Infrastrutture Wireless Italiane (INW) Q4 2025 earnings summary

Executive summary

• FY2025 delivered solid growth in revenues and EBITDA, confirming a dividend per share of €0.55 and demonstrating business model resilience.

• Asset base expanded with ~800 new sites and 2,800 new PoPs, maintaining a high tenancy ratio of 2.38x and reinforcing industry leadership.

• Despite anchor tenants (Fastweb and TIM) sending early termination notices for MSAs, management asserts these have no legal ground and legal certainty is crucial for industry stability.

• Short-term market growth slowed as operators remain in negotiation mode, but mid-term outlook supports growth, attractive dividends, and a solid balance sheet.

• Continued investment in infrastructure and collaboration with customers on value-driven solutions, including Rome 5G and Italia 5G Plan initiatives.

Financial highlights

• FY2025 revenues reached €1,077.2m, up 4% year-over-year; EBITDA rose 4% to €984.4m, with margin at 91.4%.

• Recurring free cash flow up 2% year-over-year to €634m; net income up 2% to €360.8m.

• Extraordinary shareholder remuneration of €500m: €300m share buyback and €200m special dividends, in addition to €500m ordinary dividend.

• Net financial debt increased 13% to €5,105.9m, mainly due to higher shareholder remuneration and treasury share buybacks; leverage ratio at 5.2x.

• CapEx for 2025 was €313.8m, stable year-over-year.

Outlook and guidance

• 2026 guidance: revenues €1,050–1,090m, EBITDA margin ~90%, EBITDAAL margin ~72%, recurring free cash flow €550–590m, DPS at least €0.55, leverage ratio at 5.5x.

• CapEx in 2026 expected at €270m, driven by Next Generation EU cash CapEx, Smart City Roma, land acquisitions, and energy programs.

• Medium-term baseline outlook: low single-digit annual revenue growth (~3%), continued margin expansion, annual CapEx ~€200m, and dividend sustainability.

• Guidance revised downward due to market uncertainty and disputes with anchor tenants over MSA contracts.

• Baseline does not include potential upside from industry normalization or downside from MSA termination.