Deutsche Telekom (DTE) Q1 2025 earnings summary

Executive summary

• Revenue rose 6.5% year-over-year to €29.8 billion in Q1 2025, with service revenue up 6.3% to €25.0 billion, driven by strong U.S. and European growth.

• Adjusted EBITDA AL increased 7.9% to €11.3 billion, and free cash flow AL surged 52.4% to €5.6 billion, supporting a reduction in net debt.

• Net profit jumped 43.5% to €2.8 billion; adjusted EPS rose 10.8% to €0.50.

• Raised 2025 guidance for adjusted EBITDA AL to €45.0 billion and free cash flow AL to €20.0 billion, reflecting robust U.S. performance.

• Continued network leadership, accelerated AI-driven digital transformation, and major acquisitions and share buy-backs completed.

Financial highlights

• Q1 2025 revenue: €29,755m (+6.5% YoY); service revenue: €24,957m (+6.3% YoY); adjusted EBITDA AL: €11,297m (+7.9% YoY).

• Free cash flow AL: €5,650m (+52.4% YoY); cash capex: €4,343m (-6.8% YoY); net debt excl. leases: €95.7bn.

• Adjusted EPS: €0.50 (+10.8% YoY); net profit: €2,845m (+43.5% YoY); equity ratio: 32.1%.

• U.S. segment revenue grew 9.9% YoY; Germany revenue declined 1.3% due to lower terminal equipment sales.

• Adjusted EBITDA AL margin improved to 38.0% (Q1 2024: 37.5%).

Outlook and guidance

• 2025 guidance for adjusted EBITDA AL raised to €45.0 billion and free cash flow AL to €20.0 billion.

• TMUS 2025 guidance: US$33.2–33.7bn core adj. EBITDA, US$17.5–18.0bn FCF.

• Guidance assumes constant exchange rates year-over-year; all other forecast statements unchanged.

• Committed to delivering 2025 and midterm targets.