Telefónica (TEF) Q2 2025 earnings summary

Executive summary

• Achieved steady operational execution and organic growth in revenue and EBITDA, with strong customer gains and efficiency milestones, particularly in Spain and Brazil during Q2 2025.

• Strategic review ongoing, with unveiling expected in H2 2025, and continued transformation to strengthen competitive position and shareholder value.

• Accelerated portfolio transformation in Hispam, with sales or agreements for Argentina, Peru, Colombia, Uruguay, and Ecuador totaling approximately €3 billion.

• Recognized for ESG and sustainability leadership, ranking second globally by TIME Magazine and Statista, and advancing diversity and inclusion initiatives.

• Maintained positive momentum in core markets and reaffirmed 2025 guidance and dividend.

Financial highlights

• Q2 2025 revenue was €8,953 million, down 3.7% reported but up 1.5% organically year-over-year; H1 revenue reached €18,013 million, up 1.5% organically.

• Q2 EBITDA was €2,921 million, down 4.8% reported but up 1.2% organically; H1 EBITDA was €5,867 million, up 0.8% organically.

• Free cash flow from continuing operations was €505 million in Q2, up €718 million sequentially; H1 free cash flow was €291 million.

• Net financial debt at €27,609 million as of June 30, 2025, with a leverage ratio of 2.78x.

• Adjusted EPS from continuing operations was €0.07 in Q2 and €0.15 in H1; net income from continuing operations reached €558 million for H1.

Outlook and guidance

• 2025 guidance confirmed: organic revenue and EBITDA growth, CapEx/Sales below 12.5%, and free cash flow similar to 2024.

• Dividend of €0.30 per share in cash for 2025, payable in two tranches (December 2025 and June 2026).

• Leverage reduction remains a priority, with improvement expected by year-end as free cash flow increases.