Vodafone Group (NASDAQ: VOD) used its annual general meeting in London to outline progress across its multiyear transformation strategy, covering integration, portfolio restructuring, and shareholder returns.
The meeting placed significant emphasis on the ongoing integration of Three UK following the VodafoneThree merger, which represents a central pillar of the company’s medium-term growth plan.
Vodafone’s Board declared a total dividend per share of 4.6125 eurocents for FY26, marking a 2.5% increase and signaling a formal return to dividend growth for shareholders.
The final dividend per share of 2.3625 eurocents is set to be paid in August 2026, subject to shareholder approval at the annual general meeting.
The progressive dividend policy, committed to in November 2025, reflects the company’s medium-term outlook for adjusted free cash flow growth and aligns with the capital allocation framework announced in February 2024.
Adjusted free cash flow per share reached 11.4 eurocents in FY26, representing 18% growth from the rebased FY24 level, a result management cited as evidence of operational momentum.
Vodafone is guiding for approximately 12 eurocents in adjusted free cash flow per share in FY27, suggesting continued improvement as integration efforts advance and cost efficiencies are realized.
Restructuring and integration costs in FY27 are expected to peak at approximately 0.7 billion euros, with around 0.4 billion euros of that figure tied directly to the VodafoneThree merger integration.
Chair Jean-François van Boxmeer addressed shareholders during the meeting, though the full remarks touched on the company’s broader transformation across its European and African portfolio.
Portfolio changes in both Europe and Africa have formed part of Vodafone’s wider strategy to streamline operations, reduce complexity, and sharpen focus on markets where it holds competitive scale.
The Three UK integration remains the most consequential near-term task for management, combining two of the United Kingdom’s largest mobile networks into a single, more competitive operator.
Investors will be closely watching FY27 results to assess whether free cash flow targets are met and whether integration costs stay within the guided 0.7 billion euro ceiling.
The combination of a progressive dividend commitment and improving cash flow metrics positions Vodafone’s leadership to make a credible case for restored confidence among long-term institutional shareholders.
