Inwit stock holds guidance despite weaker third-quarter results

Infrastrutture Wireless Italiane S.p.A. reported lower third-quarter revenue and earnings on Tuesday, November 10, while recurring free cash flow increased and management reaffirmed its 2026 guidance. The results were released in the company's press release. Inwit stock traded at 7.43 euros on Lang & Schwarz at 11:52 CET on Thursday, November 12.

Revenue pressure meets stronger cash flow

Revenue for July through September reached 268.6 million euros, down 0.9 percent from 271.1 million euros in the same quarter of 2025. EBITDA fell 2.2 percent to 241.9 million euros, while EBITDA after lease costs, or EBITDAaL, declined 2.8 percent to 192.3 million euros. The EBITDAaL margin narrowed to 71.6 percent from 73.0 percent.

Net profit fell 11.8 percent to 81.3 million euros. INWIT attributed part of the decline to higher financial charges, while the company also pointed to challenging market conditions and uncertainty around master service agreements with key customers.

Cash generation provided the main counterweight. Recurring free cash flow rose 9.6 percent year over year to 186.0 million euros, compared with 169.7 million euros a year earlier. Investments in digital infrastructure fell 30.6 percent to 40.9 million euros, which the company linked to market conditions and the completion of Italy's NRRP 5G plan.

Guidance remains unchanged

INWIT retained its 2026 revenue target of 1.05 billion to 1.09 billion euros. It also maintained an EBITDA margin target of about 90 percent, an EBITDAaL margin of about 72 percent and recurring free cash flow guidance of 550 million to 590 million euros.

The company confirmed a dividend of at least 0.55 euros per share and expects financial leverage at 5.5 times net debt to EBITDA. For the medium term, management continues to expect low-single-digit annual revenue growth, further EBITDAaL margin expansion and annual capital spending of about 200 million euros, including land acquisitions.

General Manager Diego Galli said the nine-month results were fully in line with the 2026 guidance and that INWIT expects a return to growth in 2027. The company's nine-month revenue declined 0.8 percent to 799.6 million euros, while recurring free cash flow was broadly stable at 486.1 million euros.

Contract disputes remain central

The outlook remains exposed to disputes with major customers. Fastweb, a subsidiary of Swisscom, and TIM served notices of non-renewal of their MSAs in March 2026. INWIT says the agreements remain valid through 2038 and has taken legal action, while the counterparties are seeking changes to the contractual arrangements.

The Court of Milan rejected interim-relief applications in October without ruling on the underlying merits. For the TIM dispute, assisted negotiations ended unsuccessfully on October 15. The Italian Communications Authority has summoned the parties to a meeting on November 26 to explore a conciliation process.

Italian equities are tracked in the FTSE MIB.

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