Ferrovial delivered a strong QQ3 2024 performance with revenue of €2.44 billion and a robust gross margin of 85.9%, underscored by a substantial operating profit of €1.28 billion and net income of €1.41 billion. Reported quarterly metrics reflect meaningful scalability in operating earnings, with YoY and QoQ improvements in revenue, operating income, net income, and earnings per share (EPS). Net income was notably aided by other income, which contributed €258.5 million to the bottom line, resulting in an unusually high net margin of ~58% for the quarter. Excluding non-operating items, the underlying operating performance remains healthy, supported by efficient cost control and margin resilience in core infrastructure activities.
From a cash-flow perspective, Ferrovial generated €549 million in operating cash flow and €413 million of free cash flow for the quarter, with capital expenditures of €136 million. The company ended the period with €4.81 billion in cash and cash equivalents and a total debt burden of €11.59 billion, yielding a net debt position of €6.78 billion. Net debt to equity remains around 1.1x, while liquidity cover supports ongoing capex and potential deleveraging opportunities. The quarter showcases Ferrovial’s capacity to translate scale into cash generation, even as the balance sheet carries meaningful leverage associated with PPP-style and long-duration infrastructure investments.
Strategically, Ferrovial continues to benefit from a diversified portfolio across toll roads, airports, and related infrastructure, with a favorable margin profile in the current environment. Investors should monitor the sustainability of the €258.5 million other income item that boosted net income this quarter, as well as the trajectory of leverage given the high absolute debt load relative to EBITDA. Overall, the QQ3 performance positions Ferrovial as a defensively positioned infra operator with growing cash generation but with continued sensitivity to financing conditions and policy/regulatory shifts affecting PPP assets and toll-based revenue streams.