Getlink SE: Navigating Cross-Channel Challenges with Diversification and Innovation

The Channel Tunnel, a marvel of modern engineering connecting France and the UK, has long been a lifeline for trade and travel. For Getlink SE, the operator of this critical artery, May 2025 brought mixed signals: passenger and freight traffic dipped modestly, yet the company's broader strategy of diversification and innovation continues to position it as a resilient infrastructure player. Let's dissect the data and explore whether Getlink's sustainable growth narrative holds water—or, in this case, holds the Channel.

Shuttle Traffic: A Slight Downturn, But Trends Matter

Getlink's May 2025 shuttle data reveals a nuanced picture. Truck traffic fell 4% year-over-year to 97,125, while passenger vehicles edged down 1% to 195,294. However, the year-to-date (YTD) figures paint a more optimistic view: passenger vehicles rose 3% to 770,096, driven by strong demand earlier in the year. Freight, though, dipped 1% to 498,020 trucks, reflecting lingering economic headwinds in Europe.

Ask Aime: Why is Getlink's May traffic down?

The declines are not catastrophic, but they underscore a broader challenge: competition from ferries and economic uncertainty. Ferry operators, often subsidized by national governments, have undercut prices, luring price-sensitive travelers. Meanwhile, freight volumes remain tied to trade cycles, which are still recovering post-pandemic. Yet, Getlink's long-term concession until 2086 and its position as a must-use route for Eurostar trains provide a moated foundation.

Non-Shuttle Revenue: The Growth Engine

Where Getlink truly shines is in its diversified revenue streams, which are cushioning shuttle-related headwinds:

1. ElecLink's Comeback:
   After a 5-month suspension due to technical issues, ElecLink—the high-voltage electricity interconnector between France and the UK—resumed operations in February 2025. This asset has been a game-changer: it secured €200 million in 2025 revenue (83% of capacity) and €125 million for 2026. With energy markets volatile, ElecLink's ability to arbitrage prices between grids ensures steady, low-risk income.

2. Europorte's Steady Growth:
   Getlink's rail freight subsidiary grew 2% in Q1 2025, benefiting from rising demand for cross-Channel freight. With Brexit-related customs complexities now partially resolved, Europorte is well-positioned to capture trade flows, especially as companies seek efficient, low-emission logistics solutions.

3. Logistics Acquisitions:
   The 2025 acquisitions of Associated Shipping Agencies (ASA) and Boulogne International Maritime Services (BIMS) expand Getlink's reach into port and customs services. These moves complement its existing stake in ChannelPorts, creating a full-service logistics ecosystem that reduces reliance on shuttle traffic alone.

Smart Border and Sustainability: The Long Game

While Q1 2025 financials lacked specifics on the “smart border” system's progress, Getlink's commitment to modernizing border processes remains central to its strategy. The system, launched in 2021, aims to streamline customs and improve reliability. With the EU's Entry/Exit System (EES) for travelers set to launch in October 2025, Getlink's investments in digital infrastructure could future-proof its operations, reducing delays and maintaining traffic flow.

Meanwhile, Getlink's sustainability push—including a 27% reduction in GHG emissions since 2019—aligns with ESG trends. The ElecLink interconnector directly supports low-carbon energy exchange, while its terminals are being retrofitted for energy efficiency. These efforts bolster its appeal to investors prioritizing green infrastructure.

Financial Resilience and Valuation

Getlink's Q1 2025 EBITDA of €328 million dipped due to ElecLink's suspension, but core transport businesses remained robust. With a €1.7 billion cash pile and upgraded credit ratings (BB+), the company is financially agile. Its 2025 EBITDA target of €780–830 million is achievable if ElecLink and Eurotunnel maintain momentum.

At current valuations, Getlink trades at 12.5x EV/EBITDA, below its historical average of 14x. This discount reflects near-term shuttle volatility but overlooks its diversified moat.

Investment Takeaway

Getlink is far from a declining legacy asset. While shuttle traffic faces cyclical headwinds, its non-shuttle revenue pillars—ElecLink, Europorte, and logistics—are growing at a time when energy and freight markets are favorable. The company's focus on sustainability and operational efficiency also positions it to thrive as cross-Channel trade evolves.

Recommendation: Buy. Investors seeking a defensive infrastructure play with growth catalysts should consider Getlink. The stock's valuation discount, coupled with its diversified cash flows, makes it a compelling long-term bet. Monitor ElecLink's performance and the EES rollout as key near-term catalysts.

This analysis is for informational purposes only and should not be construed as personalized financial advice.