United Internet (UTDI) Q2 2026 earnings summary

Executive summary

• Achieved 550,000 net new customer contracts, reaching 30.27 million total contracts in H1 2026, driven by strong growth in IONOS (+500,000) and Mail & Media (+190,000), while 1&1 contracts declined by 140,000 due to tariff realignment and reduced low-cost offerings.

• Consolidated sales rose 3.3% year-over-year to €3,090.9 million, with EBITDA up 5.1% to €676.0 million and EBIT up 20.0% to €342.4 million, reflecting improved margins and lower depreciation.

• EPS from continued operations increased 59.6% to €0.75, primarily due to lower tax expenses.

• Free cash flow after leasing surged by 416.7% to €129.7 million.

• Continued investments in customer acquisition and relationship development supported sustainable growth.

Financial highlights

• Sales: €3,090.9 million (+3.3% YoY); EBITDA: €676.0 million (+5.1% YoY); EBIT: €342.4 million (+20.0% YoY); EBT: €250.0 million (+18.1% YoY).

• EPS from continued operations: €0.75 (+59.6% YoY).

• Free cash flow after lease repayments: €129.7 million (up from €25.1 million YoY).

• Gross margin improved to 32.4% (from 32.2% YoY); EBITDA margin rose to 21.9%.

• Equity ratio at 43.4%; total assets €12,072.4 million; net debt at €3,398.4 million, leverage ratio 2.57.

Outlook and guidance

• Full-year 2026 guidance confirmed: sales expected at approx. €6.25 billion and EBITDA at approx. €1.45 billion.

• Cash capex for 2026 projected at €600–650 million, down from €730.8 million in 2025.

• Management remains optimistic about achieving guidance, citing a stable subscription-based business model.

• H2 EBITDA expected to accelerate due to IONOS customer monetization and 1&1 network expansion.