Fomento Construcciones Sa

Recording in progress. Recording in progress. to the National Commission of the Market of Values. You also have on the website all the associated documentation with the financial states, audited, as usual, the management report and all the associated information. Remember, first of all, it is something that has been seen throughout the exercise, but I want to repeat it for the last time, that these results, apart from elements that are exceptional, have a very singular fact that does not make them comparable. in an inevitable way, which is, as you know, the partial financial excision that occurred at the end of the year 24, which meant the excision, the creation of a cement of the real estate cement activities, and that for accounting reasons we had to incorporate until that month in exercise 24. This, for the set of the year 25 versus 24, assumes that by the line of results of continuous entry activities, there are 136 million euros less in 2025 than in 2024. Next year everything will be more comparable. It is true, and I will also detail it, that there are other elements that have impacted the overall net result of the exercise, such as provisions that we have carried out, Some were already seen in previous semesters, the effect of the type of change, etc., which has had a negative impact on the exercise. However, I would also like to highlight that both the financial position and above all the visibility of the portfolio of income has had a very good evolution in the exercise, which for us is, of course, essential. Well, as an introduction, these comments, in terms of what is the count of results consolidated by the group, In the year 25, the revenues increased by 6.9%. We reached 9,700 million euros. It is an evolution that continues to maintain the trend of previous semesters. We have continued to see the contribution, already the whole year, of the acquisitions that, on the one hand, we made the most outstanding in the environment in markets such as France, the United Kingdom, the United States. and also a timid contribution that has also been made in some of these markets that we have executed, especially between June and October of this year.

There have been a series of problems, organic and inorganic growth in different areas, and the most important ones are concessions, and then others, and we have seen water, a very stable At the level of EBITDA there has been a slight increase, a slight reduction in EBITDA with respect to income. and this is concentrated in some adjustments we have made in the area of construction in the last quarter of the year. I will speak about this later on. speak about the P&L, the result of the apparent company went down, we had a contraction of 267 million euros, and as I was saying, there are several elements, I also mentioned, 166 million euros that have to do with this. Another factor that has contributed has been the exchange rate, which, as you can see, the strength of the euro as a consolidated currency left about 53 billion euros of a negative impact in terms of financial results. In addition, we had in doubt some provisions. They're not... They're just... uh one-off provisions for water treatment and some of the assets that we have specifically in the uk and which amounted to 96 million euros for the whole year so as compared with the ebitda we had this was similar um to 2024, considering these three types of effects, and these have resulted in the 164.4 million euros I mentioned before. Having said all this, there has been, if we consider the balance sheet and the joint financial structure, the group evolved in a very positive way. In 2025, we closed with a net financial debt of just 2.3 billion euros. This was a reduction of 23% of our net financial debt, in spite of the fact that, again, a very significant effort was made, as we did in 2024, in terms of investments. We made net investments for 1.2 billion euros. And this is really noteworthy in terms of revenues. If we compare the ratio, CAPEX revenues, Ratio, well, it's 12%, which is a substantial figure if you compare it with the levels of amortization, endowment and revenue. So this is a significant figure. In spite of the effort we made, we showed a significantly robust financial performance. Also, at the end of last year, we collected the money corresponding to an additional percentage of a minority stake we had in FCC in Biro, which is devoted to environmental activities, where we had a revenue of 1 billion euros. The net assets grew by over 26%. We now stand above 4.7 billion euros. And as I was saying, together with investments, another variable which for us is very important to mention is The portfolio for future revenues at the end of last year, we closed with a portfolio of over 51 billion euros. If you look at the calculations of the group and the activities of the four different areas we have, as I was saying, the growth was over 11%, specifically 11.4%. And the main driver, although the different activities performed very well, water and the environment, but the star was construction, where in the management report we provide details of the most significant contracts that made this growth possible. In the case of construction, the growth was notable. Right, so... so far for the pnl and the balance sheet now and the financial situation but let's look area by area now the first area in terms well the first area is the environment which is the most significant area in terms of its contribution our broad activity for waste management is included here revenues grew by 9.1 percent to 4.74 billion euros here The growth was well balanced. We had a good performance across the waste collection, urban waste collection and street cleaning activities. I would like to mention the evolution. in the organic growth in France and Spain, as well as the acquisitions we made in the United States and in the UK. In the United States, they were more focused on processing, waste processing. Now, in terms of geographical areas, the four platforms that we operate with, Our brand is FCC Envira. Revenues amounted to 420 million euros, a significant growth with respect to the previous period's figures. And here we had a very good performance. In terms of new contracts, where we didn't have the management previously, we have grown by 20%, so we are quite satisfied. Although there is an activity which is minor, but by no means irrelevant, which is the industrial waste activity. also performed very satisfactorily. We also moved forward in terms of our investments, particularly in waste processing and our different plants, and we are now enlarging some of our plants, although these enlargements are not yet... contributing anything to the EBITDA. Now, in terms of the platform that we call the Atlantic platform, France, Spain and Portugal, well, the increase was quite significant, 150 million euros. Here, as I was saying, we are We are growing organically in terms of our contracts through our brand in France, ESG, and in Portugal we also had very solid activity and a very stable one. The second platform of FCC Enviro in the UK had an increase in revenues, which was quite significant. We had a slight negative effect from the sterling, but we need to mention the whole year contribution of UK Urbacer, which combined this newly acquired platform with waste collection activities, and we also made a few acquisitions. which was a company called Cumbria Waste Management in the northwest of the country. So what we have seen is a lower level of processing activity, particularly in landfills, but this has been compensated for by an effect of higher activity levels in recovery and recycling. In Central Europe, in the European market, increases of 3.9%, €660 million. In general, there are seven markets here. significant presence in the top five. What we have observed is a certain weakness in the price of secondary raw materials, which had rallied very significantly in the last few years, but now they have stabilized and they have gone down a little, but the compensation has been very strong because this is a highly granular business, but there have been some adjustments in markets like Slovakia or Austria, but there has been growth. in the Czech Republic and Poland, and so the performance overall was satisfactory. The last platform I want to mention in FCC and WIRA is the United States. Here the improvement was of over 22%, 470 million euros. This is a platform that is already quite significant. It is close to the volumes of Central Europe. Here there was a good evolution and some new organic contrast. in waste collection and street cleaning and here in general we are using a highly competitive technology and I also want to mention the acquisition we made because we are for the first time entering the recovery activity. We already have experienced in the UK, but in the United States this is something new for us. We made an acquisition that we formalized in the second quarter in the south of Florida of a waste recovery plant, and thanks to that we managed to secure an operation and maintenance contract That was new. This is two very important plants because they have over one million pounds of capacity for waste processing. So it is really very significant plants. So the combination between organic and inorganic activities resulted in very significant growth. Two digits, 22%. EBITDA increased quite in a similar way, given the improvements in revenues, 789.8 million euros, in line with our forecasts, and the gross margin stayed at very similar levels, 16.7% without very significant differences with respect to the previous period. Now, Let's talk about the water cycle, Aqualia. Well, here the turnover increased by 6.9%, 1.7 billion euros. To be honest, water is a highly stable business, 100% predictable, and with very satisfactory performance. You know that we have two important areas, and the most important one is the so-called water cycle. integrated the integrated cycle for water management of water consumption and to a lesser to a lesser extent technology and networks which also gives us some competitive capacity to do with infrastructures both of them grew quite well technology networks grow a little bit more because it is linked to projects or developments in different concessions, BOT or comprehensive concessions or integrated concessions. Technology and networks grew by almost 19%. But having said that, this figure changes every year, but geography by geography. still contributes over half of the share, and revenues increased by 10.2% in Spain. Here we, well, Things have normalized, particularly after the drought we had last year in terms of consumption and in terms of the evolution of tariffs. Things are a lot more predictable now. And also, the work done in technology and networks also... experienced a significant growth. And this led us to a double-digit revenue increase. In countries like Georgia and the Czech Republic, these are proprietary assets. Here there's no concessional activity. And we grew by 8%, to 169 million euros. Here there was a little bit of a foreign currency effect, the strength of the Euro played a very important role, but the evolution was highly positive, and we are still making investments in Georgia to improve our efficiency and to improve the way in which we invoice our customers, and all of these things were highly positive. The rest of Europe, we have activities in Portugal, in Italy and also in France, and revenues increased by 1.4%, 113 million. But here we must mention a lower level of activity in technology and networks, and we should also mention that in the Portuguese market, There was an effect of the drought all along 2025, which obviously we are clear that in 2026 this is not going to happen again, because I'm sure you're well aware that this year really started with a lot of rain. from the month of January. So in the Americas, you know that we are now focused on Texas, and the turnover was also positive, 9.8% up, 215 million euros revenues. We have kept generating new contracts in our concessions of different districts in the American market, MDS for example, which is a company that we use to carry out our operations, and this has been accompanied by our activities in Colombia, where the evolution was also very good. The latter is basically focused on the integrated cycle. Now, in MENA, Northern Africa, well, in Northern Africa, we managed our BOT contracts without any meaningful events. There have been some changes in the tariff that, you know, those changes affected us negatively, and this is because of the strength of the euro. And also in the Persian Gulf, Saudi Arabia, Oman, Qatar and the Arab Emirates the activity has been highly stable with our combined contracts for for advisory or and you know we're still very positive in terms of the opportunities that await us in the future for new investments that we could make or requests from public customers. Now, with this improvement of revenues of 6.9% for water, EBITDA also grew 450 million up And the only small difference in terms of margin in EBITDA is due to the heavier weight of technology and networks which operates with margins that are lower than those of managing water cycle. The final figure was 25 as compared with 25.4 last year. Now, construction, which is basically developing various projects. Revenues increased by 3.4%, over 3 billion euros more. It is true that although Spain is not the dominant market, it hasn't been the dominant market in terms of portfolio, since these are short-lived contracts here, there was quite a significant contribution. We have kept contracting services and so this allowed us to compensate for a fall, resulting from the way in which our projects are closed abroad and in our industrial division, but on the whole, Spain played a very important role in this advancement. So, the Spanish market, the Spanish construction market was 15% up in 2025. Now, if you look at the different locations we have, the different sites we have in the UK, in the Netherlands, in Norway, in Romania, our revenues were quite stable, 880 million euros, very similar to 2024, and we had a very important project in the UK for the sister company of FCC Co., which is now fully operational, and this was partially compensated for by projects that we had in the Netherlands or Norway. that I mentioned before, so the picture is very stable. Another market that was very important together with Spain was that of the Americas. The turnover was almost 11 million euros, 4.9% up, and here you can see the importance of some of the projects that we have in Canada and the United States, particularly in railways on the east coast of the United States and in the area of metropolitan Toronto. Lastly, I don't want to forget Mina, which is also an area where we have had quite a significant presence for some time, and here there's been a fall. because of the close of certain projects that we are very satisfied about, such as that in Saudi Arabia. And the closing of these projects resulted in a 41% fall in this area. We closed at 152 million euros, but as we already said in the events and contrast reports you can see that we do have a significant presence and quite significant visibility in mid in the middle east for the future so the ebida here went down 49.9 percent 85.10 million euros of course your gross margin was also influenced by this it was not really within the range that we normally are. We closed at 2.8%. And this was due to the fact that in the last quarter we had to provide for a series of projects and a series of things such as the end of certain projects. Because, you know, we believe it is, you know, good to act preventively. A stitch in time saves nine, as they say. So this resulted in a fall in EBITDA and in the gross margin of our construction activity. Now let's talk about concessions. Well, concessions closed at 112 million euros. This was a significant advancement. Here you may have observed in previous quarters, especially in the third quarter, the figure was lower. But now we are, you know, in a development phase, we are executing different projects, a lot of capex, especially in a railway concession in the north of Spain, in the region of Aragon, itinerary 8. And there were two other effects which are not negligible. One of them was the... We have taken full management control of the Ibiza-San Antonio highway and also... the evolution of traffic both road traffic and tramway traffic in our concessions well has fluctuated throughout the year img and passengers between 2.2 and 2.9 percent so all of this has been highly positive and it has resulted in that 45.5 percent increase now market by market for fcc concessions well even if we have um huge external growth perspectives. The majority of the growth took place in Spain for the reasons I mentioned before. I want to mention that internationally, nowadays, revenues are still... supported by a concession in Cotrujo on the east coast of Mexico and there's also the fact that here there was a concession in Moussa, Portugal that was closed in 2024 and this led to a small fall. Not very important, it's not very important but this explains this international fall that we've had internationally in concessions, but this is just a one-off effect that will have no impact on the future. EBITDA reached 60.4 million euros, 10.8% up, more moderate than the increase in revenues, but here this shows the powerful evolution of the business, but of course the gross margin of concession projects has a lower contribution, but even so the activity, the growth is of two digits, which is really very significant. I've reviewed the four areas we have in our business, which are the ones that contribute to the description of the P&L. Now I will now review the more financial aspects, the interpretation of all of this in more monetary terms. In terms of cash flow and exploitation, we reached 1.2 billion euros. Here I would like to mention the operational current capital, which contributed by over 27 million euros, which is quite differential, because last year in 2024 there was some consumption which is not to be, which is not really strange. The greatest contributor was the construction area and you can see this in the information we have distributed. Other exploitation flows had also very significant effects, and this was because of the carve-out, which is really an element that distorts any comparisons we would like to make. This effect will disappear from next year, but 2026, if we compare it with 2025, you know, it is quite noticeable and it should be underscored. The investment cash flow, as I was saying, had a very significant investment activity. We invested a total of 1.23 billion euros gross, and here we focus on environmental activities. The environment captured over 900 million in investments, both the recovery plants in the United States and Florida and the reinforcement of the integration we made of our activities in the UK to combine it with our presence in processing plants. The second investment was made in water, 205 million last year, but more homogeneously distributed into enlargement and maintenance and renewal of our existing assets. Now, divestitures, well, we have made very few divestitures. We sold off assets in one of the businesses we have in Spain for waste recovery and resale of recyclable materials, basically cardboard. This was 40 million divestiture, which was the most significant one. But next investments exceed 1.2 billion euros. The financing cash flow, here there was a combination both of the money we collected from the additional sale of a minority state of the environmental parent company, 1 billion euros, together with some other effects, such as the payment of interest and minorities. there was a net revenue of 800 million euros. Now, with respect to movements of financial liabilities, let me remind you that last year we refinanced the majority of our, most of our debt of our water subsidiary, and we already informed you about this, and this explains the movements happening here. And, you know, this... in these three sections well the treasury had a very good performance over an increase of over 800 million so um you know the final figure was over 2.2 billion so with this our financial debt closed at 5.3 billion without significant variations with respect to our positioning. The most important thing is that in net terms, given the cash position with which we closed the year, this was all very solid. Our financial leverage went down by 23%. Our net financial debt was at 2.3 billion. And The differential elements apart from the good performance of the operational cash flow, I would like to mention the evolution of our working capital and the effect of the sale we made. of our stake in FCC and Vero. So that's about all I had to share with you. I just wanted to review the most important highlights of our 2025 financial year. I would just like to mention three elements which are extremely important for the medium and long term for the evolution of the Group. First of all, our investment efforts. which was really very significant, given the size and the activity that the group is having. Number two, we have strengthened the financial position of the group. We closed at 2.3 billion with an EBITDA, which evolved to over 1.4 billion euros. And lastly, our portfolio. It is essential for us. You know, we are a group that we basically work on the basis of projects and contracts. So having a visibility of over 11.4 growth year on year is really essential for us. We believe that it gives our company a very significant level of robustness. So that's about all I had to share with you. And now we can open the floor for questions from you. Thank you. First question, what is the level of one-offs and total provisions in the environmental division? Are these out of the cash operations? Because can you reach 400 million in 2026? Well, I don't know whether the question is related to the level of provisions that we endowed in the environmental activity or not, or to the balance sheet in them. With respect to the balance sheet in the environment, we have two kinds of provisions, general provisions of the business, and specific environmental provisions related to the different assets where we have an environmental import, like, you know, discharge centers, etc. So, as far as those provisions are concerned, we always try and calculate what our future payment obligations are. Although there may be years where there may be jumps, the fact that there's more applications than endowments, well, these applications are normally payments, right? So there's quite a good balance between them. Having said that, I mentioned that in 2025 we had to apply provisions, environmental provisions, due to, well, for about 19 million euros, which have been provided for throughout the year, probably this year, there will be a higher volume of endowments, but in general endowments and applications are normally well balanced mutually. Now in terms of the level of EBIT, as I was saying, the endowment we made of provisions that for the P&L can be seen in other operational results between EBITDA and EBIT had an impact in 2025. Of course, we expect a significant recovery in 2026. Taking into account the adjustment of that 90 million, I think that it is quite feasible. Next question. In their construction activities, what is the level of operational EBITDA adjustment for this quarter. Now, sales, can they grow at two digits? The 5.7% margin of 2024, is it really sustainable? Is there going to be an improvement in working capital because of advancement of certain projects, but the level of operational one-offs of EBITDA for the first quarter, if you looked at the sequence of results in our construction activity until the third quarter, accumulated third quarter, we have followed a very stable tendency. Of course, it is true that in the fourth quarter there was some situations in certain projects, certain international projects and several projects, and so we decided to make a few adjustments. What is the magnitude of those adjustments? Well, we don't normally comment on these things, because these are projects that are underway, so it wouldn't benefit us to make comments, because these are not claims made by a specific customer or a specific supplier. There's no litigation or anything like that in that respect. projects underway, but we want to be prudent, and that is why we made those provisions. Is there going to be any cash outlays as a result of that? Well, as you know, provisions are part of a continuous game, so you make an endowment, and then it may be applied or not. There are endowed at the level of EBITDA and they are applied at the level of the cash flow. So, we try and use as few provisions, a few of the provisions we make as possible, but for us, and to connect with your question as regards the 5% margin of 2024, well, in a project-based activity like construction and like water or the environment, it is very difficult to say that we are going to be able to keep those levels stable our recurrent stable margin in an average cycle normally stands at five percent above and yes we think we can go back to that so but obviously When you look at this in detail, there are effects that may go in one direction or another. Now, with respect to what you're asking about the working capital, partly, part of the contribution, in spite of the growth in revenues, part of the contribution of construction to the working capital have been some free payments, because whenever we can, we work with a positive cash flow in our projects so as not to resort to financing. So this is what happens. Of course, we will be applying that working capital in the future as we develop the different projects. Now, is this going to happen again in 2026? Well, we'll have to wait and see. it is very good news for 2025 but when you're growing your business such you know it is not easy to always have working capital that is positive that is a very difficult thing having said that and to answer the last of your questions the you said can your sales grow by two digits well if revenues are going to grow by two digits well the the portfolio had a very the construction portfolio portfolio had a very good performance but these are phased uh projects these are important projects such as the ones we have in the united states and in canada and although they have pushed our project portfolio up I think that in 2025 we started at 6.5 billion and we finished at 9.5, but the maturation period is longer, so this allows us to distribute the execution risk and do it chapter by chapter or phase by phase. So to answer your question, there will be a growth in construction sales in 2026, but the growth will be more moderate, but we will have a lot more visibility than we had at the end of 2024. so the growth will be more moderate. So the revenues are not going to grow at that 50% level as the portfolio grew. Next question. What projection of dividends can you give as you lower your debt? Well, you know that we don't give any guidance in terms of dividends. We have this flexible dividend, and last financial year it was 0.5. It is set by the board of directors before the general shareholders' meeting. It's not that by having lowered the debt we are going to be able to pay a high dividend because we always try and we always want to emphasize growth provided that it is profitable and safe. We believe we do have a potential, but those things are not really... directly connected. For example, last year we ended at 2.3 billion euros of net financial debt. And just with EBITDA and the elements impacting it, we stand at 1.4 billion. So it's less than two times debt EBITDA. And a significant part of our activities are utilities or proxy utilities. So the financial strength of the group, not in 2025, but from much earlier, has been absolute. So I would answer that those things are not directly interrelated, but the profitability dividend ratio, I believe, is highly satisfactory nonetheless. Next question. Were additional provisions made in environment in the fourth quarter? No, not that I can think of. The ones I mentioned, that practically, let me go back to it, I think I said at the beginning, 96 million euros there could have been some adjustment but in the first half we informed we reported 89.2 so there were small variations but because of the provisions I mentioned to do with some assets where the value had to be adjusted and some projects related with some risks we had under this discussion but there were no in the fourth quarter there were no differential provisions. Next question. Could you quantify the impact of one-off adjustments in construction during the fourth quarter of 2024, both in sales and EBITDA? Have these adjustments resulted in outlays, or will such outlays materialize in the next few quarters? How do you expect the working capital to perform this year? Well, let me go back to the answer I gave to your colleague with respect to the provisions in the construction area. So, part of the impact on the EBIT in the fourth quarter resulted from the adjustments we made in some projects, and in some cases we just readjusted or recalculated forecast in terms of the completion of the works but um so we'll see how it goes all of this is very much alive so none of these things respond to any payments that have to be made to any particular person it's just so there's no differential cash flow there's no difference with respect to the performance of any other project. So it's not due to any litigation or anything. There's nothing special to mention about the outflows. Now, in terms of the working capital, I already mentioned that the working capital is a very much alive variable which responds to payments and collections. And until the year... doesn't close, it's very difficult to say. We would love to also have a positive workflow evolution in 2026, but, you know, we normally work with positive working capitals, and this is only logical because we try to We are very strict about the payment and collection conditions. We are normally stricter than our own customers, but we do our best in this respect. So, if we still keep increasing our revenues, it is going to be difficult to keep such a positive working capital profile as we have kept now what is the net like-for-like result adjusted by the different one-offs of the year Well, I would say that we don't have a calculation for that, because in a group such as ours, you can agree on a series of adjustments that we can make. I think that you have all the documents, you can use the adjustments you need, I mentioned the four blocks, which we believe are most significant to understand the full picture, but if I had to make an adjustment, I would look at the evolution in revenues, because the evolution of operational margins with the different things I mentioned for the different areas didn't undergo any variations, so that would come very close. to the variation of a net profit, a comparable net profit of the consolidated group. It would come very close to the high figure in terms of the evolution of RPNL. There's no further questions.

Okay. Thank you very much again for joining. As you know,

I'm sure you will be able to peruse our annual accounts in detail. You know that we are always available on the usual channels. So, thank you very much and have a good day.