ACS participating in two consortiums for Canada tram line contract; investment of €3.7 Bn

ACSACS recapitalises Abertis with 1 billion euros

Intermoney | ACS is participating in the two consortia which will bid for the contract to build a tram line in Calgary (Canada). The investment required will be 3.7 billion euros, according to the daily Expansion.

One of the offers includes ACS’ US afffiliate Flatiron, while Dragados is participating in the other bid, along with Acciona and other Canadian contractors. It is foreseen that the best provisional offer will be chosen at the beginning of 2023, after which there will be a twelve-month period to fine tune the conditions of the contract.

Valuation: 

Good news for ACS para, which benefits from the numerous companies in the Group. On the other hand, North America is Spanish infrastructure firm’s main market, particularly the US, which generates over 30% of its revenues. After the H1 results, we are raising our EBITDA estimates slightly for the period 22e-24e, where we expect a CAGR of +10%. That said, in construction in particular we are more cautious (+8%) due to the impact the rise in costs might have. A very favourable factor for this business was the growth in the portfolio (+16%) during H1’22. We expect the Group to close this year with net debt of 2 billion euros due to recent acquisitions and the Cimic buy out.

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