Telia Company AB (SE:TELIA)
:TELIA
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Telia Company AB
(TELIA)
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Rating:61Neutral
Price Target:
kr50.00
▲(2.80% Upside)
Action:ReiteratedDate:03/26/26
The score is anchored by mixed fundamentals: strong cash generation and improved profitability are offset by 2025’s sharp revenue decline and still-elevated leverage. Technicals add support with a clear uptrend and positive momentum, while valuation is tempered by a negative P/E despite a solid dividend yield; earnings-call guidance and execution were broadly supportive but dependent on turnarounds in Finland and Norway.
Positive Factors
Strong free cash flow generation
Sustained, above‑target free cash flow in 2025 provides durable capacity to fund dividends, service debt, and invest in networks without reliance on external financing. This strengthens financial flexibility, supports deleveraging and strategic investments over the 2–6 month horizon and beyond.
Negative Factors
Elevated leverage
Leverage at these levels constrains strategic flexibility: it increases interest and refinancing sensitivity, limits the scope for large M&A or aggressive returns, and makes the balance sheet more vulnerable to revenue or margin setbacks. Deleveraging remains a medium-term priority.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained, above‑target free cash flow in 2025 provides durable capacity to fund dividends, service debt, and invest in networks without reliance on external financing. This strengthens financial flexibility, supports deleveraging and strategic investments over the 2–6 month horizon and beyond.
Read all positive factors
Telia Company AB (TELIA) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr186.42B
Dividend Yield5.14%
Average Volume (3M)6.10M
Price to Earnings (P/E)44.3
Beta (1Y)0.13
Revenue Growth-5.76%
EPS Growth-10.05%
CountrySE
Employees15,040
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.33
Shares Outstanding3,932,109,400
10 Day Avg. Volume4,937,340
30 Day Avg. Volume6,099,907
Financial Highlights & Ratios
PEG Ratio-0.88
Price to Book (P/B)3.03
Price to Sales (P/S)1.91
P/FCF Ratio12.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr45.86Price Target Upside-5.71% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.22
Revenue Forecast (FY)kr81.62B
Telia Company AB Business Overview & Revenue Model
Company Description
Telia Company AB (publ) provides communication services in Sweden, Finland, Norway, Denmark, Lithuania, Estonia, and Latvia. The company offers mobile, broadband, television, and fixed-line services to businesses, individuals, families, and commun...
How the Company Makes Money
Telia makes money primarily by charging recurring service fees for telecommunications connectivity and related digital services. Its largest revenue stream is typically connectivity services to consumers, including mobile subscriptions (voice, SMS...
Telia Company AB Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational and financial progress: free cash flow materially exceeded prior guidance, cost and CapEx discipline delivered, Sweden and the Baltics showed strong growth and network leadership, and the balance sheet strengthened (leverage ~1.93x). Offsetting these positives were meaningful near-term challenges in Finland (weak service revenue and EBITDA, increased competition and churn) and continued profitability pressure in Norway partly driven by a legacy contract (ICE). Management gave cautious but constructive guidance for 2026 (service revenue ~2%, EBITDA ~3%) and set out a path to at least SEK 10 billion free cash flow by 2027. Overall, the highlights—especially the cash generation, margin improvement, cost control and strong Sweden/Baltics performance—outweigh the country-specific lowlights, though execution in Finland and Norway remains important to achieve midterm targets.Positive Updates
Strong Free Cash Flow Outperformance
Full-year 2025 free cash flow (normalized spectrum CapEx) of SEK 9.6 billion, significantly above the upgraded outlook of around SEK 8 billion and well ahead of the initial ~SEK 7.5 billion. Reported free cash flow was SEK 9.3 billion after an SEK 800 million payment and FX headwind (>SEK 300 million). Q4 working capital improvements drove a strong finish.
Negative Updates
Finland: Weak Top-line and EBITDA in Q4
Finland service revenue decreased ~3% in Q4 and EBITDA declined ~6% in the quarter. Drivers included a weak enterprise market, higher marketing spend, ramp-down of noncore businesses and lumpy timing of large non-connectivity enterprise projects (strong last year, lower this year).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Free Cash Flow Outperformance
Full-year 2025 free cash flow (normalized spectrum CapEx) of SEK 9.6 billion, significantly above the upgraded outlook of around SEK 8 billion and well ahead of the initial ~SEK 7.5 billion. Reported free cash flow was SEK 9.3 billion after an SEK 800 million payment and FX headwind (>SEK 300 million). Q4 working capital improvements drove a strong finish.
Read all positive updates
Company Guidance
Management guided 2026 for service revenue growth of around 2% and EBITDA growth of around 3% (roughly +SEK 1bn in absolute EBITDA), with CapEx expected below SEK 13 billion and group free cash flow of around SEK 9 billion (on a path to at least SEK 10 billion in 2027). This guidance builds on 2025 results (service revenue +1.5% full year; Q4 service revenue +2.1%; EBITDA +5.2% in 2025 and Q4 EBITDA +3.7%), CapEx SEK 12.8bn, normalized free cash flow SEK 9.6bn (reported SEK 9.3bn after SEK 800m spectrum payment and >SEK 300m FX headwind), EBITDA–CapEx SEK 19bn (12‑month), cash conversion 60% (up from 57%), and leverage 1.93x; management also flagged no significant net working‑capital contribution expected in 2026, a more back‑end‑loaded FCF profile (c.30/70 H1/H2), continued OpEx discipline (Q4 OpEx −4.1%; OpEx/SR 31.9%, −200bp), and further cost actions including a targeted net reduction of ≥450 positions.Telia Company AB Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
45
Neutral
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 80.98B | 89.13B | 88.78B | 90.83B | 88.34B |
| Gross Profit | 19.72B | 55.65B | 40.22B | 30.88B | 30.03B |
| EBITDA | 32.00B | 35.11B | 29.53B | 14.02B | 40.15B |
| Net Income | 3.49B | 7.08B | 303.00M | -14.16B | 11.68B |
Balance Sheet | |||||
| Total Assets | 189.25B | 204.27B | 226.47B | 222.79B | 237.03B |
| Cash, Cash Equivalents and Short-Term Investments | 11.89B | 10.93B | 19.85B | 9.18B | 20.45B |
| Total Debt | 83.27B | 94.38B | 112.57B | 53.72B | 40.58B |
| Total Liabilities | 134.43B | 144.91B | 169.47B | 155.12B | 153.48B |
| Stockholders Equity | 51.07B | 55.44B | 53.47B | 64.24B | 80.73B |
Cash Flow | |||||
| Free Cash Flow | 12.62B | 7.31B | 9.21B | 8.09B | 11.73B |
| Operating Cash Flow | 27.60B | 21.20B | 24.67B | 24.00B | 27.38B |
| Investing Cash Flow | -7.15B | 4.11B | -22.06B | -9.94B | -10.91B |
| Financing Cash Flow | -18.80B | -27.34B | 2.65B | -21.78B | -10.60B |
Telia Company AB Technical Analysis
Positive
48.64
Price Trends
45.20
Positive
41.55
Positive
37.98
Positive
Market Momentum
0.81
Positive
66.02
Neutral
80.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TELIA, the sentiment is Positive. The current price of 48.64 is above the 20-day moving average (MA) of 47.25, above the 50-day MA of 45.20, and above the 200-day MA of 37.98, indicating a bullish trend. The MACD of 0.81 indicates Positive momentum. The RSI at 66.02 is Neutral, neither overbought nor oversold. The STOCH value of 80.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:TELIA.
Telia Company AB Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | kr11.98B | 55.69 | 21.88% | 0.87% | 5.69% | 4.82% | |
66 Neutral | kr137.25B | 23.36 | 21.35% | 4.15% | 0.51% | 14.15% | |
61 Neutral | kr186.42B | 44.32 | 10.93% | 5.14% | -5.76% | -10.05% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | kr19.57B | 121.04 | 0.88% | ― | -1.62% | 94.01% | |
52 Neutral | kr4.84B | -55.48 | -3.84% | ― | 26.82% | 76.68% |
* Communication Services Sector Average
SE:TELIA
Telia Company AB
48.64
17.17
54.55%
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Telia Company AB Corporate Events
Telia Company Sets April Date and Agenda for 2026 Annual General Meeting
Mar 3, 2026
Telia Company has called its 2026 Annual General Meeting for April 9 at its Solna head office, offering shareholders the choice to participate in person, by proxy, or through postal and electronic voting in line with its articles of association. S...
Telia Lifts Stake in Finnish Fiber Leader Valokuitunen to 49%
Mar 2, 2026
Telia Company AB has agreed to raise its stake in Finnish fiber-to-the-home market leader Valokuitunen from 40% to 49%, paying an expected cash consideration of about EUR 30 million, with completion targeted for the second quarter of 2026. Valokui...
Telia Nears Full Control of Bredband2 Ahead of Delisting
Feb 16, 2026
Telia Company has closed its recommended public offer for Bredband2 i Skandinavien AB, securing 98.90 percent of the target’s share capital and votes after the extended acceptance period ended on 13 February 2026. The acquisition, which invo...
Telia Norway and ice to Merge Mobile Networks in Joint RAN Venture
Feb 2, 2026
Telia Norway and Lyse-owned mobile operator ice will combine their Norwegian mobile radio access networks in a 50/50 joint entity that will own all radio equipment, base stations and use the parties’ spectrum assets, while Telia Norway and i...
Telia Takes 96.7% of Bredband2, Moves to Full Takeover and Delisting
Feb 2, 2026
Telia Company AB has declared its public offer for Bredband2 i Skandinavien AB unconditional after securing approximately 96.70 percent of the target’s share capital and votes, paving the way for near-full control of the Swedish broadband pr...
Telia Lifts Cash Flow and Dividend Despite Provision-Hit Earnings in 2025
Jan 29, 2026
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% fo...
Telia Company Sets January 29 Date for Q4 and Full-Year 2025 Results
Jan 16, 2026
Telia Company has scheduled the publication of its fourth-quarter and full-year 2025 financial results for January 29, 2026, with the release set for early morning Central European Time. President and CEO Patrik Hofbauer and CFO Eric Hageman will ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.