Cellnex Telecom has recently seen its stock recover after a significant 25% decline from its March highs. Despite this volatility, the company is actively pursuing a strategy focused on deleveraging and enhancing shareholder value. This includes the sale of its French data center unit, Towerlink, for approximately €391 million, which is part of a broader plan to improve its financial position.
The company's Q1 2026 results show a positive trajectory, with revenue (excluding pass-through) rising to €984 million and adjusted EBITDA climbing to €832 million. Recurring leveraged free cash flow grew 12.2% to €378 million, and overall free cash flow swung to a positive €118 million. These financial improvements are supported by disciplined capital expenditure and an ongoing share buyback program.
Cellnex has committed to progressive shareholder returns, including a dividend of €250 million paid in January and an ongoing €800 million share buyback program for 2026. The company projects recurring leveraged free cash flow of €1.95 billion for 2024 and €2.05 billion for 2025, and aims for free cash flow per share between €2.92 and €3.25 by 2027. Trading at less than 8.5 times recurring leveraged free cash flow, analysts estimate a fair share price of €36 to €42, with some models suggesting it is currently undervalued by about 33% from an intrinsic value of €38.70 to €43.73.
