3i Infrastructure (LSE:3IN) delivered a solid third-quarter update, pointing to strong trading across the majority of its diversified portfolio and continued momentum on strategic priorities. Offshore wind services business ESVAGT strengthened and modernised its fleet with the delivery of the world’s first dual-fuel, e-methanol-capable service operations vessel, alongside the purchase of two additional SOVs. Energy infrastructure platform Joulz completed two acquisitions that are expected to lift EBITDA by around 70% and expand operations into two new European markets, supported by up to €107 million of fresh equity from 3i Infrastructure.
Elsewhere in the portfolio, ground-handling equipment specialist TCR continued to secure new contracts and agreed a €100 million increase to its revolving credit facility, while most other holdings are performing in line with or ahead of expectations. Against this broadly positive backdrop, the company highlighted a sharp worsening in financing conditions for German fibre roll-out businesses. As a result, 3i Infrastructure is reassessing its early-stage investment in DNS:NET and now expects to write the asset down to zero by the March 2026 year-end, removing a holding that previously accounted for 5.6% of net asset value.
Despite this expected write-down and ongoing challenges at SRL, the group generated £53 million of income and non-income cash in the three months to 31 December 2025. Management remains confident in delivering a 6.3% increase in the FY26 dividend to 13.45 pence per share, fully covered by net income. The company also continues to manage its £500 million net debt position, with the intention of repaying its revolving credit facility through future asset realisations.
Overall, 3i Infrastructure’s outlook is underpinned by strong financial quality, characterised by high profitability and modest leverage, although this is balanced by some volatility in cash flows and earnings. Valuation metrics remain supportive, with a low P/E ratio and an attractive dividend yield, while technical indicators and recent trading updates are broadly constructive.
More about 3i Infrastructure plc
3i Infrastructure plc is a Jersey-incorporated, closed-ended investment company and approved UK Investment Trust listed on the London Stock Exchange. The company invests responsibly in infrastructure assets with the objective of delivering long-term, sustainable returns for shareholders while positively influencing portfolio companies and their stakeholders. It is managed by 3i Investments plc, a subsidiary of 3i Group plc, which is authorised and regulated by the UK Financial Conduct Authority.
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