NOS SGPS (NOS) Q1 2026 earnings summary

Executive summary

• Revenue grew 1.9% year-over-year to €460.2M, driven by IT (+16%) and Cinema/Audiovisuals (+7%), offsetting a slight Telco contraction (-0.2%).

• EBITDA rose 3.1% to €203.3M, with margin expanding 0.5pp to 44.2%, reflecting operational efficiency, disciplined cost management, and AI-driven transformation.

• Recurring net income increased 7.9% to €59.7M, with reported net income up 4.7% to €62.0M, reflecting operational strength and lower depreciation/amortization.

• S&P upgraded credit rating to 'BBB' with a stable outlook, citing robust performance and cost optimization.

• Operating cash flow surged 21.6% to €85.9M, and free cash flow before dividends and investments rose 10.1% to €91.8M.

Financial highlights

• Consolidated revenue reached €460.2M (+1.9% YoY); IT revenue up 16%, Cinema/Audiovisuals up 7%.

• EBITDA was €203.3M (+3.1% YoY); EBITDA margin improved to 44.2% (+0.5pp YoY).

• Net income excluding non-recurring items was €59.7M (+7.9% YoY); reported net income €62.0M (+4.7% YoY).

• Free cash flow before dividends/investments: €91.8M (+10.1% YoY); recurring free cash flow up 22% to €80M.

• Net financial debt reduced to €930.5M; leverage ratio improved to 1.35x NFD/EBITDA AL.

Outlook and guidance

• CapEx expected to continue declining, with no material impact from recent storms.

• B2B/IT segment expected to maintain healthy mid-single digit growth throughout the year.

• S&P expects continued robust operating performance and cost optimization to sustain credit metrics.

• Dividend policy maintained, with €0.45/share paid in May 2026.

• Residential ARPU faces ongoing headwinds from competitive dynamics and discount brands; price increases to provide some positive impact in coming quarters.