Infrastrutture Wireless Italiane (INW) Q3 2024 earnings summary

Executive summary

• Q3 2024 results showed 7.6% organic revenue growth and 9.0% EBITDAAL growth, with strong expansion in sites, PoPs, and indoor coverage, reinforcing market leadership and resilience amid a transitional year for key clients and market trends.

• Over 900 new towers/sites delivered in 2024, supporting asset base expansion and driven by 5G coverage and densification needs.

• Industrial execution remains strong, with high delivery volumes and a focus on digital infrastructure and smart city projects in Italy.

• Recurring free cash flow reached €159 million, with a 67% cash conversion rate and progressive leverage reduction.

• INWIT published its first Climate Transition Plan, targeting Net Zero by 2040, validated by SBTI.

Financial highlights

• Q3 2024 revenues reached €260.3 million, up 7.6% year-over-year; recurring revenues up 7.7%.

• EBITDA was €237.2 million (91.1% margin), up 6.4%; EBITDAAL at €189.5 million (72.8% margin), up 9.0%.

• Net income rose 2.2% to €87 million, with a net income margin at 33.4%.

• Recurring free cash flow in Q3 was €159 million, up 3.1% year-over-year, with a 67% cash conversion rate.

• Net debt to EBITDA improved to 4.8x, with 70% of debt fixed and no near-term maturities.

Outlook and guidance

• 2024 revenue guidance updated to €1,030–1,060 million; 2026 target €1,160–1,240 million.

• EBITDA margin expected above 91% in 2024, ~92% in 2026; EBITDAAL margin to reach ~76% by 2026.

• Recurring FCF guidance: €620–640 million in 2024, €720–740 million in 2026.

• Guidance for 2024 execution at the low end of the range due to slow OLO market growth and lower-than-expected CPI.

• Long-term growth visibility supported by CPI, MSA commitments to 2030, and operational plans.