ACS: Leader in US data center construction may explore new frontiers, reiterate Buy

Research evidence excerpt

ACS: Leader in US data center construction may explore new frontiers, reiterate Buy

iQprofile SM ACS

Key Income Statement Data (Dec) 2024A 2025A 2026E 2027E 2028E Company Sector

(EUR Millions) Building Construction

Sales 41,633 49,848 55,443 61,867 67,380

EBITDA Adjusted 2,456 3,070 3,609 4,004 4,383

Depreciation & Amortization (866) (970) (1,121) (1,147) (1,218) Company Description EBIT Adjusted 1,590 2,100 2,489 2,857 3,165

Net Interest & Other Income (283) (471) (367) (362) (308) ACS is one of the leading diversified contractors in Europe

Tax Expense / Benefit 86.0 (453) (605) (696) (787) and holds number-one positions in construction by market

Net Income (Adjusted) 684 857 1,131 1,340 1,550 share in the US, Australia and Spain. The company is

Average Fully Diluted Shares Outstanding 272 260 260 260 260 structured into three main segments: Construction,

Key Cash Flow Statement Data Services and Concessions. It has an effective economic

Net Income (Reported) 930 917 1,216 1,446 1,664 interest of around 45% in Abertis. ACS owns a c.80% stake

Depreciation & Amortization 866 970 1,121 1,147 1,218 in the Germany-listed Hochtief, which has significant

Change in Working Capital 596 524 321 203 245

exposure to US construction via Turner and Flatiron, and Deferred Taxation Charge 0 0 0 0 0

Other CFO 401 636 364 364 361 fully owns CIMIC, the leading Australian contractor.

Cash Flow from Operations 2,793 3,047 3,022 3,160 3,488

Capital Expenditure (699) (1,535) (1,351) (1,441) (1,537)

(Acquisition) / Disposal of Investments NA (170) NA NA NA Investment Rationale

Other CFI (847) 0 0 0 0 ACS' equity story is underpinned by improving FCF

Cash Flow from Investing (1,546) (1,705) (1,351) (1,441) (1,537)

generation, attractive exposure to the US construction