Cellnex triples free cash flow to €474 million as losses narrow

Cellnex reported free cash flow of €474 million for the first nine months of 2026, a 154.8% jump that more than doubles the €186 million recorded a year earlier, while net attributable losses narrowed 16.7% to €219 million from €263 million.

The European tower operator attributed the improvement to business performance, containment of operating costs and lower capital expenditure. Third-quarter losses fell 17.6% to €122 million. The company will maintain its €1 billion shareholder distribution for 2026 and has detailed a €500 million efficiency programme in Poland with operator Polkomtel.

CEO Marco Patuano said the company is demonstrating it can "grow with less capital and manage its portfolio more efficiently." Cellnex, he added, converts organic growth into cash, remunerates shareholders and reinvests selectively where it identifies opportunities backed by long-term contracts. What the statement does not say is when the still-loss-making bottom line will turn positive — a question the release leaves open.

What do the numbers show?

Consolidated revenue, excluding pass-through costs recharged to customers, reached €3,008 million between January and September, up 2.4% as reported and 4.9% on a comparable organic basis — the latter stripping out currency effects and perimeter changes, including the exit from Ireland, French data centres and the maintenance business in Spain. Inflation-protected contracts and higher demand drove the growth. Including pass-through, total billing rose 3.11% to €3,353 million.

• Adjusted EBITDA: €2,549 million, up 4.6% reported and 6.5% organic; margin up 1.7 percentage points to 84.8%
• EBITDA after leases (EBITDAaL): up 8.9% organically, margin of 62.9%
• Operating result (EBIT): €410 million, up 16.1%, with a stable net financial result of −€697 million and €2,109 million in amortisations
• Capex: down 22.8% to €860 million
• Recurrent levered free cash flow: €1,390 million, up 11.2% organically; €2.09 per share, up 18.3%

Comparable operating expenses fell 4.4%, or €22 million, even after incorporating roughly 2,900 towers, with average cost per tower down 3.5% year on year.

By business line, towers generated €2,456 million (+3.3% reported, +5.1% organic), including €104 million of additional colocation and build-to-suit (BTS) revenue. DAS, small cells and RANaaS contributed €189 million (+5.2% organic); fibre, connectivity and hosting €164 million (+8%); and radio and TV broadcasting €199 million (+0.9%). Net points of presence rose 4.1% to 187,693, and the occupancy ratio improved from 1.62 to 1.65 clients per tower.

How are shareholders being paid?

The 2026 distribution splits €1 billion evenly: €500 million in cash dividends, already paid, and €500 million in buybacks, of which €424 million had been executed by 30 September. Cumulative remuneration across 2025 and 2026 will approach €2,000 million — more than 10% of the company's market capitalisation.

Net financial debt stood at €21,044 million at end-September, up from €20,818 million at the end of 2025, but EBITDA growth cut leverage from 6.28 to 6.13 times. The target is 5–6 times by 2027. Liquidity amounts to €5,000 million, and Fitch Ratings maintains a BBB- rating with stable outlook.

For 2026, Cellnex confirmed guidance of €4,075–4,175 million in revenue (ex-pass-through), €3,425–3,525 million adjusted EBITDA and €600–700 million free cash flow. For 2027, it kept revenue targets of €4,255–4,455 million and EBITDA growth ambitions but cut its FCF forecast from €975–1,175 million to €675–875 million, reflecting a €300 million hit from the Poland investment and BTS deployments for client Play.

What does the Polkomtel deal involve?

The industrial agreement with Polkomtel in Poland covers two independent tower portfolios with partly overlapping sites. The plan aims to optimise the network, increase infrastructure sharing and improve asset efficiency — the same playbook, in Patuano's words, of raising occupancy in the existing portfolio through new colocatons and network rationalisation to deliver higher long-term profitability and better cash conversion.

The programme runs to 2030 and includes roughly 3,200 new colocatons by that date, a further 2,000 committed from 2030 onward, the relocation of about 4,200 antennas and the dismantling of redundant sites, aligning the network with 5G deployment and radio access network (RAN) renewal. Cellnex expects the occupancy ratio to exceed two clients per tower toward 2035, with an unlevered post-tax internal rate of return in double digits — twice the company's cost of capital, on its own projection. The €500 million investment runs from 2026 to 2030, the same window in which free cash flow guidance has already been trimmed.