Telstra Group (TLS) H2 2025 earnings summary

Executive summary

• Achieved fourth consecutive year of underlying growth, completing the T25 strategy and launching Connected Future 30, focused on core connectivity, innovation, network leadership, digital transformation, and sustainability.

• Reported profit up 31% to $2.3B, EPS up 34%, and return on invested capital up 1.7 points to 8.5% compared to prior year.

• Announced a fully franked final dividend of $0.09 per share, total $0.19 for the year, up 5.6%.

• Completed $750M share buyback and announced an additional buyback of up to $1B.

Financial highlights

• Reported EBITDA up 14% to $8.6B; underlying EBITDA up 4.6%.

• Underlying profit up 1.8%; cash EPS up 12% to $0.224; EPS grew 34% to 18.9c.

• Free cash flow after leases before strategic investment rose 5.7% to $3.43B.

• Core fixed costs reduced by 4.7% ($306M) in the year.

Outlook and guidance

• FY 2026 guidance: underlying EBITDAAL of $8.15B–$8.45B, lease amortization ~$600M.

• Cash EBIT expected between $4.55B–$4.75B, up 5.5%–10% year-over-year.

• BAU CapEx guidance: $3.2B–$3.5B; strategic investment $0.3B–$0.5B, mainly for intercity fibre.

• Committed to sustainable, growing dividends and ongoing capital management, including buybacks.