Deutsche Telekom raises guidance on positive US trends, plans buyback

Deutsche Telekom AG on Thursday raised its full-year 2025 guidance, announcing plans for a higher dividend payout this year and an expanded share buyback program next year, even as quarterly profits declined.

The Bonn-based telecommunications group reported that third-quarter net profit fell 18% to EUR 2.43 billion, down from EUR 2.96 billion a year earlier, despite a 1.5% increase in revenue to EUR 28.94 billion from EUR 28.50 billion.

Earnings per share dropped 17% to EUR 0.50 from EUR 0.60. The company attributed the earnings decline to one-off financial gains recorded at two subsidiaries in the third quarter of 2024 that did not recur this year.

Adjusted earnings before interest, depreciation, amortization, and lease expenses (EBITDA AL) inched up 0.2% to EUR 11.12 billion from EUR 11.10 billion, while organic growth in adjusted EBITDA AL reached 2.9%.

Reflecting continued strength in its US operations and the integration of UScellular, Deutsche Telekom raised its 2025 adjusted EBITDA AL target to EUR 45.3 billion, up from EUR 45.0 billion previously, and higher than the EUR 43.02 billion expected for 2024.

The company also announced plans to increase its 2025 dividend to EUR 1.00 per share, compared with EUR 0.90 for 2024, and unveiled a EUR 2 billion share buyback program for 2026, underscoring management’s confidence in sustained earnings growth and strong cash generation.