Ferrovial SE

Good afternoon, everybody. This is Silvia Ruiz speaking, and I would like to welcome you to Forovial's conference call to discuss the financial results for the first quarter of 2025. I'm joined here today by your CFO, Ernesto López-Mozo. Just as a reminder, both the results report and the presentation are available on website since yesterday evening after the U.S. market was closed. At the end of the presentation, there will be a Q&A session. As in previous calls, you will have the opportunity to ask questions live. For that, you will need to join the call through the conference call channel and press star 5 on your phone keypad. If you prefer, you can send them through the form included in the webcast and I will be reading them out loud at the end of the Q&A session. With all this, I will hand over to Ernesto. Ernesto, the floor is yours.

Thank you, Silvia, and welcome everybody to the first quarter of 2025 operating results update from Ferrovial. Well, starting with the growth in all business divisions, I would like to highlight the strong revenue performance in highways of the North American assets. In terms of airports, we highlight that construction advances in NTO. And in construction, we have shown a steady profitability with adjusted EBIT margin reaching 3.3%. At the end of the quarter, we have a solid net debt ex-infra projects, really a net cash position of 1.9 billion euros. and the main items in this number are the divestment of AGS of 538 million euros and on the other hand equity injections in NTO for 152 million euros and the buyback program where we invested 156 million euros. In terms of corporate events this quarter, in March, we announced an agreement to acquire up to a 5.06% stake in the 407 ETR from Atkins Realis for a maximum of 2.09 billion Canadian dollars. And the close of this transaction is expected in the second quarter of 2025. In April, we announced the opening of Silvertown Tunnel, this highly complex infrastructure project that is expected to really enhance transportation in East London. If we move on to the performance in highways, we see that the division has significant growth driven, of course, by the US managed lanes in the revenue growth of 14.1%. we have the influence of the U.S. highways revenue that grew 19.1% versus the first quarter of 2024. It's making up close to 98% of the highways revenue. In terms of adjusted EBITDA, the U.S. highways represent 98%, and they were growing at 14.6%. Let's move now into each asset summary, starting with the 407 ETR. The 407 ETR had an outstanding performance with double EBITDA growth. Here I would like to highlight several items, starting with the total revenue that grew 23.6%. Here we need to bear in mind that the tolls were raised before the beginning of the year. So we had January with the new toll rates, whereas in 2024, we didn't have this effect, right? So January has a favorable comparison vis-a-vis 2024. Then in January, In February, we guess we have the effect of that comparison. In March, what we have is that we launched some promotions that affected the March performance. These traffic promotions help also to steer traffic and really are favoring our consumers. in the peak hours that is when it's most needed, right? So March has traffic promotions and this affected the traffic performance. If we look into the breakdown of the monthly traffic, I mean, we need to bear in mind that there was substantially worse weather in the first quarter of 2025 than in the first quarter of 2024 that had mild weather. mild weather and also we had a leap year with the extra day in February, right? So this comparison has to bear that in mind. So the performance in terms of traffic is outstanding. In terms of the fee revenue, of course, I mean, the weight of the revenue system, total revenues, but in fee revenues, we see a higher growth. And here we have to remind you that in 2024, some of the account fees remained unchanged. So, I mean, there has been an update in 2025 that brings this additional growth and also other activity has been influenced in the higher FE revenue as we described in the slide. So a very strong underlying performance. Please bear in mind what I mentioned that really March probably is the month that there will be more business as usual in the coming months because of this comparison I mentioned. Regarding dividend distribution, I mean, we didn't receive any dividends in the first quarter of the 407, but a $200 million Canadian dollar dividend was approved and was paid in the second quarter, right? So we already have that cash in the second quarter. In terms of the... In Schedule 22, we see that in the EBITDA, we have included close to 26 million Canadian dollars of Schedule 22 provision. And here, of course, you will have to see other quarters to get a better idea. but the way it's calculated is that the 407 does the estimate for the full year, and that estimate as a percentage of the estimated revenues for the full year, that percentage is applied to the first quarter. So in terms of percentage, it can be extrapolated, but of course, You will have to wait to see the quarters of higher traffic to get a better idea of the impact. Moving on to the next slide in the Dallas forward managed lanes. Here we have an outstanding performance in terms of revenue per transaction. Also in January and February there was a negative weather impact compared to last year and Even with that impact, the traffic performance has been very solid. Of course, NTE is still affected by the capacity improvement construction works, and this means that traffic in terms of transactions is lower than last year, but we have an outstanding performance in terms of revenues, helped by by mandatory modes. Here, mandatory modes and revenues are also benefiting from a better traffic mix in terms of a higher percentage of heavy traffic. Also, you need to bear in mind that for the likelihood of mandatory mode events that you know that there's a kind of traffic threshold. Let's say that for two lanes you have like 3,300 vehicles per hour. And the heavy traffic implies like two times what a light vehicle implies. Right. So in that calculation, you can get an idea that if there is higher heavy traffic, you are more likely to get more mandatory modes. In LBJ, traffic grew despite construction activities in the nearby corridors. And in 35 West, we also had solid traffic growth. And yes, we have revenue share according to this performance. In the first quarter of 2019, We didn't have any because the accrual was done at the end of the first half. So the second quarter of 2024 included six months of revenue share. Now we're doing that quarter by quarter. Okay, so I mean, here at the bottom of the slide, we have the revenue per transaction growth that is a mixture of all these things I mentioned in more activity, more peak activity, better traffic mix, and more mandatory modes, and this has helped. this revenue per transaction performance. We also have the update on the slide of the soft cap that grew by 2.9% in 2025. If we move on to the Following slides, we have the I-66 that saw increased mobility in peak hours. Activity in rush hours is much higher that combined with really dynamic pricing. It means that the revenues grow very healthily and revenue per transaction as well, so very solid performance from this highway. And also remember that all the traffic figures compared to a 2024 that had one day more, right? So bear that in mind when comparing traffic. If we look into DI 77, also very strong performance. Traffic is still favored. I mean, not as much as in the last quarter of 2024, but it's still favored by the closure of the alternative I-40 that has reopened with limited capacity. So, I mean, there's more heavy traffic in the I-40. And that's helping the performance of the asset. But also on the negative side, it was affected by severe weather. And also you have to compare with the leap year effects. So very strong performance from the asset. we also have revenue share in here and the same explanation that i commented in dallas forward applies here last year the revenue share was uh accounted for in the second quarter for the full um first half now we're doing it quarter by by quarter so we had four million of revenue share and we have an additional 2 million of extended vehicle payments. And here I would say this is good news because in the last year we had the extended vehicle agreement that was expiring at the end of 2024. The grantor was receiving 50% of the revenues from these extended vehicles that were not part of the original concession agreement. Now, the agreement to allow extended vehicles has been extended till the end of the concession. The flip to that is that the grantor gets two-thirds of the revenue from extended vehicles, but it goes to the end of the concession. So it's good news, but when you're looking into the comparison, please bear that in mind. Okay, moving on to... To airports, at JFK, development is ongoing. In the first quarter, we had a physical progress relevance, 6% advancement, and also advancement with airlines. There's agreement with 18 airlines, 13 executed, and five are letters of agreement. of intent, we continue investing. As I mentioned at the beginning, 152 million euros have been invested in the first quarter, and we have pending 167. So, as we mentioned, this is a crucial year for JFK. It's advancing on budget. In terms of Dalaman, it's really a quarter that is not that representative because this is an airport activity based around the tourist season that starts in the second quarter. Nevertheless, domestic traffic was also higher than expected and it grew versus last year. Okay, moving on to construction. In construction, we see... steady profitability. I mean, across the board, you see that Budimex, Weber, and Fabriano Construction are showing solid margins. Budimex, the profitability is slightly lower than the previous year, but remember that in 2024, there was updating of the indexation cap in public contracts. So there was like, let's say, a retractive capture of that part, if I may say so. So that was a higher impact, but the margins remain very, very solid. And both Weber and Ferrovial Construction have higher margins than in the first quarter last year. in terms of uh um order book i mean it's at a big level and we have a lower weight of large design and build um projects with uh i mean our focus is to be on local markets and with lower weight of large design and build projects that are not with uh group companies The order book reflects that and we'll talk in the closing remarks about the uncertainty that could affect performance. We are comfortable with this order book. More on that in the closing remarks. When you look into the breakdown by geography, we see that it's concentrated in the US and Canada and second, Poland. In terms of outlook, we remain with our long-term target of 3.5 adjusted EBIT margin. Okay, so the summary in the next slide of the main figures, strong growth in revenue, 7.4%, adjusted EBITDA, 19.1%, and adjusted EBIT to an 8.3%, so very solid start of the year. Moving on to the net debt position, well, we have the breakdown of the effects on cash. I mean, dividends for projects are very small. I mean, the main component in the 19 million euros that we have, there is dividends from Heathrow. Then we have the... operating cash flows from construction and other activities and useful to have this sort of working capital effect at the beginning of the year. And then we have tax payments that are basically related to our operations in Poland. And then we have the cash flows used in the investment activities, the interest received and the investments that I mentioned at the beginning, together with the treasury service repurchase. I mean, the cash flow invested in financing, sorry, used in financing activities is related to repayment of external debt that has the counter in the reduction of debt. So a very solid net cash position, a negative net debt at the end of the first quarter. So just concluding before grading into the Q&A. I think this is a very solid set of results where we benefit from the performance of our North American infrastructure assets. And this performance is benefiting from increased customer segmentation. I mean, we are tailoring more to our customer needs. The underlying growth in the assets locations, I mean, this is something that is kind of long-term underlying trends. And then, of course, we are looking forward really to with a great appetite for the pipeline that's coming. And the I-24 is still pending the pre-qualification results. The I-285, the pre-qualification was published and all these biddings are expected in the first half of 2026. of construction order book, it has limited exposure to macroeconomic uncertainty. We have a lot of backlog in the US and Canada, but it's in a much more comfortable position than in the past in the sense that the percentage of to design and build projects in the early phases. That is basically when you're finalizing design and you need to really quantify what is going to be bid by subcontractors and with all the supplies you need to get for the final design. We don't have that. I mean, the biggest one in the backlog, that is the Ontario line, project has price protection and we don't have any sort of big design and build like any managed lane in the early stages where really you have to de-risk the project with final design and procurement. So with this condition and also with price indexation in other areas like Poland, Spain and so on, we think that we have limited exposure to the macroeconomic uncertainty. Okay, so thanks for bearing with me through the presentation. Let's get into the Q&A.

Thank you. Yeah, thank you very much, Ernesto. So let's go into the Q&A. Operator, please go ahead.

Thank you. Ladies and gentlemen, we will now begin the Q&A session. If you'd like to ask the question, please press star five on your telephone keypad. If you change your mind, please press star five again. Please ensure that your device is unmuted locally before proceeding with your question. And our first question comes from the line of Luis Pietro von Kepler. Please go ahead.

Thanks a lot. Sorry. Good afternoon and thanks a lot for taking our questions today. I had a couple, if I may. The first one, I was wondering if you could help us with the math of Schedule 22. Extrapolating the rest of the year on the basis of revenue seasonality leads to to a four-year payment figure that I suspect is in the lower part of the consensus. Is there anything we need to take into account to better understand what is behind this figure? And the second question, if I look at US-wide construction sector indicators in Q1, so construction macro indicators, Weber's double-digit revenue growth suggests very strong outperformance versus the rest of the industry in the context of adverse weather. How should we interpret the situation? Thank you.

Thanks, Luis. Thanks for the questions. So, I mean, basically what you said is regarding Schedule 32 is It's probably right. I mean, the consensus is wide. I mean, it's not that it has, let's say, a low variance. It has quite a wide variance. If you look at just the mean, probably you're right. I mean, revenues estimates that the street has. with this kind of percentage would be lower than what the street has. But as I said, there's a lot of variance. And as you rightly said, it will depend on performance going forward. But as a percentage of revenues, yes, I mean, there's nothing to add to your way of reasoning. In terms of the second one, the Weber performance, I think that the backlog of Weber is what we could call our, well, bread and butter is a little bit of our exaggeration because it's the typical size of contract in road construction and civil construction that is where we excel. And probably it has had less complexities in that regard. And also that relates to, let's say, our perception that the risk in our order book is much more limited than maybe in past years.

Thanks a lot, Vanessa.

Thank you.

Our next question comes from the line of Graham Hunt from Jefferies. Please go ahead.

Good afternoon, Anesta and Silvia. Thanks very much for the opportunity to ask the questions. Just two from me. First one, I just wanted to dig into this exceptionally strong pricing you've reported in Q1 across both 407 and the managed lanes. And you referenced customer segmentation as being a a key driver of being able to achieve this. Could you just speak to a little bit more color on that in terms of maybe what you're doing differently and also how you're seeing elasticity if it's changed at all for those assets given the very strong pricing we saw. And then second question, just on the U.S. line, sort of seeing volume starting to pick up more meaningfully there from a low level, I guess. But Is there anything that you're seeing on the ground, you're hearing from U.S. investors that you can speak to in terms of getting more interactions there? And also, given we're, I guess, around 12 months away from new Terminal 1 starting to open, is there a capital markets day that we could look forward to in 2026? Thanks.

Okay, thanks, Graham. So, yes, when we're talking to customer segmentation, promotions in the 407 are tailored. I mean, they're along rush hours, all of them, but for instance, you would have some that you can use if you have, let's say, a minimum consumption, so heavy users use that. Others that are more infrequent users could have more of a possibility to taste and use. So we are kind of addressing promotions in a slightly different manner to different segments. And that's for the 407. In the used managed lanes, also we've differentiated more accurately heavy traffic in different components. And that also has helped. And as I said, we have a higher percentage of heavies or similars in our roads. And that's also, of course, helping, as I mentioned before, the math. around the mandatory modes. So that is probably all I want to comment at this point in time in terms of elasticity. Really, people make the trips that they need to do and that's where our capacity is available when it's most needed, right? um i guess that elasticity is low just because of that i mean it's uh it's really needed and the second question that was regarding the u.s line i think that several things are coming into uh into um position um right now if you notice the uh trading that has extended to different platforms in the US is above the levels needed to qualify for NASDAQ indices inclusion and probably also that is positively affecting some kind of circularity there and together of course with a wider outreach so the feedback from US investors remains the same I mean they like the business and the pricing dynamics of our assets if on top of that you add the possibility of growing with the pipeline that's that does um i mean that that compounds right so and regarding the use line that's all i had to comment now and then regarding nto you're like it's a um it's a crucial um year and we haven't discuss any capital markets a day but I'm sure that in the in I mean after opening and ramping up I mean more information would be needed to be discussed about about NTO right now it's about delivering and just pressing on the on the schedule and then negotiating with airlines the ramp up right so it's early days to talk about when, but I mean, what you say is natural. I mean, after opening, it would be natural to discuss more of the dynamics of the business.

Thanks very much.

Thank you.

Our next question comes from the line of Ruairi Kulinang from RBC. Please go ahead.

Oh, hi there. Good afternoon. Yeah, the first question on I-77, would you be able to comment at all on how revenue or revenue per transaction growth in March compared to the 1Q average given the reopening of the I-40? And secondly, thank you for the comments on exposure to geopolitical risk in construction. I was just wondering if you thought I was seeing any sort of labor availability issues given the new administration's approach to immigration. Thank you.

Thanks. Well, the I-77, really the reopening of the I-40 was not, let's say, a full reopening. So we still benefited early on in the quarter of 2017. more heavy traffic around the corridor of the I-77. And then, of course, our dynamic pricing took advantage of that. And that's what drove the good performance in the revenue per transaction. and and overall the underlying performance of the of the of the region and even though as i mentioned all our north american roads had um worse uh weather than india in the 2024 and of course they didn't have the the february additional day right uh regarding what we're talking about geopolitical risk in terms of resources in uh in um construction well uh we have probably more on resources recently, and we haven't seen really pressure there. So it's really this we will have to see later on. I mean, there's a lot of activity and there's some limitations, but not in our workforce that it's all, let's say, validated workforce with all the permits and so on. So we don't see really pressures now. I mean, who knows in the future?

Thank you.

Thank you.

Our next question comes from the line of from JP Morgan. Please go ahead.

Yes, hi. Thanks for taking my questions. So I have a couple. First of all, on the 407, I was wondering if you could give us a bit of insight about your overall expectations for the year if we could be seeing traffic hitting back the 2019 level. And still on the 407, we've seen that you increased your stake there, but you still remain below 50%. And you don't seem to want to consolidate the assets. Whereas maybe it would be helpful for maybe US investors to simplify the structure of the group and have that included in the EBITDA. So I was wondering what your thoughts were on that, if you ever would want to try to consolidate. And then generally on the feedback from US investors, I was wondering how is liquidity progressing with regard to the potential NASDAQ listing? Do you think there's a chance there to be including this year? And if not, you know, what kind of pushback you're getting from U.S. investors? Are they asking maybe for more forward-looking guidance on your side? Thanks very much.

Okay, thanks, Elodie. So, yeah, we'll cover them. Hopefully, I won't forget any of them. Well, regarding traffic for the 407, we don't provide guidance here. If it could come back to 2019 levels, we don't provide this kind of guidance. It's true that mobility has increased back to the office mandates, also traffic promotions. In general, there's more mobility in the region. We'll see. We don't provide guidance and also we'll see how the GDP performs in the remainder of the year. So far, so good, but we'll have to see. Regarding the 407 transaction and participation, well, there was an opportunity to do a great investment. I would say a little bit agnostic about the more or less of the 50%, because in terms of simplifying to US investors, I think that these assets need to have disclosure of their performance in an independent manner, right? policies and MD&A. We give information about it. And with US investors, we really show where to focus on for analyzing these assets. So, I mean, it's I wouldn't say it's a driver just for cosmetic reasons. All our decisions would be based on financial attractiveness of any investment. The asset is in great shape, as you see, but I mean, no specific appetite for being above or under 50%. Regarding liquidity in the US, if you follow the liquidity, yes, we are trading above the minimum required by NASDAQ. Of course, the aim is to increase that much further and there is outreach with US investors. US investors, it's true that they focus a lot on dividends, dividend expectations. We have dividend guidance for three years, and probably after that is, let's say, exhausted, we would need to revisit that again going forward. That's probably the likely ask that we get from them, right? They are really warming up to, let's say, a business that they don't have in any other company in the US. So I think that the outreach is working, but we need to go much, much further. So I think I covered everything. I don't know if I missed anything.

No, that's fine. Thanks very much.

Thank you.

Our next question comes from the line of Martin Boyta from Bank of America. Please go ahead.

Thank you so much. I have a couple of questions. Again, going back to the acquisition of an additional stake in the 407 ETR, could you explain if it actually gives you anything incremental in terms of governance? Do you get any incremental influence over are price increases and dividend payments since you are now the largest shareholder in the asset. And my second question relates to equity IRR. I believe you have previously commented that generally on new projects you are looking for double-digit equity IRRs. So can you confirm that this transaction at the price that was agreed also generates a double-digit equity IRR for Ferrovial? Thank you.

Thank you, Marcin. Regarding the 407 governance, I mean, the transaction has to be finalized before any sort of comment, right? So no comments on the transaction. We'll wait till it's closed. In the IRR component, yes, we aim for double digit. When there's construction risk, it has to be higher than when it's brownfield. But, yes, I can confirm that we were aiming for the levels you were mentioning, but, I mean, tighter than when you have a greenfield risk.

Thank you very much.

Thank you.

Our next question comes from the line of Dario Maglione from BNP. Please go ahead.

Hi, good afternoon. Thanks for taking my questions. I have four. The first one on US managed lane, how sensitive do you think traffic is to US GDP? Second question, which is linked to this question before, could you give us some color on the profile of people who use the US managed lanes? Third question on the 407 ETR. Of course, it's great to see tariff and revenue going up, but is there like a political backlash brewing? And if you give us an update on this. And finally, for question on the NTO JFK, Ferrovial might be able to replicate this model in other airports. In terms of financial attractiveness or IRRA, how do these projects near port compare to US managed lanes? Thanks.

Okay, thanks for the questions. I mean, the first one was how traffic is related to US GDP. Of course, traffic is always positively correlated to the regional GDP, I would say, more than the country GDP. So, I mean, we don't provide exact details of how it's, I mean, that kind of number, but it's positively correlated. um the second one that was regarding the profile of uh um of users uh well it it is different on each um managed um blame but i would say it covers all the segments um in all of them right but i mean let's say that the 35 west is more related to uh um let's say um more commercial heavy traffic that maybe has longer routes. The NT12 has a variety, but also has commercial traffic probably more local and also connectivity to the airport. The LBJ probably has a higher component of people that live in suburbs, but also, I mean, it's a ring road that connects to the airport. But I mean, having that sort of, let's say, more of a, profile i mean they will have a variety of uh of profiles and um usually a high percentage of the customers and you see um um several times each week right up to three percent so there's a little bit more information of this on the fat book that i would say that uh i mean they they cover all the uh spectrum of customers with i mean higher share of some type of customers on each road according to its profile. And then the 407, you were talking about political backlash. I mean, the only thing that is public is that they have asked to start the feasibility study of a tunnel under the 401 that is the parallel route to the 407, so that has started. No other public comments that I'm aware of, let's say, in the end of the quarter. Regarding the NTO, the JFK, Well, in the US, there could be opportunities with terminals in other airports along the road. But I mean, there's not say anything that could be readily available. available or public right now, closing time. It could be replicated. Regarding the attractiveness vis-à-vis managed lanes, well, they are different. All of them are needed uh assets and the all the attractiveness also moves a long time depending on how much of capacity is used and the demand is coming up right so in terms of of purpose and in particular in jfk the medium to long term prospects of international travel are very strong and the ICAO and all these agencies are forecasting important growth. And that's where a lack of capacity kicks in and makes them more attractive. In the managed lanes, normally the capacity is more limited at the beginning. But I won't comment on IRR, so this, in the end, depends on this performance regarding offer and demand that I was mentioning.

Thank you.

Thank you.

Our next question comes from the line of José Manuel Arroyos from Grupo Santander. Please go ahead.

Hello, Ernesto. Thank you. I have three, if I may. On NPO, you mentioned the company has agreements with 18 airlines, which means a very high number of contracts. How many more agreements are needed before the airport can be full? I know this can be a bit subjective, but I want to get some kind of assessment from you. On the management, you mentioned a number of defects that influence the traffic and pricing in the quarter. but I was wondering if there was an unusually high share of heavy vehicle traffic in the quarter, maybe trucks coming from Mexico in anticipation of higher tariffs, and maybe this is something we should consider for the quarters ahead if there is a normalization in this respect. And lastly, on the acquisition of a 5% stake in 407 ETR, I think in March you mentioned the transaction included two steps. And maybe this is not as clear in yesterday's earnings materials. I mean, you mentioned that the closing could happen in the Q2. I was wondering if this two-step transaction still holds or if it can conclude it in one go. And if it is the former, if it will take up to 18 months, what needs to happen before Ferrovial can buy the full 5% stake? Can it be bought earlier and it's sold? a lower price than the price you quoted. Thank you.

Okay, thanks. Let's see if I covered them all. you let me know. Yeah, in terms of NTO, yeah, 18 is a lot of airlines. Really, new terminal one is not based on a dominant domestic carrier combined with international. It's full international, so you should expect a bigger number, right? And in terms of... I think that JFK will be more constrained in capacity some years down the road, not in these, let's say, three first years of operation, I would say. Probably you will start seeing something different. closer to capacity beyond that year. So, in the initial stages, there's going to be capacity and terminals competing for this international traffic. In terms of the management effects that you were mentioning, I would say that the Mexico effect that you were commenting, if anything would affect the 35 West, we don't have any specific indication in this regard. It could have been fluttered. um a little bit we haven't seen patterns very different from what we expected right so uh um it's difficult to it's difficult to tell the others are not affected by this type of traffic right so the fact that we are seeing um more um heavies as a percentage is something that I wouldn't see as unusual going forward. Of course, we'll have to monitor, but the effect you mentioned, if anything, would only have applied to 35 West, but we don't have specific data that I could outline to you. In terms of the transaction of the 506% of the 407 ETR, what we mentioned still holds. It's a two-step process. The second one, there is an incentive to pay earlier. rather than wait for the 18 months, the details you will see when it's executed, right? So as I said, there's an incentive. Once it's approved, you'll see the details when the transaction effectively closes financially. I'm sorry, I cannot comment more at this point in time, but I mean, the press release holds still.

Thank you.

Thank you. that we see are not all this kind of heavy long distance, right? So that's what I mentioned that, I mean, this kind of mix probably in LBJ and in T1-2 is not something that could be punctual. It's something that we are probably more likely to see going forward. And with the 35 ways we will need to monitor data and analyze that going forward. That is what I mentioned. Regarding FX, basically, you do have in the note the comparison. The reason the translation was slightly better is that the average was slightly appreciated the first quarter of 2025, even though the dollar depreciated at the end. The average was, let's say, better this year than last year, in particular in July. That's the reason why translation affects, right? In terms of FX hedges, our FX hedges that hedge cash flow and investment are... I mean, I'm just giving bulk numbers like 2.2 billion of US dollars and they are around 600 million euros give or take on Canadian hedges for dividends, right? But these are for cash flow and for investment, right? So we don't... We don't hedge accounting results. We do that for cash and net investment purposes, right? So that, I mean, those should be helping the, let's say, net debt figures going forward rather than the accounting translation.

Thank you. On the 407, the average revenue per trip, any more questions?

Oh, okay. Yes, sorry. Well, that, yes, the 22% is high. We don't provide any guidance, but definitely 22% cannot be extrapolated. It has to be something lower. I mean, we're not providing specific guidance here. Sorry for that, but definitely don't extrapolate the 22%. It has to... to be definitely lower. Thank you. Thank you.

Our next question comes from the line of Nicolas Mora from Morgan Stanley. Please go ahead.

Yes, Ernesto. So just a couple from me, please. Just on looking big picture, the North American motorways, I mean, on a proportional basis, you've pushed prices around mid-double digits in Q1. That's, again, a pretty tough traffic backdrop. Do you feel comfortable? You can continue to flex pricing at such levels for a lot longer, even with quasi-zero traffic growth, just with mix of traffic, with dynamic pricing. NT has been up for 11 years, LBJ 10 years, NT 35, so we're way past the rent up here. So just wondering how long we can extrapolate that kind of performance. And then question number two, just on dividend stream from the U.S. managed lanes, where do we stand on potential for any refinancing, re-leveraging? What's your stance right now with U.S. 10-year yields at 4.5%? Thank you.

Thank you, Nicolas. Well, really the pricing dynamics in the managed lanes really are around mandatory modes on top of the, let's say, the inflation uplift that we get every year. Mandatory modes are not easy to forecast. The truth is that the underlying, I mean, not getting into the macro uncertainty, but the underlying trends of these areas are for continued population and business growth, right? So that's more activity and our available capacity is more valuable, right? um yes you could see that um going forward but this is not that you can extrapolate any of these of these strengths but you're likely to see mandatory modules because of these underlying trends that i that I mentioned reproducing in the future. I guess it's complicated for you guys to forecast this, but it's the way it is. I mean, a lot about the activity in the region and concentrating in peak times is even more valuable, right? So look always at the long-term trends in terms of population and business, and those underlying trends remain strong in Dallas-Fort Worth, of course, Now we have this macro uncertainty. We'll see in the coming months how it works, but definitely the long-term underlying trend is there. Regarding the regurings, And we usually don't comment on this. When there's an opportunity, what we think is feasible, we just take it and communicate that. But at the moment, there's nothing to announce, right? We will be commenting a long time. Sorry that we don't provide this specific guidance. The only guidance we have provided here is the dividends from projects that we gave in the Capital Marketers' Day and, of course, that holds. So, we will be telling once we do some, we will be telling to the market.

Okay, and if I may, just to follow up, just on the mandatory pricing, so from the pricing you show on the web, I mean, you've got NT and NT35W switching a few times during the week to mandatory pricing. We expect that in the short term to expand, especially LBJ, into next year with more feeder traffic coming from the Department of Transport managed lane.

Well, as I said, we don't provide guidance here. LBJ still has to see how the adjacent roads finish to see more of the traffic growth, but still, I mean, the adjacent roads will have... works throughout 2026, if I'm correct. So maybe in 2027, we will see the opening and from there on, we could see some ramp up, right? So right now, we haven't been there. We haven't been close to the mandatory modes. We don't provide guidance, but I mean, definitely still, there's works around the LBJ, right? So we will need probably to see the reopening to start gauging more the mandatory modes. All right, thank you. Thank you.

Our next question comes from the line of Nicolo Pessina from Meteobanca. Please go ahead.

Hi, good afternoon, everyone. I would have a couple of questions, again, on B47-ETR. I'm wondering if you could provide any qualitative comments on the promotions underway, maybe how many potential users have been targeted so far, and the level of acceptance and utilization of these promotions. And second question, I understand that the 20-22% increase of the average ticket cannot be extrapolated Does it suggest that the positive impact from a double toll increase in January is larger than the dilutive impact from the promotions in March? Thank you.

Hi. Well, let's talk about, first of all, the number of customers under promotions. I mean, we've approached something like, I mean, one million customers to give you a round number. Okay, so we will keep covering the customer base along the year, so promotions go on and off. It's not that customers keep having promotions throughout the year. They will come on and off for some, but the idea is to really address the customer base as a whole. um in terms of the uh 22 percent increase i mean we we don't provide that detail if one thing is um superior to the uh um to the others what we really look is that if we forego some revenues because there's some let's say cannibalization it's been quite a small and many times overtaken by the positive effect of uh of more track traffic is in the schedule 22 charge right so uh and we we monitored um that i won't get into if the 22 percent is much higher than the effect of the of the promotions

Okay, thanks. And if I may, how many of those 1 million users or customers targeted with the promotions have used them?

That we are not providing, among other things, because that keeps evolving. They go on and off. And this is something that is early days. I mean, there's no point in us providing numbers now. Sure, fair enough. Thanks a lot. Thank you.

Our next question comes from the line of Dario Maggione from BNP. Please go ahead.

Thanks for taking a follow-up question. It's actually on the 407 ETR, the scheduled 22 payment. Of course, she won't comment on the expectation for the full year, but in terms of how it will develop over the next few years, how do you see this developing? Will at some point stop the payment or we should expect a long-term cash outflow. Thanks.

Okay. Even though we don't provide the specific guidance, you should expect Schedule 22 to keep going on. Even just for one reason, I mean, the 407 provides a quality product that you have a speed of travel. And that means that you can not overdo that with traffic. We were expecting before the pandemic and the Schedule 22 being the flavor of the month, we were expecting the Schedule 22 to payments that were substantial just because you have to keep providing that quality product. Otherwise, people will say, why are we paying for something if I'm surrounded by hundreds of cars, right? So, yes, expect Schedule 22 to be an ongoing thing of the nature, at least in the coming years. Thanks. Thank you.

There are no further questions from the conference call at this time, so I'll hand the conference back to Silvia Ruy. Thank you.

Thank you. There's only one question coming from the webcast. Question coming from Fernando La Fuente from Alantra. Can you please provide more details on the pipeline for new assets, specifically motorways and US managed lanes, but also airports and other potential ventures?

Okay, well, the only thing that we can comment is on what's public pipelines. So the management pipelines that is public, you have in Atlanta, the I-285 East and I-285 West, big projects. You have another two in Tennessee. The I-24 is the first one to come out. Then you have the I-77 in North Texas. Carolina and Charlotte and also potentially the I-495 in Virginia, right? And all this is what is kind of the public pipeline. We have details of this in the fact book. the race that hinges around them competitive dialogues and so on and bespoke opportunities and I mean can only Be commented at the moment they become public Pipeline right so there's nothing to comment beyond that. We are really excited about this minus lanes opportunities. This infrastructure is really needed and the customer appreciation also feeds positively into this business building up and that's what we're looking forward as the main aim.

Thank you very much Ernesto and everyone. There are no further questions.

Okay, thanks a lot. I hope to see you all in the near future and stay tuned. Thank you. Bye-bye.