ACSES#777 by MGI
ACS, Actividades de Construcción y Servicios, S.A.
Analysis last updated Jul 30, 2026. Market data (price, market cap) is the latest available and may differ.
Growth · Value − Threat = Opportunity. Each 0–100. How we score.
Overview
ACS, Actividades de Construcción y Servicios is a Madrid-headquartered construction and engineering multinational generating approximately $59 billion in annual revenue through three dominant operating subsidiaries: Turner (the largest US commercial general contractor, generating a record $29.2 billion in 2025 revenue on data center momentum), Hochtief (German-headquartered global contractor and the ACS group vehicle), and CIMIC (Australia and Asia-Pacific construction and services, now including 100%-owned Thiess, the world's largest mining services contractor). Revenue is earned predominantly via fixed-price and guaranteed-maximum-price construction contracts with governments, institutional clients, and increasingly hyperscalers commissioning AI-ready data facilities, with civil, PPP infrastructure, and concessions rounding out the mix. Turner's data center backlog now represents roughly 40% of its $48.9 billion pipeline, and the AI and digital segment in the consolidated backlog grew 118% in the most recent period, reflecting a deliberate strategic repositioning into high-growth digital infrastructure. Total group backlog reached €105.9 billion as of H1 2026, a 21% increase. ACS launched the Coravel development platform alongside BlackRock in July 2026, extending the group from pure contractor into vertically integrated data center developer with an initial 1.7 GW portfolio. The open question is whether the developer model generates structurally higher margins, distinguishing ACS from a cyclical contractor and enabling compounding the sector rarely sustains.
The six lenses
ACS competes in a fundamentally tender-driven industry where switching costs are low and pricing power is modest across most contract types. Its principal advantages are scale and bonding capacity, Turner's dominant brand in US commercial construction, and the execution track record required to win complex megaprojects where hyperscalers and governments repeat with trusted builders. …
Learn the principle →At its current market capitalization, ACS faces no meaningful size constraint on its growth trajectory, leaving the runway question squarely on the business opportunity itself. Traditional construction economics have historically compressed that opportunity: thin margins, competitive tenders, and cyclical end markets limit how quickly returns on capital can compound. …
Learn the principle →Group revenue has compounded at roughly 13% annually over five years, with Turner recording a record $29. 2 billion in 2025 revenue powered by a data center pipeline that doubled in a single year. New orders at Turner accelerated nearly 50% in Q1 2026, total backlog reached €105. …
Learn the principle →ACS ended the LTM period with essentially no net debt, the result of disciplined deleveraging and strong subsidiary cash generation across the group. Free cash flow margin is a thin 3% on approximately $59 billion in revenue, consistent with the sector's working-capital intensity and project-based revenue recognition, but limits the pool of discretionary reinvestment. Florentino Pérez announced a 20% dividend increase for 2026, supported by rising earnings per share and the group's full-year 2025 attributable profit of €950 million. …
Learn the principle →Florentino Pérez has led ACS for over two decades, building it from a regional Spanish contractor into a global top-five construction group through acquisitions of Hochtief, Turner, CIMIC, and Dragados. Total shareholder returns reached 81. 6% in 2025, averaging approximately 46% annually over the past five years. …
Learn the principle →ACS's global operations create persistent foreign-exchange exposure, with large USD and AUD revenue streams subject to translation headwinds in periods of euro strength. Construction is inherently cyclical, and a slowdown in US commercial building activity or APAC infrastructure spending would pressure backlog conversion rates. The Thiess division retains roughly 26% thermal coal exposure in mining services revenue, a structural transition risk even as the target is to reduce it further. …
Learn the principle →Business profile
Industrials · Construction & Engineering
Management
How the people running it lead, execute, and allocate capital.
Under Florentino Pérez's multi-decade stewardship, ACS scaled from a Spanish domestic contractor into a top-five global construction group through the sequential acquisitions of Hochtief, Turner, CIMIC, and Dragados, growing group revenue to approximately $59 billion annually. Full-year 2025 attributable profit reached €950 million, with H1 2026 operational profit up 30% year-over-year to €510 million, and the 2024-2026 strategic plan targeting €1 billion is on track. The July 2026 Coravel joint venture with BlackRock, backed by an initial 1.7 GW data center portfolio and a signed hyperscaler deal at launch, represents the group's most significant strategic evolution in a decade.
Scorecard
- Moat38Moderate
- Runway58Moderate
- Growth Engine54Moderate
- Financials57Moderate
- Management63Moderate
- Risks45Moderate
Six lenses, each 0–100 and rated Strong / Moderate / Weak; the swing factor most decides the outcome. What each lens means.
Fundamentals
How it makes money
Revenue by segment, sized by share. Click a segment for the full detail.
Valuation
Live market multiples, plus a separate estimate of what the business is worth. Information only, not a price target.
Per-share figures (last close, 52-week range, fair value) are in EUR, the local trading currency. Market caps are shown in USD for cross-market comparison; the multiples above are currency-neutral ratios.
Forward Multiple. 15x FY+2 EBIT of ~$3.2B (revenue ~$68B at 4.5% margin on 10–12% growth with modest data-center mix lift), net of $14.2B net debt — a slight sector premium for 22% ROIC and secular AI-infrastructure backlog visibility
ConfidenceModerate52/100What's priced in: The market looks priced for a lot.
The reverse-DCF embeds 22% annual revenue growth for ten years — an impossible bar for a $57B contractor even with Turner's AI data-center surge, and a clear sign the FCF-based lens overstates what the market needs from the business. Shifting to a forward EBIT multiple, where operating cash generation (>$2B) is a better signal than the structurally thin 1% FCF margin, fair equity lands around $35B — roughly in line with today's price, contingent on hyperscaler capex sustaining long enough to pull the project mix and margins meaningfully higher.
Competes with
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Scores over time
Each nightly run adds a point; trends build as history accumulates.
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