Telefonica 2Q adj. EBITDA EUR2.93B, est. EUR2.88B

Telefónica reported adjusted EBITDA of €2.93 billion for the second quarter of 2026, slightly above the estimated €2.88 billion. This represents a 2.8% increase in constant terms compared to the same period in 2025, reflecting continued operational improvements across the Group’s core markets. The company’s adjusted EBITDA growth was driven by strong performance in Spain, Brazil, and Germany, where Telefónica España saw 1.8% revenue growth, Telefónica Brazil 7.1% increase in local currency, and Telefónica Germany added 22.2% in mobile contract customers.

For the full year 2025, adjusted EBITDA reached €11.918 billion, up 2% year-on-year in constant terms. The Group also reported a 12.9% increase in adjusted operating cash flow after leases (OpCFaL) for the second quarter, contributing to a free cash flow of €1.402 billion in the quarter and €2.069 billion for the full year. Telefónica’s capital expenditures (CapEx) for the quarter totaled €1.259 billion, a decline of 8.1% compared to the same period in 2024, with the CapEx-to-revenue ratio standing at 12.4% for the year.

Despite these positive operational metrics, the Group recorded a net loss of €4.318 billion in 2025, primarily due to non-recurring factors such as restructuring costs, asset impairments, and the impact of divestments in the Hispam region. Adjusted net income reached €2.122 billion for the year, which excludes these non-recurring items.

Looking ahead, Telefónica has set new financial guidance for 2026, targeting year-on-year growth in revenues (1.5–2.5%), adjusted EBITDA (1.5–2.5%), and adjusted OpCFaL (above 2%), with a CapEx-to-revenue ratio of around 12% and a cash flow of approximately €3.0 billion. The company also continues to reduce its net financial debt, which stood at €26.824 billion as of December 31, 2025.