BT Group plc

BT reported FY26 adjusted revenue of GBP 19.6 billion, down 4% year over year, with adjusted U.K. service revenue down 1% and Q4 adjusted revenue up 1%. Adjusted EBITDA was GBP 8.23 billion, and normalized free cash flow was GBP 1.5 billion, down from GBP 1.6 billion in FY25, while CapEx was GBP 5.1 billion, about GBP 100 million above guidance. Openreach revenue grew 1% and adjusted EBITDA grew 5%; Consumer revenue fell 2% and EBITDA fell 2%; Business revenue fell 2% and EBITDA fell 5%. For FY27, BT guided to total revenue of around GBP 19.0 billion to GBP 19.5 billion, U.K. service revenue of GBP 15.1 billion to GBP 15.4 billion, adjusted EBITDA of GBP 8.2 billion to GBP 8.3 billion, CapEx of around GBP 4.3 billion, and normalized free cash flow of GBP 2 billion.

Allison Kirkby emphasized that BT is executing on strategy despite sector turbulence, highlighting record fiber build, record connections, improving customer satisfaction, and a stronger UK focus after divesting five noncore businesses. She stressed that BT’s three-brand consumer approach, Openreach build/connect momentum, and modernization across business and international are creating a simpler, more efficient company with more upside from AI. Her tone was confident and upbeat, repeatedly framing the business as being at an inflection point for cash flow, customer growth, and future shareholder returns.

Simon Lowth said BT is ahead of plan on the GBP 3 billion transformation program, with GBP 580 million of annualized cost savings achieved in FY26 and GBP 1.5 billion of cumulative savings over two years at a GBP 0.8 billion cost to achieve. He highlighted lower workforce levels, down 7% including subcontractors, direct labor down 10%, and energy use down 6%, while noting BT was about 90% hedged on energy into FY27. Financially, he pointed to GBP 19.6 billion of adjusted revenue, GBP 8.23 billion of adjusted EBITDA, GBP 1.5 billion of normalized free cash flow, GBP 5.1 billion of CapEx, and a GBP 100 million IAS 19 pension deficit increase. He also detailed a strengthened distribution framework: FY26 dividend of 8.32p per share, expected low- to mid-single-digit dividend growth from FY27 onward, and residual cash flow to fund enhanced distributions once BBB+-consistent leverage metrics are reached.

Analysts pressed management on whether BT could eventually double the dividend once the fiber build and deleveraging are complete, and Simon answered that BT expects to move toward BBB+-consistent metrics through EBITDA and cash flow expansion rather than reset the policy prematurely. Allison said enhanced distributions could later take multiple forms, including special dividends or buybacks, but only several years away. Questions also focused on Consumer not yet translating customer gains into revenue growth and on whether Openreach line losses have peaked; Allison said Consumer and Openreach are run independently, that convergence and fiber migration are improving churn, and that line losses are expected to fall again but she would not yet call a peak. On Openreach pricing and deregulation, she said BT is in active dialogue with Ofcom about geographic or specific offers, but there is no defined 'Equinox 3.'