Koninklijke KPN (KPN) Q2 2026 earnings summary

Executive summary

• Group service revenues grew 0.8% year-over-year in H1 2026, led by Consumer (+1.9%), SME (+6.9%), and Wholesale (+1.0%), with Consumer mobile up 3.2% and fixed up 1.3%.

• EBITDA increased by over 3% on a comparable basis, with adjusted EBITDA AL at €668m in Q2 2026 (-0.3% year-over-year), but up 3.4% excluding prior-year IP sales and IPR benefits.

• Free Cash Flow for H1 2026 reached €329m, up 6.8% year-over-year, with operational FCF up 3.1% and Q2 FCF at €228m (+27%).

• The company remains the leader in the Dutch fiber market, with 83k new homes passed, 41k homes activated in H1, and over 70% of the retail broadband base now on fiber.

• Completed €250m share buyback and paid €416m in dividends during H1 2026.

Financial highlights

• Adjusted revenues for Q2 2026 were €1,464m (-0.5% year-over-year); H1 2026 at €2,911m (+0.8%).

• Net profit for H1 2026 was €407m (+7.7% year-over-year), with Q2 2026 net profit at €207m (-1.0%).

• Adjusted EBITDA AL margin for Q2 2026 was 45.6% (+8bps year-over-year).

• Capex for H1 2026 was €587m (-0.7% year-over-year), representing 20.2% of adjusted revenues.

• Operational FCF for H1 2026 was €733m (+3.1% year-over-year).

Outlook and guidance

• FY 2026 service revenue growth expected at ~1.5% year-over-year, with acceleration to 2-2.5% in H2.

• FY 2026 guidance reiterated for adjusted EBITDA AL (~€2,670m), Capex (~€1.25bn), and Free Cash Flow (>€950m).

• Mid-term ambitions include ~3% CAGR for service revenues and adjusted EBITDA AL, and ~7% CAGR for Free Cash Flow through 2027.

• Regular dividend per share target for FY 2027 is €0.20; interim dividend of €0.08 per share planned.

• Cost savings target of EUR 15-20 million for the year is on track, with a long-term goal of EUR 100 million net savings by 2030.