Telefónica (TEF) Q3 2025 earnings summary

Executive summary

• Accelerated portfolio transformation with completed sales in Argentina, Peru, Uruguay, and Ecuador, and a pending agreement for Colombia; total customer base reached 350.2 million, up 1.6 million quarter-over-quarter.

• Strong commercial momentum in core markets, with growth in fiber and mobile contract accesses, and network leadership maintained with 82.6 million fiber premises passed and 78% 5G coverage.

• Sustained organic growth in revenue (+0.4% in Q3, +1.1% in 9M) and EBITDA (+1.2% in Q3, +0.9% in 9M), led by Spain and Brazil, despite FX headwinds and portfolio changes.

• Efficiency-driven management and major network and IT automation initiatives in Spain, Brazil, and Germany.

Financial highlights

• Q3 2025 revenue was €8,958 million (-1.6% y-o-y, +0.4% organic); 9M revenue was €26,970 million (-2.8% y-o-y, +1.1% organic).

• Q3 EBITDA was €3,071 million (-1.5% y-o-y, +1.2% organic); 9M EBITDA was €8,938 million (-3.6% y-o-y, +0.9% organic).

• Free cash flow from continuing operations was €123 million in Q3 and €414 million in 9M, both significantly lower year-over-year due to working capital and tax effects.

• Net financial debt stood at €28,233 million as of September 2025, with leverage ratio at 2.87x.

• EPS from continuing operations was €0.09 in Q3 and €0.24 for 9M 2025, both down over 25% year-over-year.

Outlook and guidance

• 2025 guidance reaffirmed: organic growth in revenue, EBITDA, and EBITDAAL-CapEx, with CapEx/Sales below 12.5%.

• Free cash flow for 2025 updated to €1.5–1.9 billion, with higher leverage expected.

• Dividend of €0.30 per share in cash confirmed for 2025, split between December 2025 and June 2026.