Vodafone Group Public Limited Company

Vodafone reported group service revenue growth of 5.1% in Q4, organic adjusted EBITDAaL growth of 4.5% for FY '26, and adjusted free cash flow of EUR 2.6 billion. Management said FY '26 performance was at the upper end of expectations and that the full-year dividend was increased by 2.5% after announcing a progressive dividend policy. Looking ahead, FY '27 guidance calls for continued good growth in both adjusted EBITDAaL and adjusted free cash flow; Europe is expected to be broadly stable overall, with Germany expected to decline, the U.K. to grow, and Africa and Turkey to keep growing well. The midterm outlook is for double-digit organic growth in adjusted free cash flow.

Margherita Della Valle framed the company as entering a “new chapter” after a three-year transformation that changed where Vodafone operates, how it operates, and its capital structure. Her tone was confident and forward-looking, emphasizing that Vodafone now has scaled positions in each market, stronger customer simplicity and growth execution, and a more favorable industry environment around pricing, spectrum, and scale. She repeatedly pointed to the U.K., Germany, and Africa as distinct pillars of future growth.

Maria López Álvarez said the Europe outlook is balanced across markets, with Germany expected to decline in FY '27 as recent Q4 trends continue, while the U.K. should post strong growth from the first meaningful delivery of cost synergies. She said FY '27 adjusted free cash flow growth should be driven by good adjusted EBITDA growth and broadly stable capital intensity by market, while CapEx peaks in the U.K. this year before easing later. On leverage, management said the U.K. buyout temporarily lifts leverage above the target lower-half range, but the group expects to return to that lower half by the end of FY '27, helped by Netherlands proceeds and growth.

Analysts pressed on Germany, asking whether customer gains were being bought with higher investment and whether EBITDA can stabilize medium term; management said pricing increases improved NPS and broadband economics, but mobile remains unchanged and EBITDA will still decline in FY '27 before longer-term stabilization is possible. Questions also focused on the U.K. deal and whether management is assuming a change in market behavior; Vodafone said competition remains high, but revenue synergies should come from churn reduction, cross-selling to a larger customer base, and a bigger fiber/FWA footprint. On M&A and leverage, management said the U.K. buyout was always planned, the leverage spike is temporary, and the group remains focused on organic execution and the lower half of the leverage range.