JPM | Building Broadcast: BZU,HEI,HOLN,CRH,FER,FGR, DG,FHZN JPMC Construction Daily

Research evidence excerpt

JPM | Building Broadcast: BZU,HEI,HOLN,CRH,FER,FGR, DG,FHZN JPMC Construction Daily

cent volatility in yields, and move our

valuations for the I-66 and I-77 to a DCF methodology. Overall, we remain positive on

Ferrovial, which we called out as the best positioned in the sector at the end of the March

(link to our report) following the initial impact on the shares from the Iran conflict.

Although the shares have since performed more strongly and outperformed the sector, we

continue to favour Ferrovial and toll roads more generally to airports given the inflation

protections the toll road operators enjoy and the ongoing risk to airport traffic from the

price and availability of jet fuel (link to our report). Link to our report.

• Ferrovial April TomTom: Traffic sequentially improves; down 4.6% y/y. We present

the latest congestion data from TomTom for the Toronto area, offering an alternative view

of traffic conditions on the 407-ETR. The April data indicate a downward trend in traffic

congestion y/y, with levels 4.6% lower than those in 2025 (vs.-10.9% in March and -

11.6% in February). We highlight that traffic congestion as per TomTom was down 3.8%

y/y in Q1 2026, while 407-ETR traffic indicated an 8.2% increase over 2025 levels, and

bear this in mind when considering the implications of April’s data for the 407-ETR’s Q1

traffic. We also remind that in the Q1 conference call last week (link to our feedback)

management cautioned that while the use of more selective promotions could mean lower

traffic in the coming months at the asset, this is not expected to prove a revenue driver,

with the implication being that more targeted promotions will reduce total traffic

volumes, but also reduce the dilutive effect of promotions on revenue per transaction.

Link to our report.