Rai Way (RWAY) Q1 2026 earnings summary

Executive summary

• Core revenues rose 2.6% year-over-year to €71.9 million in 1Q 2026, driven by growth in both media distribution, digital infrastructure, and diversification segments.

• Adjusted EBITDA increased 1.0% to €47.3 million, with underlying growth and a margin of 65.9%, but margin declined from 67.0% due to higher non-core items.

• Net income declined 4.3% year-over-year to €21.6 million, impacted by higher depreciation, amortization, and operating costs from development investments.

• Free cash flow generation was strong at approximately €34 million, reducing net debt to €113.5 million.

• Progress continued on key projects, including DAB network expansion, CDN, solar power initiatives, and preparatory work for a hyperscale data center.

Financial highlights

• Core revenues reached €71.9 million, up 2.6% year-over-year, with media distribution and digital infrastructure segments both expanding.

• Digital infrastructure segment revenues rose 5.3% to €8.8 million, mainly from tower hosting and edge data centers.

• Adjusted EBITDA was €47.3 million (margin 65.9%), up 1.0% year-over-year.

• CapEx totaled €5.4 million, mainly for development, up from €4.0 million, with development capex more than doubling.

• Net debt decreased to €113.5 million, with a leverage ratio of 0.59x, down from €136.5 million at year-end 2025.

Outlook and guidance

• Full-year 2026 guidance remains unchanged, expecting adjusted EBITDA broadly in line with 2025, with underlying growth offset by non-core items.

• Underlying EBITDA growth of around €3 million is anticipated, mainly from traditional business and DAB expansion.

• Maintenance capex expected to stay near 2025 levels, while development capex will increase due to project acceleration in solar, DAB, and CDN.

• Energy price volatility remains a risk, with guidance excluding potential impacts from geopolitical events; current power futures suggest a limited headwind of €0.7 million.