Koninklijke KPN (KPN) Q3 2025 earnings summary

Executive summary

• Group service revenues grew 1.7% year-over-year in Q3 2025, with all segments contributing and commercial momentum in consumer broadband (+11k net adds) and postpaid mobile (+47k net adds).

• Adjusted EBITDA AL rose 4.4% year-over-year, supported by IPR benefit and Althio, and free cash flow rebounded, up 67% year-over-year in Q3 and 12% year-to-date, mainly due to improved working capital.

• Maintained leadership in the Dutch fiber market, expanding coverage to 66% of households and 79% penetration in fiber footprint, with 74,000 homes passed and 82,000 homes connected.

• The company remains confident in delivering its full-year 2025 outlook and midterm ambitions, reiterating its 337 targets (3% CAGR for service revenue and EBITDA, 7% for free cash flow).

• Strategy update scheduled for November 5th to provide further details on fiber rollout and financial framework.

Financial highlights

• Adjusted revenues increased 2.4% year-over-year in Q3 2025 to €1,455m, driven by service revenue growth and higher non-service revenues.

• Adjusted EBITDA AL margin improved by 80bps to 46.1% in Q3 2025.

• Net profit for Q3 2025 was €237m, up 2.4% year-over-year.

• Capex for Q3 2025 was €311m, up 11% year-over-year; YTD capex was €902m, down 2% year-over-year.

• Free cash flow for Q3 2025 was €298m, up 67% year-over-year; YTD FCF was €606m, up 12% year-over-year.

Outlook and guidance

• On track to deliver 2025 outlook and midterm 337 targets, with service revenues and adjusted EBITDA AL expected to grow ~3% CAGR through 2027, and free cash flow by 7% per year.

• FY 2025 ambitions: service revenue growth ~3%, adjusted EBITDA AL >€2,630m, capex ~€1.25bn, free cash flow >€940m.

• Free cash flow growth expected to be low single-digit until 2026 due to increasing cash taxes.

• Q4 service revenue growth expected around 2%, with further acceleration anticipated in subsequent periods.

• Regular dividend per share of €18.2 cents planned for 2025; interim dividend of €7.3 cents paid.