22. So in that sense,
we have some sectors in which we have traffic above the threshold. So in those cases, we have reduced promotions.
And there were other sectors in which we were below the threshold. And in those cases, well, we have been more
effective, bringing some promotions that have helped us in order to reduce Schedule 22 payments. So I will say that
this is not a major effect and the major effects that we have in traffic in this quarter compared to previous year is the
economic activity and that's mainly related to some industries that have uncertainty, uncertainty of tariffs. So the whole
economy is growing around 1%, but still we see some industries and sectors that are more affected and that will affect
traffic.
We have seen also a relevant effect in terms of the delay in the maintenance in some competing highways, especially
the 401 because of the FIFA World Cup that they didn't want to do some construction works during that period of time.
And as usually, you can do only this type of maintenance during the good weather of spring and summer. And in this
year, all this construction activity was delayed. And third, also weather, we have a negative effect of weather, that was
general, it was not only the 407, it was also in the managed lanes and other assets that we have that negative effect.
In the future, well, as you know, we don't give guidance, but increasing prices will depend on the value that we see that
the 407 has for the customers, and we'll try to capture as much as we can of this value. And this is what we are doing
with a combination of increasing toll rates at the beginning of the year and also with the promotions that we are doing
during the year to different segments. So we'll continue to do that, and we'll try to capture the value that we give to
users as we have done in the past.
Q - Dario Maglione, Analyst, BNP Paribas
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July 29, 2026 – Q2 & H1 2026 Earnings Conference Call
Okay. Thank you.
Q - Marcin Wojtal, Bank of America
Yes. Hello. Thank you for taking my questions. The first one is on your share buyback. I believe you have an authorization
to buy back up to EUR800 million until October of this year. And I believe the latest disclosure points to EUR340 million
of this authorization being utilized. So I'm just wondering, do you have an intention to actually fully exercise the
authorization of EUR800 million? And is that even feasible considering the liquidity of the stock?
And my question number two, if you allow me, I just wanted to come back to these promotions on the 407 ETR. I'm
just wondering, are the promotions that you're offering right now very, very similar to what you were offering at the
beginning of the process a year ago? Or there has been a learning curve for the company?
And do you see promotions also going forward as an important tool of yield management and also, as a tool that will
allow you to extract more revenue and EBITDA over and beyond Schedule 22 management? And could you perhaps
continue with promotions in the longer term even if Schedule 22 is no longer an issue? Thank you.
A - Ernesto López Mozo, Ferrovial, N.V. – CFO
Okay. Thanks, Marcin. Well, regarding the buyback, there's no specific guidance on the buyback. The guidance we have
in terms of remuneration is on distributions, remuneration to shareholders eventually. We don't provide any specific
guidance on how we manage the buyback that could be quite sensitive, as you can imagine. But yes, we -- I mean, we
have the guidance on delivery to our final investors on distributions. That's all that we have.
A - Ignacio Madridejos, Ferrovial, N.V. – CEO
And regarding the promotions, yes, the idea is to continue with promotions in the future, independently of Schedule 22,
and I think it's a very good way to attract new customers and maximize the value that we can capture for the users of
the 407. The ones that we do for Schedule 22, I think that are very similar in general. I think probably not in the same
sectors with the same type of users. So we have learned how they are – which users are the most effective in terms of
reducing Schedule 22 in the different segments, and we are more selective in that sense, to offer those that generate
the most value for us and adding some new users that were not offering before in some other sectors that we were
paying some Schedule 22.
Now from there, I think as you know, some of these promotions are free and the question is how much we can get for
these promotions because maybe the users are open to pay something for them.
And now we are open to other type, we are piloting and doing other type of different promotions in order to understand
the value for the users, and we are trying and testing different things. And we'll continue to do these type of promotions
and learning from them and it's a way to do a segmentation and will continue in the future but it's a long journey, which
we need to learn from the users. And with that, I think that it will take several years to maximize EBITDA for us using
the promotions and to have a good understanding of the value of the 407 for the different users.
Q - Harishankar Ramamoorthy, Analyst, Deutsche Bank
Yeah, hi. Good afternoon, everyone. Thanks for taking my questions. Just maybe on the 407 ETR. So it looks like VKTs
have been down this quarter year-on-year, but you've still managed to reverse some Schedule 22 provisions. So it looks
like 407 ETR have become really experts in managing the promotions for maybe peak of peak hours. Is it just that? Or
is there any segment where you've hit the maximum throughput possible. And for that reason, you don't really have to
expand efforts in managing the promotions. So I couldn't quite square that circle on how you could have VKTs down,
but still have reversal of provisions. Is it just you become so good in managing the promotions? Or is there any other
component to it? So that's the first one.
And secondly, when we look at the mix of traffic with promotions and without, is there any plan for publishing or getting
some data on color on how these splits between the two segments for 407 ETR? So how much of traffic is without
promotions and how much are the promotion volumes?
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July 29, 2026 – Q2 & H1 2026 Earnings Conference Call
A - Ignacio Madridejos, Ferrovial, N.V. – CEO
Yeah. Thank you for the questions. We are not going to disclose, traffic that is coming from promotions of traffic that
are paying toll rate at the normal price. So this, you have to see the whole figures of the traffic and the revenue
separately and it's something that we are not going to disclose any additional information about that.
The other effect that you have to consider is that comparing the quarter last year to this year, the effect on traffic of
the promotions has been slightly positive. So we have a little bit more traffic related to promotions this quarter compared
to the quarter last year. And with this slightly more traffic, what we have been able is to reduce significantly the Schedule
22 payments because we have targeted better for those users that are helping to reduce Schedule 22 payment.
And in other cases, in which some segments were more traffic than they needed for the threshold, we reduced the
promotion. So we have been more effective in order to address which promotions are helping us to reduce Schedule 22
with almost a similar slightly above number of traffic related to promotions compared to previous year. So we have been
more effective. But in general, I think that the effect of the traffic promotion has been slightly more than previous year,
but not significant.
Q - Harishankar Ramamoorthy, Analyst, Deutsche Bank
Makes sense. Maybe just a follow-up there. So none of the segments within the 407 ETR have kind of hit a threshold
where the throughput targets are now at the maximum limit, have they?
A - Ignacio Madridejos, Ferrovial, N.V. – CEO
Well, I think if you mean if we have traffic that is above the thresholds in some segments, the answer to that is yes.
Because if not you have a payment. So the question is in segment, do you have promotions in those segments that you
need it to have promotions in order to be above the threshold?
Well, that's a different question. And yes, there are some segments like those, but we don't disclose in which ones and
how is the mix of that effect of promotions or no promotions to reach the threshold, but we only pay Schedule 22 when
we are below the threshold and in the rest, we are above. And in some of them, we are above without promotions and
in other we reach that thanks to the promotions.
Q - Harishankar Ramamoorthy, Analyst, Deutsche Bank
Makes sense. Thank you.
Q - Cristian Nedelcu, Analyst, UBS
Thank you very much for allowing me to follow up. Could I please ask you on the Texas managed lanes? And you
mentioned earlier the mandatory modes on LBJ are not something imminent. And you flagged that on the NTE, the
capacity expansion may be a headwind for triggering mandatory modes. So if you have this in mind and we think at '27,
can you talk a bit about the levers of growth in pricing for the Texas managed lanes? We know that pricing is at peak
close to soft cap or at soft cap for most segments. So, can you elaborate what are the levers that are there directionally
to improve? Is it off-peak pricing? There is room to increase that? Anything more on trucks or any other levers that could
help you grow pricing more than the soft cap next year?
And apologies, one follow-up on the ETR 407. I think you've been trialing the loyalty program for frequent users. I
believe there were some trials in place the last few months. But I was curious, what are the plans for the second half?
Will you deploy this loyalty program more widely? And how should we think from the perspective of potential dilution to
the revenue per transaction related to the loyalty program? Thank you.
A - Ignacio Madridejos, Ferrovial, N.V. – CEO
Thank you for the questions. And yes, in the case of the Managed Lanes, pricing will come several factors. First is the
inflation that will increase soft cap at the beginning of the year. So it's something that we do every year.
Then mandatory modes is something that could help us, but as you mentioned previously, we expect that 35 West will
continue to have as long as the congestion is increasing and the economic activity there is increasing, we'll have more
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July 29, 2026 – Q2 & H1 2026 Earnings Conference Call
mandatory modes in the 35 West. But in the case of NTE, we will not see that. We'll see instead of mandatory modes
more traffic.
And in the case of LBJ, similar to this year, we don't expect mandatory modes that are going to be significant or relevant,
but we'll see more traffic next year in LBJ similar to NTE.
All of course, depending on how is the economic activity and other variables that could happen at that time. We may
have also some mix effect as usual. And this mix effect is having more traffic at peak. And the other effect is having
more trucks that with more economic activity used to have more trucks than in the past. So these are the effects that
we'll see next year and that will impact the revenues that they will see in the Texas managed lanes for next year.
And regarding the 407, yes, we did started with some pilots of the loyalty program, and we have not taken a decision
yet how we'll continue with these pilots. And we are doing the pilots with different types of promotions. Some of them
are working, others not. And based on the results, we take decisions, and we have not decided yet how we will continue
with loyalty programs.
Q - Cristian Nedelcu, Analyst, UBS
That's very helpful. Thank you very much.
Operator
There are no further questions at the conference call at this time. I will now hand the line back to Silvia Ruiz, Head of
IR.
A - Ignacio Madridejos, Ferrovial, N.V. – CEO
I'm not Silvia Ruiz, I'm Ignacio, but I just to give you thank you for following us. And well, I hope those of you are taking
vacations. Hopefully, you have a good rest of the summer. Thank you very much for joining us.
This is an edited transcript of the live event and does not purport to be a complete or error-free statement or summary of available
data or the event itself.
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