Sunrise Communications (SNRE) Q4 2025 earnings summary

Executive summary

• Achieved all 2025 financial guidance, including revenue, EBITDA/EBITDAaL, and free cash flow targets, supporting a 2.7% dividend increase.

• Revenue declined 1.1% year-over-year, but adjusted EBITDA/EBITDAaL grew by 0.9% due to cost optimizations and operational efficiencies.

• Net customer growth of 82,000 mobile postpaid subscriptions and stable Internet base; fixed-mobile convergence rate rose to nearly 60%.

• Continued innovation and multi-brand strategy, with new product launches and 5G expansion driving customer loyalty.

• Sustainability progress with a 49% reduction in scope 1 and 2 emissions and EcoVadis Platinum Medal.

Financial highlights

• FY 2025 revenue CHF 2,983m (-1.1% YoY); Q4 revenue up 0.5% YoY, driven by higher handset volumes and fee increases.

• Adjusted EBITDAaL for FY 2025 CHF 1,007m (+0.9% YoY); adjusted FCF CHF 380m (+4.7% YoY); CAPEX/revenue 16.0%.

• Net leverage ratio stable at 4.5x; gross debt reduced by CHF 180 million in Q4; 86% of debt matures in 2031 or later.

• Dividend proposal of CHF 3.42 per share for 2025, payout ratio ~66% of adjusted FCF.

• Net loss reduced by 70% YoY to CHF -108.5 million, mainly due to lower interest expenses and FX effects.

Outlook and guidance

• 2026 revenue expected to be broadly stable; adjusted EBITDAaL/EBITDA guided at approximately CHF 1 billion.

• Free cash flow expected to grow to CHF 400 million in 2026; CAPEX/revenue to fall below 15%.

• Dividend per share expected to increase to CHF 3.49 (+2%).

• Focus on operational execution, cost optimization, and AI-driven productivity gains.

• Conservative guidance due to potential hardware supply chain risks and uncertain promotional intensity.