Ferrovial SE Price & Performance (FER)

I sixty six is committed to improving the life of communities in the state of Virginia. Inside and outside the corridor. I sixty six, delivering multimodal mobility solutions today for the needs of the future. The I sixty six project is one of a kind in the world due to its size, complexity and innovative approach to development and delivery. It addresses congestion sustainably across the entire corridor with an emphasis on improving public transportation and creating green areas that will improve the quality of life of all citizens in the region. 225 new lane miles will connect Washington DC and Gainesville, saving citizens hours of traffic delays and congestion, improving the lives of citizens and transforming the concept of mobility in Virginia. An innovative approach to life cycle optimization which instead of requiring $1,000,000,000 in public funds, generated 1,700,000,000.0 of value for Virginia. Providing critical multimodal mobility in the region and renewing public transportation.

I'm happy to say that this project you see here is a swing for the better for the taxpayers of $2,500,000,000 Construction of I-sixty 6 is being completed in record time. On track to its December 2022 target date. Meeting all key intermediate milestones, even increasing production during the pandemic. And generating ample Good afternoon, everybody. This is Silvia Liza speaking and I would like to welcome you to Furoville's conference call to discuss the financial results for the full year 2024. Am joined here today by your Chairman, Rafael Elpino our CEO, Ignacio de Dejos and by our CFO, Ernesto Lopezmozo. Just as a reminder, both the results report and the presentation are available on our website since yesterday after The U. S. Market closed. The end of the presentation, there will be a Q and A session. As in previous calls, you will have the opportunity to ask questions live. On your phone keypad. If you prefer, you can send them through the forum included in the webcast and I will be reading them out loud at the end of the Q and A session. With all this, I will hand over to Rafael. Rafael, the floor is yours.

Thank you, Silvia, and good afternoon, everyone. Tel Rovial delivered solid growth across all business divisions in 2024. In Tall Roads, our North American assets experienced robust traffic performance and revenue per transaction growth at significant significantly outpaced inflation. In airports, the construction of the new Terminal 1 continued to advance with the NTO team achieving significant in 2024. And in construction, profitability improved significantly with our adjusted EBIT margin reaching 3.9% for the year, surpassing our target of 3.5%. We ended the year with a strong ex infrastructure net net position of minus $1,800,000,000 We received $947,000,000 in dividends from our infra assets an all time high figure including the first dividend distributions from I66 and I77 of 89, and $2.00 $5,000,000 respectively. In addition to that, we collected €2,600,000,000 from the investments primarily from the sale of a 19.75% stake in Heathrow Airport for €2,000,000,000 and the sale of a 5% stake in IRB infrastructure developers for $211,000,000 These inflows were combined with growth investments and distributions to our shareholders. Investments totaled SEK 1,600,000,000.0 and consisted primarily of the acquisition of a 24% stake in IRB Infrastructure Trust for €710,000,000 dollars and $469,000,000 of equity invested invested in NTO.

During the year, we returned $831,000,000 to our shareholders including $271,000,000 from the 2023 program And in addition to that, the company repurchased shares totaling $272,000,000 In 2024, we also achieved significant milestones aligned with our strategy. [indiscernible] Theravail shares commenced trading on the NASDAQ on May 9, 2024 a crucial step in our increased focus in North America. In India, we acquired Etan $728,000,000 of which $710,000,000 was paid in 2024, and was partially financed by the sale of a 5% stake in IRB infrastructure developers $211,000,000 And we divested a 1975% stake in Heathrow for €2,000,000,000 consistent with our strategy of rotating the mature assets. Finally, we completed other asset sales in the year like the disposal of Umbrella Rose PV $400,000,000 and the sale of our stake in Cerveo for $55,000,000 In the following slide, we review some of the main figures for the year. Revenues totaled $9,500,000,000 a 6.7% year over year increase on a like for like basis driven primarily by higher revenues in toll roads and construction. Adjusted EBITDA surged to €1,300,000,000 dollars a 38.9% year over year increase on a like for like basis due mainly to a higher contribution from our U. S. Totaled assets and our construction business.

The construction order book attained an all time high of $16,800,000,000 with almost 50% coming from North America. Dividends from projects reached a record $947,000,000 and included the first distributions from I66 and I77. Net debt position ex Infra projects reached minus $1,800,000,000 And finally, total shareholder return in 2024 was 25.7%. Now, I will hand it over to Ignat who will review Ferroga's performance on the 2024 results by Business Division. Ignacio, the floor is yours. Thank you, Rafael, and hello, everyone. Let me start giving an update on our growth strategy. First, our main infrastructure assets in North America or U. S. Managed lanes and the four zero seven ETR are expected to continue delivering a strong revenue growth And next year, we should add a new relevant asset. The new Terminal 1 at JFK Airport. Second, we continue to see significant growth opportunities in North American toll road assets. Have a record pipeline of new managed lanes in North America, including the I-eighty 5 East in Atlanta, and the I-twenty 4 in Nashville. Which are set for bidding next year. Additionally, four more projects are expected to launch the bidding process within the next three years. We also see good opportunities for other infrastructure projects in The U. S. Including airports with capacity expansion needs or greenfield digital and energy infrastructure.

We'll continue to be opportunistic in other geographies we have capabilities and we'll rotate mature assets when they offer more value to third parties than they do to us. This growth will be funded by solid cash flows expected in the following years, and we will maintain our financial discipline a focus on value creation, for our shareholders. Sustainability is at the core of our strategy, and we believe it creates value for the company. To capture that value, we have identified KPIs with specific targets that we report every year. Are progressing well in all of them, and I want to highlight the 26% reduction in the serious injury and A 35.8% reduction in the scope one and two CO2 emissions versus 2020.

And the 26.7% reduction in water consumption versus 2017. We have defined new CO two reduction targets aligned with the science based target initiatives 1.5 Celsius degrees trajectory, aiming to reduce our scope one and two absolute emissions by 42% by 02/1930, compared to 2020. And our SCOPE three absolute emissions, by 25%. Our high sustainability ratings are a consequence of the implementation of our strategy. And we are very well positioned in all of them leading our industry. Last year, we increased our toll roads like for like revenues by 19.6% and EBITDA by 19.5%. Data does not include equity accounted assets. In the case of our North American assets, revenues increased by 22.8% and EBITDA by 22.2%.

Total toll road dividends in 2024 were €895,000,000 €191,000,000 more than the previous year. And all our North American assets distributed dividends last year, Moving now to the 407 and Toronto area. Traffic grew 4.8% last year, supported by increased mobility in the area. The impact from construction activities on the 401 fewer winter weather events and more promotional offers mainly in the last quarter of the year. Revenue grew 14% year over year and EBITDA 15.1%. The new toll rate was implemented on January 1 with a goal of providing more demand segmentation through more tolls zones a new vehicle classification along with an increase in fees for the first time in five years. Last year, the four zero seven had a record dividend distribution of hundred million dollars for the 100% a 15.8% increase compared to the previous year. The Greater Toronto Area Hamilton has a strong long term growth prospect with an expected population growth of 48% reaching €11,400,000 by 02/1946 compared to €7,700,000 in 2021. This growth is driven by continued migration and a favorable economic climate. Most of this new population is expected to be located along the 407 Corridor. Where multiple urban growth centers are planned.

Enhancing connectivity and driving economic growth. All these prospects give us confidence on the value serving as a reliable solution to congestion in the area. Moving now to the text and managed lanes, average revenue per transaction grew by 6% at NTE compared to 2023, 8.8% at LVJ and 12.5% at 35 West all of which are well above inflation. In January, the soft cap was updated for 2025. Increasing by 2.9%. We have seen all these assets benefiting from increased mobility inter corridors. Traffic decreased by 2.2% at NTE due to the capacity improvement construction works. Increased by 73% at LPGA with strong performance due to lower impact from construction works in the area an increase by 22.3% at 35 West supported by the opening of Segment 3C in June 2023. Additionally, adjusted EBITDA grew by 3.3% at 17.2% at LPG, and 36.8% at 35 West. Including $40,000,000 of revenue share in 2024. This strong performance from our Texas band of flames is underpinned by Dallas Forward robust business activity which keeps bringing new businesses and residents to the region. Last year, the area was the number one destination for moving and the number one location for corporate headquarter relocations.

The population is expected to grow by 55% twelve point four million by 02/1950. This growth is spread throughout the Dallas Fort Worth region. Enhancing mobility and driving economic development. The I66 saw a significant increase in revenue per transaction by 33.2% last year, continuing its ramp up after opening in 2022. And benefiting from a strong peak performance. Traffic increased by 11.1% revenue by 47.3% and adjusted EBITDA by 52.3%. Additionally, the I66 paid its first dividend of $172,000,000 at 100% in December. [indiscernible] The I77 delivered a solid performance in 2024. With an 11.7% increase in revenue per transaction was impacted in the fourth quarter by the temporary subsidy of toll rates support recovery efforts after Hurricane Ellyn, Traffic grew by 4.7% over the previous year, the last quarter positively impacted by the closure of alternative routes affected by the 5.7%, including $4,600,000 of revenue share, in 2024, and $5,400,000 of extended vehicle payments. I-seventy seven paid its first dividend of $3.00 $7,000,000 at 100% last year. [indiscernible] performance is underpinned by Northern Virginia's high household incomes. And robust job market. They continue build out of several projects in key areas along Day 66, should continue to support job growth and high incomes in the region.

Meanwhile, Charlotte was the number two destination for moving in 2024. And the number three fastest growing city in 2023. The region continues to attract companies in key sectors including technology, finance and transportation. Now turning to our business in India. Last year, we acquired a 24% stake in IRB Infrastructure Trust, the private impet. For €728,000,000 of which we paid €710,000,000 last year. This acquisition includes a portfolio of 15 rod projects and provides us with the opportunity to invest directly in new assets in India. The acquisition was partly funded by the sale of 5% stake in IRB for €211,000,000 three times the transaction price paid in 2021 resulting in a pre tax capital gain of €132,000,000 We still own a 19.9% stake in IRB, making us the SENCO largest shareholder. IRB had a good performance last year with a 9.4% increase in revenues a 12% increase in adjusted EBITDA while the IRB private impet reached €243,000,000 revenues and €114,000,000 adjusted EBITDA. We continue to see good growth prospects in India, with a robust pipeline of new toll roads and a strong real GDP growth. Now moving to the AirPower business. Last December, we closed the sale of our 19.75% stake in Hydro for €2,000,000,000.

Resulting in a profit impact of €2,570,000,000 including the fair value of the retained 5.25% stake which was registered as a financial investment. On February 26, we announced the agreement for the sale of the remaining 5.25% to Ardian for £455,000,000 transaction is subject to complying with the right of first offer, which may be as a by shareholders and to the satisfaction of applicable regulatory conditions. This divestment aligns with our value creation strategy through mature asset rotation. The new terminal one reached a physical progress of up to 60% by the end of twenty twenty four. Remaining on budget and on schedule. The year 2025 is going to be crucial with key project milestones and system integration Commercial agreements are progressing with leases signed with 10 airlines cease letter of intention and advanced negotiations with several airlines. Last year, NTO closed at $2,500,000,000 green bond refinancing and total equity contribution so far have been €742,000,000 with €329,000,000 pending. Dalaman Airport reached a new record last year with 5,600,000 passengers. A 7.7% increase compared to the previous year. Revenues were €82,000,000 and adjusted EBITDA was €64,000,000 increasing by 16.216.6%, respectively. The AES divestment was completed last January for £450,000,000 resulting in a capital gain of £300,000,000 to be booked in the first quarter of twenty twenty five.

Our construction revenues reached 7,000 hundred and €34,000,000 last year, which is 3.8% above the previous year on a like for like basis. Adjusted EBITDA was €430,000,000 and 95.4% more and adjusted EBIT €84,000,000 compared with €77,000,000 the previous year. Our adjusted EBIT margin was 3.9%, surpassing our target of 3.5%. Budimes continued its strong performance with an 8% adjusted EBIT margin, Weber maintained a stable margin of 3% and Fabriel construction improved to 1.8% due to the absence of losses from large projects. Our operating cash flow reached €291,000,000 last year, We finished 2024 with a record high order book, 49% in North America, and with €2,700,000,000 in pre awards or projects awaiting financial close not included in the 2024 figures. We maintain our average long term target of 3.5% adjusted EBIT margin. And now Ernesto will continue with the main financial information.

Thank you, Ignacio, and good afternoon, good morning to everyone. I will start reviewing the lines below EBITDA. We start with the depreciation. And we see a growth that is due to two main components. One of them is, of course, we have more traffic in our roads and that brings higher depreciation, especially in the I66 that has a higher value. Also, we have more depreciation from equipment and machinery in construction. We have more on resources ahead of increased activity in the coming months and years. Also, when we go down below EBIT, we go to this impairments. And of course, this is the line where we see the impact of the sale of 19.75% of Heathrow and others like the IRB stake. Going to financial results. We have the financial results from infrastructure projects And here we have an increase that is due to different factors. One of them is Aregiri in I-seventy 7. And that it paid the first dividend. And also we have higher expenses due to the fact that most of this debt is denominated in U. S. Dollars that are appreciated. Along the year. When we look into the ex infrastructure projects financial result, you see a big income and here, Jim, main component is the remaining stake in Heathrow, the 5.25%.

Has been reflected at fair value, fair value like the price the 1975% that was disposed. Okay. So this goes through fair value adjustment and flatters this number. In terms of equity accounted affiliates, you see here the growth mainly from the four zero seven, but the this incorporates all the different equity stakes we have equity consolidated. Then we have income tax. Here you have to bear in mind that the capital gain is tax exempt. Do you have the regular payments in places like Poland and also withholding tax from dividends coming from from Canada. So that is the main summary of the net results, we can move on to the following slide where we see the cash evolution. And here we had very solid year with dividends from all our infrastructure assets in the toll road portfolio and then other projects in other divisions totaling €947,000,000 Also the operating cash flow from construction in tax payments here, we have what I mentioned basically taxes in Poland and these withholding tax that I mentioned before that also affected recurring cash sorry tax for the year. And then in terms of investment, as we mentioned in the introduction, and along the way, we have invested a lot in in infrastructure, also in this block we reflect the cash the return we get on the cash in hand.

That's the reason why it doesn't match with the bulk investment that we commented before. When you have the 170 that I was mentioning, right? Then after that in received on the cash in hand, we have divestments that we have also been mentioning. Regarding shareholder distributions, I will get more explanation of this in the following slide, euros $831,000,000 Also, we bought treasury stock EUR $2.72 and then we have other cash flows used in financing activities. This has to be seen in conjunction with the banner. We have a at the bottom because most of it has been used to pay down debt. And all this brings down with a positive FX effect on the net cash position to an cash position close to SEK 1,800,000,000.0. Okay. If we move to the following slide regarding shareholder distributions, were the first thing that we commented in the Capital Markets Day. We had a guidance of distributions to shareholders of $1,700,000,000 for the period 2024 to 2026. And we have upgraded that to a minimum of 2,200,000,000.0 This could be reviewed upwards And here, I anticipate one of the questions that you may have You may say, okay, well, what happens if you win one managed lane in 2026?

Where the capital gets deployed five or six years after, well, that shouldn't be really limiting maybe additional distributions, right? So we will have to analyze all the things that could be won or invest short term and long term, but a specific management that is what you all have in in mind shouldn't be affecting this distribution. Also, we have considered when we upgraded this the recent announcements of well, the the 5.25% in heat remaining and also the sale of of AGS. Regarding what we have been distributing along the year, you knew that we had to catch up with distribution in 2023. So this year, we have dedicated $271,000,000 to buybacks. From I mean corresponding to that year. Corresponding to 2024, we had €130,000,000 cash dividend and then a share buyback of €130,000,000 And for 2025, we have announced the regular $570,000,000 mixture of dividend and share buyback. It will be cash out to you distributed to the shareholders. And then we have also announced an additional buyback program of up to €500,000,000 Okay. So I mean after reviewing this distribution to shareholders announcement, I hand it back to Rafael for the closing remarks.

Thank you, Ernesto. Looking ahead, we are confident in our growth prospects. We will remain focused on generating value for shareholders by striking an appropriate balance between new investments and shareholder distributions. Driving value from our existing portfolio of infrastructure assets which are located in areas with a strong economic growth are able to price above inflation on future long duration and capitalizing on the attractive pipeline of new opportunities we see in North American toll roads over the next few years.

Thank you.

Rafael, Ignacio and Ernesto.

We will now start Q and A session. So operator, please, you can go ahead. Thank you. Ladies and gentlemen, we will now begin the Q and A session. [indiscernible] And our first question comes from the line of Luis Pietro from Kepler. Please go ahead.

Hello, I don't know if you heard me. Hello, Luis Pieto here from Kepler. Thanks for taking my questions. I have three questions, if I could. The first one is following up on your presentation mentioning that you would make selected investments in other [indiscernible] What is the current status on this front I'm particularly interested in the potential pipeline in airport terminals. Are there any NTO like opportunities out there at present? The second question is, following. From what Ernesto said a moment ago, am I right to assume that the announced additional buyback program could theoretically be extended to next year? Another €500,000,000 for example, if the investment pipeline allows And the third one is if you could please shed some light on the seasonality of Schedule 22 payments that we could see in their quarterly accrual this year? Thank you.

Thank you, Luis. And I will take the first on the the third and then Ernesto will be back with the second of your questions. About the investments in The U. S, as Novo was first, reminding that our first priority is toll roads in North America. But of course, on top of that, we are looking to invest in other type of infrastructure in which we may have capabilities to create value. We are looking opportunities in airports. Also, I think it's too early to anticipate any specific opportunity. Probably after the opening of the NTO, the new Terminal 1, is a success I'm sure that there may be other airports that may be interested in working with private players in order to speed up some of their expansions that they may need At the moment, nothing specific. Energy, we have a first coming solar project in Texas, Leon. And we are looking for other opportunities similar, but again, rotating assets very fast. And probably for Digital Infra is the [indiscernible] and we are first focusing on Spain and Poland and also looking when we have capabilities in The U. S. But probably it's still a little bit early.

In the case of the seasonality of the schedule 2022, I think that no more to what we have mentioned before. In the way that, yes, in the first quarter of the year, we will put the schedule 2022 provision based on the expected traffic at the end of the year and also expected on the schedule 2022 payment, but based on the first quarter performance. So I think it's going to be difficult with the first quarter twenty anticipate how much will be for the whole but you can do based on your estimates. So I think that, you have to wait probably to the second, third quarter to have a much better estimate of the total payments of the scheduled 2022 for the year. And Ernesto, you can go with the them. Yeah. Hi, Luis.

Did you rightly pointed out that it's based on investment opportunities? The idea is that we are not going to be sitting on cash. We're looking forward to invest in opportunities that are attractive and that will mark the possibility of additional remuneration or investment.

Thank you very much.

Our next question comes from the line of Elodie Raul from JPMorgan. Please go ahead. Hi, good afternoon. Thanks for taking my questions. First of all, on the Fourseven, I Want I Would Like To Clarify The Guidance. That Was Issued There For Higher TRY Higher Tolls, But In Polanyi, higher earnings expectations for '25 So my question is, does it include schedule '22? When you talk about guidance for higher earnings in 2025? That's my first question. Second question on the 4.7 is if you could help us understand how the trends have been so far If there's been any reaction from commuters to the toward increase? And my last question is on tariffs. I was wondering if under the Trump administration, if the tariffs that are being considered also in as a consequence from a lower economic growth. But also in The U. S. Thank you.

Thank you, Hello, Dae. I will take your questions. Yes, the four zero seven in the report, the management of the four zero seven said that they were optimistic, not about the new tariffs implemented for the four zero seven at the beginning of the year. Also that we're optimistic about the promotions. It's too early to say. And also about the growth in the area, no? So as you know, we don't give any specific guidance about the four zero seven. But what you can do is read about the what the foresight management is saying about these three specific points. Trends so far, I mean, with the new tariffs, nothing specific. I mean, it has been just two months. The weather, the winter spends have been more than the previous year, It's too early to say any implications of the increase in tariffs for the traffic. Last year, as you know, the elasticity was pretty low, not with the increase of times. And in the case of the Trump administration, a new policies about tariffs to some of the imports to the country. I think it's too early to say. Most of the things that we buy in The U. S. Is local.

I mean, 97%. We have a Buy American clauses in some of the contracts. Also, I mean, we may be exposed to in some specific cases, local producers increasing prices. We have some clauses in some contracts with ask for compensation if it's needed in some specific contracts in the in The U. S. But I think it's too early too early to say. No? Of course, if there is a tariff very big tariff increase with Canada, foreign imports, it may affect the GDP growth in Canada and more specifically in Ontario region and Toronto. And of course, lower GDP may have an impact traffic because of that. Thank you.

The next question comes from the line of Grant Hunt from Jefferies. Please go ahead.

Yes, thanks very much. For the questions. I'll ask two. Firstly, just coming back to the share buyback in your net cash position.

I guess I just want to understand what what's driving the conservative approach to the balance sheet today You made the point in Eto'o about new managed lanes not having an impact until beyond 2026.

And if you don't see investment opportunities in the next year, you could extend that buyback. But is it something that's kind of on the table that you're not specifically looking at, but are there opportunities that you're seeing that is driving you to keep that flexibility today And can you shed any light on on kind of what asset types those might be that you're you're retaining that capital flexibility, that would be helpful. And then second question, just on your S. Listing and journey towards index inclusion. Could you just remind us where you see yourself in terms of timeline there? Do you have any updated expectations as to when that might become a possibility? Thanks. Thank you, Ram.

I will take the first one and then Ernesto will take the second about the listing. And I think about what we see as growth opportunities is what I mentioned in my first slide of the presentation. So the focus is going to be in opportunities related to North American toll roads, Also, we look in The U. S. For airports, energy and maybe data centers. And also will be opportunistic in other countries. So these are the main focus that we have in the company and what you could expect from us in the in the following years. And we are taking that into consideration when we have taken the decision about the server back and what an additional dividend that Ernesto explained before. Ernesto, you want to follow with a second?

Yes. So basically now the idea is to keep increasing investor awareness in The U. S. I mean, you can access some indices with some liquidity in The U. S. It's small and it's more achievable, let's say. So that's the the idea right now. Other indices are more of a long [indiscernible] is more kind of a long term play, but given additional awareness to investors in The U. S. Could bring access to some indices where we qualify by market cap and it's only minimum liquidity that is that is needed. Thank you.

Our next question comes from the line of Josemar Royas from Santander. [indiscernible] First question, there have been a number of questions so far on the extraordinary cash return, but I wanted to better understand your thinking behind the ordinary shareholder remuneration. The ordinary shareholder remuneration in 2025 is only growing 2% year on year while slicing the dividends Ferrovial has collected from its various assets have grown by a lot more by 28% How should we interpret this discrepancy? And caution from Fabriel Does this mean that Fabian is expecting dividends to come down in 2025, 2026? Or should we just sort of be just saying that Terra Real wants to keep cash at hand. That's my first question. My second question is on your leverage [indiscernible] And the asset has been adding debt for the last five years. I think to the tune of CAD1 billion. And I wanted to understand for how long this additional deleveraging can continue? And my last question is on your treasury stock position. I think at year end, Cerro Real holds almost 8,000,000 shares in treasury stock. Will Fera Real cancel these and the new shares it will buy back in 2025?

Thank you.

Okay. Thank you. I will take take them all. Well, you know that we don't provide a guidance for dividends, but it's true that a long time, you see that dividends from infrastructure projects are a good proxy and they have been supporting them very in line with the cumulative dividends paid. We don't provide guidance neither on how much of that we distribute nor the expectations for the for the future in terms of dividends. It's true that all our assets keep having strong operating growth. So a long time, they should expect to grow in in dividends. That's natural. We don't provide specific guidance. The only guidance we provide the 2024, 2026 dividend. And that's what we reflect and as we said, we have provided a minimum that depending on investment opportunities could go higher. Okay. So no, we will stick to that. Always flexibility we think is important because opportunities for value creation come in different timings, right? So it's good to have flexibility. Okay. Could you remind me of the second question? It was the leverage on the four zero seven, right? [indiscernible] The four zero seven has very solid ratings. So probably there is scope in I would say several years down the road to keep maybe adding some, but maintaining all these solid ratings that they that it has, right?

So there's headroom and you should be looking in your model at the normal parameters for for rating, right? So yes, it has really the capacity there to smoothly keeping that sort of additional leverage from time to time. And then please remind me of the last question.

Yes. It's on your plans to cancel treasury stock. The existing and the news that we acquired.

Okay. So treasury stocks are the treasury stock we have is not part of any of these numbers we discussed. Could eventually become shareholder distributions? Yes, it could. Could it be used for other things like employee stock option plans? Yes, it could. So is treasury stock, right? So we mentioned that EUR $272,000,000 of treasury of treasury stock. Yes, that's something that as all treasury stock can have different uses, we are not giving any specific use right now.

Ladies and gentlemen, please be reminded that in order to ask a question, you may press 5 on your telephone keypad. And our next question comes from the line of Gregor Kublisch from UBS. Please go ahead.

Hello. Thank you for taking my question. So wanted to explore a little bit the traffic situation in the managed lanes. And I guess specifically, I wanted to check what your thinking is on the ramp up of the I-sixty 6, where you think we are on that curve. And then remind me on the LBJ, I think there was sort of east entry work Can you just remind us, do you expect any sort of material growth? Is that finished now? Or just give us maybe some detail? That's question number one. Question number two on the NTO, maybe I should check, but have you signed any newer airlines and is sort of the price in line with your expectations? And then maybe give us an update when you actually expect To open the airport, I guess, I think it was mid-twenty six, is that right? And then you're supposed to start booking revenues after that, I suppose. And then on the 04/2007, can you give us an update how the promotion to manage sort of the peak traffic, I guess, is a mitigating factor to schedule 22 please? Thank you.

Thank you, Roberto. I will take all those questions. About the I-sixty six, well, it's the youngest asset that we have. And is still ramping up as we saw last year with increased POPs in traffic and revenues and revenue per transaction. There's still, we think that there is a room to to continue the ramp up, in the following months. See for how long with increasing the traffic in the following months. But also in these cases, we don't have a soft cap, as you know. So it's very different to other assets like Texamana's lanes. So it will be more difficult to know when we finalize the ramp up of the revenues per transaction because of we are moving to territory that we have not been, before. In the case of, LBJ, we saw an improvement last year both in the traffic in the corridor and also the capture rate. Because improvements in the construction construction is ongoing are not doing the construction, so we don't know. We have a specific date in which it will be finished. Our assumption is that it will last this whole year and part of the next. But we don't know exactly how that will progress.

But of course, once construction is finished, we should see more traffic to the corridor and also traffic coming from managed lanes that will fit LPG. In terms of NTO, what we have announced is that we have signed contracts agreements airline usage agreement with 10 airlines, some of them new last year, and also we have signed [indiscernible] and we are also negotiating with many others. We expect that most of the action will happen end of the year, beginning of the next year. Airlines used to plan one year in advance. Opening date for opening is June 2026. And we are on schedule, but the last year is is more complex when you have to integrate the different systems and you have to coordinate a lot of different players that have to give service. So we'll see, but the date that we have today is June 26. And in terms of the four zero seven and the promotions, [indiscernible] have not started the promotion, so we are still we are now contacting some of the potential users of the promotions, offering these promotions, but that will start during the month of March. The pilot that we did, especially at the end of the last quarter was positive.

But, I mean, it's different when you do a pilot that when it's going to be massive with more users. So I think it's too early to say. We have not launched yet.

Yet, but at the end of the first quarter, we'll see one month Maybe at that time, we'll have a little bit more color of the of the evolution of the of the promotions. Thank you.

Thank you very much. Our next question comes from the line of Augustan Sondahl from Stifel. Please go ahead.

Yes. Hello. Thank you for taking my questions. I've got two questions, mostly on your Construction divisions. First, on your order book, this year, you had a very strong performance and it seems to be driven by by Weber and BootyMax. I was wondering if you could explain what drove that increase in 2024? And if you have any example of project large projects that drove this or if it was really across the board an improvement in civil engineering or other sectors? And my second question is about BudiMex. I was wondering how you see the role of BudiMax in the potential rebuilding of Ukraine. As and when the war Well, thank you.

And will take the questions. Order books in construction and Last year, as I was commenting, it was a new record, an increase versus previous year and also have some projects that were not included at the beginning of the year. But I will say that the 49% is in The U. S. And mainly coming from Weber. Weber is doing mainly Harbiage projects and mainly Texas, and these are used $50,000,000 have been projects that there have been many, a lot of investment infrastructure. Also some of those in the East Coast, but more limited. But in general, I think we have seen a lot of activity related to highways and roads in Texas. And other states in the Southeast that is the main low risk, I would say, projects that is the main driver of the increase in the order book in Weber. For Videomics, after elections, what we have seen is more European funds And with that, more of the typical highways or railways projects that we are, I mean, doing frequently in Poland. So we have got more of these projects. I think that we all have the order book that we have the is will say, healthy and I think according to the level of risk that we want to have.

And concentrated in those places in which we want to develop capabilities also to do concessions. In the case of Budimex and Ukraine, Well, first, hopefully, we see an end to the conflict as soon as possible. And starting the reconstruction of Ukraine. I think that Poland will play a role in this in the reconstruction. Think that Bodimase will have capabilities, but it's too early to say what will be the impact how I think it's too early. I mean, first, we need to wait to the end of the war and after that, we mix based on the capabilities that they have they will analyze if they can create value, helping with the reconstruction of the country. But this early to share.

Thank you very much.

There are no further questions from the conference call at this time. So I'll hand the conference back to Sylvia Reeve. Thank you. Thank you. I will vote we have our couple of questions to the webcast. So I will start with them. First question comes from Ignacio Blanco from Santander. What strategy do you envisage in data centers after acquiring the first land plot? Any targets on megabyte capacity, equity contributions, partners?

Jane, data center, we have been supporting our customers building data center for the last fourteen years, mainly in the spec but also in other markets too. And what we are doing now is supporting this customer also with the with the development financing of some of the data centers that they may need in the places that we have capabilities, with leases. We are starting with that, so it's a very early stages. We have one piece of land in Madrid that is 40 megawatts IT project that we are working with one hyperscaler that they would like to lease to them. So whenever we have, whatever we have capabilities, like we have in Spain or we have in Poland, or we may develop in The US. We'll try to support our customers, but position will be working with hyperscalers and listening to them. And, well, at some point of time, if we develop some of these, we may rotate similar to other assets that have more value to third parties than to us. Starting with this first piece of land in Madrid, and this 40 megawatts IT Great.

Okay. A couple of questions from Freddie Kulinan from RBC. First question, what impact do you expect from the new U. S. Administration's tax plans and the bad resolutions recently passed by the House of Representatives.

Okay. I will comment on taxes. I think that regarding other things like tariffs and so on has already been addressed in the in the call. Regarding tax plans, I mean the main head line is the reduction from 21% to 15% in corporate income tax. I mean, this usually brings additional economic activities, something that is good for our assets and of course, a lower tax rate means higher asset valuation. But I mean, initial stages yet. Second question also for RBC prompt top up in buybacks or was this considered in the $500,000,000 buyback announcement?

Really, I covered this along the presentation because I mentioned that everything had been factored. In so the sale of AES and the remaining Heathrow stake. So I mean the evolution will be marked by our success in attractive investment opportunities that we are seeking.

Okay. There are no more questions to the webcast.

Okay. Thank you very much. For attending this twenty twenty four results conference call. And we look forward to engaging with you again soon.