Telefónica (TEF) Q3 2025 earnings summary

Executive summary

• Achieved steady 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.

• Accelerated portfolio transformation with completed sales in Uruguay, Ecuador, Argentina, and Peru; Colombia sale pending.

• Total customer base reached 350.2 million, with strong growth in fiber and mobile contract accesses.

• Maintained network leadership with 82.6 million FTTH premises passed and 78% 5G coverage in core markets.

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

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 for 9M 2025, both significantly lower year-over-year.

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

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

Outlook and guidance

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

• Free cash flow for 2025 updated to ~€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.

• Most Hispam exit impacts to be concentrated in 2025, with midterm free cash flow mainly from Europe and Brazil.