Results of operations of the Group

In order to increase the informative value of the prior-year comparatives based on changes to the Company’s structure or exchange rate effects, we also describe the change in selected figures in organic terms, by adjusting the figures for the prior year for changes in the composition of the Group, exchange rate effects, and other effects. Negative exchange rate effects were primarily attributable to the translation of U.S. dollars to euros. Positive effects of changes in the composition of the Group mainly related to the corporate transactions concluded in the United States operating segment.

For further information on the corporate transactions, please refer to the section “Group organization.”

Revenue, service revenue

In the reporting year, we generated net revenue of EUR 119.1 billion, which was 2.9 % or EUR 3.3 billion up on the prior-year level. In organic terms, revenue increased by 4.2 % against the prior-year level, with changes in the composition of the Group having an increasing effect of EUR 1.8 billion and exchange rate effects having a reducing effect of EUR 3.2 billion. Service revenue in the Group increased by EUR 2.8 billion or 2.9 % year-on-year to EUR 99.4 billion. In organic terms, service revenue increased by 3.8 %.

In our Germany operating segment, revenue declined by 0.4 % year-on-year, mainly due to lower mobile terminal equipment revenues. By contrast, service revenues increased in the mobile and fixed-network business. In our United States operating segment, revenue was up 4.1 % against the prior-year level, with negative exchange rate effects having a decreasing effect and the completed corporate transactions having an increasing effect. In organic terms, revenue increased by 6.0 %, due to higher service and terminal equipment revenues. In our Europe operating segment, revenue increased by 2.5 % year-on-year. In organic terms, it increased by 2.9 %, primarily due to the increase in service revenues in the mobile, fixed-network, and IT business. Revenue in our Systems Solutions operating segment was up 2.5 % year-on-year, mainly due to growth in the Digital and Road Charging areas.

For further information on revenue development in our segments, please refer to the section “Development of business in the operating segments.”

Contribution of the segments to net revenue ^{a, b}

%

Breakdown of revenue by region ^c

%

Breakdown of revenue by region ^c

%

^a For further information, please refer to Note 38 “Segment reporting” in the notes to the consolidated financial statements.
^b Following the sale of the GD Towers business entity in the 2023 financial year, the Group Development operating segment no longer provides a significant contribution to net revenue.
^c The calculation of the international share was adjusted effective September 30, 2025. The prior-year comparative was adjusted retrospectively from 76.3 % to 77.3 %.

Our United States operating segment made by far the largest contribution to net revenue, with 65.6 % (2024: 64.8 %). The proportion of net revenue generated internationally increased to 78.0 % (2024: 77.3 %) ^c.

Adjusted EBITDA AL, EBITDA AL

Adjusted EBITDA AL increased year-on-year by EUR 1.2 billion or 2.8 % to EUR 44.2 billion in the reporting year. In organic terms, adjusted EBITDA AL increased by 4.7 %, with the changes in the composition of the Group having a net increasing effect of EUR 0.4 billion and exchange rate effects having a decreasing effect of EUR 1.2 billion.

Our Germany operating segment contributed to the increase thanks to high-value service revenue growth and improved cost efficiency with 1.7 % higher adjusted EBITDA AL. Adjusted EBITDA AL in our United States operating segment increased by 2.5 %. In organic terms, it increased by 5.3 %. This rise is primarily attributable to higher service and terminal equipment revenues, offset by increases in some costs. Adjusted EBITDA AL in our Europe operating segment increased by 5.6 % on the back of the sound revenue trend and a positive net margin, or 5.4 % in organic terms. In our Systems Solutions operating segment, adjusted EBITDA AL increased substantially by 15.7 %, mainly due to margin increases and cost optimizations in the Cloud area, as well as to revenue growth in the Digital and Road Charging areas.

Our EBITDA AL decreased by EUR 1.4 billion year-on-year to EUR 42.5 billion. This was primarily due to expenses from special factors affecting EBITDA AL, which increased by EUR 2.6 billion against the prior year to EUR 1.8 billion. The main drivers were the reversals of impairment losses recorded as special factors in 2024. EUR 2.6 billion of these resulted from the reversal in full of impairment losses recognized in prior years on FCC licenses at T‑Mobile US. Expenses incurred in connection with staff restructuring totaled EUR 1.0 billion, a slight increase of EUR 0.1 billion against the prior year. This was due in part to the 2025 Workforce Transformation. Net expenses of EUR 0.7 billion were recorded in the prior year as special factors under effects of deconsolidations, disposals, and acquisitions. This included the expenses from the forgone contingent consideration receivable from IFM Global Infrastructure Fund in the Germany operating segment and integration expenses in the United States operating segment. In the reporting year, the expenses totaled EUR 0.4 billion and mainly related to acquisition and integration costs arising from the UScellular Acquisition in the United States operating segment. Expenses from other special factors affecting EBITDA AL increased by EUR 0.2 billion to EUR 0.2 billion. They included, among other things, the write-off of not-in-service capitalized software development costs related to a billing system in the United States operating segment. By contrast, in addition to the income from the sale of spectrum licenses to N77, legal-related insurance recoveries were recognized in relation to the cyberattack on T‑Mobile US in August 2021.

For further information on the development of (adjusted) EBITDA AL in the segments, please refer to the section “Development of business in the operating segments.”

Profit/loss from operations (EBIT)

Group EBIT decreased to EUR 24.8 billion, down EUR 1.5 billion against the prior-year level, mainly due to the reversal in 2024 of impairment losses recognized in prior years on FCC licenses of T‑Mobile US.

Depreciation, amortization and impairment losses on intangible assets, property, plant and equipment, and right-of-use assets remained unchanged against the prior year at EUR 24.0 billion. Depreciation and amortization remained stable at the prior-year level of EUR 23.9 billion. As in the prior year, impairment losses amounted to EUR 0.1 billion and mainly related to non-current assets in the Romania cash-generating unit.

For further information on depreciation, amortization and impairment losses, please refer to Note 27 “Depreciation, amortization and impairment losses” in the notes to the consolidated financial statements.

Profit before income taxes

Profit before income taxes decreased by EUR 3.5 billion to EUR 19.5 billion. Loss from financial activities included in this increased year-on-year by EUR 2.0 billion to EUR 5.3 billion, mainly due to the EUR 1.8 billion decrease in the share of profit of associates and joint ventures included in the consolidated financial statements using the equity method to EUR 0.8 billion. This was mainly attributable to higher reversals of impairment losses in the prior year of EUR 2.1 billion and EUR 0.3 billion, respectively, on the carrying amounts of the investments in GD Towers and in GlasfaserPlus. In the reporting period, further reversals of impairment losses of EUR 0.5 billion and EUR 0.2 billion, respectively, were recognized on the carrying amounts of the investments in GD Towers and in GlasfaserPlus. The most recent recognized 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. Finance costs increased by EUR 0.2 billion to EUR 5.9 billion. Other financial expense remained stable at EUR 0.2 billion.

Net profit, adjusted net profit

Net profit decreased year-on-year by EUR 1.6 billion to EUR 9.6 billion, mainly due to the reversal in 2024 of impairment losses recognized in prior years on FCC licenses of T‑Mobile US. The tax expense decreased by EUR 0.7 billion to EUR 4.6 billion. Profit attributable to non-controlling interests decreased by EUR 1.1 billion to EUR 5.3 billion. This decrease was primarily attributable to our United States operating segment. Adjusted net profit increased by EUR 0.4 billion to EUR 9.7 billion.

For further information on tax expense, please refer to Note 32 “Income taxes” in the notes to the consolidated financial statements.

Earnings per share, adjusted earnings per share

Earnings per share is calculated as net profit divided by the weighted average number of ordinary shares outstanding, which totaled 4,871 million as of December 31, 2025. This resulted in earnings per share of EUR 1.97, compared with EUR 2.27 in the prior year. Adjusted earnings per share amounted to EUR 2.00 compared with EUR 1.90 in the prior year.

Employees

The Group’s headcount remained more or less stable compared with the end of the prior year. In our Germany operating segment, the number of employees declined by 3.9 % against the end of the prior year. Employees continued to take up socially responsible instruments as part of staff restructuring activities, such as phased retirement. The total number of full-time equivalent employees as of December 31, 2025, in our United States operating segment increased by 7.5 % compared to December 31, 2024, which includes the impact of the acquisition of the UScellular Wireless Business in the third quarter of 2025 as well as the acquisitions of Vistar Media and Blis in the first quarter of 2025. In our Europe operating segment, the headcount fell by 4.5 % against the end of 2024, due in particular to the sale of the Romanian mobile business as of October 1, 2025. The headcount in our Systems Solutions operating segment was down 2.2 % against year-end 2024, mainly due to a workforce reduction in traditional infrastructure business. The headcount in the Group Headquarters & Group Services segment was down 4.4 % compared with the end of the prior year, mainly due to the continued staff restructuring measures.

Reconciliations of financial performance indicators from the IFRS consolidated financial statements

A reconciliation of the definition of EBITDA to the “after leases” indicator (EBITDA AL) can be found in the following table:

The following table presents the reconciliation of net profit to net profit adjusted for special factors:

The following table presents a reconciliation of EBITDA AL, EBIT, and net profit to the respective figures adjusted for special factors: