Getlink stock dips following 1Q revenue decline

Investing.com -- Getlink shares fell by 1% as the company reported a 17% decrease in first-quarter 2025 revenues year-on-year (YoY) at constant currency, totaling €328 million. The figures came in slightly below the company-compiled consensus of €330 million, Visible Alpha consensus of €333.5 million, and RBC estimates of €334 million.

The decline was attributed primarily to a sharper than anticipated drop in Eleclink revenue, which plummeted 69% to €33 million in the first quarter, due to the normalization of energy markets and a suspension of operations until February 5, 2025.

Despite the downturn in Eleclink revenue, Getlink’s overall Eurotunnel revenues saw a marginal increase of 2% YoY to €254 million in the first quarter, aligning with RBC’s estimate and slightly above the Visible Alpha consensus of €252 million. Railway network revenues also rose by 2% YoY to €93 million. However, shuttle revenues experienced a 1% YoY decline, reaching €150 million for the quarter. Truck revenues remained flat, while passenger vehicle numbers were down by 3% YoY.

On a positive note, Getlink has made progress in securing future revenues for Eleclink. As of March 31, the company has secured just over €200 million in revenue for 2025, representing 83% of annual capacity, and €125 million for 2026, or 35% of capacity. This marks an improvement from the February 28 announcement, where 82% of 2025 capacity had been sold for €190 million and 33% of 2026 capacity for €117 million, indicating a slight increase in price per unit of secured capacity.

Despite the mixed results, Getlink has reiterated its guidance for 2025 EBITDA to be in the range of €780-€830 million, with Visible Alpha and RBC consensus at the upper end of the range at €829 million and €830 million, respectively. Europorte, Getlink’s rail freight subsidiary, reported a 2% increase in revenue to €41 million for the first quarter, although this was marginally below the Visible Alpha and RBC consensus of €42 million.

RBC analysts commented on the results, stating, "We expect an improvement rather than inflection in Eurotunnel’s performance. Our FY26E forecasts are ahead of consensus, with Eleclink positioned for a return to top-line growth. On our forecasts, FCF yields from FY26E will be relatively suppressed (within the subsector), given elevated capex."

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