Telecom Italia (TIT) Q4 2025 earnings summary

Executive summary

• Achieved all 2025 guidance targets for the fourth consecutive year, with strong results in both Italy and Brazil, reinforcing operational discipline and market credibility.

• Poste's investment and new governance enhanced stability, efficiency, and strategic alignment.

• Resolved a 20+ year legal dispute over the 1998 concession fee, with €1 billion compensation recognized as non-recurring income in 2025.

• Overhauled capital structure, including share capital reduction, savings share conversion, and reverse stock split, to increase financial flexibility and liquidity.

• Transformation plan delivered significant cost savings and improved operational efficiency.

Financial highlights

• 2025 group revenues rose 2.7% to €13.7 billion, with domestic up 1.9% and Brazil up 4.6%.

• EBITDA After Lease grew 6.5% to €3.7 billion, with margin expansion in both geographies.

• CapEx intensity at 13.9% of revenues (€1.9 billion), with disciplined investment.

• Equity Free Cash Flow After Lease reached €0.7 billion, supporting deleveraging and above guidance.

• Adjusted Net Debt After Lease reduced to €6.85 billion (leverage 1.86x).

Outlook and guidance

• 2026 group revenues expected to grow 2–3%, EBITDA After Lease up 5–6%, and CapEx/revenue to remain below 14%.

• Equity Free Cash Flow After Lease targeted at €1.8 billion, including license fee compensation.

• Leverage to stay below 1.7x.

• Shareholder remuneration to include dividends (70% of Eq. FCF AL net of certain impacts) and buyback (50% of Sparkle proceeds).

• Capital Markets Day planned post-summer for further updates.