Ferrovial SE: history, ownership, mission, how it works & makes money

A Brief History of Ferrovial SE

Founded in 1952 in Madrid, Spain, Ferrovial SE, a global leader in infrastructure and urban services, has cultivated a significant presence in the construction sector over the decades. Starting with small local projects, the company has expanded its reach through various strategic acquisitions and investments.

In the early 2000s, Ferrovial embarked on an aggressive expansion strategy, which included the purchase of the British company, BAA, in 2006, for approximately £10.3 billion. This acquisition included notable airports such as Heathrow, Gatwick, and Stansted, marking a significant milestone in their diversification into the airport management sector.

In 2011, Ferrovial reported revenues of around €8.1 billion, with an EBITDA of approximately €1.3 billion. The following years saw fluctuating performance, heavily influenced by market conditions and international projects, including the construction of highways, airports, and urban development.

The company's stock performance has reflected its growth trajectory. In mid-2023, Ferrovial shares traded around €27.50, representing a year-to-date increase of approximately 15%. This rise can be attributed to renewed investor confidence and ongoing infrastructure investments across Europe and North America.

In 2023, Ferrovial continued to focus on sustainability and innovation. They committed to reducing carbon emissions by 50% by 2030, aligned with global environmental standards. The company has invested in various technological advancements, including construction automation and smart city initiatives.

Ferrovial's strategic initiatives also included the development of large-scale projects such as the US$3.8 billion Texas highway project, which is expected to enhance transportation infrastructure and open up new economic opportunities in the region.

As of the third quarter of 2023, Ferrovial reported a backlog of projects valued at approximately €35 billion, indicating a robust pipeline that promises future growth. Analysts remain optimistic about the company's future performance, forecasting a compound annual growth rate (CAGR) of 8% in revenues through 2025. The consistency in their performance reflects their resilience amid fluctuating market conditions.

A Who Owns Ferrovial SE

Ferrovial SE, a major player in infrastructure and services, operates primarily in construction and management of transport infrastructure worldwide. The ownership structure of Ferrovial has evolved, marked by substantial stakes held by various institutional and individual investors.

As of the latest reports in 2023, the largest shareholders of Ferrovial SE include:

The company’s shares are traded on the Madrid Stock Exchange, under the ticker symbol FER. Ferrovial's market capitalization as of October 2023 stands at approximately €23.5 billion.

In terms of recent financial performance, Ferrovial reported its Q2 2023 earnings with revenues reaching €3.1 billion, representing a growth of 15% year-over-year. The company's EBITDA for the same quarter was €510 million, with a corresponding EBITDA margin of 16.5%.

The governance model of Ferrovial SE emphasizes stakeholder engagement and transparency, with a board comprised of various members representing shareholder interests effectively. The board has undergone changes, with the latest member appointments in early 2023 aimed at enhancing the company's strategic direction.

Ownership dynamics at Ferrovial SE reflect broader market trends, where institutional investors increasingly dominate shareholding in large public enterprises. This shift has been prevalent across Europe, correlating with a rise in funds allocated to infrastructure development, particularly amidst the growing emphasis on sustainability and urban development projects.

Ferrovial SE Mission Statement

Ferrovial SE, a global leader in infrastructure and services, emphasizes its mission statement as a commitment to sustainable development and innovation. The company aims to create value for society through responsible management of the projects and operations it undertakes.

The mission statement outlines the following core principles:

• Drive innovation in infrastructure projects.
• Enhance sustainability across all operations.
• Foster strong partnerships with clients and stakeholders.
• Contribute positively to the communities in which they operate.
• Achieve operational excellence through continuous improvement.

In terms of financial performance, Ferrovial reported a revenue of **€6.8 billion** for the first half of 2023, demonstrating a **7%** year-over-year increase. This growth can be attributed to several key projects across transportation, energy, and urban services sectors.

As of Q2 2023, Ferrovial's EBITDA was noted at **€1.2 billion**, leading to an EBITDA margin of **17.6%**. Additionally, the company has maintained a net profit margin of **6.3%**, showcasing effective cost management.

The following table presents an overview of Ferrovial's key financial metrics for the fiscal year ending 2022 compared to projections for 2023:

Ferrovial's commitment to sustainability is reflected in its investment strategy, with a target of allocating **€1 billion** towards green projects by 2025. The company has set ambitious goals, including reducing its carbon footprint by **30%** by 2030 and ensuring that all new projects are aligned with sustainable practices.

Moreover, Ferrovial is actively involved in international markets, operating in over **15 countries**, including the United States, the United Kingdom, Spain, Canada, and Australia. The company's global reach enhances its capability to invest in and manage significant infrastructure projects, which aligns with its mission to drive innovation and provide sustainable solutions.

Overall, Ferrovial SE's mission statement embodies its strategic focus on growth through innovation, sustainability, and community engagement, supported by robust financial performance and a clear vision for the future.

How Ferrovial SE Works

Ferrovial SE is a multinational company based in Madrid, Spain, primarily engaged in the construction and management of infrastructure projects. With a robust operational model, the company leverages its expertise across various sectors, including transport, urban infrastructure, and energy. As of 2023, Ferrovial's market capitalization stands at approximately €19.9 billion.

The company operates through several business segments:

• Construction
• Infrastructure
• Public-Private Partnerships (PPP)
• Environmental Services

In 2022, Ferrovial reported revenues of €7.2 billion, with a net profit of €364 million. The construction sector accounted for approximately 61% of total revenues, while infrastructure services contributed around 20%.

The company’s project portfolio includes several high-profile infrastructure projects globally. Noteworthy projects include:

• Expansion of the John F. Kennedy International Airport in New York.
• Construction of the 5G network in various European cities.
• Development of the Dallas Fort Worth Airport in Texas.

The operational efficiency of Ferrovial is reflected in its project delivery model. The company employs advanced technologies such as Building Information Modelling (BIM) and digital twin technology, resulting in a 15% reduction in project delivery times and a 10% decrease in costs. The EBITDA margin for the construction segment was reported at 9.5% in 2022, indicating strong profitability relative to its peers.

Ferrovial's commitment to sustainability is evident in its environmental strategies, aimed at reducing carbon emissions by 30% by 2030. The company has invested over €1 billion in renewable energy projects, including solar and wind energy initiatives.

As of October 2023, Ferrovial's stock price is trading at approximately €33.75 per share, reflecting a year-to-date increase of 12%. The company currently has a dividend yield of 1.5%, indicating a stable return for shareholders.

Ferrovial SE also holds a strong position in the global market, with operations in over 15 countries. The company's focus on innovation and efficiency continues to drive its competitive edge in the infrastructure sector.

In terms of strategic partnerships, Ferrovial collaborates with various governments and private entities, reinforcing its position in the PPP space. The company currently manages €4 billion worth of infrastructure assets under such agreements.

How Ferrovial SE Makes Money

Ferrovial SE is a global infrastructure and services company based in Spain, with a broad spectrum of operations encompassing construction, toll roads, and facility management. Its revenue streams are primarily classified into three segments: Construction, Toll Roads, and Services.

Revenue Breakdown

For the fiscal year 2022, Ferrovial reported total revenue of €6.4 billion. The breakdown of revenue by segment is as follows:

Construction Segment

Ferrovial's construction segment covers a myriad of projects from civil engineering to infrastructure development. Notably, the company was awarded contracts amounting to €1.5 billion in North America alone in 2022. Key projects include:

• Expansion of the I-70 highway in Colorado - Project valued at €600 million
• Construction of the northern section of the M-30 in Madrid - Project value €500 million
• High-speed rail projects in the UK - Contracts worth €400 million

Toll Roads Segment

Ferrovial operates a network of toll roads that generate consistent revenue streams through user fees. Significant toll roads include:

• AP-7 in Spain – annual revenue of approximately €450 million
• Highway 407 in Canada – recorded revenue of around €1 billion

The toll roads division contributed to operational EBITDA of €1.2 billion in 2022, demonstrating strong cash flow generation capabilities.

Services Segment

The services segment encompasses facility management, environmental services, and infrastructure maintenance. In 2022, this division's revenue was driven by contracts with municipalities and public sector entities. Notable contracts included:

• Madrid City Council - Facility management contract valued at €200 million
• London’s transport infrastructure maintenance - worth €100 million

The services segment contributed an EBITDA of €150 million, reflecting its stable income profile.

Geographical Revenue Distribution

Ferrovial's diversified geographical presence enhances its revenue stability. The 2022 revenue distribution by region was:

Investment in Innovation

Ferrovial invests significantly in technology and innovation, with a reported expenditure of €300 million on R&D in 2022. This investment is aimed at enhancing operational efficiency and sustainability through smart construction methods and digital infrastructure.

Overall, Ferrovial SE generates revenue through a combination of construction contracts, toll road operations, and facility management services, supported by a geographically diversified portfolio and a commitment to innovation. This multi-faceted approach enables the company to maintain a robust financial performance within the competitive infrastructure landscape.