Swisscom (SCMN) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial results in Switzerland and Italy, with successful integration of Vodafone Italia and realization of synergies ahead of plan, and an 18% dividend increase to CHF 26 per share.

• Maintained sector-leading A2 credit rating and streamlined organization, with a new group-wide sustainability strategy.

• Reinforced number one market position in Switzerland and advanced dual-brand strategy in Italy, with IT growth and service leadership.

• Annual profit for 2025 was CHF 180 million, a significant decrease from CHF 3,003 million in 2024.

• The Swiss Confederation maintained its 51% majority shareholding as of year-end 2025.

Financial highlights

• Group revenue was CHF 15,048 million, down CHF 310 million year-over-year, mainly due to currency effects and lower telco service revenues.

• Group EBITDA/EBITDAAL reached CHF 4.984 billion, down 1.2% year-over-year; Free Cash Flow stable at CHF 1.92 billion.

• Net income declined by CHF 271 million year-over-year, mainly due to PPA depreciation and added interest expense from the Vodafone acquisition.

• CapEx totaled CHF 3.064 billion, down 1.6% year-over-year, with disciplined spending and integration efficiencies.

• Annual profit dropped sharply to CHF 180 million from CHF 3,003 million year-over-year.

Outlook and guidance

• 2026 group revenue guidance: CHF 14.7–14.9 billion; EBITDA/EBITDAAL: CHF 5.0–5.15 billion; CapEx: CHF 3.0–3.1 billion; Free Cash Flow: CHF 2 billion.

• Switzerland: Revenue guidance CHF 7.7–7.8 billion, EBITDA CHF 3.3 billion, CapEx CHF 1.6–1.7 billion, Free Cash Flow CHF 1.6–1.7 billion.

• Italy: Revenue guidance CHF 7.2 billion, EBITDA CHF 1.8–1.9 billion, CapEx CHF 1.5 billion, with synergies ramping up by CHF 200 million.

• Dividend guidance for 2026 is CHF 27 per share, up from CHF 26, subject to shareholder approval.

• Leverage targeted below 2.4x, with ambition to decrease further.