Deutsche Telecom Outperforms Targets for 2025 and Plans Further Growth in 2026

Deutsche Telekom closed out an extremely successful 2025. Its net revenue increased by 4.2% year-on-year in organic terms to €119.1 billion.

Service revenues were up by 3.8% in organic terms. Adjusted EBITDA AL increased in the same period by 4.7% in organic terms to €44.2 billion. The reported growth rates were lower, at 2.9% for revenue, 2.9% for service revenues, and 2.8% for adjusted EBITDA AL, mainly owing to the year-on-year decline in the US dollar. Free cash flow AL increased by 2.0% to €19.5 billion.

The latest guidance from November had anticipated adjusted EBITDA AL of around €45.3 billion, with the final figure coming in at €45.5 billion. At €20.2 billion, free cash flow AL likewise exceeded the expected level of around €20.1 billion. “We have extended our network leadership, are improving all areas of our business through the systematic integration of artificial intelligence, and remain on course for success,” said Tim Höttges, CEO of Deutsche Telekom. “We continue to deliver reliable and sustainable growth.”

Adjusted net profit increased by 3.7% in 2025 to €9.7 billion. This corresponds to adjusted earnings per share of €2.00. Of this figure, €1.97 are relevant for recurring earnings per share, on which the dividend is based. Deutsche Telekom announced its plans to distribute a dividend of €1.00 per share for 2025 back in November.

Looking at regional performance, DT highlighted increased fiber uptake in Germany, though noted that as a whole, the country’s broadband market was stagnating. T-Mobile US, which recently reported its 4Q25 figures, was credited with impressive growth in customer numbers and financial results. DT highlighted good financial performance indicators in its units across the rest of Europe, while noting IT service subsidiary T-Systems recorded strong earnings growth in the Cloud, Digital, and Road Charging parts of its business.

The Group expects to continue growing in 2026. Adjusted EBITDA AL is anticipated to increase to around €47.4 billion, and free cash flow AL to around €19.8 billion. Adjusted earnings per share are expected to amount to around €2.20. The guidance is based on constant exchange rates, in particular the US dollar at the 2025 rate of $1.13 to the euro. This guidance places the Group clearly on track to achieve the ambition levels it presented at the 2024 Capital Markets Day.