Understanding Sacyr's Business and Financial Strength

Sacyr is a well-established company with a diverse portfolio of businesses, including construction, infrastructure, and services. Sacyr's business strength lies in its ability to manage complex projects, as seen in its experience with large-scale infrastructure projects such as the AVE high-speed train.

Sacyr's financial strength is evident in its revenue growth, which has consistently increased over the years. The company's revenue has grown from €3.4 billion in 2014 to €5.1 billion in 2020.

Sacyr's financial stability is also reflected in its cash flow, which has remained positive despite fluctuations in revenue. This stability is crucial for the company's ability to invest in new projects and maintain its market position.

Sacyr's revenues took a 7.4% hit in 2023, dropping to €4,609m, primarily due to lower contributions from the Engineering and Construction division, which focused on enhancing profitability over volume.

The company continued to execute major projects across multiple countries, with significant contributions from projects like the Pedemontana motorway (€501m) and the A3 project in Italy (€103m).

A different take: Renta 4 Banco

Sacyr's Concessions division achieved a turnover of €2,158m, driven by ongoing projects and new commissions such as the Ruta 78 motorway in Chile and expansions in Colombia.

The company's EBITDA for 2023 increased by 6.7% to €1,523m, with a margin of 33.0% vs 28.7%, benefiting from a strategic focus on profitability and effective risk management.

Here's a breakdown of Sacyr's EBITDA growth:

Sacyr's profit before taxes of continued operations totalled €469m in 2023, a 5.2% decrease from 2022.

Sacyr's focus on enhancing profitability over volume led to a 7.4% decrease in revenues in 2023, totaling €4,609m.

The Engineering and Construction division contributed to this decrease, while the Concessions division achieved a strong performance, driven by ongoing projects and new commissions.

Sacyr continued to execute major projects across multiple countries, including the Pedemontana motorway and the A3 project in Italy.

The Concessions division had a turnover of €2,158m in 2023, with significant contributions from projects like the Ruta 78 motorway in Chile and expansions in Colombia.

Sacyr's EBITDA increased by 6.7% to €1,523m in 2023, with a margin of 33.0% compared to 28.7% in the previous year.

The company's focus on profitability and effective risk management contributed to this increase, with Concessional projects accounting for 93% of the total EBITDA.

Sacyr's financial expenses rose to €804m in 2023, driven by several financial operations, rising interest rates, and early bond cancellations.

As a result, Sacyr's profit before taxes of continued operations totaled €469m in 2023, a 5.2% decrease from 2022.

In 1Q 2024, Sacyr reported an EBITDA of €339m, a 15% increase from the same period in the previous year.

This highlights the company's transformation into a P3-focused entity, with a record EBITDA margin of 34.1% in 1Q 2024.

Sacyr's emphasis on P3 assets has contributed significantly to its financial performance, with these assets now accounting for more than 90% of EBITDA.

A fresh viewpoint: SpareBank 1 Nøtterøy–Tønsberg

Sacyr's financial profile is supported by non-recourse debt, which means the company doesn't have to worry about paying back the debt with its own assets.

The company enjoys recurring operating profits, with EBITDA reaching €1,523m in FY23. This is a significant amount of money that helps Sacyr stay financially stable.

Sacyr has a long-term debt structure, which is a good thing because it reduces the company's financial risk. The sale of VSM y Sacyr Facilities also helped reduce indebtedness.

Net financial debt amounts to €6.7bn, which is a substantial amount of money. However, the NFD/EBITDA ratio of 4.4x at year-end is considered manageable.

Only €269m of Sacyr's debt is with recourse, which means the company has to pay it back with its own assets. Most of the financing corresponds to debt linked to projects, which is not a problem.

Sacyr is committed to maintaining recourse debt below 1.0x, which is a good goal to have. However, the increase in financial expenses limits its interest coverage ratio (EBITDA/interest) to 1.9x in 2023.

For more insights, see: Central Registry of Securitisation Asset Reconstruction and Security Interest

Sacyr has a favourable liquidity situation, thanks to its substantial cash reserves and positive operating cash flow. This confidence in the outlook is also supported by its ability to access new financing.

The group has accumulated a strong cash position, reaching €1.7bn in 2023. This is a significant amount of money that can be used to cover expenses or invest in new projects.

Sacyr's debt maturity schedule is long-term in nature, with 60% of its debt maturing in 2028 and beyond. This means the company has a good amount of time to pay off its debts without having to worry about immediate repayments.

The company carries out an asset rotation policy, which allows it to generate liquidity from the divestment of mature assets. This is a smart move, as it helps to free up resources that can be used elsewhere in the business.

Here's a quick summary of Sacyr's liquidity situation:

The concession business is characterised by high margins once the concession is put into operation, although depending on the concession it may be impacted by demand risk.

Sacyr has no demand risk or mitigation mechanisms for 90% of its concessional assets, which is a significant advantage.

On a similar theme: Altegrity Risk International

The industry is moderately cyclical in terms of the operation of concessions, with greater cyclicality in the construction (tendering) of new concession projects as they depend on public investment.

The construction sector, which has more limited profitability and volatility than the concession industry, were hit particularly hard by rising materials prices, supply delays, and labour shortages.

However, the outlook for the construction and infrastructure sector remains positive, as infrastructure development is essential to improve competitiveness in an economy based on tourism and exports.

Your financial risk profile is a crucial aspect of risk assessment. It involves identifying the potential risks that could impact your financial situation.

A high-risk investment, such as a stock that has a history of volatility, can significantly increase your financial risk profile. This is because such investments can result in substantial losses if not managed properly.

Financial risk can arise from various sources, including market fluctuations, interest rate changes, and even the performance of a particular company.

Your financial risk profile can be influenced by your income, expenses, debts, and savings. For instance, having a high income and manageable debts can reduce your financial risk profile.

A risk assessment score can help you understand your financial risk profile. This score is typically calculated based on factors such as credit history, debt-to-income ratio, and credit utilization.

If this caught your attention, see: Capital Power Income

The concession business is characterised by high margins once the concession is put into operation. However, these margins can be impacted by demand risk, which is a concern for only 10% of Sacyr's concessional assets.

The concession business is a mature sector with moderate cyclicality in terms of operation, but it's more cyclical in construction, which depends on public investment. This can lead to fluctuations in the industry.

The construction sector, which is closely related to the concession business, has limited profitability and volatility due to high competitiveness. It's been hit hard by rising materials prices, supply delays, and labour shortages.

Suggestion: Business Initiative Directions

The concession business is a capital-intensive activity with high barriers to entry, requiring a high level of know-how and experience to access tenders. This makes it challenging for new players to enter the market.

The outlook for the construction and infrastructure sector remains positive, as infrastructure development is essential for improving competitiveness in an economy based on tourism and exports.

Sacyr is listed on the Madrid Stock Exchange and has a diversified shareholder structure. This includes a significant number of free-float shares and a group of substantial shareholders.

As of June 2022, Sacyr returned to the Ibex 35, a prestigious index of top-performing companies. Its shareholding structure is made up of various notable shareholders, including Disa Corporación Petrolifera S.A. with 14.6%, Prilou S.L with 6.8%, and Grupo Corporativo Fuertes S.L. with 5.9%.

Sacyr's shareholder structure is comprised of the following significant shareholders:

In May 2024, Sacyr carried out a capital increase of 9.6% for €222m to support its growth in the concessions business. Manuel Manrique Cecilia, a shareholder and founder of the group, has been the chairman since 2011.

The concession business is characterised by high margins once the concession is put into operation, although depending on the concession it may be impacted by demand risk.

The construction and infrastructure sectors both have medium ESG risks under our methodology, with a sector assessment that is not impacted by industry-related considerations.

The sector is characterised by high barriers to entry as it is a capital-intensive activity and requires a high level of know-how and experience to gain access to tenders.

The outlook for the construction and infrastructure sector remains positive, as infrastructure development is essential to improve competitiveness in an economy based on tourism and exports.

Here are some key statistics about the sector's ESG risks:

The sector has a high impact on resources as a heavy user of raw materials (sand, etc), and on pollution by generating significant amounts of waste with limited recyclability as of today.

Industry data and analytics play a crucial role in helping businesses make informed decisions. The global data analytics market size was valued at USD 203.5 billion in 2020.

Broaden your view: Rosslyn Analytics

Companies are using data analytics to gain a competitive edge in the market. In the retail industry, for example, data analytics is used to analyze customer behavior and purchase history.

The use of data analytics can lead to significant cost savings. According to a study, companies that use data analytics can reduce costs by up to 30%.

Businesses are also using data analytics to improve customer satisfaction. In the healthcare industry, data analytics is used to analyze patient outcomes and improve treatment plans.

Data analytics can also help businesses identify new business opportunities. The market research industry, for example, uses data analytics to analyze consumer trends and preferences.

Companies are investing heavily in data analytics technology. The global big data analytics market is expected to grow from USD 143.4 billion in 2020 to USD 249.5 billion by 2027.

Check this out: Tech Data

In the construction industry, several companies are vying for market share and dominance. Sacyr SA, Actividades de Construccion y Servicios SA, Acciona SA, Ferrovial SE, and Fomento de Construcciones y Contratas SA are all major players in the industry.

The headquarters of these companies are located in Spain, with the exception of Ferrovial SE, which is based in the Netherlands. This gives them a strong local presence and understanding of the market.

Let's take a look at the number of employees each company has. Sacyr SA has 13,784 employees, while Actividades de Construccion y Servicios SA has a significantly larger workforce with 144,045 employees. Acciona SA has 67,847 employees, Ferrovial SE has 22,029 employees, and Fomento de Construcciones y Contratas SA has 71,371 employees.

Here's a comparison of the key parameters of these companies:

Sacyr has a strong global competitive position within its sector. It's one of the world's largest P3 infrastructure developers, exceling in project development and management, particularly in complex, large-scale projects globally.

The group's vertically integrated business model enhances efficiency and control throughout the project lifecycle. This allows Sacyr to capitalize on opportunities and sustain growth in the dynamic infrastructure market.

Sacyr generated total sales of €4,609m in FY23, ending the year with 70 concession assets under management. This represents 93% of total EBITDA.

The group maintains a wide international presence, with 76% of turnover and 89% of its backlog generated outside of Spain. Sacyr focuses on Europe and Latam, with a strong presence in these regions.

Here are some key statistics that highlight Sacyr's competitive position:

Sacyr's strategic focus on concessions enables it to generate stable, long-term revenue streams. This is further supported by a diversified geographical presence, which reinforces the group's competitive standing.

You can access new construction projects through a platform that allows you to identify projects matching key criteria such as location, stage, sector, size, funding, and many others.

Sacyr SA also has publicly disclosed IT services contracts that can be accessed for insights into competitive bidding. These contracts include IT outsourcing, business process outsourcing, systems integration, consulting, and more.

By leveraging these publicly disclosed contracts, you can gain a better understanding of Sacyr's IT services needs and improve your chances of winning contracts.

Explore further: Publicly Traded Car Wash Companies

The company has successfully completed major projects, such as the Torre Sacyr Vallehermoso in 2008.

You can access new construction projects and identify projects that match key criteria like location, stage, sector, size, and funding.

IT services contracts can be a crucial aspect of any project, providing a clear understanding of the scope and expectations of the work to be done.

Improving competitive bidding is key to securing the best contract for your needs, and having insights into publicly disclosed IT services contracts can give you a significant edge.

Companies like Sacyr SA have publicly disclosed IT services contracts that can be accessed for valuable insights into their IT outsourcing, business process outsourcing, systems integration, and consulting contracts.

Having access to this information can help you make informed decisions and negotiate better contracts.

Companies can also use this information to identify trends and patterns in the industry, allowing them to stay ahead of the competition.

For more insights, see: Information International, Inc.

Sacyr's rating has been affirmed at BBB-, with a stable outlook. This rating reflects the company's strong position in the infrastructure sector, its global competitive edge, and good governance.

The company's financial profile is constrained by high financial leverage, with a net financial debt to EBITDA ratio of around 4.5x. This is despite a relatively low non-recourse debt to EBITDA ratio of below 1.0x.

Sacyr's operating cash flow generation capacity is limited, with an operating cash flow to net financial debt ratio of below 5%. The company's equity to total financial debt ratio is also below 25%.

The volatility table for infrastructure and concessions businesses has been used to assess Sacyr's financial profile, taking into account the sector's proven track record of stability over long economic cycles.

The company's ESG policy is considered favourable, resulting in a half-notch upgrade of the financial risk profile. However, the construction and infrastructure sectors have a medium ESG risk, given their impact on the environment.

The company's capitalization ratio is low, standing at 20.9% in FY23. This is due to high investment requirements associated with awarded concessions in the infrastructure sector.

Sacyr has undertaken a €222m capital increase in May 2024, which is part of the company's strategic plan to address its capitalization weakness.

Sacyr is one of the world's leading infrastructure development groups and a sector leader.

The company operates mainly in the south of Europe, Latin America, and English-speaking countries like the US, Canada, the UK, or Australia.

Sacyr has a clear international focus.

The company's marked concession profile makes it a resilient, stable, and predictable business with a strong ability to generate recurring cash.

Sacyr has two divisions with significant synergies and vertical integration between them: Concessions and Engineering and Infrastructure.

Sacyr has been making headlines with its significant developments over the years. In 2025, the company announced its plans to sell a portfolio of toll roads in Colombia to Actis in June.

One notable contract secured by Sacyr Proyecta in 2025 was for the renovation of the ELENGY LNG terminal in Montoir-de-Bretagne, France, also in June.

The company has also been expanding its operations, with Sacyr Concesiones commencing operations of the Bosques del Itata P3 project, a 96-kilometer highway in central Chile, in April 2025.

Here's a quick rundown of Sacyr's key events in 2025:

Sacyr is one of the leading global infrastructure development groups and a sector leader. It operates mainly in the south of Europe, Latin America, and countries with English-speaking populations such as the US, Canada, the UK, or Australia.

The company has a strong concession profile, making it a resilient, stable, and predictable business with a high capacity for generating recurring cash flow.

Sacyr's business model is focused on projects with low demand risk, and it has a young concession portfolio, mostly consisting of highways, but also including hospitals, desalination plants, airports, and transportation interchanges.

The company generates value through its extensive experience in managing all phases of the concession asset lifecycle, from market studies to operation and asset rotation.

Sacyr's division of Concessions is the driving force behind the company, with a focus on Greenfield projects and a portfolio of concessions that is constantly being expanded.

Check this out: Brookfield Business Partners

The division of Engineering and Infrastructure is focused on developing infrastructure, mainly through concessions, and also undertakes construction projects.

Sacyr is committed to a responsible business model that adds value to its shareholders and contributes to social and environmental sustainability, with a strong focus on initiatives in this area.

The company's market capitalization as of June 14, 2024, was €2,548m, reflecting its strong market position.