Telstra Group (TLS) H1 2026 earnings summary

Executive summary

• Delivered strong earnings growth in the first half, with EBITDAAL up 4.9% and underlying EBITDAAL up 5.5% year-over-year, supporting increased shareholder returns and reflecting disciplined capital management and cost control.

• Interim dividend increased by 10.5% to 10.5 cents per share (90.5% franked), and share buy-back raised to up to AUD 1.25 billion for FY26.

• Strategic focus on digital transformation, AI adoption, and network investment, including the Aura (Intercity Fibre) project, with 86% of consumer service interactions now digital.

• Ongoing portfolio optimization with divestments and disciplined capital management, including sales of Alliance Automation, MTData, and Versent.

• Strategic NPS improved by 5 points, reflecting enhanced customer experience.

Financial highlights

• Total income grew 0.2% year-over-year to $11.8 billion; EBITDAAL up 4.9% to $4.16 billion; EBIT up 9.2% to $2.02 billion; NPAT up 8.1% to $1.2 billion; EPS up 11% to 9.9 cents.

• Cash EPS up 20% to 14.0 cents; interim dividend 10.5 cents per share, up 10.5%.

• Operating expenses declined 2.1%; BAU capex down 5.2% to $1.5 billion.

• Buyback increased to AUD 1.25 billion; $637 million spent in 1H26; 2.6% of shares retired in 2025.

• Operating cash flows less investing activities up 47.7% to $1,902 million.

Outlook and guidance

• Underlying EBITDAAL guidance tightened to AUD 8.2–8.4 billion for FY26; BAU capex $3.2–$3.5 billion; cash EBIT $4.55–$4.75 billion.

• Expect higher BAU CapEx in second half, with productivity and asset sales offsetting divestment impacts.

• Committed to mid-single-digit cash earnings growth and sustainable, growing dividends.

• Dividend payout ratios: 106% of EPS and 75% of Cash EPS.

• Strategic investment guidance for FY26: $0.3–$0.5 billion, mainly for Aura and Viasat.