BT Group (BTA) H1 2026 earnings summary

Executive summary

• Delivered solid UK performance with flat adjusted EBITDA, offsetting international and legacy declines, and maintaining leadership in FTTP, 5G, and secure networking.

• Openreach achieved record FTTP build and take-up; consumer base grew across broadband, mobile, and TV.

• Business segment showed financial stabilization and robust order pipeline, with a £3 billion transformation program delivering £1.2 billion in cost savings.

• Four targeted international disposals agreed or completed, accelerating the reshaping of the international business.

• Interim dividend increased 2% to 2.45p per share; all guidance metrics for the year and beyond reconfirmed.

Financial highlights

• Adjusted revenue for H1 FY26 was £9,810m, down 3% year-over-year, mainly due to international, legacy voice, and lower handset sales.

• UK service revenue declined 1% year-over-year to £7,726m, with a £100m drag from legacy voice.

• Adjusted EBITDA was flat at £4,126m; up £19m excluding international.

• Reported CapEx rose 8% to £2,443m, reflecting higher FTTP build and provision in Openreach.

• Normalised free cash flow was £408m, down from £715m in H1 FY25 due to higher CapEx and reduced working capital.

Outlook and guidance

• FY26 guidance reconfirmed: Adjusted group revenue c.£20bn, UK service revenue £15.3–£15.6bn, EBITDA £8.2–£8.3bn, CapEx c.£5.0bn, normalised free cash flow c.£1.5bn.

• Sustained growth in revenue and EBITDA expected from FY27, with free cash flow targeted at c.£2.0bn in FY27 and c.£3.0bn by end of decade.

• Dividend policy remains progressive.

• Second half revenues expected to be slightly stronger than the first half.

• Long-term targets unchanged, progressing toward BBB+ credit rating.