Madrid, – Telefónica reported a strong finish to 2025, with increased revenues and accelerated growth in adjusted EBITDA and free cash flow, signaling progress in its ‘Transform & Grow’ strategic plan. The results, presented today, demonstrate a positive trajectory for the telecommunications giant as it navigates a shifting market landscape.
The Group’s revenues reached €9,174 million in the fourth quarter and €35,120 million for the full year, representing a 1.5% increase year-on-year in constant terms. Adjusted EBITDA saw a 2.8% rise in constant terms during the October-December period, while adjusted operating cash flow after leases (OpCFaL) increased by 12.9%.
Telefónica’s Chairman and CEO, Marc Murtra, stated, “We have delivered in 2025 and are prepared to continue doing so in 2026. We have embarked on a transformation path for the company and today we have the first results that make us optimistic and allow us to continue taking calculated risks with courage. We are experiencing a period of more growth and greater profitability, which allows me to say with satisfaction that Telefónica delivers.”
The final quarter’s performance enabled Telefónica España to achieve its best business year since 2018, with simultaneous annual growth in revenues, adjusted EBITDA, and adjusted OpCFaL for the first time since 2008. This marks a significant turnaround for the Spanish operation.
Growth was not limited to Spain. Telefónica Brazil experienced a robust 7.1% increase in revenues in local currency during the fourth quarter, driven by strong commercial activity. Telefónica Germany bolstered its O2 brand, reporting a 22.2% quarter-on-quarter net gain in mobile contract customers. In the UK, VMO2 met its financial targets for the year, achieving revenue growth of 0.2% and EBITDA growth of 0.9%.
However, the year was not without its challenges. The Group reported a negative net result of €4,318 million in 2025, stemming from non-recurring factors such as restructuring costs, asset impairments, and the impact of divestments in Hispam (Hispanoamérica) on discontinued operations. Despite this, the adjusted net income from continuing operations reached €2,122 million for the year.
Financial Targets and Outlook
Telefónica has reaffirmed its commitment to financial discipline, having met its 2025 targets for organic revenue growth (1.5%), adjusted EBITDA growth (2.0%), and adjusted OpCFaL growth (5.9%). The company maintained a capital expenditure to sales ratio of 12.4%, and free cash flow from continuing operations exceeded €2.0 billion.
Looking ahead to 2026, Telefónica has set new financial targets, including organic revenue growth of 1.5-2.5%, adjusted EBITDA growth of 1.5-2.5%, and adjusted OpCFaL growth exceeding 2%. The company also aims to maintain a capital expenditure to sales ratio around 12%, generate approximately €3.0 billion in free cash flow, and reduce its debt towards its 2028 target.
The company is continuing its divestment process in Latin America, having completed the sales of its operations in Colombia and Chile in the first quarter of 2026, following previous divestments in Argentina, Peru, Uruguay, and Ecuador in 2025.
Infrastructure and Investment
Telefónica continues to invest in its infrastructure, ending 2025 with 326.1 million accesses, a 2.1% year-on-year increase. The company’s fiber network reaches 162.9 million premises, with 74.3 million homes connected to FTTH. 5G coverage reaches 80% of the population in its core markets – Spain (95%), Germany (99%), Brazil (67%), and the UK (87%).
Total investment in the fourth quarter reached €1.259 billion, a decrease of 8.1% compared to the same period in 2024, and €4.340 billion for the full year, down 7.2%.
Segment Performance
In the fourth quarter, the residential (B2C) segment generated €5.408 billion in revenue, accounting for 59% of the total. The business (B2B) segment contributed 23.5% with €2.158 billion, while the wholesale segment accounted for the remaining 17.5% with €1.608 billion.
Telefónica Tech, the Group’s digital business unit, saw its revenues increase by 18.9% in 2025, reaching €2.222 billion. This highlights the growing importance of digital services within Telefónica’s overall strategy.
The results indicate Telefónica is successfully executing its strategic plan, focusing on profitable growth, infrastructure investment, and a streamlined portfolio. The company’s ability to navigate challenging market conditions and deliver on its financial targets positions it for continued success in the evolving telecommunications industry.
