- Net loss widens to $55 million amid restructuring in Spain
- Revenue and profit margins improve slightly, outlook unchanged
What happened: Layoff costs widen Cellnex Q1 loss despite steady core performance
Cellnex Telecom reported a deeper net loss for the first quarter of 2025, largely due to costs associated with its redundancy plan in Spain. The company posted a $55 million net loss, up from $43.7 million a year earlier and significantly wider than the $29.7 million loss forecast by analysts, according to FactSet.
The telecoms infrastructure giant cited a provision related to the planned layoffs of 209 employees as the primary factor behind the larger-than-expected loss. Despite this, Cellnex’s underlying performance showed modest growth. Adjusted EBITDA rose 2.6% to $894 million, with the margin edging up to 83% from 82% a year earlier. Revenue climbed slightly to $1.08 billion, though this figure fell short of consensus expectations of $1.10 billion.
The company, which operates telecom towers across Europe, said it has already completed 93% of a $896 million share buyback programme that began in March. It also reiterated its full-year financial guidance and stated that tariffs will have no material impact on its operations — a reassurance amid rising trade tensions.
Also read: Cellnex plans Swiss unit sale, DigitalBridge and EQT interested
Also read: Cellnex plans $2.2B sale of Swiss unit
Why it’s important
Although Cellnex’s quarterly results disappointed versus analyst expectations, the company’s affirmation of its outlook signals confidence in its long-term strategy. The restructuring in Spain, while costly in the short term, appears to be part of a broader move towards streamlining operations and improving efficiency.
More significantly, Cellnex’s stance on tariffs — that they pose no threat — is particularly relevant as global telecom firms face an uncertain regulatory landscape. As a key player in Europe’s telecom infrastructure, Cellnex’s ability to weather macroeconomic and political pressures could help it maintain stability during industry consolidation and investment shifts. Its continued progress on its buyback plan also suggests management’s commitment to returning value to shareholders despite the pressure of near-term earnings.
