Rai Way (RWAY) Q1 2026 earnings summary

Executive summary

• Revenues grew 2.6% year-over-year in 1Q 2026, driven by both core/media distribution and digital infrastructure segments.

• Adjusted EBITDA increased by 1.0% year-over-year to €47.3 million, with underlying growth but a margin decline to 65.9% due to higher non-core items.

• Net income declined 4.3% year-over-year to €21.6 million, impacted by higher depreciation and amortization 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 the hyperscale data center.

Financial highlights

• Core revenues reached €71.9 million, up 2.6% year-over-year.

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

• Adjusted EBITDA was €47.3 million (margin 65.9%), up 1% year-over-year.

• CapEx totaled €5.4 million, mainly for development, with recurring free cash flow to equity at approximately €34 million.

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

Outlook and guidance

• Full-year 2026 guidance is reaffirmed, 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; development CapEx to increase due to project acceleration, especially in solar, DAB, and CDN.

• Energy price volatility remains a risk, with current power futures suggesting a limited headwind of €0.7 million per €10/MWh change.