Vodafone Group (VOD) Q4 2025 earnings summary

Executive summary

• FY2025 results delivered growth in line with expectations, driven by a transformation agenda focused on customers, simplicity, and growth, with service revenue up 5.1% and Adjusted EBITDAAL up 2.5%.

• Portfolio reshaped through sales of Spain and Italy, UK merger approval, and Vantage Towers monetisation, simplifying operations and improving customer experience.

• Capital structure reset, balance sheet strengthened, and over €3.7bn returned to shareholders via buybacks and dividends.

• Customer experience improved, with NPS leadership/co-leadership in 9 of 15 markets and significant role reductions for simplification.

• Digital and financial services expanded rapidly, with 205 million IoT connections and 88 million financial services customers.

Financial highlights

• FY2025 group guidance delivered for both EBITDA/EBITDAAL and adjusted free cash flow, with Adjusted EBITDAAL at €11.0bn and Adjusted FCF at €2.5bn.

• UK EBITDA/EBITDAAL grew 8% year-over-year, with record-low churn and NPS leadership in both mobile and fixed.

• Adjusted free cash flow outlook achieved, with two-thirds now generated from growth assets and one-third from Germany.

• Ordinary dividend of 4.5c per share, with €3.7bn total capital return including share buybacks.

• Statutory results show a net loss of €3.7bn, mainly due to a €4.5bn impairment charge.

Outlook and guidance

• FY2026 guidance (pre-UK merger): Adjusted EBITDA/EBITDAAL between €11–11.3bn; Europe targeted at €7.2–7.4bn.

• Group adjusted free cash flow expected to accelerate to €2.6–2.8bn.

• UK merger expected to add €0.4bn EBITDA/EBITDAAL but drag €0.2bn adjusted free cash flow in FY2026 due to integration investments.

• Full run-rate of GBP 700 million annual cost and CapEx synergies from the UK merger expected by year five.

• Free cash flow per share projected to grow 17% year-over-year at the midpoint of FY2026 guidance.