Deutsche Telekom (DTE) Q3 2025 earnings summary

Executive summary

• Achieved 3.7% organic service revenue growth, 4.4% organic EBITDA AL growth, 6.8% free cash flow growth, and 9.5% adjusted EPS growth year-to-date; net revenue rose 3.0% to €87.4 billion, with net profit up 12.2% to €7.9 billion.

• Raised group guidance for 2025 for the third time, driven by record U.S. customer growth and strong segment performance; T-Mobile US also raised 2025 guidance.

• Moody's upgraded credit rating to A3; Board proposes 11% dividend increase to €1.00 per share and €2B share buyback for 2026.

• Major U.S. acquisitions (UScellular, Metronet, Vistar Media, Blis) completed; sale of Telekom Romania Mobile finalized.

• Strategic progress includes record fiber build in Germany, launch of Europe’s first industrial AI cloud with NVIDIA, and ESG achievements.

Financial highlights

• Q3 2025 revenue rose 1.5% year-over-year to €28.9 billion; 9M revenue up 3.0% to €87.4 billion; service revenue up 3.2% to €74.0 billion.

• Adjusted EBITDA AL up 3.2% to €33.4 billion; margin stable at 38.2%; EBIT rose 9.2% to €19.4 billion.

• Free cash flow AL before dividends and spectrum investment increased 6.8% to €16.1 billion; Q3 free cash flow AL down 9.2% year-over-year.

• Adjusted net profit up 14.3% in Q3 to €2.7 billion; adjusted EPS for 9M 2025 increased 9.5% to €1.56.

• Net debt at €132.8 billion, equity ratio at 31.9%, and net debt/EBITDA AL at 2.23x.

Outlook and guidance

• 2025 guidance raised: adjusted EBITDA AL expected at ~€45.3 billion, free cash flow AL at ~€20.1 billion, and adjusted EPS at ~€2.00 per share.

• Dividend for 2025 set to increase to €1.00 per share, with up to €2 billion in share buybacks planned for 2026.

• Guidance assumes a 1.08 EUR/USD exchange rate; committed to €3.6B free cash flow in 2025 and €3.7–3.9B in 2027.

• German segment expects EBITDA growth above 2% in Q4 and improved results in 2026, supported by cost savings and easing wage/energy headwinds.

• Midterm adjusted EPS target of ~2.5 by end of 2027 confirmed.