CONSTRUCTION

Decline in revenues in comparable terms (-2.7%), mainly due to the finalisation of projects in the USA, as well as to the slowdown in the domestic market. Neither the growth at Budimex (+8.1% LfL), nor in the other international markets (particularly Australia and the UK) were sufficient to offset this decrease. International revenues was responsible for 83% of the division’s revenues, with the regional mix very much focussed on the company’s traditional strategic markets (Poland, North America, UK, Chile and Australia).

Profitability also declined, although it remained at high levels, due to the conclusion of very important projects in the USA.

BUDIMEX

2016 continued to follow the same positive trend as previous years. In comparable terms, there was a notable increase in the profitability of the business (EBITDA +70.8%), mainly due to the on-going management of cost of materials and subcontractors, as well as the revenue growth (+8.1%) derived from the accelerated execution of Civil Works and Residential Building projects.

The order book reached close to maximum levels, EUR2,027mn, (+6% LfL vs. December 2015). In 2016, contracts reached more than EUR1,350mn, of which approximately 45% relate to the signing of Civil Works contracts awarded under the 2014-2020 New Highway Plan. Also notable was the award of the combined-cycle incinerator plant in Vilnius, Lithuania (EUR87mn), which marked Budimex’s entry into the Lithuanian market and strengthened its position in the market for the construction of energy facilities.

WEBBER

The revenues included the company Pepper Lawson’s contribution, which was acquired in March. In comparable terms, excluding the impact from this acquisition, these fell by -9.3%, due to the conclusion of the NTE and LBJ projects. The drop in EBITDA was also due the finalisation of the above-mentioned toll roads. The order book grew by +14.1% thanks to the incorporation of Pepper Lawson and the contracting of around EUR400mn of organic business.

FERROVIAL AGROMAN

Ferrovial Agroman’s revenues fell by -6.2% in comparable terms, mainly as a reflection of the finalisation of US toll roads and the slowdown in the domestic market, which the growth in the rest of the international market (particularly Australia, UK and Chile) was not sufficient to offset. Profitability also declined, although it remained at high levels, due to the aforementioned conclusion of projects in the USA.

ORDER BOOK

The order book was up by +4.1% on December 2015 (+2.6% LFL). The Civil Works segment remains the largest segment (at around 80% of the total), very selective criteria are maintained when participating in tenders. The international order book amounted to EUR7,528mn, far more than the domestic order book (EUR1,561mn), and represented 83% of the total.

In 2016 Ferrovial has won some important contracts in its traditional markets, such as High Speed Rail California (EUR296mn), Olsztyn S51 Beltway in Poland (EUR175mn), a section of the US-175 toll road in Dallas (EUR91mn), another section of the SH-249 toll road (EUR88mn) and a combined cycle incinerator plant in Vilnius (Lithuania) (EUR87mn). Another highlight was the entry into the Slovakian market with the award of the D4-R7 Bratislava (EUR858mn).

The December order book does not include the Bucaramanga contracts in Colombia and the I-66 managed lane in Virginia (USA).