Telefónica (TEF) Q4 2025 earnings summary

Executive summary

• Delivered on all 2025 financial commitments, with accelerating Q4 momentum, strong B2B performance, and best commercial results since 2018 in Spain.

• Executed the 'Transform & Grow' plan, focusing on customer experience, portfolio simplification, and operational efficiency.

• Significant portfolio transformation, including exits from six of eight Hispam markets and workforce restructuring in Spain.

• Entering 2026 with a focused portfolio, clear priorities, and upgraded free cash flow guidance.

• Strategic plan for 2026–2030 targets profitable growth, digital services, and operational simplification.

Financial highlights

• 2025 revenue reached €35,120m, up 1.5% year-over-year in constant terms; adjusted EBITDA €11,918m (+2.0%), adjusted OpCFaL €5,081m (+5.9%).

• Free cash flow for FY25 was €2.8bn, exceeding guidance; net financial debt decreased to €26.8bn.

• Q4 revenue €9,174m (+1.3%), adjusted EBITDA €3,198m (+2.8%), adjusted OpCFaL €1,281m (+12.9%).

• CapEx to sales at 12.4% for FY25.

• Dividend of €0.30/share confirmed for 2025.

Outlook and guidance

• 2026 guidance: revenue and adjusted EBITDA growth of 1.5–2.5%, CapEx to sales ratio around 12%.

• Adjusted OpCFaL expected to grow over 2%; free cash flow upgraded to ~€3.0bn.

• Dividend for 2026 set at €0.15/share in cash, to be paid June 2027.

• Leverage target of 2.5x net debt/EBITDA by 2028 remains in place.

• Mid-term (2025–2028) revenue and EBITDA CAGR of 1.5–2.5%, accelerating to 2.5–3.5% for 2028–2030.