Deutsche Telekom (DTE) investor relations material

Executive summary

• Achieved strong organic growth in FY 2025, with all segments contributing to EBITDA growth and positive momentum across key financial and operational KPIs.

• Raised some Capital Markets Day (CMD) targets and confirmed commitment to delivering on strategic ambitions, despite competitive and macroeconomic challenges.

• Continued market-leading customer growth, network leadership, and aggressive AI-driven transformation, including the launch of Europe's first Industrial AI Cloud and partnership with Nvidia.

• Increased T-Mobile stake to 52.8%, returned €6.4 billion to shareholders, and announced a record €1 dividend and €2 billion share buyback.

• Management stability reinforced with board contract extensions and advanced ESG initiatives, including achieving zero CO2 emissions (Scope 1+2).

Financial highlights

• Organic service revenue grew 3.8%, EBITDA up 4.7%, free cash flow reached €19.5 billion, and adjusted EPS rose to €2 per share for 2025.

• All segments contributed to EBITDA growth; T-Systems led with 14.4% organic EBITDA growth, and ex-US EBITDA grew 3.4%.

• T-Mobile US delivered 10.5% service revenue growth in Q4, with 2.4 million postpaid net adds and 6.8% core EBITDA growth.

• Net profit declined 14% year-on-year, mainly due to prior-year impairment reversals.

• CapEx increased by €900 million, mostly in the US; free cash flow impacted by weaker dollar.

Outlook and guidance

• 2026 group guidance: EBITDA around €47.4 billion (+6%), free cash flow €19.8 billion, adjusted EPS €2.20 (+10% FX-adjusted).

• DT ex US guides for 2.5%-3% EBITDA growth and 3% free cash flow growth in 2026.

• CMD targets largely on track, but lagging in DT ex US service revenues and indirect cost ratio due to slower German growth.

• 2027 targets reaffirmed, including group FCF AL ~€21bn and adjusted EPS ~€2.50.

• Guidance based on a 1.13 EUR/USD rate.