Cellnex Telecom (CLNX) Q1 2025 earnings summary

Executive summary

• Achieved strong organic growth in Q1 2025, with revenues up 6.3% to €964 million and EBITDAaL up 8.7% to €566 million, excluding Austria and with partial Ireland contribution.

• Completed the sale of Irish operations for €971 million and launched a voluntary redundancy plan in Spain affecting about 200 employees over 2025–2027.

• Share buyback program (~€800 million, 93% complete by early May) is nearly finished, with ~22.5 million shares acquired at an average price of €33.15.

• No expected impact from tariffs or US-sourced equipment costs; sector remains resilient amid macroeconomic and geopolitical uncertainty.

• Shareholder remuneration floor set at €800 million from 2026 onwards, with potential for further disposals to enhance flexibility.

Financial highlights

• Organic revenue growth of 6.3% and adjusted EBITDA growth of 7.7% year-over-year on a proforma basis; adjusted EBITDA reached €803 million.

• Recurrent levered free cash flow (RLFCF) was €351 million, down 8.6% year-over-year, impacted by phasing of cash items and strong BTS activity.

• Free cash flow was negative at -€66 million, mainly due to high investment in new site roll-outs.

• EBITDA margin improved to 83% from 82% last year, reflecting operating leverage and cost efficiencies.

• Net result was -€49 million, impacted by the Spanish redundancy plan.

Outlook and guidance

• 2025 guidance reiterated: revenues ex-pass through €3.95–4.05 billion, adjusted EBITDA €3.275–3.375 billion, RLFCF €1.9–1.95 billion, FCF €280–380 million.

• 2027 guidance: revenues ex-pass through €4.32–4.52 billion, adjusted EBITDA €3.64–3.84 billion, RLFCF €2–2.2 billion, FCF €1.03–1.23 billion.

• All key metrics expected to increase each quarter in 2025; working capital to turn positive in H2.

• Shareholder remuneration of at least €800 million per year confirmed, with potential for extension if further asset rotations occur.

• Long-term contracts, mostly inflation-linked, support defensive positioning.