Cellnex's first-quarter core earnings rise 4%, free cash flow turns positive
First-Quarter Financial Performance Overview
Revenue and Earnings Growth
BARCELONA, April 29 (Reuters) - Spain's Cellnex, Europe's largest mobile phone tower operator, reported on Wednesday a 4.3% increase in first-quarter adjusted core earnings to 832 million euros ($973 million), as revenues grew 2% to 1.09 billion euros.
The results were in line with analysts' expectations in an LSEG poll. Cellnex said the performance reflected the strength and predictability of its long-term contracted business model, as its number of towers rose 4.7% year-on-year.
Free Cash Flow and Net Loss
Free cash flow swung to a positive 118 million euros, from a negative 66 million euros a year earlier.
Cellnex also reported a narrower net loss of 37 million euros for the quarter, compared with 49 million euros a year ago, while operating profit rose to 153 million euros.
Management Commentary
"This acceleration reflects operating discipline, margin expansion and structurally lower capex intensity," Chief Executive Marco Patuano said in a statement.
Outlook and Market Context
2026 and 2027 Forecasts
The company maintained its outlook for 2026 and 2027. For 2026, Cellnex forecasts revenue of 4.075 billion to 4.175 billion euros, adjusted EBITDA of 3.425 billion to 3.525 billion euros, and free cash flow of 600 million to 700 million euros.
Market Capitalisation and Investor Concerns
Cellnex's market capitalisation has roughly halved since its peak of about 40 billion euros in 2021, as investors worried about its debt levels and potential consolidation among its customers.
Currency Exchange Rate
($1 = 0.8554 euros)
(Reporting by Joan Faus. Editing by Charlie Devereux and Mark Potter)
