Deutsche Telekom (DTE) Q2 2025 earnings summary

Executive summary

• Achieved consistent, reliable growth in H1 2025, with organic service revenue up 3.7% and adjusted EBITDA AL up 5.2% year-over-year; net profit surged 34.1% to €5.5bn.

• Raised group guidance for 2025, reflecting strong U.S. performance, M&A activity, and operational momentum.

• Closed major U.S. transactions (Metronet, UScellular), increased T-Mobile US stake to 52.1%, and executed spectrum sales.

• Advanced AI-driven digital transformation and announced partnerships with NVIDIA and Google Cloud.

• Maintained network leadership in Germany and the U.S., with significant fiber and 5G build-out.

Financial highlights

• H1 2025 revenue grew 3.7% to €58.4bn; adjusted EBITDA AL up 4.7% to €22.3bn; net profit up 34.1% to €5.5bn.

• Free cash flow AL rose 17.8% to €10.5bn; net debt reduced by €10.8bn to €126.5bn.

• T-Mobile US: Q2 revenues up 7.1% to $21.1bn, adjusted EBITDA AL up 6.2% to $8.3bn, record postpaid net adds.

• Adjusted EPS up 6.4% to €1.01; recurring adjusted EPS growth 9.8%.

• Leverage ratio at 2.51x (including leases), 2.11x (excluding leases); equity ratio at 31.9%.

Outlook and guidance

• 2025 guidance raised: adjusted EBITDA AL >€45bn, free cash flow AL >€20bn, adjusted EPS ~€2.00.

• T-Mobile US expects 6.1–6.4 million postpaid net additions and 3–3.1 million phone net adds in 2025.

• Guidance assumes USD/EUR at 1.08; leverage target ≤2.75x net debt/adj. EBITDA.

• German EBITDA expected to dip in Q3 due to wage increases, then recover in Q4.

• 2025/26 outlook expects continued increases in revenue, EBITDA AL, and FCF AL across all segments.