Intermoney | The Spanish infrastructure firm has won a contract to extend a motorway in the US. According to the daily Cinco Dias, Ferrovial (Hold, TP 24€), via its US subsidiary Webber, has been awarded the contract to extend a 13km stretch of the I-95 motorway, on its way through North Carolina (US). The contract is involves an investment of 283 million euros.
This stretch of will have eight lanes, compared with the current four, and the construction work is due to be terminated in 2026. Webber has 52 projects in southern US in its portfolio, particularly in Texas. Some of these works are carried out by this Group affiliate along with Ferrovial Construcción, such as project on the I-35 in Texas, worth some 1.5 billion euros.
Valuation: Ferrovial’s main market is the US, above Spain, both in construction and, especially, in motorway concessions. Despite the rise in costs, Webber’s H1’s results were fairly good. Its EBITDA rose 35% (up 21% without FX) to 47 million euros versus 78 million for the whole of the construction business. However, Webber’s revenues accounted for little more than 20% of the total. This dichotomy is explained by Ferrovial Construcción’s weak margins, a constant factor for at least three years, which were reflected in an EBITDA of -33 million euros at June this year. Ferrovial’s consolidated portfolio for its Construction division stands at slightly over 12 billion euros.
