Without extraordinary gains, Nos’ profit falls 10% in 2025

Nos earned €245.9 million in 2025. Net income fell 9.6% compared to the previous year due to “lower non-recurring income”, after the company obtained cash inflows in 2024 from the sale of telecommunications towers and the reimbursement of fees illegally charged by Anacom.

In a year in which it acquired the technology company Claranet Portugal for €152 million, consolidated in the company’s accounts from April onwards, EBITDA (earnings before interest, taxes, depreciation and amortisation) increased by 4.3% in 2025 on a comparable basis, reaching €813.5 million. Total revenues also improved, growing 1.6% to €1.8232 billion, the “highest ever”, according to a company statement.

Despite the drop in profits, Nos proposed maintaining the ordinary dividend and doubling the extraordinary dividend. If the proposal is approved, shareholders will receive a total of 45 cents per share this year, corresponding to a dividend yield of 11.2%, considering Nos’ share price at the end of 2025, as reported by ECO.

“The last year was marked by high demands on the telecommunications and technology sector, defined by an uncertain geopolitical environment and particularly intense competition. In this context, Nos once again demonstrated the strength of its strategy and the execution capabilities of its teams, achieving solid and sustainable results”, said Miguel Almeida, CEO of Nos, on a day when the company’s shares fell more than 1.7% on the Lisbon stock exchange, dragged down by the pessimism that the conflict in the Middle East stamped on the financial markets on Tuesday.

Quoted in the aforementioned note, the manager also praises the “improvement in EBITDA margin” resulting from the “effectiveness” of the ‘”transformation programme” and “continuous focus on efficiency, achieved through the comprehensive adoption of artificial intelligence” in the operation. It should be remembered that last year, Nos carried out a restructuring plan to reduce middle management and prepare the company for a more competitive environment, which resulted in redundancies.

“Artificial intelligence has taken on a central role in our transformation. Through the SCAILE programme, we are integrating AI across the organisation, simplifying processes, increasing efficiency and accelerating innovation. This is a fundamental step towards building smarter networks, more agile operations and more personalised experiences for our customers”, says the chief executive.

With the telecommunications business, which dominates the group’s revenues, Nos earned €1.593 billion, 5.8% more than in 2024. Despite the “challenging context”, marked by the entry of Romania’s Digi into the Portuguese market, “Nos added 214,400 new services”, reaching 10.9 million.

In mobile, where Nos’ 5G network covers 99.6% of the population, according to the company’s own data, the number of subscribers increased by 3.3% to around 5.7 million. At the same time, in fixed lines, the number of accesses increased by 2% to 1.55 million. Nos’s fixed network now reaches more than 6.1 million homes and businesses, an increase of 6.6%.

With the acquisition of Claranet Portugal, Nos now reports a new IT (Information Technology) revenue segment, combining Nos’s revenues with those of the acquired company, which continues to operate under the same name. The value obtained from this deal reached €167.2 million, up 3.5%. “Today, Nos combines leadership in connectivity with expertise in cloud, cybersecurity and high value-added digital services, positioning itself as an active agent in the digital transformation of Portuguese companies”, says Miguel Almeida.

Looking at it from another angle, consumer revenues in 2025 stagnated at €1,141.9 million, but this was offset by a 5.8% increase in business revenues, which reached €450.6 million. “Nos is now a benchmark in telecommunications but also as a service provider in the IT segment”, says the Lisbon-based listed company.

With the acquisition of Claranet Portugal, Nos now reports a new IT (Information Technology) revenue segment, combining Nos’s revenues with those of the acquired company, which continues to operate under the same name. The value obtained from this deal reached €167.2 million, up 3.5%. “Today, Nos combines leadership in connectivity with expertise in cloud, cybersecurity and high value-added digital services, positioning itself as an active agent in the digital transformation of Portuguese companies”, says Miguel Almeida.

Looking at it from another angle, consumer revenues in 2025 stagnated at €1,141.9 million, but this was offset by a 5.8% increase in business revenues, which reached €450.6 million. “Nos is now a benchmark in telecommunications but also as a service provider in the IT segment”, says the Lisbon-based listed company.

On a less positive note, the Cinema and Audiovisuals business recorded a 2.6% drop in revenues to €99.6 million. The company attributes the poorer performance to the fact that the previous year started with several “box office hits”.

In 2025, Nos marginally reduced its operating costs by 0.5% to €1,009.7 million. Total investment for the year fell by 2.4% in a “structural” manner to €366.4 million, as a “result of the maturity of mobile network infrastructure and progress in the expansion of the fixed network in a wholesale model of third-party networks”.

Nos proposes to double the extraordinary dividend

Nos’ management will propose to shareholders to maintain the payment of an ordinary dividend of 35 cents for the 2025 results, as it also revealed on Tuesday. The company also proposes to pay an extraordinary dividend of 10 cents, double the amount approved previously.

If approved by shareholders at the general meeting, Nos’ total dividend will thus reach 45 cents, representing a total dividend yield of 11.2%, considering the share price at the end of last year.

On the day it presented its 2025 annual results, Nos considered that the extra dividend reflects the “non-recurring free cash flow generated in 2025” and “the conservative capital structure”. The company also undertakes to “continue to distribute an attractive level of dividends”.