# 3i Infrastructure expects half-year returns ahead of target

- Link: https://www.directorstalkinterviews.com/3i-infrastructure-expects-half-year-returns-ahead-of-target/4121218414
- Published: 2025-09-30T07:19:00+01:00
- Author: Amilia Stone

**3i Infrastructure plc** (LON:3IN) is an investment company whose purpose is to
invest responsibly in infrastructure, delivering long-term sustainable returns to
shareholders and having a positive influence on our portfolio companies and their
stakeholders.

This statement relates to the period from 1 April 2025 to 29 September 2025.

> **Bernardo Sottomayor, Managing Partner and Head of European Infrastructure, 3i
> Investments plc, Investment Manager of the Company, commented:**
> “I am pleased with the strong performance of our portfolio since the beginning
> of this financial year. Our largest investment, TCR, is once again performing 
> ahead of expectations and generating significant value growth. We are really excited
> about the portfolio’s growth prospects and sustaining the strong long-term performance
> of 3iN. The Company is on track to exceed its return target for the half year.”

**Highlights:**

**–   ** On track to **exceed our return** **target for the half year:** portfolio
return likely to be ahead of expectations set at the start of the year, driven by
the strong performance of TCR, and ongoing earnings growth across the portfolio 
as a whole in the last 12 months;

**–   ** The Investment Manager’s team is developing an attractive **pipeline of
new investment opportunities**, but remains disciplined on pricing. Our intention
remains to repay the Revolving Credit Facility (‘RCF’) with sales proceeds from 
the next realisation;

**–   ** **Income ahead of prior-year:** total income and non-income cash of £122
million including some additional portfolio distributions, is up 18% from the same
period last year; and

**–   ** **FY25 dividend target:** The Company is on track to deliver the FY26 dividend
target of 13.45 pence per share, up 6.3% from FY25, which is expected to be covered
by net income.

**Portfolio performance in the Period:**

 * **TCR** has outperformed expectations set in March 2025, driven by higher rental
   margins and cost efficiencies. It has continued to expand its global footprint
   and the strategic focus on electrifying the fleet has been a catalyst for further
   leasing penetration. Following several years of outperformance, diversification
   of customers and equipment types, development of the integrated airport solutions
   business line and the recent growth into the US market, TCR is now a leading 
   global platform with a sustainable, well-defined growth outlook, attracting increasing
   interest from larger private infrastructure funds.
 * **Infinis** is performing ahead of our expectations set in March 2025. Good progress
   has been made on solar and battery development during the Period, and Infinis
   now has c. 230MW under construction.
 * **ESVAGT** management continues to see a robust pipeline of offshore wind Service
   Operating Vessels (‘SOVs’) in the coming years, as energy transition and energy
   security remain key focus areas of European governments and companies. ESVAGT
   is experiencing some delays in the delivery of its SOVs under construction due
   to operational challenges at the ship yards, which impacts short term profitability.
   The uncertainty in the US market remains, but the South Korean JV has started
   contract discussions with potential customers. 
 * **FLAG** invested $70m during the period to acquire a fibre pair on the transpacific
   ECHO system from Google which will provide revenues opportunity on this key route
   as well as synergies with FLAG’s existing routes. FLAG continues to see strong
   demand for subsea fibre connectivity, driven by hyperscaler growth and AI workloads.
   Furthermore, geopolitical constraints are continuing to delay competing cable
   deployments, providing a first mover advantage to FLAG’s established Europe-to-
   Asia network.
 * **Ionisos** has grown revenues year-on-year, driven by real price increases and
   stronger industrial cross-linking demand. However, this has been offset by some
   unplanned maintenance and headwinds from short-term overcapacity in certain segments
   of the market. The long-term outlook for the sector remains strong.
 * We remain cautious on the speed of recovery at **SRL**. Equipment hire days declined
   slightly year-on-year, as the market recovery has been concentrated in the low-
   cost two-way signal segment, which sits at the more competitive end of the market.
 * Our **other portfolio** **companies** are performing broadly in line with expectations
   set at March 2025.

**Balance Sheet:** At 29 September 2025, drawings on the Company’s £900 million 
multi-currency RCF are £360 million. The Company has a cash balance of £13 million,
leaving a net debt position of £347 million.

Share on: