Cellnex shares fall on slight miss in Q1 results despite guidance reaffirmation

Published 09/05/2025, 11:06
© Reuters.

Investing.com -- Cellnex  (BME:CLNX) shares fell more than 3% on Friday after the European tower operator reported first-quarter results that narrowly missed expectations on both revenue and cash flow, despite reaffirming its full-year outlook.

Revenue for the quarter came in at €964 million, up about 5% organically year over year but 0.7% below consensus. 

EBITDA before leases was €798 million, broadly in line with forecasts, while EBITDAaL reached €566 million, slightly above expectations and 8% higher on an organic basis.

Recurring levered free cash flow totaled €351 million, missing consensus by 1.1%, and free cash flow was negative €66 million, also below expectations. 

Analysts at Barclays (LON:BARC) and Morgan Stanley (NYSE:MS) pointed to elevated build-to-suit activity, particularly in France and Poland, as a drag on free cash flow.

Co-location growth slowed sharply, with just three net colocations added in the quarter versus 849 in Q4 2024.

Total (EPA:TTEF) points of presence (POPs) grew 4.3%, down from 6.5% the previous quarter, with secondary POPs growth slowing to 1.8%. 

The deceleration was linked to customer churn following the Orange-MásMóvil merger in Spain, though Cellnex said revenue was unaffected due to a revised service agreement.

Sequential EBITDA fell by €66 million from Q4, with Morgan Stanley attributing the decline to €25 million in prior-quarter exceptional items, a €22 million impact from the sale of Austrian and Irish assets, and an estimated €20 million seasonal dip. 

Analysts noted this seasonal effect contrasts with EBITDA gains in the first quarters of 2023 and 2024.

Net financial debt fell €293 million from December to €17.31 billion, driven by €971 million in proceeds from the Ireland sale. Cellnex’s €1 billion share buyback is now 93% complete. Full-year guidance was reiterated, including a mid-point RLFCF target of €1.925 billion. 

However, sentiment was weighed down by weaker-than-expected operational momentum and broader sector concerns, including Vodafone (NASDAQ:VOD) and 3UK’s plans to retire about 30% of their combined tower assets.

Spanish outlet Expansión reported 15 potential bidders for Cellnex’s Swiss assets, but analysts said near-term investor focus will likely remain on free cash flow trends and any indication of an extended buyback.

Both Barclays and Morgan Stanley described the quarter as one of continued execution, though modestly below expectations.

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