Rai Way (RWAY) Q3 2025 earnings summary

Executive summary

• Core revenues rose 2.3% year-over-year to €211.2 million for the nine months ended 30 September 2025, with Q3 growth accelerating to 2.9%, driven by Media Distribution and Digital Infrastructure.

• Adjusted EBITDA increased 2.8% to €146.1 million, with a 69.2% margin, supported by traditional business growth, cost control, and non-core benefits.

• Net income was stable at €70.6 million, with minor growth, despite higher depreciation and non-recurring expenses.

• Recurring free cash flow reached approximately €94 million, despite higher maintenance capex and dividend payments.

• Net debt increased to €164.4 million, mainly due to €89.6 million in dividend payments.

Financial highlights

• Core revenues reached €211.2 million (+2.3% year-over-year); Media Distribution up 2.2%, Digital Infrastructure up 3.4%.

• Adjusted EBITDA margin improved to 69.2% from 68.9% year-over-year.

• Net income stable at €70.6 million (+0.1% year-over-year).

• Capex totaled €25.4 million, with maintenance capex at €14.1 million and development capex below prior year.

• Net invested capital stood at €338.3 million as of 30 September 2025.

Outlook and guidance

• 2025 guidance for adjusted EBITDA increase is confirmed, with expectations above 2024 levels, driven by traditional business and non-recurring benefits.

• Maintenance capex is projected to be higher than 2024 and above the Industrial Plan average, while development capex will be lower due to project phasing.

• 2027 EBITDA and recurring free cash flow targets are confirmed, with only a low to mid-single digit potential gap in EBITDA due to delayed diversification, offset by mitigation measures.

• Delays in photovoltaic and edge data center projects shift some investments and revenue contributions to 2028, but cumulative CapEx and long-term returns are unaffected.