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 three quarters of 2026, T‑Systems recorded a stable business trend with significant growth in revenue and enhanced 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 € |
|
|
|
|
|
|
Q1-Q3 |
H1 2026 |
FY |
Q1-Q3 |
Change |
|---|---|---|---|---|---|
Order entry |
2,875 |
1,992 |
4,191 |
2,805 |
2.5 |
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 2.5 % year-on-year in the reporting period. This development is largely attributable to high-volume deals concluded in the AI Cloud area.
Development of operations
millions of € |
|
|
|
|
|
|
|
|
|
|
|
|
Q1-Q3 |
Q1-Q3 |
Change |
Q1 |
Q2 |
Q3 |
Q3 |
Change |
FY |
|---|---|---|---|---|---|---|---|---|---|---|
Revenue |
|
3,182 |
3,037 |
4.8 |
1,026 |
1,077 |
1,080 |
1,014 |
6.5 |
4,103 |
Of which: external revenue |
|
2,597 |
2,551 |
1.8 |
846 |
863 |
887 |
847 |
4.8 |
3,444 |
Service revenue |
|
3,181 |
3,034 |
4.8 |
1,025 |
1,077 |
1,080 |
1,014 |
6.5 |
4,100 |
EBITDA |
|
314 |
256 |
22.8 |
81 |
100 |
133 |
83 |
59.6 |
345 |
Special factors affecting EBITDA |
|
(78) |
(117) |
33.5 |
(28) |
(25) |
(25) |
(67) |
62.7 |
(175) |
EBITDA (adjusted for special factors) |
|
392 |
373 |
5.1 |
109 |
125 |
158 |
150 |
5.2 |
520 |
EBITDA AL |
|
237 |
186 |
27.7 |
56 |
74 |
107 |
60 |
79.1 |
252 |
Special factors affecting EBITDA AL |
|
(78) |
(117) |
33.5 |
(28) |
(25) |
(25) |
(67) |
62.7 |
(175) |
EBITDA AL (adjusted for special factors) |
|
315 |
303 |
4.0 |
84 |
99 |
132 |
127 |
4.3 |
427 |
EBITDA AL margin (adjusted for special factors) |
% |
9.9 |
10.0 |
|
8.2 |
9.2 |
12.2 |
12.5 |
|
10.4 |
Depreciation, amortization and impairment losses |
|
(212) |
(187) |
(13.6) |
(68) |
(72) |
(73) |
(64) |
(13.9) |
(252) |
Profit (loss) from operations (EBIT) |
|
102 |
69 |
47.7 |
14 |
28 |
61 |
20 |
n.a. |
92 |
EBIT margin |
% |
3.2 |
2.3 |
|
1.3 |
2.6 |
5.6 |
2.0 |
|
2.3 |
Cash capex |
|
(199) |
(151) |
(32.0) |
(45) |
(66) |
(88) |
(47) |
(86.1) |
(220) |
Cash capex (before spectrum investment) |
|
(199) |
(151) |
(32.0) |
(45) |
(66) |
(88) |
(47) |
(86.1) |
(220) |
Revenue, service revenue
Revenue in our Systems Solutions operating segment in the reporting period amounted to EUR 3.2 billion, up 4.8 % year-on-year. This positive revenue trend was mainly due to growth in the Digital portfolio area and related to the public sector industry as well as the Germany and International regions. External revenue increased slightly by 1.8 %, also driven by the Digital area. Service revenue also developed positively, increasing by 4.8 %.
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 315 million. The increase in adjusted EBITDA AL is mainly attributable to revenue growth and increased efficiencies in the Digital portfolio area. EBITDA AL rose by 27.7 % against the prior-year period to EUR 237 million. The expense arising from special factors decreased from EUR 117 million to EUR 78 million, mainly as a result of substantially lower personnel-related restructuring costs.
Profit/loss from operations (EBIT)
EBIT in our Systems Solutions operating segment increased by EUR 33 million against the prior-year period to EUR 102 million, mainly due to greater profitability, despite the 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 151 million to EUR 199 million in the reporting period, primarily due to increased investments in the Cloud portfolio area and increased demand for on-board units in the Road Charging business area.