Systems Solutions
As of the 2026 financial year, the existing portfolio of the Systems Solutions (T-Systems) operating segment (Cloud, Digital, Security, and Advisory) has been 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 half of 2026, T‑Systems recorded a stable business trend with significant revenue growth and stable profitability. Digitalization services were the main revenue growth drivers. Continuous improvements in efficiency in the operating business also resulted in continued improvement in earnings.
Order entry
millions of € |
|
|
|
|
|
|
H1 2026 |
Q1 2026 |
FY 2025 |
H1 2025 |
Change |
|---|---|---|---|---|---|
Order entry |
1,992 |
994 |
4,191 |
2,116 |
(5.8) |
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 down by 5.8 % year-on-year in the first half of 2026. This development is largely attributable to the high-volume deals concluded in the prior year, the like of which are not expected in this reporting year until the second half of the year.
Development of operations
millions of € |
|
|
|
|
|
|
|
|
|
|
|
H1 2026 |
H1 2025 |
Change |
Q1 2026 |
Q2 2026 |
Q2 2025 |
Change |
FY 2025 |
|---|---|---|---|---|---|---|---|---|---|
Revenue |
|
2,102 |
2,023 |
4.0 |
1,026 |
1,077 |
1,013 |
6.2 |
4,103 |
Of which: external revenue |
|
1,710 |
1,704 |
0.3 |
846 |
863 |
854 |
1.1 |
3,444 |
Service revenue |
|
2,102 |
2,021 |
4.0 |
1,025 |
1,077 |
1,013 |
6.3 |
4,100 |
EBITDA |
|
181 |
172 |
5.0 |
81 |
100 |
93 |
7.1 |
345 |
Special factors affecting EBITDA |
|
(53) |
(51) |
(5.1) |
(28) |
(25) |
(26) |
2.0 |
(175) |
EBITDA (adjusted for special factors) |
|
234 |
223 |
5.0 |
109 |
125 |
119 |
5.1 |
520 |
EBITDA AL |
|
130 |
126 |
3.3 |
56 |
74 |
70 |
5.8 |
252 |
Special factors affecting EBITDA AL |
|
(53) |
(51) |
(5.1) |
(28) |
(25) |
(26) |
2.0 |
(175) |
EBITDA AL (adjusted for special factors) |
|
183 |
176 |
3.8 |
84 |
99 |
96 |
3.7 |
427 |
EBITDA AL margin (adjusted for special factors) |
% |
8.7 |
8.7 |
|
8.2 |
9.2 |
9.5 |
|
10.4 |
Depreciation, amortization and impairment losses |
|
(140) |
(123) |
(13.5) |
(68) |
(72) |
(62) |
(16.1) |
(252) |
Profit (loss) from operations (EBIT) |
|
41 |
49 |
(16.3) |
14 |
28 |
31 |
(10.9) |
92 |
EBIT margin |
% |
2.0 |
2.4 |
|
1.3 |
2.6 |
3.0 |
|
2.3 |
Cash capex |
|
(111) |
(103) |
(7.2) |
(45) |
(66) |
(47) |
(41.8) |
(220) |
Cash capex (before spectrum investment) |
|
(111) |
(103) |
(7.2) |
(45) |
(66) |
(47) |
(41.8) |
(220) |
Revenue, service revenue
Revenue in our Systems Solutions operating segment in the reporting period amounted to EUR 2.1 billion, up 4.0 % year-on-year. This positive revenue trend was mainly due to growth in the Digital portfolio area and related to all focal industries with the exception of automotive. External revenue increased slightly by 0.3 %, also driven by the Digital area. Service revenue also developed positively, increasing by 4.0 %.
Adjusted EBITDA AL, EBITDA AL
In the reporting period, adjusted EBITDA AL at our Systems Solutions operating segment increased by 3.8 % year-on-year to EUR 183 million. The increase in adjusted EBITDA AL is mainly attributable to revenue growth and increased efficiencies in the Digital area. EBITDA AL rose by 3.3 % against the prior-year period to EUR 130 million. The expense arising from special factors increased from EUR 51 million to EUR 53 million, mainly as a result of slightly higher restructuring costs.
Profit/loss from operations (EBIT)
EBIT in our Systems Solutions operating segment decreased by EUR 8 million against the prior-year period to EUR 41 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 our Systems Solutions operating segment increased from EUR 103 million to EUR 111 million in the reporting period, primarily due to increased demand for on-board units in the Road Charging area and higher investments in the Cloud portfolio area.