Vodafone Group Plc

Vodafone reported FY'26 group service revenue growth of 5.1% in Q4, 4.5% organic growth in adjusted EBITDAaL for FY'26, and EUR 2.6 billion of adjusted free cash flow. Management said FY'26 performance landed at the upper end of expectations, and the full-year FY'26 dividend was increased 2.5%. For FY'27, the company guided for continued good growth in adjusted EBITDAaL and adjusted free cash flow, with Europe expected to be broadly stable overall, the U.K. expected to grow strongly on the first meaningful cost synergy delivery, and Germany expected to see EBITDA decline again despite progress in broadband and B2B.

Margherita Della Valle framed the call as the start of a “new chapter” for Vodafone after three years of transformation across portfolio, capital structure, and operations. Her message was that Vodafone is now simpler, stronger, and operating from scaled positions in each market, with better industry conditions around pricing, spectrum, and regulation. She highlighted customer simplicity, growth, and execution as the core strategic priorities, and said the business is positioned for growth in FY'27 and beyond.

Maria López Álvarez focused on the mechanics behind the outlook, saying FY'27 adjusted free cash flow growth should be driven by good adjusted EBITDA growth and broadly stable capital intensity by market. She noted CapEx will peak in the U.K. this year and then decline, while Africa and Turkey should continue to contribute good euro growth; she also said the midterm cash flow outlook is fully organic and does not include portfolio items like Safaricom. On leverage, management said the U.K. buyout temporarily takes the group slightly above the lower half of its leverage range, but by the end of FY'27 it should be back within that lower half, helped by the Netherlands proceeds and operating growth.

Analysts pressed on why Vodafone felt confident enough to reinstate a longer-term free cash flow target, how much Germany would drag on Europe EBITDAaL, and whether the U.K. buyout changed the M&A and leverage framework. Management said the confidence comes from operating now only from strong scaled positions, a more supportive market environment, and a diversified portfolio with multiple growth engines. On Germany, they said EBITDA should still decline in FY'27 because mobile remains unchanged and TV is still a drag, though broadband and B2B are improving. On the U.K., management said price competition will remain intense, but churn, cross-sell, and network-led customer gains should drive revenue synergies, while the buyout had already been part of the plan and does not signal a broader shift in M&A appetite.