Iliad S.A (ILIAD) Q1 2026 earnings summary

Executive summary

• Achieved 3.1% organic service revenue growth in Q1 2026, leading among major European telecom operators, with group revenues rising 2.9% year-over-year to €2,608 million and subscriber gains in all markets.

• Profitability improved with 18% OFCF growth and recurring EFCF up 92.5% year-over-year to €416 million, supported by strong B2B momentum and innovation.

• Net subscriber additions of 0.2 million across France, Italy, and Poland, with leadership in mobile and fiber net adds and commercial momentum in all segments.

• Healthy balance sheet with net debt reduced to €8,956 million and leverage ratio at 2.2x, the lowest since 2019.

• Adjusted profit from continuing operations rose 38.9% year-over-year, though reported profit fell due to a prior-year one-off gain.

Financial highlights

• Q1 2026 revenues: €2,608 million (+2.9% year-over-year); EBITDAAL increased 1.2% to €942 million, with margin at 36.1%-39.1%.

• Service revenue increased 2.7% over the quarter; OFCF up 18% to €591 million, with all countries contributing.

• Capex (excluding spectrum/frequencies) was €351 million in Q1, down 18.1% year-over-year.

• Adjusted EFCF reached €416 million, up 92.5% year-over-year, nearly double last year on a recurring basis.

• Net debt at March 31, 2026: €8,956 million; net debt leverage ratio improved to 2.2x.

Outlook and guidance

• Annual guidance confirmed for growing recurring equity free cash flow, with ambition to generate higher EFCF in 2026 than in 2025.

• Capex expected to decline mid-single digit percent for the full year versus 2025.

• Continued focus on innovation, digital infrastructure, and sector consolidation discussions in France.

• Strategic priorities include profitable organic growth, accelerated AI implementation, and market consolidation.