Telstra Group (TLS) H2 2025 earnings summary

Executive summary

• Achieved fourth consecutive year of underlying growth, completing the T25 strategy and launching Connected Future 30, focused on core connectivity, innovation, and digital leadership.

• Reported profit up 31% to $2.3B, EPS up 34% to 18.9c, and return on invested capital up 1.7 points to 8.5% compared to prior year.

• Announced a fully franked final dividend of $0.09 per share, total $0.19 for the year, up 5.6%.

• Completed $750M share buyback and announced an additional buyback of up to $1B.

• Significant progress on sustainability, reducing scope 1+2 emissions by 44% and scope 3 by 43% from FY19 baseline.

Financial highlights

• Reported EBITDA up 14% to $8.6B; underlying EBITDA up 4.6%.

• Net profit after tax rose 31% to $2.3B; underlying NPAT up 1.8%.

• Free cash flow after leases before strategic investment rose 5.7% to $3.43B.

• Cash EPS up 12% to $0.224; total income increased 0.7% to $23.6B.

• Total FY25 dividend of 19c per share, fully franked, up 5.6% year-over-year.

Outlook and guidance

• FY26 guidance: underlying EBITDAAL of $8.15B–$8.45B, BAU capex of $3.2B–$3.5B, and cash EBIT of $4.55B–$4.75B.

• Strategic investment capex for FY26 expected at $0.3B–$0.5B, mainly for intercity fibre and Viasat projects.

• Focus on growing cash earnings, underlying ROIC to 10% by FY30, and disciplined capital management.

• Committed to sustainable, growing dividends and ongoing capital management, including buybacks.

• Continued investment in 5G, fibre, and digital infrastructure to meet rising connectivity demand.