As at 30 March 2026

Executive Summary

Key highlights

In this report, we revisit 4Q25 results for DTE, released in February 2026, and how this positions our view in context.

Financial results at a glance:

• Net revenue: DTE’s net revenue reached €31.7 billion, up 2.5% and beating consensus driven primarily by US growth and T-Systems.

• Adjusted EPS: €0.44 per share, down 8% due to USD weakness and acquisition costs, but in line with expectations of €0.42 per share.

• Germany: Revenue improved by ~2.7% to €6.8 billion, driven by mobile service revenue growth and fixed broadband. Additional contribution from fibre joint ventures.

• United States: T-Mobile revenues rose 2.3% YoY to €20.9 billion, reflecting strong postpaid phone and account growth, with postpaid service revenue increased high single to low double digits. Ongoing 5G leadership and churn boosted ARPU and service revenues.

• Europe: Revenues improved by 3.1% to €3.3 billion, driven by service revenue growth: B2C +3.4% and B2B +5.6% supported by convergent bundles and ICT, as well as customer growth in mobile and fixed.

• Net debt: €132.5 billion, declined by about 3.5%, reflecting management’s focus on debt reduction proceeds from tower disposals, and moderated Capex – partly offset by ongoing investments.

• Share dividend: A €1.00 per share dividend was declared for FY25, an estimated 10% increase from €0.90.

Analyst thesis

Our recommendation is based on:

• B2B digital services: DTE is growing its high-margin business‑customer segment by offering 5G private networks, secure connectivity (SD-WAN) and sovereign cloud services to a range of companies and public institutions, with strong demand from factories, ports and logistics hubs.

• T-Mobile US market share expansion: T‑Mobile US has transitioned from a low‑cost challenger to the best‑in‑class network, supporting a mix shift toward higher‑quality, prime subscribers while continuing to expand into under‑penetrated rural America.

• German fibre monetisation (FTTH): The decade‑long copper-to-FTTH migration acts as a structural value driver, boosting ARPU through higher‑speed tiers and convergent bundles, while progressively reducing network maintenance and fault‑repair OpEx.

• Disciplined capital allocation: While European peers remain constrained by leverage and higher interest rates, DTE is returning ~€2 billion annually via buybacks and steadily increasing its TMUS stake from 50.6% to 52.8%, enhancing exposure to US growth without compromising balance sheet resilience.

• Artificial intelligence (AI) and data centre optionality: Strategic partnerships with NVIDIA and Brookfield to build sovereign AI compute infrastructure in Germany provide medium-term upside optionality as European enterprises and governments seek local, secure AI cloud capacity.