Ferrovial SE operates as a construction group focusing on railway infrastructure and later expanded its business into other activities, including among others, toll roads, airport management, and energy.
The company operates across seven core geographic markets, comprising Spain, the United States, the United Kingdom, Canada, Poland, Chile, and India. It has developed into one of the world’s leading infrastructure groups in terms of managed investment, with operations in a range of sectors, inc...
Ferrovial SE operates as a construction group focusing on railway infrastructure and later expanded its business into other activities, including among others, toll roads, airport management, and energy.
The company operates across seven core geographic markets, comprising Spain, the United States, the United Kingdom, Canada, Poland, Chile, and India. It has developed into one of the world’s leading infrastructure groups in terms of managed investment, with operations in a range of sectors, including development, construction, and operation of toll roads and airports. The company has invested in diversifying its business and expanding internationally. Its experience in, and portfolio of, infrastructure assets have enabled it to develop specialized knowledge in the field of urban congestion management.
On June 28, 2024, the company completed the sale of its 24.8% stake in Grupo Serveo to its majority shareholder, Portobello Capital.
On June 13, 2024, the company, through its subsidiary Cintra, acquired a 23.99% stake in IRB Infrastructure Trust (‘Private InvIT’), a subsidiary of IRB, in which it holds a 19.86% ownership interest from certain affiliates of GIC Private Limited (‘GIC’).
On June 11, 2024, the company, through its subsidiary Cintra, completed the sale of a 5.0% stake in the Indian company IRB Infrastructure Developers Limited (‘IRB’) to certain institutional investors.
On May 17, 2024, the company, through its subsidiary Ferrovial Energy US, LLC, acquired a 100% stake in Misae Solar IV, LLC, a Texas Limited Liability Company owning rights to develop an approximately 257.3 MWdc solar project known as ‘Leon Solar Park’ in Leon, Texas (USA).
On April 25, 2024, the company, through its subsidiary BxF Energia sp. z o.o., acquired a 100% stake in Developres Zielona Energia sp. z o.o., a Polish Limited Liability Company owning rights to develop an approximately 60 MWdc solar project known as ‘Azalia’ in Wysoka Glowowska, Rzeszów (Poland).
Segments
The company undertakes its activities through the following four operating divisions, or lines of business, which also correspond to its reporting segments (the ‘Business Divisions’): Toll Roads, Airports, Construction, and Energy.
The company generally uses the ‘other’ category to reflect results for companies not assigned to any Business Division, the most significant being the company, the Group’s parent company, as well as the new business line Ferrovial Digital Infrastructure (created in 2024, with the intention to identify investment opportunities to develop high-value projects in the data center market), and some minor subsidiaries, including the mobility business and remaining services businesses, such as the Chilean mining services and the waste management plants in the United Kingdom.
Strategy
In 2020, the company approved a plan setting out the strategy for the 2020-2024 period (the Horizon 24 Strategic Plan) that placed its primary focus on the development and operation of sustainable infrastructure, with a main presence in the transport sector.
In connection with this strategy, the company focused its activity in the main countries where it is active: the United States, Canada, the United Kingdom, Spain, Poland, Chile, and India. It also periodically monitors and identifies opportunities in Australia and selected countries in Latin America and other geographies. The company also decided to integrate the United Nations’ Sustainable Development Goals into its business strategy.
The Horizon 24 Strategic Plan contemplated an expansion of the company’s operations to activities that complement its existing businesses, such as:
The Toll Roads Business Division continues to focus on the development of the company’s Managed Lanes’ projects in the United States, with the opening of segment 3C of NTE 35W in June 2023 and the increase of its stake in the I-66 toll road in Virginia and the I-77 toll road in North Carolina.
The Airports Business Division continues to invest in expanding its portfolio, with a focus on geographical areas in which the overall business currently operates.
The Energy Business Division focuses on the development, building, and investment of renewable generation, storage, and transmission lines projects, and renders energy efficiency services in the U.S., as well as Spain, Poland, Chile, and Australia.
The Construction Business Division continues to seek and execute complex projects, such as the Ontario Line subway in Toronto, Canada.
As of December 31, 2024, the company completed its fifth year of the Horizon 24 Strategic Plan. Its strategic priorities for the year focused on sustainable growth across Business Divisions, and innovation.
Horizon 24 Strategic Plan by Business Line
Toll Roads
As the company pertains to the Toll Roads Business Division, the Horizon 24 Strategic Plan prioritized the development of its complex assets’ business in the United States and the selective study of opportunities in new geographies. Cintra, the company’s main Toll Roads’ subsidiary, drives its growth through the management and development of the Managed Lanes’ business.
In addition to the United States, which is a core market for capital allocation, it considers opportunities in the markets in which it is already active, including countries such as Canada, Spain, the United Kingdom, India, Peru, as well as selected opportunities in other geographies.
Construction
As the company pertains to the Construction Business Division, the Horizon 24 Strategic Plan prioritized the development of the concession business. Ferrovial Construction, the company’s main Construction subsidiary, targets improvements in its key operational processes of design, procurement, and supervision.
Airports
As the company pertains to the Airports Business Division, the Horizon 24 Strategic Plan prioritized the improvement of its competitive position. Ferrovial Airports, the company’s main Airports subsidiary, concentrates on dynamically managing its portfolio, which includes the Dalaman airport, and the NTO project at JFK airport.
Energy
As the company pertains to the Energy Business Division, the Horizon 24 Strategic Plan prioritized exploring new opportunities to invest in sustainable infrastructures, such as renewable energies and other net-zero technology solutions.
Business Divisions
Toll Roads Business Division
The company’s activities in the Toll Roads Business Division include the development, financing, and operation of toll road projects. It conducts its operations in this Business Division through Cintra, one of its wholly owned subsidiaries. Cintra offers a strong proposition in the industry, with over 50 years of experience, a broad management model, and in-depth knowledge of new technologies applied to pricing, such as advanced analytics, that aim to improve demand forecasting and fare optimization. Cintra also offers synergies with its Construction Business Division subsidiary, Ferrovial Construction, which result in high value creation potential. The partnership of Cintra and Ferrovial Construction supports the success of complex greenfield projects, since Cintra, as licensee, and Ferrovial Construction, as construction affiliate, can align their risks and reduce the total cost of a project.
In 2024, the company’s Toll Roads Business Division increased its dividends received, mainly due to increases in traffic and vehicle kilometers traveled in 407 ETR, due to greater traffic and toll rates increase in February 2024. All the U.S. Managed Lanes showed similar improvement, driven by strong performance and toll rates increases.
Value Creation
Cintra specializes in complex greenfield projects (new construction infrastructure projects), due to their high value creation potential.
The company has a structured risk management process that focuses especially on the bidding stage of a project, which consists of evaluating and assuming adequate levels of project risk that allow it to optimize the available rates of return (‘IRR’) and create value by decreasing the discount rates of future cash flows as project risks decrease, whether through traffic revenues or financial solutions over the life of the concession.
The company opened the I-66 toll road’s Managed Lanes in two phases in September and November 2022, as the segments became ready to open to traffic. The opening of these sections helped to reduce the overall construction risks and therefore allowed it to create value by decreasing the discount rate of future cash flows for the I-66 toll road project. In June 2023, segment 3C of NTE35W commenced operations.
The company also materializes value creation in the Toll Roads Business Division through the sale of mature projects, the proceeds of which are invested in new assets, where there is a greater potential to generate value. Some examples of this reinvestment strategy include: the sale of a 15.0% stake in Autopista del Sol (‘Ausol’) in Malaga, Spain, in December 2022; the divestment of its stake in two Portuguese toll roads (49.0% of the Norte Litoral toll road and 48.0% of Vía do Infante (Algarve)) to the DIF Capital Partners infrastructure fund; and the sale of its remaining 89.2% stake in the Azores highway to Horizon Equity Partners and RiverRock. The sale was completed, and the transaction funds were received on December 28, 2023. On February 29, 2024, it entered into an agreement with Inter Infrastructure Capital S.A. to sell the 49% of the Class A shares of Umbrella Roads BV (which confer voting rights on its holder) and all the Class B shares of Umbrella Roads BV (which confer economic rights on its holder). Umbrella Roads BV is the direct shareholder of Cintra OM&R 407 East Development Group Inc, Cintra 407 East Development Group Inc, Blackbird Maintenance 407 Cintra GP Inc, and Blackbird Infrastructure 407 Cintra GP Inc (the holding companies of the 407 Phase I and Phase II Projects), the indirect shareholder of Serranopark S.A., Scot Roads Partnership Project (M8 Project in the UK), Eurolink Motorway Operations Ltd, and Eurolink Motorway Operations (M3) Ltd (M4 and M3 Projects in Ireland), and has the economic rights over Sociedad Concesionaria Autovía de la Plata S.A. (A66 Project in Spain). The sale of shares was completed on October 8, 2024.
As the company pertains to the Managed Lanes’ projects, the main projects in the Toll Roads Business Division, value creation arises from toll rates being dynamic, allowing for modifications every few minutes according to the degree of congestion, always guaranteeing a minimum speed for drivers. With free-flow (barrier-free) toll systems, the Managed Lanes stand out for their long concession terms, their toll rate flexibility, and their optimized long-term financial structure. Examples of Managed Lanes include the NTE 1-2, LBJ, NTE 35W, I-77, and I-66 toll roads.
Investments / Main Assets
Cintra has consistently invested in growing and diversifying its portfolio, with a strong focus on the North American markets. For example, in November 2022, Cintra acquired an additional 7.1% ownership interest in the I-77 toll road project in North Carolina, the United States, increasing its total stake to 72.2%. In September 2021, Cintra acquired an additional 5.7% ownership interest in the I-66 toll road, increasing its total stake to 55.7%.
Cintra’s investments go beyond the North American market and extend to emerging markets with attractive prospects. In December 2021, Cintra identified an opportunity in the Indian toll road market and partnered with IRB. It completed the acquisition of a 24.9% stake in IRB through its subsidiary Cintra INR Investments BV. The company’s stake states at 19.9%, after the sale of a 5.0% stake executed on June 11, 2024. In 2024, Cintra acquired a 23.99% interest in Private InvIT, an investment vehicle sponsored by the Group’s equity-accounted company IRB, increasing its presence in the Indian toll roads market.
The company continues to pursue ways to increase the value of Cintra’s investment portfolio and optimize the financial structure of its assets.
As of December 31, 2024, Cintra’s concession portfolio consisted of 18 concessions. Excluding IRB and Private InvIT, comprising approximately 972 kilometers of motorway. Cintra’s portfolio of concessions is diversified geographically, with interests in toll road concessions located in Canada, the United States, Australia, Colombia, Spain, Slovakia, India, Peru, and the United Kingdom.
Customers and Types of Contracts
The company operates its toll roads business through concession agreements. Concession agreements are contracts under which a public sector entity reaches an understanding with a private company for such company to construct and operate certain infrastructures for a period of time, in consideration for the right to collect tolls, or to be paid either shadow tolls by the grantor of the concession or availability payments if there is no demand risk. The private company returns the infrastructure to the public sector entity at the end of the concession period.
Toll road concessions projects are long-term, capital-intensive projects that can typically be divided into two distinct phases: the construction phase and the operation phase. The construction phase involves the design and construction of the toll road and typically spans between two to five years. This phase is characterized by large capital expenditures, during which the company usually does not receive revenues, except for those projects that include toll road sections already in operation.
The operation phase commences once the construction phase is completed. It involves operating and maintaining the toll road and tolling equipment associated with the concession, as well as collecting toll receipts and managing prices. In some cases, the operation phase may commence while certain parts of the toll road are still under construction, allowing the company to collect tolls on the operational sections of the motorway, which reduces the risks inherent to these projects and leads to value creation. The operation phase is generally characterized by increasing levels of revenue as tolls are collected, lower levels of capital expenditure, and incurring operating expenses, and generally increasing cash flows. Revenues from toll road concessions with demand risk depend on the toll rates charged. Toll rates are typically set by the relevant governmental authority in the concession agreement. The rates that the concession can charge are typically agreed upon as part of the concession agreement with the relevant governmental authority.
The toll rates usually increase in line with inflation, except in certain cases, such as the 407 ETR, I-77, and I-66 toll roads, in which toll rates increases may exceed the rate of inflation. This is similar for the Managed Lanes in Dallas, Texas, the United States (i.e., the NTE 1-2, LBJ, and NTE 35W), which have soft caps that are updated yearly based on annual changes to inflation. The revenues from toll rates also depend on the levels of traffic on the road, which can be affected by general economic conditions, weather, and other factors. Revenues from availability payment roads concessions, such as concessions with no demand risk, are pre-determined in the concession contract and usually linked to inflation.
Canada
The 407 ETR
The 407 ETR toll road concession in Canada, in which the company holds a 43.2% interest, is the first all-electronic open access toll road in the world, whereby tolls are incurred while vehicles are in motion by means of vehicle identification at entry and exit points, either through transponders or video-based license plate imaging. By removing the need for toll barriers, this toll collection system enables the free flow of traffic along the highway, allowing high traffic volumes without long queues. It covers 108 kilometers in an east-west direction, traversing Canada’s largest and most affluent urban center, the Greater Toronto Area.
In May 1999, the 407 ETR was privatized, and Cintra (as part of the bidding consortium) won the concession award, which involved the construction and completion of seven interchanges, the construction of the east (15 kilometers) and west (24 kilometers) extensions of the highway, both completed in 2001, and the financing, maintenance, and operation of the entire stretch of the 407 ETR for a period of 99 years (ending in 2098).
On October 5, 2010, the company entered into an agreement with the Canada Pension Plan Investment Board for the sale of 10.0% of the share capital of the 407 ETR. The share transfer took place on November 18, 2010, resulting in Cintra holding its 43.2% interest in the 407 ETR.
As traffic grows, the 407 ETR keeps widening the number of lanes to preserve the user experience. Cintra, through its 407 ETR concession company, generally commences construction of these new lanes before it is contractually obliged to do so. Since it completed the extensions in 2001, the company has added 315 kilometers of total new lanes, and the road’s capacity could still be increased by a further 12.0%. Although impacted by COVID-19, traffic levels on the 407 ETR have increased in most years since Cintra won the concession award in May 1999.
The 407 ETR has an innovative toll rates structure that allows the company to raise prices freely without prior authorization from the Ontario Ministry of Transportation, provided that the traffic is maintained above a certain threshold. This system makes it possible for the company to optimize revenues by adjusting toll fees to the time savings offered to drivers by the toll highway. The asset’s revenue compound annual growth rate for the 2009 to 2024 period is 7.7%. Certain 407 ETR annual traffic levels are measured against annual minimum traffic thresholds, which are prescribed by Schedule 22 to the concession agreement and escalate annually up to a specified lane capacity. On December 29, 2023, the concession company announced a new toll rates schedule that increases the 407 ETR rates starting in February 2024. If annual traffic level measurements are below the corresponding traffic thresholds, the 407 ETR will have to pay potentially significant amounts calculated under Schedule 22 to the province. The concession will be subject to Schedule 22 in 2025, and a potential first payment is due in early 2026.
The United States
The Managed Lanes offer a solution to the problem of congestion in urban areas, providing choices to users. Under the Managed Lanes system, toll rates charged are dynamic and may be changed every few minutes to manage traffic volume and ensure a minimum speed. Cintra has different projects under this model, including the NTE 1-2, LBJ, NTE 35W, I-77, and I-66.
NTE 1-2
Cintra holds a 63.0% stake in the NTE concession, a 13.2-mile (21.4-kilometer) highway located in the Dallas Fort Worth area in north Texas. The NTE 1-2 is intended to improve mobility along a series of highways vital to the region, including IH-820 and SH 121/183. The company fully opened the project to the public in October 2014. The concession agreement ends in 2061. During 2024, due to the success of the NTE project, additional toll road expansion works and capacity improvements under the agreement with the Texas Department of Transportation are planned to be brought forward, with an expected completion in 2027.
LBJ
Cintra holds a 54.6% stake in the LBJ concession, which provides a solution to congestion problems on interstates IH-35E and IH-635 in Dallas, Texas. This project increases capacity in the corridor with the creation of six new express toll lanes.
LBJ is 13.2 miles (21.4 kilometers) in length and located between IH-35E and US-75. The project was the largest private-public partnership (‘PPP’) in the United States at the time and is, to date, the largest PPP in the Southwest of the United States. The project features a combination of four general-purpose lanes and two to three continuous frontage roads in each direction, along with 13.2 miles (21.4 kilometers) of two-to-three managed lanes in each direction that use dynamic pricing to keep traffic moving above 50 miles per hour (80 kilometers per hour). The Managed Lanes feature about 5 miles (8 kilometers) of depressed roadway. A lump sum, fixed-price contract entered into as a joint venture with LBJ Mobility Partner governs the reconstruction and has a design-build period of 60 months. It is divided into three sections: the I-35 section from Loop 12/IH35 to Crown Road, with a length of 3.6 miles (5.8 kilometers), the LBJ/I-35E interchange, located on the I635 corridor between I35E and Dallas North Tollway, with a length of 5.0 miles (8.0 kilometers), and the LBJ Section, located on the I635 corridor between the Dallas North Tollway and the east of the US75 corridor, with a length of 4.6 miles (7.4 kilometers). The company fully opened LBJ in September 2015. The concession agreement ends in 2061.
NTE 35W
Cintra holds a 53.7% stake in the NTE 35W project concession, which serves to link downtown Fort Worth, Texas, with the surrounding residential and business areas while also providing vital congestion relief by using Managed Lanes to support this major transportation corridor.
The NTE 35W comprises three different segments: segment 3A (7.0 miles (11.0 kilometers) along the I-35W corridor through downtown Fort Worth, including the total reconstruction of the I-35W link between downtown Fort Worth and SH-820), 3B (4.0 miles or 6.4 kilometers, financed, designed, and built by the Texas Department of Transportation; operated and maintained by the consortium in charge of NTE 35W and led by Cintra), fully opened to traffic in July 2018, with a total investment of over USD 1.4 billion, and segment 3C, an amendment to the original concession agreement awarded in August 2019 that comprises 6.8 miles or 11 kilometers, with an investment of roughly USD 0.9 billion and a concession term of nearly 50 years. Segment 3C started operating in June 2023. The concession agreement includes the renovation of existing lanes, which are expected to remain toll-free, and the construction of two managed lanes in each direction.
I-77
Cintra holds a 72.2% stake in the I-77 express lanes concession in North Carolina, which connect the metropolitan area in the northern part of Charlotte with the residential area of Lake Norman over a distance of 26 miles (41.8 kilometers). The express lanes are dedicated travel lanes that run adjacent to the existing general-purpose lanes. The express lanes are divided into three sections: two express lanes running in both directions on I-77 between Charlotte and Exit 28, and one express lane in either direction between Exit 28 and Exit 36, which seeks to minimize environmental impacts of traffic on neighboring Lake Norman.
The express lanes operate based on a dynamic toll system that facilitates demand management. A minimum speed of 45 miles per hour (approximately 72 kilometers per hour) is ensured. The highway’s 50-year concession term began once the company opened the road to traffic in December 2019.
I-66
Cintra holds a 55.7% stake in the I-66 project concession, which comprises the construction of three toll-free lanes and two express lanes in each direction between Capital Beltway and Gainesville (Virginia). The 50-year concession began at the closing of the commercial agreement in 2016. The highway opened to traffic in two stages in September and November 2022.
India
IRB Infrastructure Developers Limited (‘IRB’)
IRB, in which the company holds a 19.86% interest, manages 26 different toll road projects over a total distance of more than 15,000 lane kilometers and includes the Mumbai-Pune toll road. IRB’s assets represent around 14% of the ‘Golden Quadrilateral,’ the road network that connects India’s main economic development hubs. IRB has its own construction division that works exclusively for IRB’s own concessions, which allows for similar synergies and complementary capabilities as those derived from the relationship between Cintra and Ferrovial Construction, discussed in the relevant part of this section.
IRB Infrastructure Trust (‘Private InvIT’)
Cintra acquired a 23.99% stake in Private InvIT, a subsidiary of IRB.
Private InvIT holds a portfolio of 15 toll road concessions in India (14 concessions in operation and 1 under construction). Private InvIT operates in 12 Indian states over a total distance of more than 10,000 lane kilometers. The future growth of Private InvIT will be assessed by the company and its partners on a project-by-project basis and is expected to be mostly funded by asset distributions.
Airports Business Division
The company’s activities in the Airports Business Division include the development, financing, and investing in airports. Ferrovial Airports integrates all the Group’s airport management activities.
The origins of the Airports Business Division date back to 1998, but it was only in 2006, with the acquisition of HAH, that it gained its current relevance within the company’s operations.
Investments / Main Assets
In 2022, the company increased its airports portfolio after reaching an agreement with Turkish infrastructure company YDA Group to acquire a 60% stake in the company that manages the Dalaman airport concession. YDA Group was awarded the concession to operate the airport for the 26 years following 2014, which was extended to 2042. The agreement included the construction of a new international terminal that came into service in 2018.
Additionally, in 2022, the company acquired a 96% interest in Mars NTO LLC, an entity holding a 51% stake in the consortium that was awarded the concession to design, build, and operate the New Terminal One at JFK airport in New York (which includes the former Terminals 1, 2, and 3 of this airport). It holds a 49% indirect ownership interest in the project, becoming the consortium’s lead sponsor. Other shareholders are Carlyle (with indirect holdings of 2%), JLC (direct holdings of 30%), and Ullico (direct holdings of 19%). On June 10, 2022, a concession agreement with the Port Authority of New York and New Jersey and certain financing and construction contracts came into force. The concession agreement will end in 2060. This project is now under construction and is expected to start operation during 2026.
On December 12, 2024, the Group completed the divestment of the Group’s 19.75% stake in Heathrow airport, retaining a 5.25% stake. On February 26, 2025, the company announced that a binding agreement has been reached for the sale of that 5.25% remaining stake.
Furthermore, on January 28, 2025, the company completed the sale of its entire stake in AGS.
Customers and Types of Contracts
The main customers in connection with the operations of the Airports Business Division are airlines and passengers who use the facilities operated by the airports in which the company invests. The airports are managed through concession agreements and applicable regulatory regimes, with some airports’ revenues, such as Dalaman, being regulated by a local regulatory authority and other airports’ revenues, such as NTO, not being regulated, meaning that the fees charged to users are established by the airport.
Activities
The Airports generate two primary types of income: aeronautical income and non-aeronautical income.
Aeronautical income is generated from airport fees and traffic charges, which in turn are principally levied on the basis of passenger numbers, maximum total aircraft weight, aircraft noise and emission characteristics, and the length of time during which an aircraft is parked at the airport. In this regard, the division’s revenues are affected by seasonality, since there is higher passenger traffic (the total number of incoming and outgoing passengers at the airport in a particular period) over the spring and summer months.
Non-aeronautical income is generated mainly from retail concession fees, car parking income, advertising revenue, and other services supplied by the airport’s operators, such as the rental of aircraft hangars, cargo storage facilities, maintenance facilities, and the provision of facilities such as baggage handling and passenger check-in. This income is also somewhat affected by seasonality, since items such as car parking income, baggage handling, and passenger check-in depend on passenger volume.
The Airports Business Division’s assets are divided into economically regulated and economically non-regulated assets. For example, passenger fees at Dalaman are set by the governing concession contract.
In Chile, the Energy Division has two transmission line assets in operation across the country (Transchile and Centella) and another transmission line under construction (Tap Mauro). In January 2025, the company was officially awarded a group of works, which includes a concession contract for the development, construction, and exploitation of a new transmission line (2x154kV Tinguiririca – Santa Cruz), that should start commercial operation in 2030, and the construction of five expansion works for the grid.
In Spain, the Energy Division has a 50 MWdc photovoltaic plant in operation, located in Seville, as well as a pipeline of generation projects in their early stages of development.
Additionally, during 2024, the company won, among other projects, the following in Spain:
In November 2023, the company signed with Red Electrica (Redeia) a ‘Framework Agreement of refurbishment and assembly of substations’ starting in March 2024 for a period of three years in the following areas: North, Northeast, East, Central, and Canary Islands.
On January 31, 2024, the company was awarded the contract for the construction of two solar photovoltaic plants with an aggregated capacity of 62 MWp in Soria (Spain). It will execute this project on a turnkey basis, and the scope of the work includes the design and construction of the plants, as well as its operation and maintenance during the first two years. The plant’s delivery is scheduled for 2025 and is expected to have an estimated annual production of 114 GWh.
In June 2024, the company was awarded the contract to upgrade and operate for a period of 15 years the street lighting infrastructure of the Municipality of Santa Pola, in eastern Spain, through a joint venture with Iberdrola.
On August 28, 2024, the company was awarded by Aquila Clean Energy the contract to build, on a BOP modality, 8 wind farms located in the provinces of Granada and Almería with a total capacity of 265 MW, as well as the corresponding evacuation infrastructure (consisting of two 220/30 kV substations, one 400/220 kV substation, two 220 kV evacuation lines, and one 400 kV line). The project has an envisaged execution period of two years and a total estimated cost of EUR 82 million.
On October 28, 2024, the company was awarded the construction of a solar photovoltaic plant with a capacity of 18 MWp in Valladolid (Spain). It will execute this project on a turnkey basis, and the scope of the work includes the design, the construction, and the commissioning of the plant, as well as its operation and maintenance during the first two years. The plant delivery is scheduled for 2025 and is expected to have an estimated production of 37 GWh per year.
On December 2024, the company was awarded the construction of a solar photovoltaic plant with a capacity of 95 MWp in Murcia (Spain). It will execute this project on a turnkey basis, and the scope of the work includes the design, the construction, and the commissioning of the plant. The plant delivery is scheduled for 2026.
In the United States, the company acquired a project for the construction and operation of a 257 MWdc photovoltaic plant in Texas in the first half of 2024 for USD 14.08 million (EUR 13.04 million). The group plans to invest USD 72 million (approximately EUR 67 million) in the development of this project. This asset, currently under construction, is expected to start operations in 2026.
In Poland, through a JV (BxF Energia) together with Budimex, a project was acquired for the construction and operation of a 60 MWdc photovoltaic plant in the first half of 2024 for PLN 89.4 million (EUR 20.5 million). This asset, currently under construction, is expected to start operations in 2025.
Inception
The Energy Business Division was set up in January 2024, when Ferrovial announced the reorganization of all energy business activities present across the Group into a single organizational unit with unified direction, intended to align strategies and maximize any benefits arising from the synergies among them.
Customers and Type of Contracts
Within the Energy Business Division, the company’s main customers and types of contracts vary depending on the market dynamics of each business line of the Division and the specific underlying service or asset.
For the company’s electricity generation and storage activity, it acquires or promotes and develops its own energy assets. The energy generated by its assets will be sold through a long-term off-take agreement—for example, a Power Purchase Agreement (PPA) at an agreed price with an off-taker requiring large amounts of electricity—or alternatively, selling the produced energy in the wholesale market in accordance with the applicable electric sector regulations.
The company’s transmission lines are freehold assets awarded by governmental authorities—for example, the Chilean Ministry of Energy—following its successful participation in a competitive bidding process. These assets are not subject to demand risk (i.e., financial risk that it will be unable to sell its services) since they are subject to availability payment, a means to compensate private parties for designing, constructing, operating, and maintaining a facility, codified pursuant to Chile’s General Law of Electric Services and the Adjudication Decree (administrative act issued by the Ministry of Chile). Although it enters into underlying agreements with the appropriate governmental authorities, the direct recipients of the services provided by the company’s transmission line assets managed under its energy infrastructure are electricity generation and distribution companies.
The company’s EPC activity operates through engineering, procurement, and construction agreements whereby it assumes obligations to design, procure, and construct energy infrastructures. It generally enters into those agreements by virtue of its successful participation in public and private procurements.
Activities
Activities include:
The development, acquisition, finance, and operation of renewable generation, storage, and transmission line infrastructures.
The construction of renewable generation, storage, and transmission line infrastructure.
Provision of Energy Efficiency solutions for public and private clients.
In a sector subject to constant change, the company intends to use, together with its own resources, its participation in industrial ecosystems to develop and invest in technologies that enable growth in profitable businesses. The Energy Business Division’s activities focus on selected preferred geographies: the U.S., Spain, Poland, Chile, and Australia.
The Energy Business Division is an active part of the company’s ESG strategy, with a focus on the fight against climate change and the decarbonization of the economy, in line with the Horizon 24 Strategic Plan.
Other
The company generally uses the ‘other’ category to reflect results for companies not assigned to any Business Division, the most significant being the company, its parent company, as well as the new business line Ferrovial Digital Infrastructure and some minor subsidiaries, including the mobility business and remaining services businesses, such as the Chilean mining services and the waste management plants in the United Kingdom.
Ferrovial Digital Infrastructure
In 2024, the company created a new business line, Ferrovial Digital Infrastructure, with the target of identifying investment opportunities to develop high-value projects in the data center market.
Services and Mobility Businesses
Between 2017 and 2023, the company’s Mobility subdivision operated Car Sharing Mobility Services, S.L. (‘Zity’), an electric car-sharing company operating, directly or through subsidiaries, in Madrid, Paris, Lyon, and Milan, with a fleet of approximately 1,500 electric vehicles. It held a 50.0% stake in this project, developed jointly with manufacturer Renault Group. On December 20, 2023, the company completed the sale of its stake in Zity to focus on activities linked to the development and management of sustainable infrastructures. Within the Mobility subdivision, it also has a minority stake in Inspiration Mobility, which is a North American company investing in the electric vehicle sector, both in cars and associated charging structures.
The company also manages circular economy (i.e., a production and consumption model that incentivizes the sharing, leasing, reutilizing, repairing, renewing, and recycling of already-existing raw materials and products throughout their life cycle) activities. It has four municipal solid waste management centers in the United Kingdom, located in Yorkshire, Milton Keynes, Cambridge, and Isle of Wight. Each of them is largely (Cambridge) or exclusively (other three locations) associated with a concession contract with different local authorities. Together, they have the capacity to treat some 800,000 tons per year.
Finally, in Chile, the company’s activity includes providing services to large-scale copper mining, such as maintenance, hoisting, or management of the electrical loop.
Customers and Type of Contracts
In the case of the company’s waste management plants, its main customers are local authorities. The company’s main customers with respect to the services it provides to the Chilean mining industry are large copper producers, including Codelco, BHP Billiton, and Antofagasta Minerals.
Most of the company’s waste management activities in the United Kingdom occur under four concession contracts with different local authorities, which regulate both the plants’ construction and subsequent operations. These concession contracts are expected to expire between 2026 and 2043. Finally, the company’s services to the Chilean mining industry are governed by service contracts entered into with the relevant service recipients, which usually last between 3 and 5 years.
Activities
Activities include:
The operation of waste management plants in the United Kingdom; and
The management of the company’s outstanding services businesses, mainly providing services to the mining industry in Chile.
Seasonality
Revenue and cash flow in the Toll Roads, Construction, and Airports Business Divisions are also partially impacted by seasonal factors, including weather conditions and holiday seasons, which drive demand for transport infrastructure. The Toll Roads Business Division's revenue is affected by seasonal changes in traffic volumes, with typically lower traffic in the winter months due to adverse climate conditions.
The Construction Business Division is also affected by weather conditions, typically experiencing lower revenues in the first quarter of the year (year ended December 31, 2024).
The Airports Business Division is also affected by seasonal trends, including holiday seasons. For example, in the third quarter of the year ended December 31, 2024, Dalaman airport’s revenues were higher, in contrast with the first and fourth quarters, as the airport is much busier during the summer holidays.
Intellectual Property
The company has more than 50 patents and utility models. It develops, and continuously improves, applications and systems that are crucial to efficiently run its Business Divisions: for example, the InSite System for the Construction Business Division, the Managed Lanes (BOS system) for the Toll Roads Business Division, and the Asset Management Platform for all Business Divisions.
Regulatory Environment
Case law on procurements generally, as well as public sector statutes, directives, and policies applicable to private-public partnerships (‘PPP’) apply to the company’s toll roads projects in Canada.
In addition, since the activities of the project company relate to airport activities, federal agencies such as the FAA, Transportation Security Administration (‘TSA’), and CFIUS have overview powers over the investments the company makes, its ongoing operations, and other relevant operational and regulatory matters. Furthermore, due to the anticipated construction activities of the project company, the project requires federal National Environmental Policy Act (‘NEPA’) (or environmental) approval in order to proceed. NTO must also comply with a number of airport regulations, which include the Port Authority of New York and New Jersey’s Airport Rules and Regulations (which regulate operations at JFK), as well as the Federal Aviation Regulations (‘FARs’) prescribed by the FAA, which govern aviation activities in the United States.
The company collaborates with TSA to comply with its regulations to facilitate security screening of passengers, the U.S. Customs & Border Protection, and other security activities at the airport.
The laws and regulations applicable to the company’s construction projects in Canada include health and safety regulations, as regulated by the provinces and territories, environmental regulations, such as the Environmental Assessment Act, applicable in each province and territory, the Canadian Environmental Assessment Act, the Canadian Environmental Protection Act, the Fisheries Act, the Species at Risk Act, and the Ontario Environmental Protection Act (with respect to the latter, similar legislation exists in the other Canadian provinces), and water regulations, mainly as regulated by the Canada Water Act, as well as a number of other federal and provincial or territorial statutes and regulations, and labor regulations.
The following laws and regulations govern the company’s construction activities in Chile: health and safety, by legislation such as Supreme Decree regarding basic sanitary and environmental conditions in the worksite (Decreto 594/1999, Reglamento sobre Condiciones Sanitarias y Ambientales Básicas en los Lugares de Trabajo) and Supreme Decree approving the regulation for the adoption of Article No. 66 bis of Law No. 16.744, regarding safety and health management at the worksite (Decreto 76/2006, Reglamento para la Aplicación del Artículo 66 bis de la Ley No 16.744 sobre la Gestión de la Seguridad y Salud en el Trabajo en Obras, Faenas o Servicios que Indica), environment and air, including legislation such as Supreme Decree on Rules of Particulate Matter Emissions for Artifacts that Burn or May Burn Firewood and Wood Pellet (Decreto 39/2012, Norma de Emisión de Material Particulado, para los Artefactos que Combustionen o Puedan Combustionar Leña y Pellet) and Regulation on the Establishment of Prevention and Decontamination Plans, water, governed by regulation such as Decree on the Water Code (Decreto 1,112/1981, Código de Aguas), and labor, including the Labor Code (DFL 1, Texto Refundido, Coordinado y Sistematizado del Código del Trabajo), the Subcontracting in the Construction Industry Act (Ley 20.123, de Subcontratación en la Industria de la Construcción), the Workplace Accidents and Illnesses Act (Ley 16.744, que establece normas sobre Accidentes del Trabajo y Enfermedades Profesionales), and the Social Security Law (Ley 16.395, Ley de Organización y Atribuciones de la Superintendencia de Seguridad Social).
In the event that the company accesses the capital markets to raise any debt incurred to finance the project, federal and state securities laws related to the issuance of securities, including without limitation, the Securities Act (and jurisprudence related thereto, including in respect of 10b-5 liability), will apply. Lastly, the operations of any such project/asset implicate both state and federal tax laws.
In order to get the different permits and authorizations required for the energy business, the company must also comply with general (non-industrial) regulations on public authorization and proceedings, such as, among others, the Law on Common Administrative Procedure of the Public Administrations (Ley 39/2015, de 1 de octubre, del Procedimiento Administrativo Común de las Administraciones Públicas) and the Law on the Legal Regime of the Public Sector (Ley 40/2015, de 1 de octubre, de Regimen Jurídico del Sector Público).
The following laws and regulations apply to the company’s energy generation, transmission, and storage infrastructure business line in Spain: the Spanish Energy Act 24/2013 (Ley 24/2013 de 26 de diciembre, del Sector Electrico) and its developing regulations, either at a national or regional level, and EU energy regulations, such as Directive (EU) 2024/1711 of the European Parliament and of the Council of 13 June 2024 amending Directives (EU) 2018/2001 and (EU) 2019/944 as regards improving the Union’s electricity market design (Text with EEA relevance); Regulation (EU) 2024/1747 of the European Parliament and of the Council of 13 June 2024 amending Regulations (EU) 2019/942 and (EU) 2019/943 as regards improving the Union’s electricity market design (Text with EEA relevance); Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity, Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity, and amending Directive 2012/27/EU and Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources.
In order to get the different permits and authorizations required for the energy business, the company must also comply with general (non-industrial) public regulations and proceedings, such as, among others, the Act of 7 July 1994 – Construction Law, the Code of the Administrative Proceedings, Act of 9 June 2011 – Geological and Mining Law, and many others.
As an entity involved in the collection, storage, treatment, disposal, and generation of electricity from waste in England, the company must comply with a variety of legislative and regulatory requirements, including the Companies Act 2006, the primary source of corporate law that applies to all companies and directors.
There are additional general legislative provisions that apply to the company’s activities in the United Kingdom, including the Data Protection Act 2018 and General Data Protection Regulation, which detail personal data protection principles, rights, and obligations; the Finance Act, which contains provisions relating to changes in taxes, duties, exemptions, and reliefs; and labor legislation, which governs labor rights, including, among others, the Employment Rights Act 1996, the Equality Act 2010, the Employment Relations Act 1999, and the Working Time Regulations 1998 and National Minimum Wage Act 1998 also apply to it.
In this field, the company is important to mention the recent entry into force of Law 21643, called ‘Ley Karin,’ which modified the labor code, establishing a legal framework for the prevention and punishment of harassment and violence in the work environment, which implies new obligations that the company must comply with as an employer, especially reports to the labor authority regarding investigation processes for complaints of sexual and workplace harassment, or violence at work.
History
Ferrovial SE was founded in 1952.
