CAF (Construcciones y Auxiliar de Ferrocarriles) is a leading global manufacturer of rolling stock and rail components, listed on the Madrid Stock Exchange (CAF.MC). The company has a record backlog of €14.4 billion (as of Q1 2025), providing multi-year revenue visibility. CAF is benefiting from structural tailwinds: EU’s Green Deal, UK’s HS2 and rail franchising, and US infrastructure spending under the IIJA. The company is also expanding its higher-margin services and signaling business, driving margin improvement. In 2024, CAF reported revenue of €4.2 billion, EBITDA of €420 million (10% margin), and free cash flow of €200 million. Net debt is manageable at 1.5x EBITDA. Key catalysts include: (1) conversion of the record backlog into revenue, (2) margin expansion from mix shift to services and signaling, (3) potential contract wins in the US and UK, and (4) share buybacks and dividend growth. Risks: execution risk on large projects, raw material cost inflation, and geopolitical exposure to emerging markets. Valuation: EV/EBITDA of 8x, below historical average of 10x, with a 3% dividend yield. Balance sheet: net debt/EBITDA of 1.5x, strong liquidity of €1.2 billion. Disclaimer: This is not investment advice. Past performance is not indicative of future results. Investing involves risk, including loss of principal.