Deutsche Telekom (DTE) Q4 2025 earnings summary

Executive summary

• Achieved strong organic growth in FY 2025, with service revenues up 3.8%, adjusted EBITDA AL up 4.7%, and free cash flow after leases (FCF AL) up 2.0% year-over-year, supported by all segments and positive momentum in key KPIs.

• Raised some Capital Markets Day (CMD) targets, confirmed commitment to strategic ambitions, and surpassed raised guidance for 2025, setting new record highs.

• Continued market-leading customer growth, network leadership, and aggressive AI-driven transformation, including the launch of Europe's first Industrial AI Cloud and a major partnership with Nvidia.

• Increased T-Mobile US stake to 52.8%, returned €6.4 billion to shareholders, and announced a record €1 dividend and €2 billion share buyback.

• Management stability reinforced with board contract extensions and advanced ESG initiatives, including achieving zero CO2 emissions (Scope 1+2).

Financial highlights

• FY 2025 group revenues grew 4.2% organically to €119.1bn; service revenues up 3.8% to €99.4bn; adjusted EBITDA AL rose 4.7% to €44.2bn; free cash flow AL reached €19.5bn.

• Adjusted EPS increased to €2.00; net profit climbed 3.7% to €9.7bn; dividend per share increased to €1.00.

• T-Mobile US delivered 10.5% core EBITDA growth in Q4, with 2.4 million postpaid net adds and 6.8% core EBITDA growth for the year.

• Net profit declined 14% year-on-year due to prior-year impairment reversals; reported revenue growth was 2.9% due to U.S. dollar decline.

• CapEx increased by €900 million, mostly in the US; free cash flow impacted by weaker dollar.

Outlook and guidance

• 2026 group guidance: adjusted EBITDA AL around €47.4bn (+6%), free cash flow AL €19.8bn, adjusted EPS €2.20 (+10% FX-adjusted).

• 2027 targets reaffirmed: group FCF AL ~€21bn and adjusted EPS ~€2.50.

• DT ex US guides for 2.5%-3% EBITDA growth and 3% free cash flow growth in 2026; Germany expects similar service revenue growth in 2026 as 2025, with improved EBITDA trend.

• European segment targets >1 million new fiber homes and 95% 5G coverage in 2026.

• Guidance based on constant exchange rates and 1.13 EUR/USD rate.