Bankinter | With the restructuring of the group well underway, following the sale of the Telefónica Hispam subsidiaries and staff reductions in Spain, the focus in 2026 is on the possibility of a corporate transaction. New European regulations introduced in January that will favour consolidation processes to promote greater scale, competitiveness and investment in infrastructure, and the existence of various alternatives, especially in Spain and Germany, increase the likelihood of mergers and/or acquisitions. With an adjusted financial structure and the objective of maintaining the current credit rating, a capital increase cannot be ruled out if necessary.
Any potential transactions will have to add value. The key will be the price to be paid and the synergies obtained, which should raise the group’s growth profile and profitability. Organic growth gains some traction in Q4 2025, but remains moderate and below that of European peers, with increases of 1.5% in revenue and 2.0% in EBITDA in 2025.
Free cash flow slightly exceeds the announced target and amounts to €2.8 billion. For 2026, the targets set out in the Strategic Plan remain unchanged: organic revenue and EBITDA growth of 1.5%/2.5% and free cash flow of €3 billion, at the high end of the range provided.
The new dividend setting as a broad percentage (40%/60%) of an ad hoc calculated free cash flow provides financial flexibility to the group, but reduces visibility for shareholders. The current dividend yield stands at 4.1%.
