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 and record access base in Brazil.

• Strategic focus on core markets (Spain, Brazil, Germany, UK), simplification, and operational efficiency, with continued portfolio transformation and workforce restructuring.

• Launched and executed the 'Transform & Grow' plan, targeting profitable growth, customer experience, and operational simplification.

• Continued investment in network leadership, digital services, and customer experience to drive growth.

• Met all 2025 financial targets and confirmed dividend policy.

Financial highlights

• 2025 revenue reached €35,120 million (+1.5% y-o-y constant FX), adjusted EBITDA €11,918 million (+2.0%), and adjusted OpCFaL €5,081 million (+5.9%).

• Free cash flow from continuing operations was €2,069 million for FY25, with Q4 FCF accelerating to €1,402 million.

• Net financial debt reduced to €26,824 million by year-end.

• CapEx to sales ratio at 12.4% for FY25.

• Adjusted net income from continuing operations was €2,122 million, but a net loss of €4,318 million was posted due to non-recurring items and divestments.

Outlook and guidance

• 2026 guidance: revenue and adjusted EBITDA growth of 1.5–2.5% y-o-y, adjusted OpCFaL over 2%, CapEx/revenue ~12%, and FCF ~€3.0 billion.

• 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 reaffirmed.

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