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Financial position of the Group

Calculation of net debt

millions of €

 

 

 

 

 

 

June 30, 2026

Dec. 31, 2025

Change

Change
%

June 30, 2025

Bonds and other securitized liabilities

94,881

91,980

2,901

3.2

90,672

Liabilities collateralized by existing and anticipated trade receivables (including asset-backed securities)

2,626

1,698

928

n.a.

1,439

Liabilities to banks

4,353

4,414

(61)

(1.4)

3,310

Other financial liabilities

12,128

12,247

(119)

(1.0)

12,251

Lease liabilities

36,053

36,384

(331)

(0.9)

35,553

Financial liabilities and lease liabilities

150,040

146,722

3,318

2.3

143,225

Accrued interest

(1,153)

(1,197)

44

3.7

(1,043)

Other

(2,180)

(1,922)

(259)

(13.5)

(1,924)

Gross debt

146,707

143,603

3,104

2.2

140,258

Cash and cash equivalents

5,373

7,818

(2,445)

(31.3)

10,441

Derivative financial assets

1,249

1,399

(150)

(10.7)

1,373

Other financial assets

1,698

1,868

(170)

(9.1)

1,908

Net debta

138,387

132,518

5,869

4.4

126,535

Lease liabilitiesb

34,035

34,451

(416)

(1.2)

33,553

Net debt AL

104,352

98,067

6,285

6.4

92,982

a

Including, where it exists, net debt reported under assets and liabilities directly associated with non-current assets and disposal groups held for sale.

b

Excluding certain finance leases at T‑Mobile US.

Changes in net debt

millions of €

Changes in net debt (bar chart)
Calculation of free cash flow AL

millions of €

 

 

 

 

 

 

 

 

 

H1 2026

H1 2025

Change
%

Q1 2026

Q2 2026

Q2 2025

Change
%

FY 2025

Net cash from operating activities

21,117

20,939

0.9

10,875

10,242

9,767

4.9

40,627

Cash outflows for investments in intangible assets

(2,962)

(3,355)

11.7

(1,289)

(1,673)

(2,065)

19.0

(6,942)

Cash outflows for investments in property, plant and equipment

(5,399)

(5,850)

7.7

(2,641)

(2,758)

(2,659)

(3.7)

(12,314)

Cash capex

(8,361)

(9,205)

9.2

(3,930)

(4,430)

(4,724)

6.2

(19,256)

Spectrum investment

549

992

(44.6)

123

426

854

(50.2)

1,071

Investments in the acquisition of customer bases

0

0

n.a.

0

0

0

n.a.

1,322

Cash capex (before spectrum investment)a

(7,812)

(8,213)

4.9

(3,807)

(4,004)

(3,870)

(3.5)

(16,864)

Proceeds from the disposal of intangible assets (excluding goodwill) and property, plant and equipment

133

1,907

(93.0)

97

36

1,878

(98.1)

2,075

Proceeds from the disposal of spectrum

0

(1,777)

n.a.

0

0

(1,777)

n.a.

(1,777)

Proceeds from the disposal of intangible assets (excluding goodwill and spectrum) and property, plant and equipment

133

130

2.7

97

36

101

(63.9)

298

Net cash outflows for investments in intangible assets (excluding goodwill and spectrum) and property, plant and equipmenta

(7,678)

(8,083)

5.0

(3,710)

(3,968)

(3,769)

(5.3)

(16,566)

Free cash flow (before dividend payments and spectrum investment)a,b

13,439

12,856

4.5

7,165

6,274

5,998

4.6

24,061

Principal portion of repayment of lease liabilitiesc

(2,725)

(2,328)

(17.0)

(1,478)

(1,247)

(1,120)

(11.3)

(4,515)

Free cash flow AL (before dividend payments and spectrum investment)a,b

10,714

10,528

1.8

5,687

5,027

4,878

3.1

19,546

a

Excluding cash outflows for investments made by T‑Mobile US to acquire customer bases.

b

Excluding proceeds from the disposal of spectrum due to the sale of spectrum licenses by T‑Mobile US.

c

Excluding certain finance leases at T‑Mobile US.

Free cash flow AL (before dividend payments and spectrum investment) increased by EUR 0.2 billion against the prior-year period to EUR 10.7 billion. The following effects impacted on this development:

Net cash from operating activities increased by EUR 0.2 billion to EUR 21.1 billion. The continued strong development of operations was offset by negative exchange rate effects and higher tax and net interest payments. In the United States operating segment, higher cash outflows for the 2025-2026 Workforce Transformation and for integration measures as a result of corporate transactions completed in the prior year (primarily the UScellular Acquisition) also had a negative impact.

Cash capex (before spectrum investment) decreased by EUR 0.4 billion to EUR 7.8 billion. In the Germany operating segment, cash capex totaled EUR 1.8 billion in the reporting period, EUR 0.5 billion less than in the prior-year period. This was primarily due to the timing of the allocation of investments in the fiber build-out. Cash capex in the United States operating segment increased by EUR 0.1 billion year-on-year to EUR 4.6 billion, in particular due to higher investments in the continued network build-out and additional capital expenditure as a result of the UScellular Acquisition. By contrast, exchange rate effects reduced the amount of the cash outflows in the reporting currency. In the Europe operating segment, cash capex decreased slightly against the level of the prior-year period to EUR 0.9 billion. In the Systems Solutions operating segment, cash capex increased slightly year-on-year.

The sale of spectrum licenses by T‑Mobile US to N77 in the prior-year period generated cash proceeds of EUR 1.8 billion. Excluding this transaction, proceeds from the disposal of intangible assets (excluding goodwill and spectrum) and property, plant and equipment stood at the prior-year level.

An increase of EUR 0.4 billion in cash outflows – in particular in the Germany and United States operating segments – for the repayment of lease liabilities reduced free cash flow AL.

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

The rating of Deutsche Telekom AG

 

 

 

 

 

Standard & Poor’s

Moody’s

Fitch

Long-term rating/outlook

 

 

 

Dec. 31, 2025

BBB+/positive

A3/stable

BBB+/stable

June 30, 2026

A-/stable

A3/stable

A-/stable

Short-term rating

A-2

P-2

F2

On May 11, 2026 and June 22, 2026, the rating agencies Standard & Poorʼs and Fitch raised Deutsche Telekom AG’s credit rating, such that both stood at A- with a stable outlook as of June 30, 2026. As a solid investment-grade company, we have access to the international capital markets.

AL – After Leases
Since the start of the 2019 financial year, Deutsche Telekom has taken the effects of the first-time application of IFRS 16 “Leases” into account when determining financial performance indicators. “EBITDA after leases” (EBITDA AL) is calculated by adjusting EBITDA for depreciation of the right-of-use assets and for interest expenses on recognized lease liabilities. When determining “free cash flow after leases” (free cash flow AL), free cash flow is adjusted for the repayment of lease liabilities.
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