Ferrovial SA (0P2N.L) Q1 2025 Earnings Report

Ferrovial reported a solid start to QQ1 2025, delivering revenue of EUR 2.2345 billion and an implied gross margin of 88.3%, supported by a high-margin project mix and efficient cost control. EBITDA amounted to EUR 327.5 million, with operating income of EUR 353.0 million and net income of EUR 270.0 million, translating to a net margin of 12.1% and earnings per share (diluted) of EUR 0.37. The quarter shows meaningful operating leverage versus prior periods, but QoQ revenue declined 8.4% and EBITDA/operating income moved lower from the prior quarter, reflecting seasonality and project timing in a large-scale infrastructure portfolio.

From a liquidity and balance sheet perspective, Ferrovial carries a substantial debt load with total debt of EUR 10.341 billion and net debt of EUR 7.506 billion, against cash and cash equivalents of EUR 2.835 billion. The company generated EUR 185 million of operating cash flow and deployed EUR 135.5 million in capital expenditures, resulting in free cash flow of EUR 49.5 million for the period. The working capital dynamics are notable: days sales outstanding (DSO) around 68 days and a long payables cycle (days payables outstanding around 587 days) contributing to a negative cash-conversion profile on a net basis but supporting a negative cash conversion cycle overall. Leverage remains elevated (net debt to EBITDA and debt-to-capitalization both high by traditional industrial standards), while interest coverage stands at roughly 5.1x, underscoring a moderate cushion against interest expense.

Overall, QQ1 2025 demonstrates a balance between resilient profitability and the ongoing need to manage leverage and capital allocation as Ferrovial participates in a multi-year infrastructure capex cycle. Investors should track the trajectory of backlog, project execution efficiency, deleveraging progress, and any forward-looking guidance as management communications evolve.