Telstra Group Limited provided its half-year earnings and cash creation towards the conclusion of 31 December 2025. According to the Telstra FY26 Results, there is disciplined cost control and stable core connectivity demand.
EBITDAaL stood at $4.2b, increasing by 4.9 per cent on the previous period of the same. Underlying EBITDAaL rose by 5.5 per cent. EBIT grew 9.2 per cent to $2.0b.
After tax, net profit increased by 8.1 per cent to $1.2b. According to the management, performance is an indicator of mobile growth, productivity gains and capital discipline.
Telstra Earnings Momentum The national network and retail presence of Telstra remain the foundation of earnings momentum. [The Guardian]
Earnings Momentum Across Core Connectivity
Profitability on the cash level improved significantly in the first half. Cash EBIT rose 14 per cent to $2.5b. The cash earnings were up 17 per cent to $1.6b. EPS in cash leapt by 19.7 per cent to 14.0 cents per share.
These returns were higher than the reported growth in EPS. This was supported by reduced business-as-usual capex, as well as a tightening of cost control.
The operating expenses decreased by 2.4 per cent. There was a decrease of 2.9 per cent in cash EBIT costs. The operating leverage is positive at +3.1 percentage points indicates that income growth was more than the cost growth.
How Did Dividends And Buy-Backs Improve Returns?
The shareholder returns were reinforced through the Telstra 1H FY26 Results. The interim dividend was increased to 10.5 cents per share, an increase of 10.5 per cent.
This is a 90.5 per cent franked payment. Telstra had finished on-market buy-backs totalling 637m in the half. The programme was elevated to a maximum of up to $1.25b.
The earnings per share increased 11 per cent to 9.9 cents. The management recorded an A band credit profile coupled with capital returning. The balance sheet is flexible, as it has 1.4b cash and 3.8b unused facilities.
Stronger cash earnings supported dividends, buy-backs and investor confidence.
Mobile And Infrastructure Drive Growth
Mobile was the greatest source of earnings. There was a growth in mobile service revenue of 5.6 per cent. Handheld ARPU rose 5.1 per cent. The number of total handheld users increased by 135k.
Mobile EBITDA increased by 4 per cent. Fixed-Consumer and Small Business registered a 20.2 per cent growth in EBITDA through cost discipline and 5G fixed wireless uptake.
The infrastructure assets also provided returns. InfraCo Fixed EBITDAaL increased by 3.4 per cent. Amplitel increased 6.6 per cent. The segments indicate a stable external demand for digital infrastructure.
Where Did Challenges Appear?
Not every division expanded. The Fixed-Enterprise income was also down by 5 per cent. The EBITDA decreased by 9.4 per cent due to the shrinking legacy services.
There was a slight weakness in international operations. Wholesale and Enterprise, when there is no one-off, was better. Digicel Pacific had recorded minor falls on Australian dollar bases.
Management has been making portfolios simplistic and cutting non-core exposure. The productivity efforts reduced labour and operating expenses. These measures favoured margins even in sluggish segments.
Fibre, data centres and data upgrades lead the way to Telstra’s long-term connectivity strategy. [ACS Information Age]
What Is The FY26 Outlook?
Telstra tightened its FY26 outlook and indicated a sense of confidence. The forecast of EBITDAaL is falling between $8.2b and 8.4b. The business-as-usual capex will be between 3.2b and 3.5b.
Cash EBIT guidance is in the range of $4.55b to 4.75b. The strategic investments will run in the range of $0.3b to 0.5b in fibre and satellite projects.
The management targets the growth of cash earnings in mid-single digits and 10 per cent underlying ROIC in FY30. That target will be anchored by Telstra FY26 Results, which indicate that cash flow is going to be stable and capital is going to be managed very diligently.
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FAQs
Q1: What was Telstra’s half-year profit?
A1: NPAT reached $1.2b, up 8.1 per cent.
Q2: How much was the interim dividend?
A2: 10.5 cents per share, 90.5 per cent franked.
Q3: Did Telstra conduct share buy-backs?
A3: Yes, $637m completed, expanded to up to $1.25b.
Q4: What is FY26 EBITDAaL guidance?
A4: Between $8.2b and $8.4b.
