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 (+32.5%), and infrastructure expansion, with a one-time non-recurring revenue of €2.4 million from a customer project.

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

• Strong growth in third-party revenue, supported by a 32.5% increase in third-party tenants and significant onboarding, especially in Austria.

• Infrastructure expanded with 177 new macro sites and 196 net adds of third-party tenants year-over-year; Q2 saw 58 sites rolled out and 64 third-party tenant net adds.

• Cash flow from operations minus CAPEX paid rose to €110.2 million, with positive cash flow used for deleveraging.

Financial highlights

• Q2 2026 revenues rose by €5.9 million (8.4%) to €75.9 million; adjusted revenue up 5% year-over-year.

• Q2 EBITDA increased by 8.9% to €64 million; EBITDAAL up 11.7% to €44 million.

• H1 2026 revenues reached €148.4 million, up 7.8%; EBITDA for the half-year at €128.3 million, up €10 million year-over-year.

• CAPEX for H1 2026 was €19.6 million, focused on new site construction, upgrades, and 5G readiness.

• Tenancy ratio improved to 1.26x, with 13,877 third-party tenants as of June 2026.

Outlook and guidance

• 2026 guidance targets revenue growth of 4–5%, with CAPEX-to-revenue ratio projected at 25% due to higher demand and project timing.

• Ongoing 5G rollout projects in Austria to continue through 2028, supporting anchor tenant obligations.

• No dividend payments planned until leverage falls below 5x; focus remains on deleveraging and maintaining investment grade ratings.

• Over 400 new sites planned for 2026, with positive operating cash flow to be used for debt reduction.