TLS delivers strong performance & progress against Strategy
| Stock | Telstra Group Ltd (TLS.ASX) |
|---|---|
| Release Time | 19 Feb 2026, 7:51 a.m. |
| Price Sensitive | Yes |
Telstra delivers strong performance and progress
- Strong earnings growth across key business units
- Positive operating leverage and disciplined cost management
- Increased interim dividend and expanded share buyback program
Telstra Group Ltd has reported a strong first-half performance, delivering ongoing earnings growth, positive operating leverage, and disciplined cost management. The company grew underlying EBITDA across its Mobiles, Fixed C&SB, InfraCo Fixed, and Amplitel businesses, with the Mobiles business in particular performing well with EBITDA growth of $93 million. Telstra achieved 14% Cash EBIT growth, which was higher than the expected full-year rate due to lower BAU capex in the first-half. The company delivered positive operating leverage of 3.1 percentage points, in line with its Connected Future 30 target, largely through strong cost discipline and efficiency gains. Telstra reduced underlying operating expenses by $179 million or 2.4%, more than offsetting pressure from rising costs. On the back of cash earnings growth, the Board resolved to pay an interim dividend of 10.5 cents per share, which is a 10.5% increase from the prior corresponding period. Telstra also announced an increase in its current on-market share buyback from up to $1 billion to up to $1.25 billion, supported by strong progress in completing $637 million of the buyback in the half, earnings growth, and the strength of the company's balance sheet. The increased interim dividend and expanded share buyback program reflect the Board and management's confidence in Telstra's financial strength and outlook.
Telstra has tightened its FY26 underlying EBITDAaL guidance to between $8.2 billion and $8.4 billion. The company's guidance on other measures, including Cash EBIT, Underlying NPAT, and Cash EPS, remains unchanged.
Telstra is focused on continuing to deliver value for its customers, communities, and shareholders as it builds momentum behind its Connected Future 30 strategy, including through its core business cash flow, active portfolio and investment management, and disciplined capital management.