Sunrise Communications (SUNN) Q4 2025 earnings summary

Executive summary

• Achieved all 2025 guidance metrics, including revenue, EBITDA/EBITDAAL, and free cash flow targets, supporting a proposed dividend increase of 2.7%.

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

• Delayed stabilization in Main Brand Fixed business was offset by growth in Flanker Brands and B2B & WHS, and improved cost efficiency.

• Continued innovation with new product launches across main, flanker, and B2B brands, including CH Mobile and SME bundles.

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

Financial highlights

• FY 2025 revenue CHF 2,983m, down 1.1% YoY; Q4 revenue CHF 789m, up 0.5% YoY.

• Adjusted EBITDA/EBITDAAL for FY 2025 CHF 1,007m, up 0.9% YoY; Q4 CHF 243m, down 1.4% YoY.

• Full-year adjusted free cash flow reached CHF 380 million, up 4.7% from 2024.

• Net leverage ratio stable at 4.5x; gross debt reduced by CHF 180 million in Q4.

• CapEx for 2025 was CHF 480 million, with a reduction expected to be sustainable due to completed 5G rollout and IT efficiencies.

Outlook and guidance

• 2026 revenue expected to be broadly stable with slight improvement; EBITDA/EBITDAAL guided at approximately CHF 1 billion.

• Free cash flow expected to grow to CHF 400 million in 2026.

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

• CapEx/revenue to remain below 15%; reduction seen as sustainable due to completed infrastructure investments and AI-driven IT efficiencies.

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