Orange Polska posts 6% rise in Q4 core profit, boosts dividend and raises cash-flow target

Orange Polska reported a 6% year-on-year increase in fourth-quarter core profit, delivering EBITDAaL of 861 million zlotys versus analyst expectations of 843 million. The company issued 2026 revenue and core-profit guidance and raised its 2028 organic cash-flow target, while announcing a 15% higher dividend per share.

Key Points

Orange Polska reported EBITDAaL of 861 million zlotys in Q4, beating the consensus estimate of 843 million zlotys.
The company expects 2026 revenue to rise by a low single-digit percentage, driven by convergence, mobile and broadband services, and forecasts core profit growth of 3-5%.
Mid-term strategy updated with a raised 2028 organic cash-flow target of at least 1.4 billion zlotys and a maintained goal for low-to-mid single-digit annual earnings growth; dividend increased by 15% to 0.61 zlotys per share.

Overview

Orange Polska recorded a 6% increase in fourth-quarter core profit, the company said on Wednesday, driven by stronger margins and efficiencies in operating costs. The operator reported earnings before interest, tax, depreciation and amortization after leases (EBITDAaL) of 861 million zlotys ($242 million), above the 843 million zlotys that analysts had expected.

Guidance for 2026 and mid-term targets

Looking ahead, Orange Polska provided a 2026 outlook that anticipates low single-digit revenue growth, citing expansion across convergence, mobile and broadband services as the main growth drivers. The company also projected core profit growth of 3-5% year-on-year for 2026, noting that this is expected to be supported by revenue gains in its principal business lines and continued execution of cost-transformation initiatives.

In updating its mid-term strategy, the operator increased its organic cash-flow target for 2028 to a minimum of 1.4 billion zlotys, while keeping its ambition for low-to-mid single-digit annual earnings growth over the period.

Management comment and shareholder returns

CEO Liudmila Climoc said the company benefited from strong momentum across its core services, which she described as providing a "firm footing" for the coming three years. The board announced a dividend of 0.61 zlotys per share, a 15% increase compared with the prior year.

Market implications

The quarter’s results reflect a combination of margin expansion and cost efficiencies that lifted core profitability above consensus. The revised cash-flow target and maintained earnings-growth ambition signal management confidence in the planned revenue mix and ongoing cost-transformation measures.

What remains to be observed

Investors and market participants will be watching execution of the company’s convergence, mobile and broadband expansion efforts, and the delivery of the cost-transformation program that underpins the stated profit and cash-flow targets.

Data points

Fourth-quarter EBITDAaL: 861 million zlotys
Analyst forecast for EBITDAaL: 843 million zlotys
2026 revenue outlook: low single-digit percentage growth
2026 core profit outlook: 3-5% year-on-year growth
2028 organic cash-flow target: at least 1.4 billion zlotys
Dividend: 0.61 zlotys per share (15% increase year-on-year)

Risks

The 2026 revenue and core-profit figures are projections dependent on successful expansion in convergence, mobile and broadband services, so execution risk in those business lines could affect outcomes.
Delivery of the 2028 organic cash-flow target of at least 1.4 billion zlotys relies on the company’s cost-transformation initiatives; underperformance in cost savings would pressure cash-flow targets.
Dividend level reflects current performance and targets; future shareholder returns may be sensitive to operating results and the company’s ability to sustain margin improvements.

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Key Points

Risks

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