Telenor (TEL) Q2 2026 earnings summary

Executive summary

• Q2 2026 was marked by mixed results, with revenue pressure in Norway and Bangladesh, but progress in Sweden, Denmark, and Amp, amid significant transformation and M&A activity, including acquisitions in Sweden and Norway and the sale of Telenor Connexion.

• Transition costs, VAT provisions, and market headwinds led to a downward revision of the 2026 outlook, but long-term ambitions remain unchanged.

• Defence sector presence expanded with new contracts in Norway, Finland, and the UK.

• Transformation initiatives and a new organizational structure are expected to yield cost savings and operational efficiencies from 2027.

Financial highlights

• Group service revenues declined 0.7% year-over-year to NOK 14,679 million; adjusted EBITDA fell 4.8% to NOK 7,987 million.

• Free cash flow before M&A rose 12.6% year-over-year to NOK 1,815 million; adjusted EPS was NOK 1.94, down 12%.

• CapEx to sales ratio stood at 14.5%; leverage at 1.4x, below or within target range.

• ROCE at 3.6% as of June 2026, down from 9.0% at year-end 2025, mainly due to CelcomDigi impairment; ROCE excluding associates at 11.9%-12%.

• Net income adjusted at NOK 2,651 million; net debt at NOK 51,502 million after True disposal proceeds.

Outlook and guidance

• 2026 guidance revised: Nordic organic growth in service revenues and adjusted EBITDA now expected to be flat to low single digit; group outlook for adjusted EBITDA is flat to slightly negative organic growth.

• Free cash flow before M&A expected around NOK 10 billion; capex-to-sales ratio guided around 14%.

• Transformation costs and OpEx increases to weigh on Q3 EBITDA, with benefits expected from late Q4 and into 2027.

• Mid- to long-term ambitions (2028/30) unchanged: free cash flow before M&A NOK 12-13 billion in 2028, NOK 14-15 billion in 2030; ROCE above 11% in 2028, above 12% in 2030.