The Bull Case For Ferrovial (BME:FER) Could Change Following Flexible €342 Million Scrip Dividend Announcement – Learn Why

• Ferrovial SE recently declared an interim scrip dividend totaling €342 million, allowing shareholders to elect to receive the payout in either cash or Ferrovial shares, with details set according to the number of shares outstanding on the ex-dividend date and payments commencing from December 3, 2025.
• The flexibility for shareholders to choose between cash or new shares in this substantial distribution highlights Ferrovial’s approach to capital management and commitment to shareholder returns.
• Given this option for shareholders to receive dividends as either cash or additional shares, we'll examine how it may influence Ferrovial's investment narrative.

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Ferrovial Investment Narrative Recap

To be a Ferrovial shareholder today, an investor generally needs to believe in the ongoing revenue growth potential of its North American toll road assets, supported by a strong order book and effective capital recycling. The recent scrip dividend announcement adds flexibility for near-term shareholder returns but does not materially change the most important short-term catalyst or the primary risk: whether robust toll growth and margin expansion in North America can be sustained without overestimating the durability of current trends.

Ferrovial’s share buyback activity, most recently the repurchase of 630,000 shares by June 2025, reinforces its capital return commitment and aligns with the optionality provided by the scrip dividend. Together, these moves keep shareholder value top of mind, particularly given ongoing optimism around earnings momentum and order pipeline visibility.

By contrast, investors should be aware that if macro or regulatory pressures challenge the sustainability of recent North American toll revenue gains...

Read the full narrative on Ferrovial (it's free!)

Ferrovial's outlook anticipates €10.5 billion in revenue and €843.2 million in earnings by 2028. This is based on a projected annual revenue growth rate of 3.9% but a significant earnings decrease of €2.5 billion from current earnings of €3.3 billion.

Uncover how Ferrovial's forecasts yield a €49.58 fair value, a 8% downside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community offered fair value estimates for Ferrovial, spanning from €40.42 to €53.17 per share. With expectations for enduring growth in North American concessions facing key risks, you may want to explore several viewpoints before deciding where you stand.

Explore 3 other fair value estimates on Ferrovial - why the stock might be worth as much as €53.17!

Build Your Own Ferrovial Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• Our free Ferrovial research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ferrovial's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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