Infrastrutture Wireless Italiane (INW) investor relations material

Executive summary

• Q1 2026 results are consistent with full-year guidance, reflecting a challenging Italian telecom market with low operator investment, stalled anchor tenant relations, and declining discretionary revenues.

• Legal actions have been initiated to protect MSAs after early termination notices from anchor tenants Fastweb and TIM, but management remains open to business-focused solutions.

• Strategic focus remains on network quality, infrastructure sharing, and value creation through consolidation and digitalization investments.

• Mid-term outlook and 2026 guidance remain confirmed, with an updated business plan expected in H2 2026 as market visibility improves.

• Revenues slightly declined by 0.8% year-over-year to €264.1 million, mainly due to the absence of discretionary revenues.

Financial highlights

• Reported revenues declined by around 1% year-over-year, but normalized revenue growth exceeded 3% YoY, driven by CPI-linked contracts and anchor commitments.

• EBITDA decreased by 1.9% to €239.5 million, with a margin of 90.7%; EBITDA after leases (EBITDAAL) was €189.9 million, margin at 71.9%.

• Net income for Q1 2026 was €81.0 million, with a net income margin of 30.7%.

• Recurring free cash flow reached €176 million in Q1, up 11% year-over-year, with a 74% cash conversion rate.

• Net financial debt stands at approximately €5,024.6 million, leverage ratio stable at 5.2x.

Outlook and guidance

• 2026 guidance: revenues €1,050–1,090 million, EBITDA margin ~90%, EBITDAAL margin ~72%, recurring free cash flow €550–590 million, dividend per share at least €0.55, leverage target 5x–6x.

• Annual CAPEX is expected around €200 million.

• Guidance does not factor in potential upside from industry normalization or downside from MSA terminations.

• Management expects to provide an updated business plan in H2 2026 as visibility improves.

• Low single-digit annual revenue growth and continued margin expansion are anticipated.