Rai Way (RWAY) Q3 2025 earnings summary

Executive summary

• Core revenues for the first nine months of 2025 reached €211.2 million, up 2.3% year-over-year, with Q3 growth accelerating to 2.9%, driven by inflation-indexed network services, DAB radio initiatives, and digital infrastructure.

• Adjusted EBITDA rose 2.8% to €146.1 million, with a 69.2% margin, supported by traditional business growth, cost control, and non-core benefits, despite start-up costs for diversification.

• Net income was stable at €70.6 million, with minor year-over-year growth, impacted by higher depreciation and non-recurring expenses.

• Recurring free cash flow to equity reached approximately €94 million, despite higher maintenance capex and dividend payments.

• Net debt stood at €164.4 million at 30 September 2025, up from €127.6 million at year-end 2024, mainly due to €89.6 million in dividend payments.

Financial highlights

• Core revenues increased to €211.2 million (+2.3% year-over-year); Media Distribution up 2.2%, Digital Infrastructure up 3.4%.

• Adjusted EBITDA reached €146.1 million (+2.8%), with margin at 69.2%.

• Net income stable at €70.6 million (+0.1% year-over-year).

• CapEx totaled €25.4 million, with maintenance at €14.1 million and development below prior year.

• Recurring free cash flow reached €94 million for the nine months.

Outlook and guidance

• 2025 guidance for adjusted EBITDA increase is confirmed, with expectations above 2024, driven by traditional business and non-recurring benefits.

• Maintenance capex is projected to be higher than 2024 and above the Industrial Plan average, while development capex will be lower due to project phasing.

• 2027 EBITDA and recurring free cash flow targets are confirmed, with only a low to mid-single digit potential gap in EBITDA due to delayed diversification, offset by mitigation measures.

• Delays in photovoltaic and edge data center projects shift some investments and revenue contributions to 2028, but cumulative CapEx and long-term returns are unaffected.