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HomeFinanceNashville’s Traffic Nightmare Is Now a $9.2B Ferrovial (FER)-Led Project

Nashville’s Traffic Nightmare Is Now a $9.2B Ferrovial (FER)-Led Project

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On August 19, Ferrovial (NASDAQ:FER) announced it had been chosen to ship the I-24 Southeast Choice Lanes, a 26-mile project operating between Nashville and Murfreesboro. It is the largest single capital investment in Tennessee’s historical past and the state’s first public-private partnership. The price tag is $9.2 billion, though Ferrovial is not carrying it alone, since its DriveTN consortium also counts Transurban and Tikehau Star Infra as companions.

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The Model Travels Well

Choice lanes are acquainted ground for Ferrovial, which has replicated the model in Washington, D.C., Charlotte and Dallas-Fort Worth. On Virginia’s 66 Express hall, related lanes shaved up to 50% off peak-hour journey occasions. That is the pitch for I-24, a stretch of freeway that already ranks among the area’s most jammed: drivers who choose in get steadier speeds, and those in the free lanes should see less site visitors too.

The business behind the bid seems to be healthy, too. Ferrovial’s July 28 outcomes confirmed adjusted EBITDA up 21.6% on a like-for-like foundation to €746 million over the first six months of the 12 months, with U.S. highways doing most of the lifting. Those roads are sending money home as effectively, since Ferrovial acquired €357 million in dividends from North America. And the construction order guide reached an all-time high of €18 billion, so a lot of work is already in hand. The pipeline retains filling: Ferrovial bid on I-285 East in Georgia in July, and its D35 Highway bid in the Czech Republic was the most cost-effective submitted, with technical analysis still underway.

Beyond the roads, the steadiness sheet seems to be sturdy. Ferrovial ended the first half with €1.3 billion in web money, excluding infrastructure tasks, that means money outweighs debt outside those tasks. The airport arm is progressing too: Ferrovial has completed funding the $1.1 billion in equity it pledged for New Terminal One at JFK, and construction there is 92% full.

Fine Print Worth Reading

Start with the line that seems to be worst on the web page. Net revenue for the first half of 2026 came in at €258 million, versus €540 million for the same period of 2025. That earlier determine included capital features from asset rotation, which makes the comparability harsh, but the mismatch is still there: EBITDA climbed while reported revenue fell.

Then there is the work itself. Construction turned 3.5% of income into adjusted EBIT, proper on goal, so there is not much room for a expensive overrun on a large job. North America also accounts for 47.9% of the order guide, so a lot rides on one area. The $24.8 billion in concession worth cited for the project is a determine for Tennessee, not a revenue forecast for Ferrovial. And a successful bid is not a completed street: I-24 still has to be financed, constructed and operated, and the CEO talks in phrases of many years.

Quiet Money, Loud Multiple

Twenty-six hedge funds held Ferrovial in the newest quarter, up from 25 the quarter before. A small vote of continued curiosity, not a stampede. Just 0.97% of the float is bought short. That indicators very little organized skepticism. But at 42.55 occasions ahead earnings, as of September 18, the stock already assumes a lot of growth, so a stumble could harm.

Lanes, Not Guarantees

The I-24 win palms Ferrovial another large street constructed on a model it already knows. Bulls need Tennessee’s lanes to ship time financial savings like Virginia’s while the US freeway engine retains buzzing, and bears need the revenue line to keep trailing EBITDA. For you, the actual query is whether a confirmed playbook can justify a demanding price.

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Disclosure: None. Follow Insider Monkey on Google News.



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