Debt evolution
(1) Total FCF (continuing and discontinued operations) including spectrum payments.
Net financial debt and commitments
Unaudited figures (Euros in millions)
| December 2025 | June 2026 | |
|---|---|---|
| Non-current financial liabilities | 30,120 | 29,548 |
| Current financial liabilities | 4,219 | 4,223 |
| Gross Financial Debt | 34,339 | 33,771 |
| Cash and cash equivalents | (6,564) | (5,149) |
| Current financial assets | (861) | (2,147) |
| Non-current financial assets | (3,980) | (3,446) |
| Mark-to-market derivatives adjustment (1) | 736 | 733 |
| Other current assets and liabilities | 1,097 | (925) |
| Other non-current assets and liabilities | 2,057 | 2,441 |
| Net Financial Debt | 26,824 | 25,278 |
| Lease Liabilities | 7,920 | 8,004 |
| Net Financial Debt including Lease liabilities | 34,744 | 33,282 |
Notes:
(1) Includes the market value of cash flow hedges related to debt instruments and the market value of economic hedges associated with gross employee benefit commitments.
Financing activity
In H1 26, Telefónica Group raised long term financing by €4,454m and VMO2 raised 2.386m equivalent.
Financing activities in Q2 26 included:
- In May 2026, T. Emisiones completed the issuance of a €750m bond in the European market (8.5-year maturity, 4.353% coupon).
- In June 2026, T. Emisiones completed the issuance of a AUD400m bond in the Australian market (10-year maturity, 6.552% coupon) and a AUD300m bond in the Australian market (6-year maturity, 5.962% coupon).
Telefónica financing activity has allowed to maintain a solid liquidity position of €17,395m (€10,098m of undrawn committed credit lines; €9,765m maturing over 12M). As of Jun-26, the average debt life stood at 11.7 years. Telefónica and its holding companies continued their issuance activity under the Commercial Paper Programmes (Domestic and European), maintaining an outstanding notional balance of €1,000m as of Jun-26.
Financial debt
Total Financial Liabilities Breakdown
Unaudited figures (Euros in millions)
| June 2026 | |||
|---|---|---|---|
| Bonds and commercial paper | Debt with financial institutions | Other financial debt (including governments) and net derivatives | |
| Total financial liabilities (1) | 83% | 6% | 11% |
(1) Includes positive value of derivatives and other financial debt
Net financial debt plus Lease Liabilities structure by currency
Unaudited figures (Euros in millions)
| June 2026 | ||||
|---|---|---|---|---|
| EUR | BRL | HISPAM | OTHER | |
| Net financial debt plus Lease Liabilities structure by currency | 83% | 14% | (0%) | 3% |
Financial expenses
Interest payments totaled €817m in H1 26 and increased 10.0% y-o-y mainly due to temporary effect of hybrid coupons related to liability management in Q1 26. The effective cost of debt related interest payments (L12M) decreased to 2.95% as of Jun-26 (Jun-25: 3.23%).
Note: For further information, please access the January – June 2026 Results Report.