IN Brief:
- Ferrovial’s construction order book reached an all time high of €18bn.
- North America represents 47.9% of backlog, followed by Poland at 22.9% and Spain at 14%.
- The construction division reported an adjusted EBIT margin of 3.5%.
Ferrovial has reported a record €18bn construction order book for the first half of 2026, increasing workload visibility across its North American and European operations.
North America accounts for 47.9% of the backlog, while Poland represents 22.9% and Spain 14%. The remaining work is distributed across other markets in which the infrastructure group and its subsidiaries operate.
The construction division produced an adjusted EBIT margin of 3.5%, broadly aligned with Ferrovial’s longer term target. Management has continued to emphasise project selection and margin rather than pursuing revenue growth without sufficient commercial return.
Group revenue increased by 11.3% to €4.7bn during the first half, while adjusted EBITDA rose by 21.6% to €746m, supported by infrastructure operations and construction activity.
The construction backlog has increased from €17.4bn at the end of 2025 and €17.3bn during the corresponding half year period in 2025. Its composition gives the company substantial exposure to three geographically and commercially distinct markets.
Poland’s share is largely associated with Budimex, which works across roads, rail, energy, water, industrial buildings, and public infrastructure. Spain remains an important domestic market, while North American activity is supported by Webber and major transport and civil engineering projects.
A large order book gives contractors greater visibility over revenue, labour, equipment, procurement, and regional demand. Profit remains dependent on risk allocation, inflation, design development, programme control, supply capacity, and client administration throughout delivery.
The 3.5% margin provides essential context because large infrastructure contractors can generate substantial turnover while retaining a comparatively small proportion as operating profit. A limited number of poorly performing projects can therefore absorb gains produced elsewhere.
Geographic scale increases management complexity
European contractors have become more selective after inflation, material disruption, labour shortages, and fixed price exposure weakened margins on work tendered before recent cost increases were fully understood.
Ferrovial’s current backlog spans regions with different currencies, contract forms, procurement rules, labour markets, environmental requirements, and supply chains. Geographic diversity can reduce dependence on one economy, but it also increases management, reporting, and commercial complexity.
Poland is delivering major road, rail, energy, water, and defence related infrastructure programmes, supported by European funding and national investment. That workload creates strong demand for contractors while increasing competition for labour, aggregates, concrete, steel, plant, and specialist engineering.
Spain retains a mature civil engineering market with active transport, water, renewable energy, and urban infrastructure programmes. Contractors operating there must balance the volume of public work against competitive tendering, approval periods, and the release of funded packages.
North America offers larger individual opportunities but frequently requires extensive bonding, local procurement, subcontract management, and compliance with state or federal requirements. Ferrovial’s established operations provide delivery infrastructure that would be difficult for a new entrant to assemble quickly.
The group’s construction activity also sits alongside its wider concession and infrastructure investment strategy. Contracting capability can support highways, airports, energy, and other assets in which Ferrovial holds a long term interest, while conventional external projects remain subject to separate commercial pressures.
Long duration infrastructure contracts are exposed to change throughout delivery. Labour agreements, environmental approvals, utilities, land access, design revisions, weather, political decisions, and third party interfaces can alter cost and programme several years after tender.
Indexation and collaborative contract structures can reduce some exposure, although they do not remove the need for accurate estimating, early supply engagement, detailed project controls, and sufficient working capital.
The concentration of almost half the backlog in North America makes performance there central to the division’s results. Poland’s 22.9% share is also large enough for Budimex’s project delivery and domestic market conditions to influence group margin materially.
Backlog conversion will depend on the pace at which clients issue notices to proceed, provide land or access, complete designs, and release funding. Contracted value can remain within an order book for long periods without creating immediate site output or cash.
A record backlog nevertheless gives Ferrovial a substantial base of secured work while several residential and commercial markets remain subdued. Infrastructure continues to provide major contractors with volume, geographic reach, and long term programmes unavailable in shorter development cycles.
The commercial task remains exacting because an €18bn order book magnifies both strength and exposure. Ferrovial must convert the secured programme into predictable cash and margin while preventing project level losses from overwhelming otherwise strong group performance.
