EuroTeleSites (ETS) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 rose 7.8% year-over-year to €148.4 million, driven by indexation, third-party tenant growth (up 32.5%), and infrastructure expansion, with a one-time €2.4 million project contribution.

• EBITDA for H1 2026 increased to €128.3 million (+8.4% YoY), with EBITDAAL up 11.2% to €88.6 million, reflecting operational efficiency and higher infrastructure utilization.

• Cash flow from operations minus CAPEX paid rose to €110.2 million, supported by revenue growth and lower CAPEX payments.

• 100+ new sites rolled out and 104 new tenants onboarded in Q2, with a tenancy ratio of 1.26 and total tenants reaching 17,416.

• Credit ratings upgraded: Fitch to BBB (stable), Moody’s to Baa2 (positive outlook).

Financial highlights

• Q2 2026 revenue grew 8.4% YoY to €75.9 million; EBITDA rose 8.9% to €64.3 million; EBITDAAL margin at 56.6%.

• H1 2026 revenues up 7.8% to €148.4 million; EBITDA up to €128.3 million; EBIT at €56.1 million (+4.8% YoY); net result €22.5 million (+27.8% YoY).

• Net cash from operating activities: €127.8 million (+6.6% YoY); CAPEX: €19.6 million (-13.0% YoY), focused on new sites, upgrades, and 5G readiness.

• Market capitalization as of June 2026 was €734 million.

• Leverage ratio at year-end 2025 was 5.5x, targeted to decrease to ~5x.

Outlook and guidance

• Management expects full-year 2026 revenue growth of 4–5%, supported by 5G expansion, higher data consumption, and inflation-linked leases.

• Over 400 new sites planned for 2026; CAPEX/revenue ratio projected at 25% due to investment shifts.

• No dividend planned for 2026; all free cash flow directed to deleveraging until leverage drops below five times.

• Commitment to maintaining investment grade ratings from Moody’s and Fitch.

• Ongoing 5G rollout projects in Austria to continue through 2028.