ACS (AO) | Hold | Operating earnings beat in Dragados, and reiteration of group guidance

Research evidence excerpt

ACS (AO) | Hold | Operating earnings beat in Dragados, and reiteration of group guidance

ACS Hold | Target Price: EUR145.95

Company description Management

ACS is one of the world’s largest contractors. Its involved in construction, through Florentino Pérez, Chairman/CEO

its subsidiaries FlatironDragados (US infrastructure) and Hochtief (listed in Angel Garcia Altozano, General Manager

Frankfurt and owner of CIMIC, formerly listed in Australia), and concessions Key shareholders

operation, via Iridium and, since 2018, a 50% stake in Abertis (30% directly and Free float 71.10%

20% through Hochtief). ACS also provides facility services through Clece and Florentino Perez 14.50%

operates various renewable energy assets, both business currently for sale. CriteriaCaixa 9.40%

Alberto Alcocer 2.50%

Investment case Valuation methodology

ACS has historically been more focused on contracting activities We value ACS using a sum-of-the-parts approach.

than some of its closest peers. However, its entry into Abertis’s We run DCF models for Turner and CIMIC in order to capture full

shareholder structure clearly flagged the firm’s interest in the earnings cycles and value Abertis on the basis of a SOP.

infrastructure developer space. Hochtief's valuation contribution is based on our SOP for the

ACS has become significantly focused on innovative German company.

construction projects (through Turner) and is starting to deploy We apply no overall holding company discount at present.

equity in these new forms of infrastructure. Data centres are the Risks to our rating

unquestionable star of the show on this front. Stronger-than-expected revenue growth and margin

ACS' Data Centre Investor Day in mid-November 2025 shed performance at Turner and CIMIC on the back of the increasing