Deutsche Telekom (DTE) Q2 2025 earnings summary

Executive summary

• Achieved consistent, reliable growth in H1 2025, with net revenue up 3.7% to €58.4bn and organic service revenue up 3.7%; adjusted EBITDA AL rose 4.7% to €22.3bn.

• Raised 2025 group guidance, supported by strong US segment performance, M&A activity, and improved leverage.

• Net profit surged 34.1% to €5.5bn, with adjusted EPS up 6.4% to €1.01 and recurring adjusted EPS growth of 9.8%.

• Closed major M&A deals in the US (Metronet, UScellular), increased TMUS stake, and completed spectrum sales.

• Advanced AI-driven digital transformation, with partnerships (NVIDIA, Google Cloud) and efficiency improvements.

Financial highlights

• Q2 2025 revenue rose 1.0% to €28.7bn; H1 revenue up 3.7% to €58.4bn; service revenue at €49.3bn (+3.7% YoY).

• Adjusted EBITDA AL: €22.3bn (+4.7% YoY); EBIT: €13.4bn (+14.9% YoY); margin up 0.4pp to 38.2%.

• Net profit: €5.5bn (+34.1% YoY); adjusted net profit: €4.9bn (+4.9% YoY).

• Free cash flow AL: €10.5bn (+17.8% YoY); Q2 free cash flow down 6.7% due to FX and working capital.

• Net debt reduced by €10.8bn to €126.5bn; leverage ratio at 2.51x (incl. leases), 2.11x (excl. leases).

Outlook and guidance

• 2025 guidance raised: adjusted EBITDA AL now >€45bn, free cash flow AL >€20bn, adjusted EPS ~€2.00.

• TMUS 2025 guidance: US$33.3–33.7bn core adj. EBITDA, US$17.6–18.0bn FCF, 6.1–6.4m net adds.

• German EBITDA expected to dip in Q3 due to wage increases, then recover in Q4.

• All other forecast statements unchanged; planning assumes USD/EUR at 1.08.

• 2025/26 outlook expects continued increases in revenue, EBITDA AL, and FCF AL across all segments.