This article first appeared on GuruFocus .
Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue increased 9% to 2.437 billion, with EBITDA also up 9% to 708 million, reflecting strong operational performance.
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Net profit attributable to shareholders surged 157% to 78 million, driven by the accounting impact of the Columbia divestment.
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Concession portfolio valuation rose 16% to 4.601 billion, with expected total distributions of nearly 20 billion, up 17% year-on-year.
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Shareholder returns improved significantly, with a 122% increase in the cash dividend to 0.10 per share.
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Water business revenue grew 33% to 185 million, and the company secured major contracts like the Antofagasta Water Reuse Plant in Chile.
Negative Points
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Consolidated net debt increased by 429 million to 6.788 billion, driven by investment in concession portfolio expansion.
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Working capital experienced a cash outflow in the quarter due to high tender costs for U.S. managed lane projects.
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The company faces execution risk if not awarded key U.S. managed lane projects (I-2040 and I-285), which could impact strategic plan targets.
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The I-77 project in North Carolina faces political uncertainty, with a new voting process needed after a previous vote against it.
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Seasonal payment patterns for some assets may cause fluctuations in operating cash flow, with no specific one-offs reported.
Q & A Highlights
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Q: Regarding the strong operating cash flow (FFO) in the first half, were there any one-off items or collections that could cause a decline in the second half of the year? A: (Carlos Mijangos, CFO) There were no specific one-offs. The performance is largely due to the seasonal nature of our assets, as many availability-payment contracts are paid semi-annually in Q2 and Q4. This is a normal seasonal development, not a one-off.
Q: There was a cash outflow from working capital in the quarter. Can you provide color on this and whether it can be recovered in the second half? A: (Carlos Mijangos, CFO) The working capital outflow was primarily due to significant costs incurred by the engineering division to prepare and submit tenders for major projects in the United States. This is a temporary impact that is expected to be offset during the year due to the natural seasonal characteristics of the business.
Q: Regarding the managed lane projects in the US (I-24 and I-285), if you are not awarded these projects, how would this affect your strategic plan? A: (Manuel Enrique, Executive Chairman) Being prequalified for three out of three managed lane projects is already a success. If we are not awarded these specific concessions, nothing will fundamentally change. Our success rate is significant, and we are the third company globally for greenfield financial assets. We intend to rank first by 2033, regardless of these specific awards.
Q: Can you provide an update on the Messina Bridge project in Italy? A: (Pedro Sicuenza, CEO) The Italian government continues to show readiness to approve the project and submit it to the inter-ministerial committee for clearance by the Court of Accounts. The current target is for the project to be approved by the end of 2026.
Q: What is the status of the I-77 project in North Carolina and the I-285 project in Atlanta? A: (Pedro Sicuenza, CEO) For the I-77 in North Carolina, the city of Charlotte voted against the project, but a new mayor has been appointed and a new voting process is expected at the end of this year. We are optimistic it will proceed. For the I-285 in Atlanta, we believe pre-qualification will be approved before the end of the year, with the final award decision expected next year.
Q: Can you provide a breakdown of the committed equity and distributions by key concession projects for the 2026-2030 period? Specifically, how do you account for the increase in distributions from 2026 to 2028? A: (Carlos Mijangos, CFO) For a detailed project-by-project breakdown, please contact our investor relations team. The increase in distributions is driven by projects in Chile that are being commissioned, projects under construction in Colombia, the I-10 in the US, and our water projects. The significant increase in 2028 is due to many major projects awarded over the past three years becoming operational.
Q: Regarding the concession asset valuation update, how has the discount rate evolved, and what is the weight of the water division's assets in the valuation? A: (Carlos Mijangos, CFO) We have kept the same discount rates as in prior updates. The average rate is now 10.64%, down from 11%, but this is purely due to the removal of higher-risk Colombian assets (which had a 14% rate) from the portfolio. A 100-basis-point improvement would lead to a 400 million increase in asset value. For the water division, the discount rate is 16%, which has increased from 2024 due to the award of several significant new projects.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
