Ferrovial N.V.

Good afternoon, everybody. This is Silvia Ruiz speaking, and I would like to thank you and welcome you to For Real's conference call to discuss the company's financial results for the first half of 2026. I am joined here today by our CEO, Ignacio Madridejos, and 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. At the end of the presentation today, there will be a Q&A session. As in previous calls, 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 star 5 on your phone keypad. If you prefer, you can send questions to the forum including 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 actual 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 Ignacio. Ignacio, the floor is yours.

Thank you Silvia and hello everyone and thank you for joining us today to review Ferrovial's results for the first half of 2026. Overall the semester saw a strong performance driven by our North American highways that saw an outstanding revenue growth and our construction business which delivered revenue growth while maintaining its profitability target. In airports, new terminal 1 at JFK has submitted a completion remedial plan with March 2027 as the date for phase A DBO. In terms of cash, we closed the first six months of the year with an ex-debt cash position of 1.3 billion euros, excluding infrastructure projects. The primary sources of cash included construction, operating cash flow of 329 million euros, Dividends collected from projects of 378 million euros and investments of 96 million euros, mainly from Silverton panel in the UK and transmission lines in Chile. The cash outflows consisted mainly of the equity injection in NTO that amounted to 63 million euros together with 398 million euros of cash dividends and treasury share purchases. Regarding recent developments, we submitted bids for two new managed lanes projects, the I-24 in Tennessee and the I-285 in Georgia. We'll know the results in the third quarter of the year. Additionally, our bid for the certified highway in the Czech Republic and availability project was noted as the most cost-effective and the bids technical evaluation process is currently ongoing. Moving now to our main infrastructure assets and starting with 407 ETR. The 407 ETR grew revenue by 18.7% in the first half of the year compared with the same period last year. Toll revenue increased 20.2%, primarily driven by higher toll rates, which went into effect on January 1st, 2026. The traffic grew by 1.8% in the first half of the year, Driven by targeted commercial promotions. As a result, EBITDA increased by 24.4% versus the first half of 2025, including a scheduled 22 provision of 5.5 million Canadian dollars, significantly lower than the 45.2 million Canadian dollars in 2025. In the second quarter of 2026, traffic was 2.7% lower than in 2025. Reflecting softer economic activity, reduced rehabilitation construction on alternative highways and adverse weather conditions, while commercial promotions continue with a more targeted approach that enhances customer value while supporting N.V. In terms of dividends, $500 million Canadian dollars was paid in the first half and another $550 million Canadian dollars was approved to be distributed in the third quarter of the year. Moving on to Dallas-Fort Worth managed lanes, in terms of traffic, the area remains strong, while traffic in our managed lanes was impacted by construction works and less favorable weather. In terms of operating results, the three projects posted solid growth versus last year, both in terms of revenue and EBITDA, despite the increase in revenue share. Looking at each of the assets, at NTE, Traffic was impacted by the capacity improvement construction works and declined 0.6% in the second quarter and 2% in the first half of the year. Adjusted EBITDA grew by 14.7% in the first half and it was impacted by $6.5 million of revenue share. LBJ grew transactions by 2.9% in the first half of the year, with traffic increasing by 6.9% in the second quarter, reflecting greater utilization of the managed lanes as construction works on the I-635 East feeder corridor approach completion. Adjusted EBITDA grew by 15.2% in the first half. NTE35 West traffic was affected by the increased congestion at managed lanes entry-exit points, which created bottlenecks, as well as by the finalization of capacity restrictions due to construction works on nearby road one-to-one. Transactions decreased by 0.2% in the second quarter and grew by 0.4% in the first half of the year. Adjusted, the Vida, which grew by 18.6% in the first half, was impacted by $15.8 million of revenue share. All our Dallas-Fort Worth managed lanes registered double-digit growth in revenue per transaction well above inflation. This was driven by several factors. A favorable traffic mix with higher heavy vehicles volumes thanks mostly to technology enhancements in camera recognition that started to be implemented in 2025 which improved vehicle classification, as well as higher number of mandatory mode events at NTE and NTE 35 West. In the first half of 2026, revenue per transaction grew by 18.9% in NTE, 11.7% in LVA, and 17.3% in NTE 35 West. Following this robust operating performance, all three Dallas forward managed lanes delivered high dividend distributions in the first half of the year. NTE distributed $118 million. LBJ $61 million and NTE 35 West $143 million. All these figures are at 100% level. Now moving to I-66, traffic grew by 8.5% in the first half of the year, driven by increased traffic in the corridor and despite adverse weather conditions. Revenue per transaction grew by 8.7% in the first half of the year and total revenue increased by 17.9% driven by higher toll rates with adjusted EBITDA up 24%. In terms of dividends, I66 distributed $80 million at 100% level. At I-77, traffic declined by 4.8% in the second quarter and 5.2% in the first half, primarily reflecting lower congestion in the corridor. Performance was also affected by a challenging comparison against early 2025 when traffic benefited from alternative lane closures following Hurricane Helene, as well as adverse weather conditions throughout first half of 2026. Despite this, revenue per transaction increased by 11.8% in the first half of the year, reflecting higher toll rates. However, adjusted EBITDA declined by 5.4% compared to first half of 2025, negatively impacted by the step-up in revenue share fund from 25% to 50%. This is largely a first-year effect. and is expected to normalize as revenues continue to grow within the new share band. First half adjusted EBITDA included the accrual of $15.6 million of revenue share. Additionally, I-77 distributed $18 million in dividends. Turning to airports, starting with new Terminal 1 at JFK, NTO has submitted a completion remedial plan with March 2027 as the date for Phase A date of beneficial occupancy. As of the end of the first half of 2026, the project had reached approximately 92% construction progress. Remaining activities are mainly systems integration, testing, and commissioning. Airline engagement continues with commitments today from 32 airlines, including 24 executed agreements and 8 letters of intent. In terms of equity, we injected the remaining 63 million euros, completing all equity commitments and bringing total investment to 1,041 million euros. At Dalaman Airport, the first half of the year was impacted by the Middle East conflict, resulting in total passengers of 1.8 million, showing a decline of 8.1% compared to the first half of 2025, mainly international passengers. Adjusted EBITDA was 13.7% lower than the first half of last year. Moving to construction, the business posted solid results. with revenue growing by 7.1% in reported figures and 9.7% in like-for-like terms for the first six months of the year, while margins remain stable at 3.5% adjusted EBIT margin. Goodimex maintained healthy margins at 6.9% adjusted EBIT and delivered higher like-for-like revenues. Weber continued to benefit from strong growth with a 24.2% like-for-like increase in revenues, leading to higher profitability with 3.4% adjusted EBIT margin due to positive operating leverage. Ferrovial construction margins were stable with higher revenues increasing by 4% in like-for-like terms compared to the first half of last year. The order book remained at an all-time high of 18 billion euros, up 2.8% like for like versus December 2025, excluding approximately 2.6 billion euros of additional pre-awarded contracts pending financial clause as of June 2026. Operating cash flow of the division was 329 million euros for the first half of the year compared to a negative operating cash flow last year, mainly driven by prepayments and compensations received in North America. Now Ernesto will continue with main financial information.

Thanks Ignacio and hello everybody attending the call. Well I shall start with the consolidated P&L. I shall cover the lines below the EBITDA level. Depreciation has increased in line with higher capex in construction. Here we have higher activity and also increasing self-performance. And also with a traffic profile in highways where we have higher weight of traffic in the earlier years in the current business plan. The line of disposal and impairments, here we have smaller divestments in 2026 versus 2025. Mainly in 26, we have a transmission line in Chile that was sold and also Silvertown Tunnel, an availability payment concession in the UK. In 2025, remember that we had the sale of AES in airports. In financial results from infrastructure projects, I mean, that is a number that is pretty much unchanged year on year with some small impacts canceling each other. I mean, we have some lower expenses from a Thank you very much. Thank you very much. and you take into account that the tax on the U.S. concessions is accrued or accounted for already at our percentage ownership. You don't need to deduct minorities. You come to this level. The net P&L from these continued operations reflects earners from businesses from the diverse services division. Okay, so let's move on to review the consolidated net debt. We entered the... Thank you very much. This is mainly highways with 150 from the 407, 158 million euros from the Dallas-Fort Worth managed lanes. And then we have 38 million from I-66 and I-77 last comes with 11 million euros of dividends. Then we have the construction operating cash flows, ex-tax payments and ex-dividends. This reached 329 million euros. This is driven by prepayments and payments that were pending from Canada, the Ontario line. So prepayments in the U.S. and this catching up in Canada. Tax payments reached 48 million euros. And here we have the main component is 26 million euros from Budimex, the corporate income tax there. In terms of investments, we had 187 million euros of investments. The main one, as was commented before by Ignacio, is the last equity increase here in Phase A of 63 million euros. And we also have investments in energy and some projects in Leon County in Texas, 65 million euros that we are considering here, 35 are from this solar project that I mentioned. And then in construction we have 49 million euros. Then we go on with the interest received on other investment activities, cash flow, this is 57 million euros and this is basically cash remuneration on the equity we have. Then we have divestments that reached 96 million euros, and this is largely driven by the Silvertown Tunnel I mentioned in the last slide, and also the transmission in Chile, right? This is the most important part, 78 million in total, these two divestments.

Then in terms of cash dividend and treasury share purchases, we have 398

and the rest of the 300 share purchases in the buyback progress that we have since December 2025. Then we have other cash flows used in financial activities here. This is basically a bond that was raised, another one that was repaid, and also we have dividends to minorities in budimics or financial leases. And last in this cash breakdown, we have the effect of the exchange rate on cash equivalents of 20 billion euros. Okay, so after this review, then we are ready to open the Q&A session.

Okay, thank you, Ignacio and Ernesto. Let's start with the Q&A session. Operator, please go ahead.

Ladies and gentlemen, we'll now begin the Q&A session. If you'd like to ask a 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. Our first question comes from Mark Ip from Citi. Your line is now open. Please go ahead.

Hi guys, thanks for taking my questions. I've got a couple. The first one is on the JFK new Terminal 1 delay. Can I ask how much contingency is built into the new March 27 target and if there are any other critical paths within that time frame that could slip or how prudent are you being with that timeline basically? And then the second one on that is around is there any sort of recourse or compensation available from the design builders of this delay? And then I've got another question just on the construction business. I've seen the margins have returned, gone to your 3.5% long-term EBIT margin target. Can you share how much in the first half, how much of that margin offset is from the elevated bid costs? And maybe... Is there a potential tailwind in the second half if your bids have now gone in for the I-24 and the I-285 tenders? Thank you. Yeah.

Thank you for your questions, and I will take both of them. Regarding the JFK, what we have is this remedial plan that is with the new schedule of March 2027. It's based on the best available information today, so it's what is expected according to the plan that has been announced. Prepare together with the contractor that we have there. So this is the base of information that we have today. About what we have, as you know, the date was June 26 and starting July, there are LDs that the contractor should pay for because of the delay. This is 500,000 per day. that will maintain until it is open and could be of course challenged by the contractor if they think that some of the delays is not because of their costs. In the case of construction, yes, we have the effect in this first half of the year of the bidding cost especially for the two large projects that we have submitted offers in July both the I-24 in Nashville and the 285 in Alanta, and we continue bidding for other projects, and we'll start to have other costs that will have some effect in the bottom line, but I think that starting will be lower than the spend so far, but we'll see what is the effect at the end of the year, but as usual, the only guidance that we give about construction is 3.5% as an average for the long term.

Very clear, thank you.

The next question comes from Christian Nedelku from UBS.

Please go ahead. Hi, thank you very much for taking my questions. The first one on LBJ, with the construction almost finalized on the 635, and having in mind the fact that LBJ traffic has been lagging the other U.S. lanes over the last few years, Would you tell us a bit more? How do you think about volume supports in traffic going forward? And if you can comment if you are anywhere close to triggering mandatory modes in any segments of the LBJ currently. The second one, there are some press articles recently suggesting that you may be looking to invest in a data center project in Alcobendas in Madrid. at around 1 billion euros. Could you tell us a bit more about this project? And in general, from the perspective of capital allocation, is this a segment you are willing to allocate more capital on the midterm? And maybe the last one, if I could kindly ask you, I think over the last few weeks, the Washington Airport Authority gave a green light for a 20 billion plus CapEx program for one of the airports there. I believe you made an unsolicited offer a while ago on this project. Could you tell us a little bit more based on what's publicly available? What are the next steps in this process and the timeline from here? Thank you.

Thank you, Christian, yes, for the questions. I'll start with LBJ. Yes, you commented, yes, we saw some improvement in traffic in the last quarter, thanks to... That's two of the segments that are feeding the LVA, and at 6.35 we're almost finished. Also, the new Manas lanes in the 6.35 will be completed in the first quarter of next year, but we are seeing some benefit coming from some... Almost finalization of some segments of these new manas leyes. Also, it's not only impacted by 635, but also 35 fees. There were some work and other works in the area that all of them will be finalizing in the following months. And we expect not to have any impact from construction activity in the area. In the first quarter of next year. And part of this benefit we are seeing today with some of the segments that have been finalized, but the full effect we'll see in the first quarter of next year. Regarding the data center, as we commented previously, that we purchased two powerlands, one in Alcobendas in Madrid and another was in Warsaw in Poland. And the news that the You read a few weeks ago about this project, this special project as part of the Comunidad de Madrid. It's a first phase that we are doing first, totally 75 megawatts IT. The first part will be close to 45 megawatts IT to start with. and what you have to consider that this is a total investment for all phases and on top of that there will be some leverage and we can bring partners to participate with us and also contribute equity and for us in this business we have a policy of recycling capital and rotating capital once it's a mature asset with a lease so the total amount of We are starting with Madrid and Poland and depending on we'll see later how we progress and how successful we are with these two sites in which we are working first. Regarding the Washington Airport, what was announced is that the Washington Airport Authority that they want to develop a new project. It's true that we participated in a request for ideas and we presented some ideas about how to develop this airport with a P3, but finally it's not going to be done with a P3 project and it's going to be done directly by the Washington Airport Authority. and we are looking at it as a poor construction project but we don't expect that this will be a PC project in which we can allocate some capital.

Thank you very much, it's very helpful. Could I just double check on the LBJ mandatory modes? Are we close on any segment to that or not really? Yes, sorry, yes, yes.

It's true that the last month's segment 3 of LBJ triggered some I will say that these are non-significant and not relevant affecting the revenues at LBJ. As we have commented several times before, there is capacity available at LBJ and we don't expect that the mandatory modes will have a significant impact in the following months or years. So we don't expect, although we may have some Thank you very much.

Our next question comes from Elodie Roll from JP Morgan. Please go ahead.

Hi, good afternoon. Thanks for taking my questions. Just to jump back on the NCO, I was wondering if given the delays to phase one, you would seek a different contractor to carry out the works in phase B1 and B2. Second question on the U.S. managed lanes and generally on your tours exposure, generally traffic seems to be quite resilient despite all the macro headwinds. What do you think is causing this traffic strength generally and Should we be mindful of gas oil? I mean, it doesn't seem to have any impact. Can you share your view on correlation there between traffic and oil price for your assets? And lastly, I think you're planning a CMV at some point, but could you give us maybe like your agenda there if it's going to be and when it's likely to be and what it would be covering? Thank you.

Thank you, Elodie. Now about the NTO, first V1, V2, still we are just working with the design and the main focus of all the teams, the focus is on the DBO phase one. So we have not decided yet about who will be the contractor of the next phases and just what we are doing today is working on the design. Regarding managed lanes, what we see is the economy is performing well, and especially in the places in which we have our assets, Dallas-Fort Worth and Washington area and Charlotte, these areas are performing in general from an economic point of view well. We have not seen a significant impact from oil prices, at least for the time being. Also, when you In the long term, the main correlation is with the local GDP and oil prices high for a long period of time. It may have an effect in the local GDP, but for the time being, as commented, we have not seen a significant effect or impact from the oil prices. And what we are seeing is a good local activity in the places where we have our assets. And regarding the Capital Markets Day, We have not taken a decision when we are going to do it. What we commented is that our strategic plan, Horizon 26, is finalizing this year and we are internally working about a new Horizon plan for the next years and we have not taken a decision yet about when and how we are going to communicate externally this plan. And we let you know as soon as we take a decision about it.

Okay, thank you.

The next question comes from Ruairi Kulinane from RBC Capital Markets. Please go ahead.

Yes, good afternoon. First question would be, could you provide an update with regards to the I-77 South in the U.S. managed lane pipeline, given the media reports and local vote against the project? Secondly, on the 407 EPR, net financial expenses increased 25% in Q2. Is that a reasonable run rate into third quarter, or was there anything one-off in that? And also on the 407 EPR, the quarterly dividend increased by 300 billion CAD in Q2 and Q3. Is that the run rate we should be Thinking about potentially into Q4, which would leave the 407 ETR dividend less Q4 weighted than in 2025. Thank you.

Thank you for the questions. I will take the first one about the pipeline, and then Ernesto will answer the two about the 407, the financial expenses and the OPEX. Regarding the I-77 South, we have been communicated about a delay of this project, but as you know, we pre-qualified together with other three groups, and the information that we have today is that This project is delayed for the time being and we are waiting news from the North Carolina DOT about the next steps about this project and if they are going to issue an RFP and what is going to be the new timeline. So we still are waiting about this project. And Ernesto?

Regarding financial expenses on the 407, you have two effects here. One of them is there's additional debt and additional issuance that of course drives cost hires. Also, there's been the effect of inflation on the inflation-linked bonds and derivatives of the concession. I wouldn't take a running rate because of this last effect. I mean, there needs to be more detail into that analysis before extrapolating that inflation component. Regarding dividends, I mean, there's no guidance provided by the 407. We don't provide guidance here. So I'm sorry you have to leave it there. And then the last question, if you could basically rephrase that again. It was about OPEX. Could you please redo that again?

No, you've answered all my questions. It was linked to the question on the dividends. So thank you very much.

Okay.

Okay, thank you.

Next question comes from Luis Prieto from Kepler Chevro. Please go ahead.

Good afternoon everyone. Thanks a lot for taking my questions. A couple of them very quickly. The first one is regarding the fact that you've recognized in the past the balance sheet headroom at the 407 ETR. on top of which the Q3 dividend grew very significantly year on year. Can we extrapolate this step up in remuneration to the last quarter of 2026? And the second question is regarding the favorable working capital performance which seems very meaningful given the seasonality of this variable historically. Are we going to see more of the same in H2 or this is purely exception? Thank you.

Okay, hi Luis, I will take those. Well, regarding the dividend, it's like the last question. I mean, we don't provide any guidance regarding the dividend for the year. The 407 doesn't provide that, right? So we keep it there. Regarding the other question, if you Oh yeah, and the working capital, yeah. Regarding the working capital in construction, it's true that the first semester has been favorable from what I mentioned when I was reviewing the cash. I mean, there's been some, let's say, collections or payments that have been kind of delayed that were basically cashed in this semester. So this has been specific for this semester. and Jess at the second half of the year usually have some positive working capital effect at the end of the year. I mean, we don't provide any guidance, but there's no reason to not expect some sort of seasonality there at the very end of the year as other years.

Super clear. Thank you.

The next question comes from Graham Hunt from Jefferies. Please go ahead.

Thanks team and thanks for hosting the call. Just two questions. If we go back to the 407, I think historically you've talked about catching up some of the pricing that was lost during the price freezes over the COVID period. And I wondered, does that still come into your thinking or are we in a different price regime now with a different approach with the promotions and things and just kind of Looking for a bit of an update in your thinking there. We've seen multiple years of very high pricing obviously with the promotions. But yeah, just an update in how you think about the catch-up there in terms of real pricing. And then the second question, I'll go again on dividends, but not for the 407. Maybe just for the group, Ernesto, any help you can give us in terms of how you're thinking about The last part of your overall returns guidance for 2026 in the second half, the shape of that, how we should be modeling it, that would be helpful. Thank you.

Thank you, Ram. I will answer the first question about the 407 and then Ernesto will come back with the dividends. So about the 407, the way we see it is about the value for users and how we can capture That value for users with at the same time with relieving the congestion in the area. And that from a perspective, internal perspective of maximizing EBITDA. So we have to take when we think about this, you have to take all of this into consideration. And as you know, there are different parts. And one of those parts is about the toll rate that we increase at the At the beginning, we announced in November, but we implemented at the beginning of the year. But also we offer promotions to different type of users that is helping with the congestion relief, but it's also help with some users that have different point of elasticity. And all of that combined with maximizing EBITDA and reducing schedule 22 payments. and that's a different thing that as you know is traffic at the peak and is related to the thresholds and the different segments and how we are more effective with promotions reducing the Schedule 22 payments as we have been able to achieve in this second year. So yes, I think that because all this we think differently to what we did in the past about... It's not only about one increase, it's also considering how promotions play there and we maximize different effects of congestion relief, of maximizing revenues and everything in different ways. So yes, I think that you should expect that this is the new rationale and how we is where we are going to behave in the future. and it will be based on these variables that I commented previously. I think that is different to what we used to do in the past, but the focus at the end will be maximizing EBITDA and that's related to value to users and more growth, economic growth in the Toronto area and population growth in population will help us to increase the value. Ernesto?

And thanks, Graham. Regarding the question on dividends, I mean, there's no update now. I mean, probably the board in October that takes the decision on the second dividend will update. But until then, we have no updates.

Got it. Thanks, guys. Very helpful.

The next question comes from Dario Maglione from BNP Paribas. Please go ahead.

Good afternoon. Three questions for me. The first one on the U.S.-Texas managed lanes, which posted quite an impressive revenue growth in Q2, almost 20% for all the three assets, and that was despite bad weather. So you mentioned various drivers for this growth. Could you maybe rank them or give them – you mentioned, for instance, the tech technology to classify heavy vehicles. How significant was this? The second question related to the first question, the PEC classification for heavy vehicles. My understanding is that it was implemented in 2025 at different dates for the different assets. Could you give us a bit more detail on this? And the third question is on the 407 ETR. Traffic was down in the quarter in Q2. As you mentioned, some virus effects. You didn't mention really the promotion or the different type of promotions, but more an impact of the microeconomic situation and traffic on alternative routes. So, with that in mind, what is the implication for toll, the potential for toll increase in 2027 if traffic is not growing? Thanks.

Thank you, Dario. So I will start by Texas managed lanes and the revenue growth that we have seen in the three assets. In terms of importance, probably the most important has been the classification of vehicles. As you know, they have a multiplier, so with this new technology that we have implemented, In the different managed lanes, it has helped us to identify more heavy vehicles that are paying more than they were paying before. And this has been the main effect that we had. In the case of also the NTE and the 35 ways, also we had more mandatory modes than before that had a positive effect in the revenue per transaction. And of course, always we have some mixed effects and always we have the impact of inflation in which we increase the soft cap at the beginning of the year. So probably I mentioned those in terms of a priority what has been most relevant and then the other effects that also were impacting this revenue per transaction with a 20% growth. It's relevant also what you mentioned about the Classification of vehicles, yes, because we implemented that last year. And we started with implementing new technology in the different countries. And we started with the 35 West, followed with NT and we'll finalize with LBJ. But some of the information about the classification of these vehicles... We use just from the beginning in all the three manas lanes. So some of the effect is already included in all of them. But it's true that the comparison in the second half, we like for like will be already including this effect that we started to see at the end of the second half of last year. And you have to take that into consideration. Also, the other effect in the managed lanes about traffic is construction. When we see the end in the construction at LVJ and also at NTE for the capacity improvement, the effects will be, in the case of NTE, more traffic and less mandatory mode. In the case of LVJ, once the construction is finished, it's expected that some traffic will come back to the corridor. And in the case of the 407, The effect of promotions has been very limited. I would say slightly more than the previous year in terms of traffic affected by promotions in the second quarter of 26 compared to the second quarter of 25. It's true that with slightly more traffic affected by promotions, we have been More effective in Schedule 22. So in that sense, we have some sectors in which we have traffic above the threshold. So in those cases, we have reduced promotions. And there were other sectors in which we were below the threshold. And in those cases, well, we have been more effective bringing some promotions that have helped us in order to reduce Schedule 22 payments. So I will say that this is not a major effect and the major effects that we have in traffic in this quarter compared to previous year is economic activity and that's mainly related to some industries that have uncertainty, uncertainty of tariffs. So the whole economy is growing around 1% but still we see some industries and sectors that are more affected and that will affect traffic. We have seen also a relevant effect in terms of the delay in the maintenance in some competing highways, especially the 401 because of the FIFA World Cup that they didn't want to do some construction works during that period of time. And as usually, you can do only this type of maintenance with the good weather of spring and summer. And in this year, all this construction activity was delayed. and, third, also weather. We have a negative effect of weather. That was general. It was not only the 407. It was also in the manned lanes and other assets that we have that negative effect. In the future, well, as you know, we don't give guidance, but increasing... Pino Calvo-Sotelo,

The next question comes from Marcin Wojtal from Bank of America. Please go ahead.

Hello, thank you for taking my questions. The first one is on your share buyback. I believe you have an authorization to buy back up to 800 million euros until October of this year. I believe the latest disclosure points to 340 million euros. I'm just wondering, do you have an intention to actually fully exercise the authorization of 800 and is that even feasible considering the liquidity of the stock? And my question number two, if you allow me, I just wanted to come back to these promotions on the 407 ETR. I'm just wondering, are the promotions that you're offering right now very, very similar to what you were offering before? at the beginning of the process a year ago or there has been a learning curve for the company. And do you see promotions also going forward as an important tool of yield management and also as a tool that will allow you to extract more revenue and EBITDA over and beyond Schedule 22 management? And could you perhaps continue with promotions in the longer term even if Schedule 22 is no longer an issue? Thank you.

Thanks, Martin. Regarding the buyback, there's no specific guidance on the buyback. The guidance we have in terms of remuneration is on And regarding the promotions,

Yes, the idea is to continue with promotions in the future independently of Schedule 22. And I think it's a very good way to attract new customers and maximize the value that we can capture for the users of the 407. The ones that we do for Schedule 22, I think that are very similar in general. I think probably not in the same sectors or with the same type of users. So we have learned which users are the most effective in terms of reducing Schedule 22 in the different segments and we are more selective in that sense to offer those that generate the most value for us. And adding some new users that they were not offering before in some other sectors that we were and some of these promotions are free and the question is how much we can get for these promotions because maybe the users are open to pay something for them. And now we are open to other type of, we are piloting and doing other type of different promotions in order to understand the value for the users and we are trying and testing different things and we'll continue to do These type of promotions are learning from them and it's a way to do a segmentation and will continue in the future. But it's a long journey in which we need to learn from the users. And with that, I think that it will take several years to maximize EBITDA for us using the promotions and to have a good understanding of the value of the 407 for the different users.

Our next question comes from Harishankar Ramamurthy from Deutsche Bank. Please go ahead.

Hi, good afternoon, everyone. Thanks for taking my questions. Just maybe on the 407 ETR. So it looks like BKTs have been down this quarter year on year, but you've still managed to reverse some Schedule 22 provisions. So it looks like 407 ETR have become really experts in managing the promotions for maybe peak of peak hours. Is it just that or is there any segment where you've hit the maximum throughput possible and for that reason you don't really have to expend efforts in managing the promotions? I couldn't quite... Square that circle on how you could have VKTs down but still have reversal of provisions. Is it just you've become so good in managing the promotions or is there any other component to it? So that's the first one. And secondly, when we look at the mix of traffic with promotions and without, Is there any plan for publishing or getting some data on color on how this splits between the two segments for Funotsu and ETR? So how much of traffic is without promotions and how much are the promotion volumes?

Thank you for your questions. We are not going to disclose traffic that is coming from promotions of traffic that are paying the toll rate at the normal price. You have to see the whole figures of the traffic and the revenue separately and it's something that we are not going to disclose any additional information about that. The other effect that you have to consider is that comparing the quarter last year to this year, the effect on traffic of the promotions has been slightly positive. So we have a little bit more traffic related to promotions this quarter compared to the quarter last year. And with this slightly more traffic, What we have been able is to reduce significantly the Schedule 22 payments because we have targeted better for those users that are helping to reduce the Schedule 22 payment and in other cases in which some segments were more traffic than they needed for the threshold, we reduced the promotion. So we have been more effective in order to address which promotions are helping us to reduce schedule 22 with almost a similar slightly above number of traffic related to promotions compared to previous year. So we have been more effective. But in general, I think that the effect of the traffic in promotion has been slightly more than previous year, but not significant.

Makes sense. Maybe just a follow up there. So none of the segments within the 407 EDR have kind of hit a threshold where the throughput targets are now at the maximum limit, have they?

Well, I think that is what you mean. If we have traffic that is above the thresholds in some segments, the answer to that is yes. because if not you have a payment so the question is in segment do you have promotions in those segments that you need to have promotions in order to be above the threshold well that's a different question and yes there are some segments like those but we don't disclose in which ones and how is the mix of that effect of promotions or no promotions to reach the threshold but we only pay schedule 22 when we are below the threshold and in the rest we are above and In some of them, we are above with our promotions and we know that we reached that thanks to the promotions.

Makes sense. Thank you.

Ladies and gentlemen, please be reminded that if you'd like to ask a question, you must press star five on your telephone keypad. Our last question comes from Christiane Delco from UBS. Please go ahead.

Thank you very much for allowing me to follow up. Could I please ask you on the Texas managed lanes? You mentioned earlier the mandatory modes on LBJ are not something imminent and you flagged that on the NTE, the capacity expansion may be a headwind for triggering mandatory modes. So if you have this in mind and we think at 27, can we talk a bit about the Levers of growth in pricing for the Texas managed lanes. We know the pricing is at peak close to soft cap or at soft cap for most segments. So can you elaborate what other levers there are there directionally to improve? Is it off peak pricing? There is room to increase that. Anything more on trucks or any other levers that could help you grow pricing more than the soft cap next year? And apologies, one follow-up on the ETR 407. I think you've been trialing the loyalty program for frequent users. I believe there were some trials in place the last few months. But I was curious, what are the plans for the second half? Will you deploy this loyalty program more widely? And how should we think from the perspective of potential dilution to the revenue per transaction related to the loyalty program? Thank you.

Thank you for the questions. And yes, in the case of the managed lanes, pricing will come several factors. First is the inflation that will increase soft cap at the beginning of the year. So it's something that we do every year. Then the Mandatory modes is something that could help us, but as you mentioned previously, we expect that the 35 ways will continue to have as long as the congestion is increasing and the economic activity in the area is increasing, we'll have more mandatory modes in the 35 ways. But in the case of N.V., we will not see that. We'll see instead of mandatory modes, more traffic. and in the case of LVA, similar to this year, we don't expect mandatory modes that are going to be significant or relevant, but we'll see more traffic next year in LVA similar to NT, all of course depending on how is the economic activity and other variables that could happen at that time. We may have also some mixed effect as usual and this mixed effect is having more traffic at peak and the other effect is having more tracks with more economic activity used to have more tracks than in the past. So these are the effects that we'll see next year and that they will impact the revenues that they will see in the Texas managed lanes for next year. And regarding the 407, yes, we did started with some pilots of the loyalty program and we have not taken a decision yet how we'll continue with these pilots. And we are doing the pilots with different types of promotions. Some of them are working, others not. And based on the results, we take decisions and we have not decided yet how we will continue with loyalty programs.

That's very helpful. Thank you very much.

There are no further questions at the conference call at this time. I will now hand the line back to Silvia Ruiz, head of IR.

I'm not Silvia Ruiz, Ignacio, but I just to give you thank you for following us. And well, I hope those of you are taking vacations. Hopefully you have a good rest of the summer. Thank you very much for joining us.