Deutsche Telekom (DTE) Q2 2025 (Media) earnings summary

Executive summary

• Achieved consistent, reliable growth in H1 2025, with organic service revenues up 3.7%, adjusted EBITDA AL up 5.2%, free cash flow AL up 17.8%, and adjusted EPS up 6.4% year-over-year.

• Raised full-year 2025 guidance for EBITDA and free cash flow, reflecting robust U.S. performance, recent M&A, and record customer growth.

• Continued network leadership in both Europe and the U.S., with significant fiber expansion, digital transformation, and AI-driven efficiency initiatives.

• S&P raised rating outlook from stable to positive; Deutsche Telekom's stake in T-Mobile US increased to 52.1%.

• German broadband market remains challenging but with a long-term value focus; U.S. segment delivered record postpaid customer growth.

Financial highlights

• Q2 2025 revenue rose 1.0% to €28.7bn; H1 revenue up 3.7% to €58.4bn year-over-year.

• Adjusted EBITDA AL for Q2 was €11.0bn (+1.7% reported, +5.0% organic); H1 adjusted EBITDA AL up 4.7% to €22.3bn.

• Q2 net profit surged 25.2% to €2.6bn; H1 net profit up 34.1% to €5.5bn year-over-year.

• Free cash flow AL for H1 grew 17.8% to €10.5bn; Q2 FCF AL declined 6.7% due to phasing and FX.

• Net debt (excl. leases) decreased 4.2% to €93.0bn; leverage ratios improved to 2.11x (excl. leases), 2.51x (incl. leases).

Outlook and guidance

• 2025 guidance raised: adjusted EBITDA AL >€45.0bn, free cash flow AL >€20.0bn, adjusted EPS ~€2.00.

• T-Mobile US 2025 guidance: US$33.3–33.7bn core adjusted EBITDA, US$17.6–18.0bn FCF, and 6.1–6.4 million postpaid net adds.

• Guidance assumes FX rate of 1.08 €/US$; leverage target ≤2.75x net debt/adj. EBITDA.

• Confirmed mid-term targets, including 1 million annual fiber net adds in Germany by 2027.

• Expect Q3 EBITDA below current run rate due to wage increases, with Q4 above run rate.