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Telia Lifts Cash Flow and Dividend Despite Provision-Hit Earnings in 2025

Story Highlights
  • Telia grew service revenue and adjusted EBITDA in 2025, but higher non-cash provisions weighed on reported earnings.
  • Stronger free cash flow, steady leverage, a higher proposed dividend and progress on the Bredband2 deal underline Telia’s confidence in its 2027 ambitions.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Telia Lifts Cash Flow and Dividend Despite Provision-Hit Earnings in 2025

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An update from Telia Company AB ( (SE:TELIA) ) is now available.

Telia Company reported modest like-for-like revenue growth for the fourth quarter and full year 2025, with service revenue up 2.1% in Q4 and 1.5% for the year, driven primarily by Sweden and the Baltics. Adjusted EBITDA rose 3.7% in Q4 and 5.2% for the full year thanks to service revenue growth and lower operating expenses, but reported EBITDA and net income declined due to a SEK 3.7 billion non-cash increase in asset retirement obligation provisions, pushing Q4 into a net loss and reducing full-year earnings per share. Despite this accounting impact, cash generation strengthened markedly: free cash flow climbed to SEK 2.4 billion in Q4 and SEK 9.3 billion for 2025, supported by higher adjusted EBITDA, lower interest paid, and strong working capital, while leverage remained at 1.93x. Capital expenditure excluding spectrum and leases decreased to SEK 12.8 billion for the year, reflecting lower investment levels, even as Q4 capex ticked up, and the company maintained its dividend, with the board proposing a slightly higher payout of SEK 2.05 per share for 2025. Telia also obtained all regulatory approvals for its recommended cash offer for broadband provider Bredband2 i Skandinavien AB and issued a 2026 outlook targeting around 2% like-for-like service revenue growth, around 3% adjusted EBITDA growth, capex below SEK 13 billion, and free cash flow of about SEK 9 billion, signaling confidence in meeting its 2027 financial ambitions and offering continued returns to shareholders.

The most recent analyst rating on (SE:TELIA) stock is a Buy with a SEK45.00 price target. To see the full list of analyst forecasts on Telia Company AB stock, see the SE:TELIA Stock Forecast page.

More about Telia Company AB

Telia Company AB is a Nordic and Baltic telecommunications operator providing mobile, fixed-line, broadband, and related digital services, with core markets in Sweden, Finland, and the Baltic countries. The company focuses on service revenue growth, operational efficiency, and capital discipline while pursuing selective expansion in adjacent connectivity segments such as broadband and fiber.

Average Trading Volume: 6,310,498

Technical Sentiment Signal: Buy

Current Market Cap: SEK156.2B

For a thorough assessment of TELIA stock, go to TipRanks’ Stock Analysis page.

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