Intermoney: Construcción y Auxiliar de Ferrocarriles (CAF) has won new maintenance contracts in UK and Colombia worth €400 million. CAF (Buy, P.O. €42) informed the National Securities Market Commission (CNMV) on Monday that it had reached an agreement with Northern, the second largest rail operator in the UK, and Medellin Metro in Colombia for the maintenance of their fleets. In the case of the UK, it is a fleet of 101 trains supplied by CAF between 2018 and 2020, whose contract will last for 10 years, while in the case of Colombia it is a fleet of 39 units supplied by CAF since 2009.
Assessment: Positive news for CAF, as maintenance contracts usually involve lower risk and higher profitability. In total there are 150 maintenance contracts in 20 countries. The portfolio increases by nearly 3% to €14.7 billion. CAF will publish its 1Q25 results on Thursday 8 May at around 4 pm.
