Net assets of the Group

Total assets amounted to EUR 289.8 billion as of December 31, 2025, down by EUR 15.2 billion against December 31, 2024. Exchange rate effects, primarily from the translation from U.S. dollars into euros, in particular had a decreasing effect on the carrying amount of total assets.

On the assets side, cash and cash equivalents decreased by EUR 0.7 billion against the prior year to EUR 7.8 billion.

For further information, please refer to Note 37 “Notes to the consolidated statement of cash flows” in the notes to the consolidated financial statements.

At EUR 16.8 billion, trade receivables increased by EUR 0.4 billion against the 2024 year-end level. Excluding effects of changes in the composition of the Group and offsetting exchange rate effects, receivables in the United States operating segment increased, due in particular to the migration of UScellular customers to the EIP (equipment installment plan) model as well as a larger customer base as a result of the acquisition of the Lumos and Metronet customer bases. Effects of changes in the composition of the Group, mainly from the acquisitions of UScellular and Vistar Media in the United States operating segment, increased the carrying amount, while exchange rate effects had an offsetting effect. Receivables increased slightly in both the Europe and Germany operating segments.

For further information on the acquisitions of UScellular and Vistar Media, please refer to the section “Group organization.”

Intangible assets decreased by EUR 15.5 billion to EUR 133.7 billion. Exchange rate effects of EUR 14.8 billion and amortization and impairment losses of EUR 6.8 billion decreased the carrying amount. Reclassifications of intangible assets to non-current assets and disposal groups held for sale also reduced the carrying amount by EUR 5.1 billion. In the United States operating segment, this related to the agreed sale of spectrum licenses to Grain for EUR 3.1 billion and the sale of spectrum licenses to N77 for EUR 1.7 billion. In addition, further agreements were entered into in the reporting year for the exchange of spectrum licenses. Disposals reduced the carrying amount by EUR 0.3 billion, mainly due to the write-off of not-in-service capitalized software development costs related to a billing system in the United States operating segment, while investments increased it by EUR 8.4 billion. EUR 1.9 billion of this related to the acquisition of mobile spectrum, of which EUR 1.3 billion related to the acquisition of mobile spectrum in the United States operating segment. This included EUR 0.5 billion for the acquisition of the remaining Channel 51 licenses. A further EUR 0.2 billion related to the Germany operating segment and the extension of licenses by the Bundesnetzagentur. In the Europe operating segment, Poland and Slovakia acquired mobile spectrum for a total of EUR 0.5 billion. A further EUR 1.3 billion of the investments related to the acquisition of customer bases, mainly from Metronet. Effects of changes in the composition of the Group resulting mainly from the acquisitions of UScellular, Vistar Media, and Blis increased the carrying amount by EUR 3.1 billion, with goodwill accounting for EUR 0.6 billion of this.

For further information on spectrum awards and agreements on spectrum licenses, please refer to the section “The economic environment – Major regulatory decisions.”

For further information on the acquisitions of UScellular, Vistar Media, Blis, and Metronet please refer to the section “Group organization.”

Property, plant and equipment decreased by EUR 1.8 billion compared with December 31, 2024 to EUR 64.8 billion. Depreciation and impairment losses of EUR 11.8 billion, exchange rate effects of EUR 3.4 billion, and disposals of EUR 0.4 billion decreased the carrying amount. Additions, primarily for the upgrade and build-out of the network (broadband, fiber-optic, and mobile infrastructure) increased the carrying amount by EUR 12.1 billion. Effects of changes in the composition of the Group, mainly resulting from the UScellular Acquisition, increased the carrying amount by EUR 1.0 billion. Reclassifications of right-of-use assets upon expiry of the contractual lease term to property, plant and equipment, primarily for network technology in the United States operating segment, also increased the carrying amount by EUR 0.7 billion.

Right-of-use assets decreased by EUR 3.6 billion compared with December 31, 2024 to EUR 28.6 billion. Depreciation and impairment losses reduced the carrying amount by EUR 5.4 billion. Exchange rate effects reduced the carrying amount by EUR 3.1 billion, the previously mentioned reclassifications to property, plant and equipment by EUR 0.7 billion, and disposals by EUR 0.1 billion. By contrast, the carrying amount was increased by additions of EUR 4.6 billion and effects of changes in the composition of the Group of EUR 1.1 billion, mainly from the UScellular Acquisition. Right-of-use assets totaling EUR 0.9 billion were recognized in connection with a master license agreement concluded by T‑Mobile US for the lease of new space on UScellular towers and the extension of lease terms for space already being leased. This included right-of-use assets of EUR 0.7 billion for towers that were not already being leased by T‑Mobile US before the date of the UScellular Acquisition, reported as additions from changes in the composition of the Group.

For further information on the UScellular Acquisition, please refer to the section “Group organization” and to the section “Summary of accounting policies – Changes in the composition of the Group and other transactions” in the notes to the consolidated financial statements.

Investments accounted for using the equity method increased by EUR 3.7 billion compared to December 31, 2024, to EUR 11.1 billion, mainly due to the acquisition of 50 % of the equity interests in the joint ventures Metronet and Lumos in the United States operating segment for the purchase prices of EUR 2.7 billion and EUR 0.8 billion, respectively. Furthermore, reversals of impairment losses were recognized in the reporting year of EUR 0.5 billion and EUR 0.2 billion, respectively, on the carrying amounts of the investments in GD Towers and GlasfaserPlus. These reversals of impairment losses were due to declines in industry-specific financing costs and the resulting lower discount rates, while retaining the existing business plans. By contrast, dividends paid from the shareholders’ equity of GD Towers reduced the carrying amount by EUR 0.6 billion.

For further information on the acquisitions of Metronet and Lumos, please refer to the section “Group organization.”

Current and non-current financial assets increased by EUR 0.8 billion to EUR 8.6 billion. The net total of originated loans and receivables increased by EUR 0.7 billion, due to higher receivables from collateral agreements (EUR 0.2 billion), higher receivables from grants still to be received from publicly funded projects in the Germany operating segment (EUR 0.2 billion), an increase in operating receivables at T‑Mobile US (EUR 0.2 billion), receivables from GD Towers in connection with the distribution of dividends from shareholders’ equity (EUR 0.2 billion), and effects of changes in the composition of the Group (EUR 0.2 billion) – mainly resulting from the acquisition of UScellular. Increases in fair value resulted in an increase in equity instruments of EUR 0.2 billion. By contrast, derivative financial assets decreased by EUR 0.2 billion. Exchange rate effects reduced the carrying amount by a total of EUR 0.3 billion.

Non-current assets and disposal groups held for sale increased by EUR 2.9 billion compared with December 31, 2024 to EUR 3.2 billion. The increase mainly related to the United States operating segment and resulted from the agreed sale of spectrum licenses to Grain for EUR 3.1 billion. An exchange transaction agreed in the prior year between T‑Mobile US and another telecommunications company for the exchange of spectrum licenses, which was consummated in the reporting year, had an offsetting effect.

For further information on the agreement with Grain, please refer to the section “The economic environment.”

Miscellaneous assets increased by EUR 1.5 billion to EUR 14.6 billion. Contract assets of EUR 0.4 billion, mainly in the United States operating segment, contributed to this increase. Inventories increased by EUR 0.4 billion, due in particular to stockpiling, mainly for the market launch of high-value mobile terminal equipment in the United States operating segment, and due to effects of changes in the composition of the Group in connection with the acquisition of UScellular. Current and non-current other assets likewise increased by EUR 0.4 billion, mainly due to increases in various advance payments as well as in defined benefit assets. Capitalized contract costs increased by EUR 0.3 billion.

On the liabilities and shareholders’ equity side, current and non-current financial liabilities decreased by EUR 1.9 billion compared with the end of 2024 to EUR 110.3 billion.

Bonds and other securitized liabilities declined by EUR 2.7 billion, mainly due to exchange rate effects of EUR 9.2 billion. The carrying amount was also reduced by scheduled and early repayments of USD bonds by T‑Mobile US in the amount of EUR 4.4 billion and the repayment of EUR bonds by Deutsche Telekom International Finance B.V. in the amount of EUR 1.1 billion. By contrast, the carrying amount was increased by USD bonds issued by T‑Mobile US of EUR 5.6 billion and by EUR bonds of EUR 2.8 billion. The carrying amount was also increased in particular by the issue of EUR bonds of EUR 2.3 billion by Deutsche Telekom AG as well as by USD bonds of EUR 1.4 billion assumed in connection with the UScellular Acquisition.

Liabilities with the right of creditors to priority repayment in the event of default decreased by EUR 0.6 billion, other interest-bearing liabilities by EUR 0.4 billion, and other non-interest-bearing liabilities by EUR 0.3 billion. By contrast, liabilities to banks increased by EUR 2.1 billion, mainly due to T‑Mobile US utilizing two credit lines backed by export credit agencies to finance network equipment-related purchases, as well as the raising by Deutsche Telekom AG of variable-interest promissory notes.

Current and non-current lease liabilities decreased by EUR 3.9 billion to EUR 36.4 billion compared with December 31, 2024. Exchange rate effects decreased the carrying amount by EUR 3.7 billion. In addition, lease liabilities decreased by EUR 0.8 billion in the United States operating segment, mainly due to a lower number of new contracts following the decommissioning of the former Sprint’s wireless network and other synergies from the Sprint Merger. Lease liabilities in the Germany operating segment and in the Group Headquarters & Group Services segment decreased by a total of EUR 0.3 billion. By contrast, effects of changes in the composition of the Group, mainly resulting from the UScellular Acquisition, increased the carrying amount by EUR 1.1 billion. Lease liabilities totaling EUR 0.9 billion were recognized in connection with a master license agreement concluded by T‑Mobile US for the lease of new space on UScellular towers and the extension of lease terms for space already being leased on UScellular towers. Of this, lease liabilities of EUR 0.7 billion for the cell towers that were not already being leased by T‑Mobile US before the date of the UScellular Acquisition were reported as additions from changes in the composition of the Group.

For further information on the UScellular Acquisition, please refer to the section “Group organization” and to the section “Summary of accounting policies – Changes in the composition of the Group and other transactions” in the notes to the consolidated financial statements.

Trade and other payables increased by EUR 0.1 billion to EUR 9.6 billion. In the United States operating segment, liabilities increased due to higher liabilities to terminal equipment manufacturers, mainly on account of larger procurement volumes, and to effects of changes in the composition of the Group from the acquisitions of UScellular and Vistar Media. By contrast, exchange rate effects reduced the carrying amount. A lower procurement volume in the Germany operating segment likewise reduced the carrying amount.

Provisions for pensions and other employee benefits decreased by EUR 1.3 billion compared with December 31, 2024 to EUR 1.9 billion. Overall, the remeasurement of defined benefit plans resulted in an actuarial gain of EUR 1.1 billion to be recognized directly in equity, mainly due to the increase in the fair values of plan assets and the increase in the discount rate compared with December 31, 2024. Benefits paid directly by the employer in the reporting period and employer contributions to plan assets also contributed to the reduction in the carrying amount. By contrast, the EUR 0.2 billion increase in the pension surplus compared with December 31, 2024 had an increasing effect, which resulted in an additional defined benefit asset under other non-current assets.

At EUR 7.9 billion, current and non-current other provisions were unchanged against the prior-year level. Provisions for termination benefits increased by EUR 0.2 billion, primarily due to the 2025 Workforce Transformation. Provisions for restoration obligations increased by EUR 0.1 billion, mainly due to the UScellular Acquisition in the United States operating segment. By contrast, other provisions for personnel costs decreased by EUR 0.3 billion, mainly due to a decrease in provisions for short- and long-term variable remuneration components, an interest rate-based decline in the provision recognized for the Civil Service Health Insurance Fund (Postbeamtenkrankenkasse – PBeaKK), and exchange rate effects.

Miscellaneous liabilities increased by EUR 0.1 billion compared to December 31, 2024 to EUR 9.1 billion, mainly due to an increase of EUR 0.2 billion in contract liabilities. By contrast, income tax liabilities decreased by EUR 0.2 billion.

Shareholders’ equity decreased by EUR 6.4 billion compared with December 31, 2024 to EUR 92.2 billion. Other comprehensive income decreased the carrying amount by EUR 5.9 billion. Shareholders’ equity was reduced in connection with dividend payments for the 2024 financial year to Deutsche Telekom AG shareholders in the amount of EUR 4.4 billion and to other shareholders of subsidiaries in the amount of EUR 2.1 billion. The latter figure includes cash dividends paid by T‑Mobile US to non-controlling interests, as declared in the reporting period. Transactions with owners also decreased the carrying amount by EUR 7.8 billion and related mainly to the buy-back of shares by T‑Mobile US. The carrying amount was also reduced by share buy-backs of EUR 2.0 billion by Deutsche Telekom AG, while profit of EUR 14.9 billion and capital increases from share-based payments of EUR 0.8 billion had an increasing effect.

For further information, please refer to the section “Notes to the consolidated statement of financial position” in the notes to the consolidated financial statements.