Koninklijke KPN (KPN) Q4 2025 earnings summary

Executive summary

• FY 2025 service revenues grew 2.7% year-on-year, with all segments contributing and adjusted EBITDA AL rising 5.1% to €2,636m, supported by cost discipline and operational efficiencies.

• Free cash flow increased 5.8% to €952m, exceeding guidance, with FCF per share up 7.1%.

• Record broadband net additions, strong commercial momentum in consumer and SME, and wholesale expansion via sponsored roaming.

• Fiber footprint expanded by 440,000 homes passed and 399,000 connected, reinforcing market leadership.

• Strategy focused on network investment, digital transformation, and operating model modernization, supporting ambitions for 3% annual service revenue and EBITDA growth, and 7% FCF growth.

Financial highlights

• Adjusted revenues up 3.5% year-on-year to €5,829m; Q4 adjusted EBITDA AL up 5.1% to €662m; EBITDA margin improved to 45.2%.

• Net profit increased 0.9% year-on-year to €855m, aided by lower taxes and a one-off tax gain.

• Capex for FY 2025 was €1,263m, representing 21.7% of adjusted revenues.

• Free cash flow margin over adjusted revenues up nearly 40 basis points to 16.3%.

• ROCE improved by 30bps to 14.7%; leverage ratio stable at 2.4x.

Outlook and guidance

• 2026 guidance: service revenue growth of 2–2.5%, adjusted EBITDA AL ~€2,670m, Capex ~€1.25bn, FCF >€950m.

• Dividend per share to grow 10% to €0.20 in 2026, with a €250m share buyback planned.

• Capex to fall below €1bn by 2027, supporting strong cash generation and shareholder returns.

• Mid- to high single-digit operational FCF growth expected in 2026, with 10% annual growth targeted post-2027.

• Committed to returning all free cash flow to shareholders via dividends and buybacks.