Telefónica (TEF) Q2 2025 earnings summary

Executive summary

• Achieved steady operational execution and progress on strategic initiatives, with a strategic review on track for unveiling in the second half of 2025.

• Accelerated portfolio transformation in Hispam, signing or closing five country disposals totaling approximately €3 billion in firm value.

• Maintained positive momentum in core markets, with strong customer growth and efficiency milestones, especially in Spain and Brazil.

• Transformation aims to create value for shareholders, strengthen competitive position, and prioritize Europe and leadership in Brazil.

• Recognized for ESG and sustainability leadership, ranking second globally in 2025.

Financial highlights

• Q2 2025 revenue €8,953m, down 3.7% reported but up 1.5% organically year-over-year; H1 revenue €18,013m, down 3.3% reported, up 1.5% organic.

• Q2 EBITDA €2,921m, down 4.8% reported but up 1.2% organically; EBITDA margin 32.6%.

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

• Net financial debt at €27.6bn as of June 2025, leverage ratio 2.78x, reflecting FCF seasonality and FX mix.

• Adjusted EPS from continuing operations €0.07 in Q2, €0.15 in H1, down 30.7% year-over-year.

Outlook and guidance

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

• Dividend of €0.30/share for 2025, with two €0.15 cash payments in December 2025 and June 2026.

• Leverage reduction remains a priority, with FCF phasing aligned for H2 2025.