Augustin Cendre's questions to Ferrovial (FER) leadership • Q1 2024
Question
Augustin Cendre asked whether the current construction backlog supports margin improvement and questioned the impact of low-profitability new projects on Ferrovial Construction's Q1 loss.
Answer
CFO Ernesto Lopez Mozo explained that the negative margin in Ferrovial Construction was due to not recognizing profits on large projects in their very early stages, like the Ontario line, which is standard practice. He expressed confidence in the backlog, noting it consists of projects contracted post-inflationary spikes, and expects margins to improve as these projects mature and recognize profits.