Brussels, February 27, 2026, 12:12 CET — Regular session
- Proximus shares slide sharply after the Belgian telco resets its dividend policy lower.
- Investors weigh a debt-and-investment trade-off even as full-year operating profit beat forecasts.
- Next focus: management’s strategy update and the April shareholder vote on the 2025 payout.
Proximus (PROX.BR) shares sank about 17% to around 6.89 euros on Friday, their steepest drop in months, after the Belgian telecom group laid out a lower dividend track that shook income-focused investors. 1
The cut matters because telcos often trade as “yield” stocks — part bond, part business — and a dividend reset can quickly force investors to reprice the risk. It also lands as European operators keep spending on fibre and 5G while trying to stop leverage from creeping up.
Proximus framed the move as balance-sheet management at a time when it still wants room to invest. That is a tough sell on a tape that has been paying up for certainty, not promises.
The company said it would propose an annual dividend of 0.30 euro per share, versus last year’s 0.60 euro, and the stock was down around 20% earlier in the session. It also flagged up to 1.25 billion euros of infrastructure spending, while reporting full-year EBITDA — earnings before interest, taxes, depreciation and amortisation, a proxy for operating profit — of 2.3 billion euros, above a company-compiled consensus of 2.1 billion euros. NewStreetResearch said the dividend cut was the main takeaway and questioned the logic given otherwise in-line guidance. 2
For the 2025 result, Proximus’ board approved proposing a 0.60-euro gross dividend in two tranches, with 0.30 euro already paid in December and the remaining 0.30 euro slated for late April, pending shareholder approval. The company also set out its new dividend policy of 0.30 euro for 2026, 0.40 euro for 2027 and 0.50 euro for 2028. 3
Chief executive Stijn Bijnens pointed investors to network build-out and leverage guardrails. “Our 5G network now reaches 90% of the population,” he said, adding that fibre coverage is “around 42% of all premises.” Proximus said it expects 2026 group capex — capital spending — of 1.2 billion to 1.25 billion euros and organic free cash flow, a cash measure after routine outlays, of up to 100 million euros, with net debt to EBITDA seen around 2.8x under S&P’s definition. In its quarterly update, Proximus said fourth-quarter group revenue fell 6.6% year on year, hurt by its Global unit, and it booked a 275 million euro goodwill impairment on that segment amid headwinds including a structural decline in CPaaS SMS (communications-platform messaging) tied to one-time-password traffic. 4
Separately, Proximus will cut 1,200 jobs by 2030 — about 15% of its workforce — as it pushes efficiency gains from artificial intelligence, Bijnens said during an investor presentation. The company also plans to reduce external workforce costs by 25 million euros by 2028, he said. 5
There is a straightforward risk case. If competitive pressure in Belgium bites harder than expected, or if the Global unit’s recovery takes longer, the dividend path back up could look optimistic. Execution missteps on cost cuts also have a habit of showing up first in service quality, then in churn.
The next catalyst is management’s strategy and capital allocation messaging from Friday’s investor events, with the April annual general meeting and the dividend timetable close behind. Traders are also watching for any concrete progress with regulators on network plans in Flanders and whether guidance holds up as the year starts.
