Intermoney | The Spanish multinational (Buy, PO 63€), through its subsidiary FlatironDragados, has been awarded a contract in the US to build new railway tracks in the state of Virginia for around €355 million, according to Expansión. ACS has won this contract in a consortium with the local company Herzog. The works will be carried out on the Franconia-Springfield bypass starting this month and will be completed in 2029. The scope includes the construction of 2.2 kilometres of new passenger railway tracks, including a 0.9-kilometre-long elevated bridge.
Assessment: This is a new project in the US for ACS, although it will not be carried out by Turner but by FlatironDragados, the result of the merger in the North American market between Flatiron and Dragados, which was formalised this year. Despite being smaller than Turner, we expect this unit to generate EBITDA of €343 million in 2025, or around 12% of the Group’s consolidated total. ACS’s construction portfolio as of 25 March amounted to almost €91 billion. ACS will report its half-year results on 30 July, when we expect EBITDA to increase by 27% to €1,464 million due to the global consolidation of Thiess in 1H’25; without this factor, growth would be approximately 7%.
