13 Financial liabilities and lease liabilities

The following table shows the composition and maturity structure of financial liabilities and lease liabilities as of December 31, 2025:

The carrying amount of current and non-current financial liabilities decreased by EUR 1.9 billion compared with year-end 2024 to EUR 110.3 billion, primarily due to the factors described below. This also includes exchange rate effects that reduced the carrying amount by EUR 10.4 billion, primarily from the translation of U.S. dollars into euros.

The carrying amount of bonds and other securitized liabilities decreased by EUR 2.7 billion to EUR 92.0 billion. Exchange rate effects decreased the carrying amount of bonds and other securitized liabilities by EUR 9.2 billion. In addition, the carrying amount was reduced by scheduled repayments of USD bonds of T‑Mobile US of USD 3.0 billion (EUR 2.7 billion) and of EUR bonds of Deutsche Telekom International Finance B.V. of EUR 1.1 billion and a GBP bond of Deutsche Telekom International Finance B.V. of GBP 0.2 billion (EUR 0.2 billion), as well as by the early repayment of USD bonds of USD 2.0 billion (EUR 1.7 billion) by T-Mobile US. The carrying amount was increased by USD bonds issued by T‑Mobile US in the reporting period with a volume of USD 6.3 billion (EUR 5.6 billion), with terms ending between 2032 and 2056 and bearing interest of between 4.63 % and 5.88 %, and by EUR bonds with a volume of EUR 2.8 billion with terms ending between 2032 and 2045 and bearing interest of between 3.15 % and 3.80 %. It was also increased by obligations to exchange USD bonds in the amount of USD 1.7 billion (EUR 1.4 billion), assumed under the UScellular Acquisition, for which T‑Mobile US then issued USD bonds with a total value of USD 1.7 billion (EUR 1.4 billion) with terms ending between 2033 and 2070 and bearing interest of between 5.50 % and 6.70 %. The carrying amount was also increased by the issue of EUR bonds of EUR 2.3 billion by Deutsche Telekom AG, with terms ending between 2029 and 2045 and bearing interest of 2.63 % to 3.63 % and of a NOK bond by Deutsche Telekom AG of NOK 1.5 billion (EUR 0.1 billion) with a term ending in 2037 and bearing interest of 4.57 %.

The asset-backed securities collateralized by trade receivables of EUR 1.7 billion (December 31, 2024: EUR 1.5 billion) are bonds issued by T‑Mobile US. Trade receivables were provided as collateral for these bonds, hence they constitute a separate class of financial instruments. Issues in the reporting period in the amount of EUR 0.9 billion when translated into euros increased the carrying amount. By contrast, repayments of EUR 0.5 billion when translated into euros had a decreasing effect on the carrying amount. Exchange rate effects also decreased the carrying amount by EUR 0.2 billion. As of the reporting date, trade receivables with a carrying amount of EUR 2.2 billion when translated into euros (December 31, 2024: EUR 1.8 billion) were pledged as collateral for these bonds.

The carrying amount of liabilities to banks increased by EUR 2.1 billion compared with December 31, 2024 to EUR 4.4 billion, mainly due to T‑Mobile US utilizing two credit lines backed by export credit agencies (ECA Facility) to finance network equipment-related purchases by T‑Mobile US amounting to USD 1.9 billion (EUR 1.7 billion), as well as the raising by Deutsche Telekom AG of variable-interest promissory notes of EUR 0.6 billion with terms ending in 2032. By contrast, exchange rate effects decreased the carrying amount by EUR 0.1 billion.

The liabilities with the right of creditors to priority repayment in the event of default of EUR 0.7 billion (December 31, 2024: EUR 1.3 billion) relate primarily to bonds issued by Sprint. Collateral was provided for these bonds, hence they constitute a separate class of financial instruments. The main factor reducing the carrying amount was repayments made in the reporting period in the amount of EUR 0.5 billion when translated into euros. At the reporting date, cash and cash equivalents with a carrying amount of EUR 69 million (December 31, 2024: EUR 70 million) when translated into euros were pledged as collateral for these bonds. Exchange rate effects decreased the carrying amount of liabilities with the right of creditors to priority repayment in the event of default by EUR 0.1 billion.

The carrying amount of other interest-bearing liabilities decreased by EUR 0.4 billion compared with December 31, 2024 to EUR 6.0 billion. Exchange rate effects decreased the carrying amount of other interest-bearing liabilities by EUR 0.4 billion. In addition, the carrying amount in the Germany operating segment was reduced by scheduled repayments of loans for the acquisition of 5G licenses (EUR 0.2 billion), liabilities for media broadcasting rights (EUR 0.3 billion), and in the United States operating segment by the repayment of liabilities for the use of assets (EUR 0.2 billion). By contrast, the carrying amount was increased in connection with liabilities incurred for the acquisition of spectrum in the Germany operating segment for the extension of the allocation of licenses by the Bundesnetzagentur (EUR 0.2 billion) and in the Europe operating segment for the acquisition of mobile spectrum in Slovakia and Poland (EUR 0.2 billion), as well as by liabilities incurred for the acquisition of broadcasting rights in the Germany operating segment (EUR 0.2 billion). In connection with cash collateral received for derivative financial instruments – primarily forward-payer swaps – the carrying amount of other interest-bearing liabilities increased by EUR 0.1 billion.

The carrying amount of other non-interest-bearing liabilities decreased by EUR 0.3 billion to EUR 1.9 billion, due in part to exchange rate effects.

The carrying amount of derivative financial liabilities decreased by EUR 0.2 billion compared with December 31, 2024 to EUR 2.5 billion. The main reducing factors were measurement effects from derivatives in cash flow hedges.

For further information on derivative financial liabilities, please refer to Note 43 “Financial instruments and risk management.”

Deutsche Telekom has established ongoing liquidity management. To ensure the Group’s and Deutsche Telekom AG’s solvency and financial flexibility at all times, Deutsche Telekom maintains a liquidity reserve in the form of credit lines and cash. This liquidity reserve is to cover the capital market maturities of the next 24 months at any time. Since the business combination between T‑Mobile US and Sprint, T‑Mobile US has pursued its own separate financing and liquidity strategy.

At December 31, 2025, Deutsche Telekom (excluding T‑Mobile US) had standardized bilateral credit agreements with 20 banks for a total of EUR 12.0 billion. None of these lines of credit had been utilized as of December 31, 2025. Pursuant to the credit agreements, the terms and conditions depend on Deutsche Telekom’s rating. The bilateral credit agreements have an original maturity of 36 months and can, after each period of 12 months, be extended by a further 12 months to renew the maturity of 36 months. Furthermore, cash on hand of EUR 2.8 billion were available to Deutsche Telekom.

Bilateral credit lines with an aggregate total volume of USD 7.5 billion (EUR 6.4 billion) and a cash balance of USD 5.6 billion (EUR 4.8 billion) were available to T‑Mobile US as of December 31, 2025. None of these credit lines had been utilized as of December 31, 2025.

The carrying amount of 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, in particular from the translation of U.S. dollars into euros, reduced 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 lessee relationships, please refer to Note 8 “Right of use assets – lessee relationships.”

In the reporting year and in the previous year, there were no significant expenses for variable lease payments that were not included in the measurement of lease liabilities.

As of December 31, 2025, as in the prior year, there were no significant future payment obligations for leases that have not yet begun and which are not taken into account in the measurement of lease liabilities.

The following tables show the contractually agreed (undiscounted) cumulative interest payments and repayments of the non-derivative financial liabilities, the lease liabilities, and the derivatives with positive and negative fair values:

For information on the guarantees to Glasfaser NordWest, please refer to Note 45 “Related party disclosures.”

All instruments held at December 31, 2025 and for which payments were already contractually agreed were included. Planning data for future, new liabilities were not included. Amounts in foreign currency were each translated at the closing rate at the reporting date. The variable interest payments arising from the financial instruments were calculated using the last interest rates fixed before December 31, 2025. Financial liabilities that can be repaid at any time are always assigned to the earliest possible time period.