Information on the target
Cox has successfully completed the acquisition of Iberdrola Mexico in the first half of 2026, significantly enhancing its scale and reinforcing its position as a critical operator in energy and water infrastructure. With the inclusion of six months of contributions from Mexico, the Group's revenues for the semester reached €1.243 billion, representing a 2.5-fold increase compared to the same period in the previous year. The operational result (EBITDA), including the contributions from Mexico, amounted to approximately €245 million, tripling the figure from the first half of 2025, and elevating the margin to 20%, up from 16% in the same period last year.
Asset Co, the infrastructure business, has emerged as a key driver of growth and value creation for the Group, providing scale, recurring revenue, and visibility in cash generation. Meanwhile, Service Co has achieved a record backlog of €3.346 billion, which is 24% higher than the previous year, with margins exceeding 10%. The operational cash generation, with €129 million in operating cash flow, has solidified its position as one of the Group's primary financial indicators, reinforcing the strategy of strict capital allocation discipline and the Group's priority of deleveraging.
Industry overview in the target’s specific country
The Water & Related Utilities (NEC) industry in Mexico is characterized by a growing demand for sustainable water management and infrastructure development. The country faces significant challenges in water supply and quality, driven by urbanization, population growth, and climate change. As a result, the Mexican government has prioritized investments in water infrastructure, creating opportunities for private operators to participate in the sector. The regulatory framework has evolved to encourage private investment, leading to increased competition and innovation in water services.
In recent years, Mexico has seen a surge in public-private partnerships (PPPs) aimed at improving water distribution and treatment facilities. These partnerships have enabled private companies to leverage their expertise and capital to enhance service delivery while reducing the burden on public finances. The integration of advanced technologies and sustainable practices in water management has become essential, as stakeholders seek to address the pressing issues of water scarcity and pollution.
The market is also witnessing a shift towards more resilient and adaptive water systems, with an emphasis on long-term sustainability. This transition is supported by government initiatives and funding aimed at modernizing existing infrastructure and expanding access to clean water. As a result, the Water & Related Utilities sector in Mexico presents a favorable environment for investment, driven by a combination of regulatory support, increasing demand, and the need for innovative solutions.
Furthermore, the integration of renewable energy sources into water utility operations is gaining traction, aligning with global sustainability goals. The convergence of water and energy sectors is expected to create synergies that enhance…