Infrastrutture Wireless Italiane S.p.A.

INWIT reported Q1 2026 revenue of EUR 264 million, down 1% year on year. EBITDA was EUR 239.5 million, down 1.9%, with an EBITDA margin of 91%; EBITDA after leases was above EUR 190 million with a 72% margin, down 2.2% year on year. Recurring free cash flow was EUR 176 million, up 11% year on year, and free cash flow to equity was nearly EUR 88 million. Net debt was approximately EUR 5 billion including IFRS 16 liabilities, with leverage stable at 5.2x. Management reiterated 2026 guidance and said the quarter was consistent with the full-year plan. Operationally, it still targets around 200 new towers, more than 1,700 new PoPs, approximately 900 dedicated DAS locations, and about 1,600 real estate transactions for 2026. It also reiterated that the 2026 normalized revenue base is lower because discretionary project-based revenues have been largely put on hold.

Diego Galli framed the quarter as consistent with guidance but against a difficult Italian telecom backdrop marked by low returns and weak investment appetite. His main message was that INWIT wants to defend the MSA framework while also remaining open to commercial, win-win solutions with customers. He emphasized the company’s unique network, the importance of densification, and long-term growth opportunities in smart infrastructure, edge computing, and possibly active equipment.

Emilia Trudu focused on the quarter’s operating and cash metrics: revenue of EUR 264 million, EBITDA of EUR 239.5 million, EBITDA after leases above EUR 190 million, and recurring free cash flow of EUR 176 million. She said free cash flow was front-end loaded, helped by structurally lower recurring capex and no taxes paid in Q1, with tax payments expected in Q2 and Q4. She also highlighted net debt of about EUR 5 billion, leverage of 5.2x, an average cost of debt of about 3%, 85% fixed-rate debt, average bond maturity of 4.3 years, and the extension of EUR 1 billion of bank facilities from 2027 to 2031.

Analysts focused heavily on the anchor tenant dispute, the guidance framework, and whether there is progress in discussions. Management said there is no ongoing negotiation with the anchors, but visibility should improve gradually and they expect more clarity in the second half of the year. On the legal/process side, INWIT said the termination notices are outside the MSA framework, legal actions are ongoing, and a June/July injunction decision could help if it confirms the contract remains valid up to 2038. Questions also covered capital allocation and refinancing: INWIT said the dividend will be funded with available cash plus temporary use of its revolving facilities, and that the October 2028 bond will be refinanced in due time.