Telia (TELIA) Q1 2026 earnings summary

Executive summary

• Service revenue grew 2.1% like for like, led by strong performance in Sweden and Lithuania, while adjusted EBITDA rose 4.0% like for like, driven by revenue growth, cost discipline, and higher customer satisfaction; AI adoption enhanced service quality.

• Net income increased to SEK 1.8 billion from SEK 0.7 billion year-over-year, and EPS rose to SEK 0.42 from SEK 0.13.

• Completed Bredband2 acquisition, consolidated from February, strengthening the broadband segment in Sweden and adding scale.

• Increased ownership in Finnish fiber JV Valokuitunen to 49% in partnership with Brookfield; transaction expected to close in Q2.

• Updated sustainability strategy with new targets; recognized as Sweden's most sustainable operator for up to 16 consecutive years.

Financial highlights

• Service revenue up 2.1% year-over-year, mainly from Sweden and Lithuania; adjusted EBITDA up 4.0% like for like, with margin improving to 39.8%.

• Free cash flow increased to SEK 1.9 billion, exceeding expectations due to higher EBITDA, better working capital, and early tax refund.

• CapEx trended at SEK 12.6 billion (rolling 12 months), below the full-year ambition of less than SEK 13 billion.

• Net debt increased to SEK 66.3 billion, leverage at 2.07x, mainly due to Bredband2 acquisition and hybrid debt restructuring.

• Dividend per share: SEK 0.50 paid in Q1; full-year dividend increased to SEK 2.05 per share.

Outlook and guidance

• 2026 guidance: service revenue growth around 2%, adjusted EBITDA growth around 3%, CapEx below SEK 13 billion, and free cash flow around SEK 9 billion.

• Mid-term ambitions (2025–2027): service revenue CAGR 2%, adjusted EBITDA CAGR 4%, annual CapEx below SEK 14 billion, and free cash flow above SEK 10 billion by 2027.

• H2 expected to contribute 70% of annual cash flow; on track to deliver full-year and mid-term ambitions.