NOS SGPS (NOS) Q2 2026 earnings summary

Executive summary

• Revenues remained flat year-on-year at €458.3 million, with IT and B2B/Enterprise growth offsetting declines in B2C/Consumer and Wholesale, and Cinema & Audiovisuals steady.

• EBITDA increased 1.5% year-over-year, with margin expansion driven by disciplined cost management and AI-driven efficiencies.

• Free cash flow surged 120% to €83.3 million, mainly due to operational performance, lower CAPEX, and positive non-recurring items such as tower sales and litigation proceeds.

• Net income rose 34.1% to €77.5 million; excluding non-recurring items, it increased 19.2% to €68.4 million.

• Operational momentum continued with growth in mobile RGUs and network expansion, despite a highly competitive environment.

Financial highlights

• Consolidated revenue: €458.3 million (flat YoY); IT revenue up 10.6–19.1%, B2B/Enterprise up 0.7–6.8%, B2C/Consumer down 0.3%, Wholesale down 15.3%.

• EBITDA: €206.0 million (+1.5% YoY); margin up 0.7pp to 44.9%.

• CAPEX (ex-leasing): €84.2 million (-8.2% YoY), reflecting telecom infrastructure maturity.

• Free cash flow: €83.3 million (+120% YoY); recurring FCF up 8.8–9%.

• Net financial debt: €1,078 million; NFD/EBITDA AL ratio at 1.56–1.6x, up due to dividend payments but below 2x reference.

Outlook and guidance

• CapEx for the year expected to be around €350 million, with a continued declining trend anticipated in future years.

• No expectation of negative EBITDA growth in the second half; efficiencies from transformation and AI programs expected to continue supporting margin expansion.