Ferrovial N.V.

Good morning or good afternoon, everyone. This is Silvia Reyes speaking, and I would like to thank you and welcome you to Provial's conference call to discuss the company's operating results for the first quarter of 2026. I am joined here today by our CFO, Ernesto Lopez-Mozo. Just as a reminder, both the results report and presentation were made available on our website yesterday evening after the U.S. market was closed. Separately, we note that the company's 2026 investor presentation on Factbook is expected to be available on the company's website shortly after this conference call concludes. At the end of the presentation today, there will be a Q&A session. You will have the opportunity to ask questions live. In order to do so, you will need to join the call through the conference call channel and press Start 5 on your phone keypad. If you prefer, you can send questions to the forum included in the webcast, and I will be reading them out loud at the end of the Q&A session. Before starting, please take a moment to look at the safe harbor statement included in the presentation, and please bear in mind that the presentation contains forward-looking statements and expectations that are subject to certain risks and uncertainties. so as our figures may differ. During this call, we will discuss non-IFRS financial measures, which are defined and reconciled to the most comparable IFRS measures in our results report and in our website. With all this, I will hand over to Ernesto. Ernesto, the floor is yours.

Thank you, Silvia, and good morning, good afternoon, everyone. Thank you for joining us today to review Ferrovial's results for the first quarter of 2016. Starting, I mean, overall, the first quarter was a solid start to the year with a strong growth across our core businesses, particularly in North American highways. Also, continued progress at the new Terminal 1 at JFK, stable construction margins despite higher upfront bidding and IT investments to support future growth, and from a financial perspective, net debt excluding infrastructure projects was reported as negative net debt or net cash, amounting to 1.2 billion euros. The primary sources of cash included a construction operating cash flow of 144 million euros. On the other hand, the principal cash outflow consisted of treasury shares purchases totaling 162 million euros. On a consolidated basis, revenue grew 10.2% on a like-for-like basis. Adjusted EBITDA increased 15%, also like-for-like, and adjusted EBIT grew 10.6% like-for-like as well. Let's move now to the 407 ETR. The asset delivered another strong quarter. Traffic increased by 8.2% in the first quarter of 2026, driven by the continued use of targeted driving offers. as well as an increase in mobility and rush hour commuting from a higher percentage of on-site employees. This was partially offset by unfavorable winter weather. Revenue grew 20%, with toll revenues growing by 22.1% in the quarter, reflecting a combination of higher toll rates that were effective since the 1st of January, 2026, and higher traffic volumes. As a result, EBITDA increased by 25.4% versus the first quarter of 2025, including a Schedule 22 provision of 8.1 million Canadian dollars, significantly lower than the one we recorded in the first quarter last year. On the other hand, operating costs were higher, driven by higher customer operations, also higher highway operations that are related to worse traffic, weather requiring higher winter maintenance, and higher system operations that increase with more segmented promotions implementation. When looking at the monthly traffic performance compared to 2025, as shown in the graph, it is important to bear in mind that in the first quarter of 2026, traffic performance reflects three months of targeted promotions compared to the first quarter of 2025, where promotions started in March on a broad basis. So it was only one month, and this has an impact on the traffic comparability. I will also highlight that the demand segmentation strategy continues to work really well. It is helping us to balance pricing, traffic distribution, and service levels, while maximizing EBITDA, which remains the key financial performance metric for the assets. This more segmented approach could distort the traffic comparison going forward, since promotions last year were broadly based. Regarding dividend distribution, no dividends were paid in the first quarter, but the board approved a $500 million Canadian dollar dividend to be paid in the second quarter of 2026. Now we move to Dallas-Fort Worth, and here the managed lanes posted double the revenue per transaction growth, significantly outperforming U.S. inflation. And this was despite the negative impact on traffic from adverse weather, particularly in January, including more managed lanes closures than in the first quarter of 2025. Let's look at each of the assets. At NT, traffic declined 3.6%, reflecting the impact of capacity improvement construction works and adverse weather, particularly in January. These works are expected to be completed by year-end, except for two additional ramps that began construction last year. Despite lower traffic, revenue increased by 13.1% in the first quarter, and adjusted EBITDA grew by 11.2%, including the accrual of $2.4 million of revenue share in the quarter. Regarding LBJ, traffic declined 1.5% due to construction works in adjacent corridors and weather impacts. Revenue increased by 9.8%, and adjusted EBITDA increased by 8.9%. At NT35W, traffic increased 1%, and this also despite adverse weather and congestion at certain entry and exit points, as well as the finalization of capacity restrictions linked to construction works on competing nearby road 121. Revenue increased by 18.3%, adjusted EBITDA grew by 18.1%, and this includes $7.5 million of revenue sharing accrued in the quarter. Looking at the revenue per transaction, all assets increased well above inflation. NT revenue per transaction was up 18.3%, LBJ up 11.5%, and NT35 West up 17.3%. This was driven by several factors. a favorable traffic mix with higher heavy traffic volumes thanks mostly to technology enhancements in camera recognition implemented throughout 2025 and 26, with this improved vehicle classification and higher overall commercial and heavy vehicles. Also, we had a higher number of mandatory mode events at NTE and NTE 35 West. Let's go now to the I-66 and I-77. Our management is in Virginia and North Carolina. At I-66, we saw a very solid quarter. Traffic increased by 8.3% compared to first quarter last year, showing a strong resilience despite adverse weather. This was supported by the growth in mobility across the corridor and our ability to capture value through dynamic pricing. Revenue per transaction grew close to 5%, 4.9%. in the quarter, and revenue in the quarter grew in total 13.6% versus last year. Adjusted EBITDA increased 16.1% in the quarter. At I-77, traffic declined by 5.6% versus last year, mainly due to adverse weather, together with the exceptional performance in the first quarter last year. Remember that then alternative routes remained partially closed following hurricane-related events. Despite the traffic decline, revenue per transaction increased 14.2%, reflecting higher toll rates. Adjusted EBITDA declined 11.9% compared to the first quarter last year. This was negatively impacted by the step up in the revenue share band from 25% to 55% revenue share. This is largely a first-year effect and is expected to normalize as revenues continue to grow within the new share band. First quarter of 2026, Adversity BIDA included the accrual of $8 million of revenue share. Regarding airports, starting with the new Terminal 1 at JFK, the project continues to progress through a crucial year for construction and integration. In terms of the schedule, as we explained in the full year 2025 earnings, the contractor has communicated an updated target where the completion date for the first phase falls in the fall of 2026. In the first quarter of 2026, the first operational readiness and airport transfer trials began during the quarter, and the project reached 87% construction progress. Airline engagement continues against a challenging backdrop. We have secured commitments with 30 airlines, including 21 executed agreements and 9 letters of intent. As of March 2026, total equity invested stands at 978 million euros, and we have 64 million euros pending that are expected to be injected in 2026. At Dalaman, the first quarter... reflects the typical off-peak season. Domestic traffic supported performance and traffic increasing by 9.8%, while the international volumes were affected by geopolitical challenges in the Middle East. On a full-year basis, the airport remains predominantly international, with the peak season starting in late March and is expected to be affected by instability in the Middle East. Moving to construction, Margins remained stable year-on-year, while there were higher bidding and IT costs aimed at supporting future growth, as we have explained in past quarters. Regarding the operations in the different geographies, Budimex maintained stable margins at 6.5% EBIT, despite lower volumes due to adverse weather. Weber delivered higher margins, benefiting from increased production and operating leverage. Ferrovial construction margins were slightly lower due to higher investment costs related to bidding and IT, with revenues remaining stable. The order book remained at an all-time high of €17.6 billion, up 0.5% on like-for-like versus December, excluding approximately €1.3 billion of additional projects not yet included because they are pending award or financial close. The composition of the order book remains very healthy, given the lower weight of large design and build projects with non-group companies. And almost half of our backlog is in our core U.S. and Canada market, which we expect will continue to support future growth. The operating cash flow at construction, excluding tax and dividends, amounted to 144 million euros in the quarter, mainly driven by advanced payments and compensations received in U.S. and Canada. Now, moving to the net debt position and cash flow, net debt excluding infrastructure projects was negative, or let's say net cash, 1.2 billion euros at the end of first quarter of 2026. Assuming the bridge, dividends from projects are small, including some dividends from IRB in India and Silver Town Tunnel in the UK. Remember that dividends also come later in the year in the managed lanes, in June and end of the year, and also along the year in the 407. We also had a solid cash flow from construction that I just mentioned in the previous slide that reflects the payments received together with the compensations and in general the good performance of the operations. Tax payments are mostly related to Linux. In terms of investments, These are mostly related to construction and equity invested in energy projects, while the investments are largely related to services, business, sales, earnouts, and so on. Additionally, we repurchased treasury shares for a total amount of 162 million euros in the quarter. Lastly, the other cash flows from or used in financing activities reached 421 million euros. This included the issuance of a 500 million euro bond that took place in March. Well, we did not include any slide with the script dividend, but I'm sure you all got the information. We announced also yesterday the first script dividend for an amount of 400 million euros. Okay, so thanks for your attention, and I now hand back to Silvia to open up the Q&A session.

Thank you very much, Ernesto. So let's start now with the Q&A session. Operator, please go ahead.