Systems Solutions
From the 2026 financial year, the Systems Solutions segment’s existing portfolio (Cloud, Digital, Security, and Advisory) is being extended to include the new area AI Cloud. Furthermore, the existing focal industries of automotive, health, public, and intragroup business have been enhanced by defense.
In the first quarter of 2026, T‑Systems recorded a stable business trend with moderate revenue growth and further improved profitability. The main driver for growth in order entry was the cloud business and for revenue growth, digitalization services. Continuous improvements in efficiency in the operating business also resulted in continued improvement in earnings.
Order entry
millions of € |
|
|
|
|
|
Q1 2026 |
FY 2025 |
Q1 2025 |
Change |
|---|---|---|---|---|
Order entry |
994 |
4,191 |
963 |
3.2 |
Development of business
The reporting period was dominated by a continued focus of our systems solutions business on growth and future viability, i.e., in particular, the business areas of Cloud and Digital, as well as AI Cloud.
Order entry in our Systems Solutions operating segment was up by 3.2 % year-on-year in the first quarter of 2026. This development is mainly attributable to increased order entry in the Cloud and AI Cloud portfolio areas and the Germany region.
Development of operations
millions of € |
|
|
|
|
|
|
|
|
Q1 2026 |
Q1 2025 |
Change |
Change |
FY 2025 |
|---|---|---|---|---|---|---|
Revenue |
|
1,026 |
1,009 |
17 |
1.6 |
4,103 |
Of which: external revenue |
|
846 |
850 |
(4) |
(0.4) |
3,444 |
Service revenue |
|
1,025 |
1,008 |
17 |
1.7 |
4,100 |
EBITDA |
|
81 |
79 |
2 |
2.5 |
345 |
Special factors affecting EBITDA |
|
(28) |
(25) |
(3) |
(12.8) |
(175) |
EBITDA (adjusted for special factors) |
|
109 |
104 |
5 |
4.9 |
520 |
EBITDA AL |
|
56 |
56 |
0 |
0.1 |
252 |
Special factors affecting EBITDA AL |
|
(28) |
(25) |
(3) |
(12.8) |
(175) |
EBITDA AL (adjusted for special factors) |
|
84 |
81 |
3 |
4.0 |
427 |
EBITDA AL margin (adjusted for special factors) |
% |
8.2 |
8.0 |
|
|
10.4 |
Depreciation, amortization and impairment losses |
|
(68) |
(61) |
(7) |
(10.9) |
(252) |
Profit (loss) from operations (EBIT) |
|
14 |
18 |
(5) |
(25.4) |
92 |
EBIT margin |
% |
1.3 |
1.8 |
|
|
2.3 |
Cash capex |
|
(45) |
(57) |
12 |
21.3 |
(220) |
Cash capex (before spectrum investment) |
|
(45) |
(57) |
12 |
21.3 |
(220) |
Revenue, service revenue
Revenue in our Systems Solutions operating segment in the reporting period amounted to EUR 1.0 billion, up 1.6 % year-on-year. This positive revenue trend was mainly due to growth in the Digital portfolio area and related to the public and defense focal industries. External revenue declined slightly, driven by the area of Cloud. Service revenue also developed positively, increasing by 1.7 %.
Adjusted EBITDA AL, EBITDA AL
In the reporting period, adjusted EBITDA AL at our Systems Solutions operating segment increased by 4.0 % year-on-year to EUR 84 million. The increase in adjusted EBITDA AL is mainly attributable to revenue growth and increased efficiencies in the Digital area. EBITDA AL remained unchanged against the prior-year period at EUR 56 million. The expense arising from special factors increased from EUR 25 million to EUR 28 million, mainly as a result of slightly higher expenses in connection with socially responsible staff restructuring.
Profit/loss from operations (EBIT)
EBIT in our Systems Solutions operating segment decreased by EUR 5 million against the prior-year period to EUR 14 million, mainly due to the year-on-year increase in depreciation, amortization and impairment losses.
Cash capex (before spectrum investment), cash capex
Cash capex in the Systems Solutions operating segment stood at EUR 45 million in the reporting period, down EUR 12 million against the prior-year period, mainly due to a higher proportion of investments having an effect on cash flows in the fourth quarter of 2025.