ACS shares rise on strong Q2 earnings, outlook

Shares of ACS, the Spanish construction and infrastructure giant, rose on Friday after the company reported second-quarter earnings that exceeded analyst expectations and raised its full-year outlook.

The Madrid-based group posted a net profit of €328 million for the three months ended June 30, up from €289 million a year earlier, beating the €305 million consensus estimate compiled by Refinitiv. Revenue increased 6.2% year-over-year to €7.1 billion, driven by robust activity in its energy and transport divisions.

ACS also upgraded its full-year guidance, now expecting net profit of €1.2 billion to €1.3 billion, compared with its prior forecast of €1.1 billion to €1.2 billion. The company cited strong order backlogs, particularly in Spain and Latin America, as key drivers of the improved outlook.

Analysts at Bank of America maintained their buy rating on the stock, citing the earnings beat and the positive outlook as validation of ACS’s diversified business model. The brokerage raised its price target to €42 from €38, representing potential upside of about 15% from current levels.

The stock, which had lagged peers in recent months amid concerns over construction sector volatility, gained 3.2% in early trading, outpacing the broader Spanish equity market. ACS shares have risen roughly 8% over the past month, though they remain down 5% year-to-date.

The company’s energy services division, which includes renewable energy projects, reported a 12% increase in operating profit, while its transport infrastructure unit saw a 7% rise. Both segments contributed to the overall earnings beat, offsetting softer performance in its traditional construction business.

ACS is scheduled to hold an investor call next week to discuss the results in further detail.