Renta 4 | Revenue, in line with expectations, has increased as a result of the contribution from new concession assets, which more than offset the divestment in Colombia and the launch of water projects and progress on works in the portfolio. Furthermore, the accounting effect of increased activity in concession construction is evident, affecting the holding and adjustments item.
EBITDA, which exceeds forecasts, rises due to the contribution of new assets, as well as higher margins in construction (focused on profitability rather than volume) and water (above 22%). The construction portfolio grew by 4% thanks to new project awards, standing at around €13 billion, with 73% attributable to Sacyr Concesiones.
Operating cash flow grew by 12% compared to Q1 2026 due to the dynamics of financial assets, although a greater deterioration in working capital relative to our forecast and minor variations in other items have pushed net recourse debt above our outlook.
As we anticipated, a proposal has been made to increase the cash dividend by €0.10 per share for July 2026 and by €0.05 per share for January 2027, subject to approval at the AGM in early June.
Ahead of the results conference, we will see whether an incentive linked to share price performance will finally be established for the management team for the coming years. Furthermore, we will see what visibility they provide regarding the award of new concession projects, given the attractive project pipeline.
We will see whether the improvement in results relative to estimates has a significant impact on the share price. We reiterate our Overweight rating and a Target Price of €5.10.
