Orange Polska (OPL) Q4 2025 earnings summary

Executive summary

• Achieved strong commercial and financial performance in 2025, exceeding guidance on revenue and EBITDAAL growth, and delivering a 47% total shareholder return through share price appreciation and dividends.

• Progressed in all pillars of the "Lead the Future" strategy, including commercial growth, network expansion, and transformation for efficiency.

• Transformation initiatives improved cost efficiency, operating leverage, and profit margins, including a new social plan and higher capex efficiency.

• Significant advances in 5G and fiber coverage, with 85% 5G population coverage and fiber reaching 10 million homes.

• Net profit declined 17% year-over-year due to a restructuring provision and higher depreciation, despite strong operational performance.

Financial highlights

• 2025 revenues grew 4.3% year-over-year to PLN 13,133 million, with Q4 revenues up 4.6%.

• EBITDAAL increased 4.0% year-over-year to PLN 3,473 million, with margin at 26.4% of revenues.

• Core telecom services revenue rose 6.5% for the year; wholesale revenue grew 13% for the year and 27% in Q4.

• Net income reached PLN 762 million, including a PLN 151 million restructuring provision; excluding this, net income was comparable to 2024.

• Organic cash flow hit PLN 1,013 million, with CapEx intensity at 13.8%.

Outlook and guidance

• 2026 targets: low single-digit revenue growth, 3%-5% EBITDAAL growth, and at least PLN 1.1 billion organic cash flow.

• Midterm guidance upgraded: expect at least PLN 1.4 billion organic cash flow in 2028, a 40% increase from 2025.

• Dividend floor set at PLN 0.61 per share, a 15% increase, with further increases targeted and maintained through 2028.