Nos Sgps SA (ZONNF) Q4 2025 Earnings Call Highlights: Strong Cash Flow and Operational ...

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• Consolidated Revenue:Increased by 0.3% to EUR486 million in Q4.

• EBITDA:Rose 4.4% in Q4.

• EBITDA minus CapEx:Improved by 20.6% in Q4.

• Recurring Free Cash Flow:Increased 132% to EUR71 million in Q4.

• Net Income:Increased 58% year-on-year, excluding extraordinary effects.

• Telco Revenue:Flat year-on-year, with a 1.3% increase in the enterprise sector.

• IT Revenue:Grew by 4.3%, driven by a 9% increase in IT services.

• Audiovisuals and Cinema Revenue:Declined 8% due to a 19% reduction in cinema attendance.

• CapEx:Declined 4% to EUR92 million in Q4.

• Debt:Decreased to EUR1.022 billion with a financial leverage ratio of 1.5 times.

• Average Cost of Debt:Reduced to 2.7%, a decrease of 0.8% year-on-year.

• Cash and Liquidity:EUR342 million as of December.

• Dividend:Total dividend of EUR0.45 per share approved.

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Release Date: March 04, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Consolidated revenues increased by 0.3% to EUR486 million, with EBITDA rising 4.4%, indicating strong operational performance.

• Recurring free cash flow, excluding extraordinary effects, increased by 132% to EUR71 million, showcasing effective cash management.

• NOS achieved improved ESG scores, with CDP score rising from B2A and S&P Global score increasing from 58% to 75%, reflecting strong sustainability efforts.

• The SCAILE program identified and implemented 140 AI use cases, contributing to a 2.3% reduction in fourth quarter OpEx.

• NOS network now covers over 6.1 million households with fiber, representing almost 90% of households passed, indicating significant infrastructure expansion.

Negative Points

• Audiovisuals and Cinema division reported an 8% decline in revenues, driven by a 19% reduction in cinema attendance.

• B2C segment experienced a decline of 0.4% due to increased competition impacting ARPU, despite strong operational activity.

• Prepaid net additions declined by 26,000 in the quarter, affected by competitive pressure on low ARPU customers.

• Net income declined by 10.9% to EUR63.8 million, primarily due to a reduction of EUR31 million in extraordinary effects.

• The competitive environment remains aggressive, with no significant changes expected, impacting market dynamics.

Q & A Highlights

Q: What headcount reductions could the SCAILE program deliver in 2026, and where would these cuts occur? Also, what is the reason for slower business growth from lower project volumes, and will this trend continue into 2026? Lastly, what are the details of your price rises in 2026, and how have customers reacted? A: (Luis Nascimento, Executive Member of the Board of Directors) We believe we can continue achieving solid efficiencies in 2026 through the SCAILE program, having implemented only 25% to 30% of the 140 use cases. (Miguel Nuno Santos Almeida, CEO) Regarding price rises, we increased prices by 2.34% in February, aligning with 2025 inflation. Customer reaction has been positive, with fewer complaints compared to past increases. As for business growth, the project revenue line is volatile, with no structural trend indicating a slowdown. We expect this volatility to continue.