Proximus (AO) | Reduce | Q1: EBITDA and FCF beat, revenue miss mainly low-margin hardware

Research evidence excerpt

Proximus (AO) | Reduce | Q1: EBITDA and FCF beat, revenue miss mainly low-margin hardware

News comment

Release date: 13 May 2026

Kristoffer Carleskär

Equity Research Analyst

Reduce +44 207 621 5149Proximus kcarleskar@keplercheuvreux.com

Belgium | Telecom services Beta Profile: MCap: EUR2.1bn

Target Price: EUR7.00 Bloomberg: PROX BB Reuters: PROX.BR

Current Price: EUR6.42 Free float 42%

Up/downside: 9.1% Avg. daily volume (EURm) 7.3

YTD abs performance -9.3% Market data: 12 May 2026

52-week high/low (EUR) 8.66/6.42

Q1: EBITDA and FCF beat, revenue miss mainly low-margin hardware

Key points:

Consensus deviations: Group underlying revenue was 2% below consensus, with Domestic service revenue broadly in line, while

Group EBITDA was 3% ahead and organic FCF (EUR19m) came in above the EUR-22m consensus loss.

Kepler take: The positives include a resilient Domestic business with solid intake amid intense competition and a

better‑than‑expected start to the year on EBITDA and FCF. The revenue miss is largely low‑margin Business hardware, with

Domestic service revenue broadly in line, and the DAZN football deal fits within current guidance. Overall, we think the Q1 print

warrants a positive share price reaction today.

Group underlying revenues were 2% below consensus, with both Domestic and Global 2% below expectations. Revenue for the group

declined by 7%, similar to the 5-7% declines seen across in Q3-Q4 2025, mainly related to the Global division. Domestic service revenue

(Proximus new guidance metric) was on the other hand 1% above consensus.

Domestic revenue was down 3% (Q4: -1%, Q3: flat). Q1 growth per division: Residential +2% (Q3-Q4 2025: c. +1%), Business -7% (Q4:

-4%), and Wholesale -8% (Q4: flat, Q3: -12%). Domestic service revenue growth was flat YOY.