Telia (TELIA) Q2 2026 earnings summary

Executive summary

• Service revenue grew 2.8% year-over-year in Q2 2026, with strong performance in Sweden, Norway, and the Baltics, and adjusted EBITDA rose 3.4%, driven by revenue growth and lower operational expenses.

• Customer satisfaction improved, and operational simplification included the closure of the Halebop brand and transfer of non-core ICT business in Finland.

• Strategic partnerships and innovation initiatives advanced, including sovereign AI development and the launch of 5G standalone IoT services.

• Portfolio management included in-market consolidation in Sweden, the acquisition of Bredband2, a pending Norway RAN sharing agreement, and ongoing divestment of Latvia.

• The company surpassed digital skills targets and received high ESG ratings.

Financial highlights

• Q2 service revenue up 2.8% year-over-year; adjusted EBITDA up 3.4% to SEK 8.4 billion, with margin expanding to 40.5%.

• Free cash flow reached SEK 2.2 billion for Q2 and SEK 4.1 billion for H1, ahead of expectations.

• CapEx remained disciplined at SEK 12.5 billion on a rolling 12-month basis, below the outlook of SEK 13 billion.

• Leverage ended at 2.06x, marginally down year-over-year.

• Net income increased to SEK 2.4 billion, and EPS rose to SEK 0.57.

Outlook and guidance

• 2026 outlook reiterated: service revenue growth around 2% like for like, adjusted EBITDA growth around 3% like for like, CapEx below SEK 13 billion, and free cash flow around SEK 9 billion.

• Mid-term ambitions (2025-2027): service revenue CAGR 2%, adjusted EBITDA CAGR 4%, CapEx below SEK 14 billion per year, free cash flow above SEK 10 billion by 2027.

• Free cash flow ambition for the year includes a SEK 400 million Norwegian tax payment.