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 organic EBITDAaL up 8.7% to €566 million, despite the absence of Austria and partial contribution from Ireland.

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

• Share buyback program 93% complete as of May 2, 2025, with €755 million in shares acquired at an average price of €33 per share.

• Operational efficiency initiatives and portfolio streamlining focused on core markets, with no expected impact from tariffs or US-sourced equipment costs.

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

Financial highlights

• Q1 2025 revenues ex-pass throughs: €964 million (+6.3% organic, +1.9% reported year-over-year); adjusted EBITDA: €803 million (+7.7% organic, +2.6% reported); EBITDAaL: €566 million (+8.7% organic, +5.8% reported).

• Recurrent levered free cash flow (RLFCF) was €351 million, down 8.6% year-over-year, with free cash flow negative at -€66 million due to high BTS Capex.

• EBITDA margin improved to 83% from 82% last year.

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

• Net financial debt stood at €16.8 billion, with 80% at fixed rates and immediate liquidity of €4.7 billion.

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 €800 million confirmed for 2025 and 2026, with potential for extension if further asset rotations occur.

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