Ferrovial shows several characteristics that support capacity to issue hybrid bonds, but with some constraints.

Key positives:
- Large scale and asset base: total assets were about €26.3bn at 2023-01-01, with substantial infrastructure project assets.
- Positive operating cash flow: cash flow from operating activities increased to about €1.0bn in 2022 from €0.8bn in 2021.
- Adequate liquidity: cash and cash equivalents were about €5.1bn at 2023-01-01.
- Positive equity base: total equity was about €6.35bn, up from €5.83bn.
- Market precedent/capital structure fit: the company already reports “perpetual subordinated bonds” within equity movements, suggesting hybrid-type instruments are familiar and potentially acceptable within its capital structure.
- Infrastructure businesses often have long-duration assets and cash flows, which can be compatible with hybrid capital.

Key concerns:
- Leverage is significant: noncurrent borrowings were about €10.8bn, and total liabilities were close to €19.9bn versus €6.35bn equity.
- Profitability was modest in 2022: profit attributable to owners was €186m, down sharply from €1.2bn in 2021, and basic EPS fell to €0.25.
- Finance costs and infrastructure project debt are material; hybrid coupons would add fixed financing burden, even if treated partly as equity by rating agencies.
- Free cash flow after investing was not especially strong: investing cash outflow was substantial in 2022, with cash flows before financing of only €270m.

Overall, Ferrovial appears capable of issuing hybrid bonds due to its size, liquidity, asset quality, access to capital markets, positive operating cash generation, and existing use of subordinated/perpetual capital. However, leverage and relatively thin 2022 earnings make the case less than unequivocally strong.

<answer>Marginally Suitable</answer>