This article first appeared on GuruFocus .
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Free Cash Flow:SEK9.6 billion for the full year, significantly above the outlook of around SEK8 billion.
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EBITDA Growth:3.7% growth in Q4, with a full-year improvement of 120 basis points.
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Service Revenue Growth:2.1% in Q4, driven by strong performance in Sweden and the Baltics.
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OpEx Decline:4.1% decrease in Q4, driven by cost discipline and efficiency improvements.
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CapEx:SEK12.8 billion for the full year, below the improved guidance of around SEK13 billion.
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Leverage:1.93x net debt to EBITDA, significantly down from a year ago.
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Dividend Proposal:Increase from SEK2 to SEK2.05 per share.
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Sweden Revenue Growth:Almost 5% in Q4, supported by business and mission-critical services.
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Finland Service Revenue Decline:3% decrease in Q4, impacted by weak enterprise market environment.
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Lithuania Service Revenue Growth:7% in Q4, with EBITDA growth of 13%.
Release Date: January 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Telia Company AB ( TLSNF ) achieved a total shareholder return of 36% for 2025, indicating strong market performance.
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The company delivered on its EBITDA and overdelivered on its free cash flow ambition, despite challenges in Norway and Finland.
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Telia's balance sheet has strengthened, with leverage significantly reduced to 1.93x.
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Sweden delivered its best quarter in modern times with revenue growth reaching almost 5%, supported by business and mission-critical services.
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The company has improved its CapEx efficiency and reshaped its portfolio with strategic divestments and acquisitions.
Negative Points
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Finland experienced a weak quarter with service revenue down 3%, primarily due to a weak enterprise market environment and non-connectivity projects.
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Norway's EBITDA remained in negative territory due to a decline in service revenue and higher costs.
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The Finnish mobile consumer market saw increased competition with two new MVNOs, leading to a net loss of customers.
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The company's guidance for 2026 indicates only modest growth, with service revenue and EBITDA expected to grow around 2% and 3%, respectively.
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The dividend increase proposed by the Board was below market expectations, despite strong free cash flow performance.
Q & A Highlights
Q: What is your timeline to reach stability on EBITDA in Finland, and is the EBITDA growth guide conservative given the announced headcount reduction? A: Patrik Hofbauer, CEO : We are not satisfied with the current performance in Finland, but we are focusing on customer experience and satisfaction. We expect improvements in service revenues and EBITDA starting in Q1 2026. The headcount reduction will contribute significantly to these improvements. Eric Hageman, CFO : The 3% EBITDA growth guidance aligns with our mid-term ambitions. The impact of headcount reduction will be less in 2026 compared to 2025.
Q: Can you provide more color on the weaker enterprise deal flow in Finland and the challenges in Norway? A: Eric Hageman, CFO : In Norway, we still have some impact from the ICE contract, but we expect improvement throughout the year. In Finland, the enterprise sales are lumpy, and the weak quarter was due to fewer deals compared to a strong Q4 in 2025. The market remains challenging, but we are focusing on stabilizing mobile market share and capturing SME opportunities.
Q: How are you thinking about the opportunity to drive continued growth in Sweden's mission and business-critical revenues? A: Patrik Hofbauer, CEO : We have good momentum in Sweden, and the demand for mission-critical services will continue in 2026. While growth may not be consistent every quarter, we expect similar demand levels as in 2025, making it a key growth driver.
Q: What are the key factors expected to drive the 2% growth guidance for 2026? A: Patrik Hofbauer, CEO : Key factors include continued strong performance in Sweden, pricing strategies, and improvements in Finland. We also expect the Baltics to continue driving growth. Overall, we are comfortable with the 2% growth outlook for 2026.
Q: Can you elaborate on the net working capital in Q4 and the upcoming regulation in Sweden on B2C fixed fiber SDU? A: Eric Hageman, CFO : The working capital improvement was partly planned and partly due to external factors like early payments. We expect working capital to be neutral in 2026. Erik Strandin Pers, Head of Investor Relations : The regulation on B2C fixed fiber SDU is still being finalized. We hope it will create a more level playing field, and we see it as more of an opportunity than a risk.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
