Nashville’s Traffic Nightmare Is Now a $9.2B Ferrovial (FER)-Led Project

On August 19, Ferrovial (NASDAQ:FER) announced it had been selected to deliver the I-24 Southeast Choice Lanes, a 26-mile project running between Nashville and Murfreesboro. It is the largest single capital investment in Tennessee’s history and the state’s first public-private partnership. The price tag is $9.2 billion, though Ferrovial isn’t carrying it alone, since its DriveTN consortium also counts Transurban and Tikehau Star Infra as partners.

The Model Travels Well

Choice lanes are familiar ground for Ferrovial, which has replicated the model in Washington, D.C., Charlotte and Dallas-Fort Worth. On Virginia’s 66 Express corridor, similar lanes shaved up to 50% off peak-hour travel times. That is the pitch for I-24, a stretch of highway that already ranks among the region’s most jammed: drivers who opt in get steadier speeds, and those in the free lanes should see less traffic too.

The business behind the bid looks healthy, too. Ferrovial’s July 28 results showed adjusted EBITDA up 21.6% on a like-for-like basis to €746 million over the first six months of the year, with U.S. highways doing most of the lifting. Those roads are sending cash home as well, since Ferrovial received €357 million in dividends from North America. And the construction order book reached an all-time high of €18 billion, so plenty of work is already in hand. The pipeline keeps filling: Ferrovial bid on I-285 East in Georgia in July, and its D35 Highway bid in the Czech Republic was the most cost-effective submitted, with technical evaluation still underway.

Beyond the roads, the balance sheet looks sturdy. Ferrovial ended the first half with €1.3 billion in net cash, excluding infrastructure projects, meaning cash outweighs debt outside those projects. The airport arm is progressing too: Ferrovial has finished funding the $1.1 billion in equity it pledged for New Terminal One at JFK, and construction there is 92% complete.

Fine Print Worth Reading

Start with the line that looks worst on the page. Net profit for the first half of 2026 came in at €258 million, versus €540 million for the same period of 2025. That earlier figure included capital gains from asset rotation, which makes the comparison harsh, but the mismatch is still there: EBITDA climbed while reported profit fell.

Then there is the work itself. Construction turned 3.5% of revenue into adjusted EBIT, right on target, so there isn’t much room for a costly overrun on a big job. North America also accounts for 47.9% of the order book, so plenty rides on one region. The $24.8 billion in concession value cited for the project is a figure for Tennessee, not a profit forecast for Ferrovial. And a winning bid is not a finished road: I-24 still has to be financed, built and operated, and the CEO talks in terms of decades.