Infrastrutture Wireless Italiane (INW) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered solid results with 4.6% revenue growth, margin expansion, and strong cash flow, aligned with the 2025-2030 business plan and supported by new hostings, smart infrastructure, and land acquisition.

• Expanded digital infrastructure asset base, including 150 new towers, 740 new hostings, and increased land ownership.

• Smart Infra revenues surged 52%, driven by DAS indoor coverage, new project wins, and the Rome Smart City/5G launch.

• Enhanced shareholder returns with about €1bn ordinary dividend, special dividend, and up to €400m share buyback in 2025.

• Maintained strong market position in Italian tower infrastructure, leveraging shared infrastructure investments and digitalization.

Financial highlights

• Revenues rose 4.6% year-over-year to €266.2m; EBITDA margin stable at 91.7%; EBITDAAL up 5.5% to €194.1m with a 72.9% margin.

• Net income increased 1.6% to €91.2m; recurring free cash flow grew 5.4% to €158.1m with a 65% cash conversion rate.

• Tenancy ratio improved to 2.35x from 2.26x YoY; lease cost per site reduced by 2%.

• Net debt/EBITDA at 4.6x, with 80% fixed-rate debt and average cost of 2.8%.

• Investments totaled about €83.5m in Q1, focused on new towers, land acquisition, and indoor coverage.

Outlook and guidance

• 2025 revenue guidance: €1,070–1,090m; EBITDA margin above 91%; EBITDAAL margin over 73%.

• Recurring free cash flow forecast at €630–640m; dividend per share to rise 7.5%.

• On track to meet full-year targets for 1,250 new PoPs and 800 new towers; tenancy ratio expected to reach 2.6x by 2030.

• OLO revenues expected to remain flat in 2025, with growth resuming from 2026.

• D&A expected to trend toward €400m for the full year; leverage projected at 4.7x.