BT Group (BTA) H2 2026 earnings summary

Executive summary

• Achieved record full fibre build, now passing over two-thirds of UK premises, with leading FTTP take-up and record customer satisfaction across all brands.

• 5G+ mobile network coverage reached 73% of the UK population, with triple quality award wins.

• Transformation programme delivered £1.5bn in cumulative cost savings over two years, with expanded targets to FY30.

• Exited five non-core businesses, sharpened focus on the U.K., and accelerated transformation of the international division.

• Met financial guidance, grew EBITDA, and increased total dividend by 2% to GBP 0.0832 per share.

Financial highlights

• Adjusted group revenue for FY 2026 was GBP 19.646 billion, down 4% year-over-year, mainly due to lower equipment sales and international divestments.

• Adjusted EBITDA reached GBP 8.23 billion, up 1% excluding divestments.

• CapEx was GBP 5.114 billion, about GBP 100 million above guidance due to strong connection activity.

• Normalized free cash flow was GBP 1.508 billion, meeting guidance but down from GBP 1.6 billion in FY 2025.

• Dividend increased 2% to GBP 0.0832 per share.

Outlook and guidance

• FY 2027 revenue expected at GBP 19-19.5 billion; U.K. service revenue between GBP 15.1-15.4 billion, broadly flat to slightly down due to PSTN closure.

• Adjusted EBITDA forecasted to grow to GBP 8.2-8.3 billion.

• CapEx to decline to GBP 4.3 billion as fibre build peaks.

• Normalized free cash flow targeted at GBP 2 billion for FY 2027 and GBP 3 billion by FY 2030.

• Dividend per share to grow by low- to mid-single digits annually until BBB+ credit metrics are achieved.