United Internet (UTDI) Q1 2026 earnings summary

Executive summary

• Customer contracts increased by 380,000 to 30.1 million in Q1 2026, with growth driven by IONOS (+300,000) and Mail & Media (+80,000), while 1&1 remained stable.

• Revenue rose 2.5% year-over-year to €1,551.9 million; EBITDA up 2.4% to €331.9 million; EBIT up 15.6% to €166.9 million.

• EPS from continued operations increased 44.0% to €0.36, benefiting from improved EBIT and lower tax expenses.

• Free cash flow after leasing improved to €3.7 million from -€165.8 million year-over-year, reflecting stronger operating cash flow and lower capex.

• Share price as of March 31, 2026 was €27.52, up 44.9% year-over-year.

Financial highlights

• CapEx for Q1 2026 was €117.5 million, down from €122.0 million year-over-year; cash capex for 2026 projected at €600–650 million.

• Net bank liabilities increased 4.3% to €3,338.6 million; equity ratio strengthened to 44.0%.

• Gross margin declined to 31.9% from 32.8% due to higher hardware deployment costs.

• Cash and cash equivalents stood at €46.6 million at quarter-end.

• Free cash flow (after leasing) turned positive at €3.7 million.

Outlook and guidance

• Full-year 2026 guidance confirmed: sales expected at approx. €6.25 billion (+2.4% YoY), EBITDA at approx. €1.45 billion (+13.1% YoY), and cash capex of €600–650 million.

• CapEx expected to be back-end loaded in 2026.

• Management remains optimistic, citing a stable subscription-based business model and ongoing investments.