ACS Cohesive Strategy Drives Innovation and Sustainability

New era marked by growth and progress in digitalization and sustainability, as well as by the simplification of the structure. The company presented a reorganization of the business areas and focused on the integration and promotion of synergies between its different brands.

Juan Santamaría, CEO of the ACS Group, during the celebration of the company’s first Capital Markets Day, on April 17 in Madrid.

A new Strategic Plan 2024-2026 will allow the ACS Group to consolidate a business model that combines dividend profitability and growth, cohesive and integrated, capable of meeting the demand for both new generation infrastructures and those in which the Group already leads. In this period, the company aims to generate between 3,300 and 4,000 million euros of net operating cash, maintain attractive remuneration for its shareholders with an annual dividend equal to or greater than €2 per share and increase investment in infrastructure projects. essential and new generation. The Group expects to be able to achieve €1 billion of attributable profit in 2026 and has identified opportunities for Turner’s expansion in Europe valued at €20 billion.

As announced by Juan Santamaría, CEO of the ACS Group, during the first Capital Markets Day (CMD) held by the company on April 17 in Madrid, where the new business plan was presented, the company’s strategy focuses in consolidating the Group’s leadership in the high-growth markets in which it operates and in continuing to minimize the risks associated with its activity through a collaborative business model with greater weight in high added value projects. And not only that.

New goals

Corporate simplification, together with risk reduction, were two of the ACS Group’s priorities. In this sense, the CMD was the venue chosen to present the news to shareholders and investors. The new structure in three business areas within which the activity of all the company’s companies is framed is more pragmatic and simple, also providing a clearer vision of its growth vectors.

Three business areas

Solutions
Turner and CIMIC (65% of profit before taxes).It focuses on new generation projects.

Infrastructure Investments
Abertis and greenfield infrastructure development companies such as Iridium, HOCHTIEF PPP Solutions and Pacific Partnerships (20% of profit before taxes). It focuses on infrastructure development.

Engineering and Construction
Dragados and its subsidiaries, as well as Flatiron and HOCHTIEF Europe (15% of profit before taxes).
It focuses on the execution of civil infrastructures.

The companies that fall into each of these three lines share customers, supply chain, engineering and capabilities, and work as a single team. In this way, integration and inter-group collaboration become the best option to consolidate the leadership of the ACS Group.

The company could invest up to 1.8 billion euros in the creation of a portfolio of industrial and transportation infrastructure. As a result, the value of the company’s participation in these assets could reach 4,000 million euros. But the future lies in investments in the energy transition, sustainable mobility, digitalization and infrastructure related to health, education and biotechnology. That is why the ACS Group is decisively betting on the development of this type of infrastructure with high growth and will allocate an investment of up to 4,000 million between now and 2030 for the development and operation of infrastructure in new generation sectors with a valuation of participation of 9,000 million euros.

The ACS Group estimates that the growth in the markets in which it is present and the investment in new generation sectors will allow the company to double its value, which it currently estimates to be at 14,000 million euros, above the market capitalization of the company.

A 2003 full of successes

In addition to announcing its innovative strategy for the future in its Capital Markets Day, the ACS Group has also highlighted its successes in 2023 at the recent 2024 General Shareholders’ Meeting in Madrid. «In 2023, sales grew by 6.3% compared to the previous year and reached 35,738 million euros; that is, 100 million euros for every day of the year,” said Florentino Pérez, executive president of the Group, during the event.

Juan Santamaría, CEO of ACS, highlighted that 50% of the new contracts awarded last year corresponded to new generation projects such as energy transition, new sustainable mobility and digitalization. For his part, Florentino Pérez wanted to highlight the leadership and excellence of the company in different sectors and regions of the world in 2023.

Turner, the largest company in the ACS Group by business volume and one of the most relevant in the sector in the United States, was recognized by the prestigious ENR infrastructure magazine, Engineering News Record, as the largest construction company in the country over the last 50 years. Also the most ecological for the sixteenth consecutive year.


Projects such as the Merdeka tower in Malaysia, the second tallest skyscraper in the world, and the construction of one of the largest data centers in the world for Meta, in the State of Indiana, are an example of this leadership.

Great milestones

In the other hemisphere, CIMIC, the largest engineering and infrastructure group in Asia-Pacific, was recognized by the Infrastructure Sustainability Council of Australia for its excellent sustainability practices. During 2023, the subsidiary strengthened its position in activities related to the energy transition by acquiring three engineering companies: Novopro in Canada, and Minsol and Prudentia in Australia. This has allowed it to consolidate its leadership position and open new geographic opportunities.

Hochtief, the Group’s longest-standing company – it celebrated its 150th anniversary last year – continues as a benchmark in sustainability and, in 2023, obtained the highest rating from MSCI and recognition by the Dow Jones Sustainability Index as one of the most sustainable companies in the sector. Some of its strategic projects fall within this line, such as, for example, the construction of 850 fast charging points for electric vehicles in Germany or a new data center in Warsaw, within a digitalization megaproject in Poland.

For its part, Dragados has been in charge of carrying out a unique project in the world: building a road over the lava on the island of La Palma. He did it in record time to restore the connection on the island after the volcanic eruption and in a sustainable way, reusing the stone material from the volcanic eruption. A real challenge that has been recognized throughout the world.

Abertis has consolidated its alliance with Mundys and has continued with its international growth strategy with four highways in Puerto Rico and the acquisition of the Autovía del Camino in Navarra. And finally, Iridium continues to promote digital infrastructure, as demonstrated by the new data center that the ACS Group is developing in Spain. It will be located in Madrid, in what is known as “Corredor del Henares”.

Sustainability is not lacking

Investigation
Facade of the ACS Group building in Madrid.

The ACS Group continues to reiterate its commitment to sustainability, establishing clear objectives in its Sustainability Master Plan for the year 2025, and highlighting a corporate culture that promotes integrity, equality and teamwork. Its strategy focuses on three vectors: environment, social and governance (ESG), which highlight initiatives such as decarbonization, job security, the promotion of talent and diversity, and in governance, the adaptation of internal regulations in accordance with the regulations and good practices of the sector. These efforts have had great external recognition, positioning the ACS Group as a leading company in sustainability and corporate responsibility.

«At the ACS Group we understand that success is not only measured in terms of economic profitability, but also in the ability we have to generate a positive impact on the world around us. Impact that, increasingly, requires being sustainable and respecting the environment. Our sector, like the economy as a whole, needs continuous adaptation to face new challenges. Our evolution towards markets such as sustainable mobility and the energy transition is a clear example of our commitment to building a better future,” said Florentino Pérez during the 2024 General Meeting of Shareholders. Because future and sustainability are two aspects that, in the case of the ACS Group, go hand in hand.

 
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