Augustin Cendre's questions to Ferrovial SE (FER) leadership • Q1 2024
Question
Augustin Cendre asked about the Construction business, specifically whether the current backlog supports margin improvement and if the low profitability from new projects in Q1 would continue to be a drag.
Answer
CFO Ernesto Lopez Mozo explained that the Q1 margin was impacted by new projects in very early stages where profits are not yet recognized, which is a matter of timing, not final profitability. He expressed confidence in the backlog, noting that major projects were contracted post-inflationary spikes and are in line with current prices. He expects the division to achieve its 3.5% adjusted EBIT margin target for 2024, supported by a solid backlog and strong performance from Budimex.