Rai Way (RWAY) Q4 2025 earnings summary

Executive summary

• FY 2025 results exceeded expectations, with core revenues up 2.4% to €282.8 million, driven by strong traditional business, DAB roll-out, and digital infrastructure growth.

• Adjusted EBITDA increased 3.3% to €191.8 million, with margin improving to 67.8%, reflecting cost control and non-core benefits.

• Net profit declined slightly due to higher depreciation, amortization, taxes, and one-off costs exceeding €2.5 million.

• Dividend proposal of €0.33 per share, yielding 5.7%, maintaining a 100% payout ratio and last year's record level.

• Progress continued on the 2024-27 Industrial Plan, including DAB network and solar project milestones.

Financial highlights

• Revenues reached €282.8 million (+2.4% YoY); media distribution services rose 2.2%, digital infrastructure up 4.1% to €33.3 million.

• Adjusted EBITDA was €191.8 million (margin 67.8%), up 3.3% YoY, aided by asset sales and tax credits.

• Adjusted net income was €88.6 million (-1.4% YoY), impacted by one-off costs.

• Capex totaled €52.1 million (maintenance €23.4 million, development €28.7 million, diversification €6.6 million).

• Net debt at year-end was €136.5 million, with Net Debt/Adjusted EBITDA at 0.69x.

Outlook and guidance

• 2026 Adjusted EBITDA expected broadly in line with 2025, with underlying growth offset by lower non-core contributions.

• Maintenance capex to remain stable; development capex to increase, focused on solar, DAB, and CDN projects.

• EBITDA sensitivity: +/- €0.7 million for every +/- €10/MWh change in electricity price.

• Delays in some projects due to regulatory and market factors, but long-term potential remains intact.