Sacyr (Q+A) | Buy | What could be the impact of a managed lanes award in the US?

Research evidence excerpt

Sacyr (Q+A) | Buy | What could be the impact of a managed lanes award in the US?

Sacyr Buy | EUR5.65

Sacyr has been firmly on investors' radar since its 2024 CMD, when it announced the

Voreantis transaction, which was intended to reshape its balance sheet, and generate

sufficient funding to build large projects like US managed lanes. Since then, however,

momentum has waned for the planned transaction, as some of the assets originally

included in its scope have already been sold (including those in Colombia), while, more

importantly, awards in 2024 and 2025, have improved the outlook for future dividend flows.

As a result, the concession portfolio should provide Sacyr with ample capacity to fund

investments over the long term, with more than EUR2bn of firepower likely to be available

for growth opportunities.

Chart 11:Sacyr's calculation of the net cash available to fund investments over the 2025-2033 period (EURm)

Source: Sacyr, Kepler Cheuvreux

During our Virtual CEO/CFO Tour in mid-June, Sacyr's management said it is not the best

time to dispose of any assets, in view of the geopolitical uncertainty and high interest

rate/bond yield environment. At the same time, it emphasised that disposals are not

necessary at this stage to fund investment opportunities. We understand that the company

will assess its strategic options as part of its new strategic plan which should be presented

after the summer). Sacre is continuously exploring opportunities to unlock and crystallise

the value of its assets.

Overall, the market has quite a positive perception of US-managed lanes as an asset class,

which is based partly on Ferrovial's successful track record in the space. In addition,

investors closely followed the tender for Georgia's SR-400 in 2024, which had generated