Large Spanish construction companies are selling assets due to lack of profitability

Published: Wednesday, 13 December, 2023


In recent years, major Spanish construction firms have chosen to divest assets in the country due to low profitability, redirecting these resources towards more lucrative investments in concession businesses abroad. Companies like Ferrovial, ACS, and Sacyr have spearheaded this trend, selling assets totaling 7 billion euros in the last two years, according to a report by Scope Group.

This strategy has enabled these companies to focus on the concession market, especially in the United States, where profit margins are broader. For instance, Ferrovial plans to enter the U.S. stock market and has allocated 9.5 billion euros to renovate the passenger terminals at New York’s JFK Airport. ACS, on the other hand, acquired 56.7% of the toll highway SH 288 in Texas for 1 billion euros, while Sacyr is negotiating the construction and long-term operation of a highway in Louisiana.

The report highlights that, in 2022, concessions made up about 20% of the revenues of large European construction companies, but more than 65% of the Ebitda. This focus on concessions is due to the pressure on profit margins in construction, caused by bottlenecks in the supply chain and cost increases, despite robust order portfolios.

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