Iliad S.A (ILIAD) Q2 2026 earnings summary

Executive summary

• Achieved 3.4% organic service revenue growth in H1 2026, maintaining leadership among European telecom peers for the fifth consecutive year, with record Net Promoter Scores in France and Italy and Free Mobile ranked as Europe's 5G quality leader.

• Group revenues rose 3.0% year-over-year to €5,241 million in H1 2026, with growth in all geographies: France (+1.5%), Italy (+10.2%), and Poland (+3.5%).

• Completed major strategic milestone with the SFR transaction, expanding scale and spectrum in France and positioning to become the EU's third-largest telco by subscribers, pending regulatory approval.

• Launched innovative offerings such as Free Max (unlimited mobile data in France and 140 destinations), Mondo plan in Italy, and exclusive partnerships like YouTube Premium.

• Strengthened position in sovereign cloud services with major contracts for Scaleway, including Airbus, Health Data Hub, and the European Commission.

Financial highlights

• Group revenues reached €5,241 million in H1 2026, up 3.0% year-over-year; organic growth at 3.4%.

• EBITDAaL increased 2.2% to €2,091 million, with margin at 39.9%-40.2%; strong gains in Italy (+20.2%) and Poland (+5.8%) offset a decline in France.

• Operating free cash flow (OFCF) up 10.2% to €1,287 million; equity free cash flow (EFCF) up 32% to €661 million.

• Adjusted profit from continuing operations up 39.5% to €326 million; reported profit at €502 million, down due to a prior-year one-off gain.

• CapEx (excluding spectrum) at €804 million in H1, down 8.4% year-over-year, representing 15% of revenues.

Outlook and guidance

• Targeting equity free cash flow exceeding €1.0 billion for full-year 2026, up from €850 million in 2025.

• Anticipate slightly higher CapEx in H2 versus H1, but full-year CapEx expected to be slightly down year-over-year.

• Strategic priorities include accelerating AI implementation, increasing recurring EFCF, delivering profitable organic growth, and playing a central role in market consolidation.