Iliad S.A (ILIAD) Q1 2026 earnings summary

Executive summary

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

• EBITDAAL increased 1.2% to €942 million, driven by strong performance in Italy (+25%) and Poland (+8.9%), offsetting a decline in France.

• Profitability improved with 18% OFCF growth and recurring EFCF up 92.5% year-over-year to €416 million.

• Net debt reduced to €8,956 million, with leverage ratio at 2.2x, the lowest since 2019.

• Subscriber base expanded by 0.2 million across France, Italy, and Poland, with leadership in mobile and fiber net adds.

Financial highlights

• Q1 2026 revenues: €2,608 million (+2.9% year-over-year); service revenue increased 2.7%.

• EBITDAAL: €942 million (+1.2% year-over-year); margin at 36.1%.

• OFCF up 18% to €591 million, with all countries contributing; recurring EFCF reached €416 million, nearly double last year.

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

• Adjusted net profit from continuing operations rose 38.9% to €92 million, but reported profit fell 73.7% due to a prior-year one-off gain.

Outlook and guidance

• Annual guidance confirmed for growing recurring equity free cash flow in 2026 versus 2025.

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

• Focus on innovation, digital infrastructure, and sector consolidation, with continued investments in 5G, fiber, and network densification.

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