BCE (BCE) Q4 2025 earnings summary

Executive summary

• Achieved all 2025 financial guidance targets, with revenue of $24.47B (up 0.2% year-over-year), adjusted EBITDA of $10.66B (up 0.7%), and free cash flow up 10% to $3.18B, driven by strategic focus on fibre, wireless, AI-powered enterprise solutions, and digital media.

• Execution on customer-first initiatives improved postpaid churn and ARPU trajectory, with strong net new postpaid additions, especially on the premium brand.

• U.S. fibre expansion advanced with the Ziply Fiber acquisition and Network FiberCo partnership, supporting long-term fibre growth plans.

• AI-powered enterprise solutions and digital media, including Crave, drove significant subscriber and revenue growth, with Crave subscribers up 26% to 4.6M and direct streaming up 65%.

• Capital allocation focused on reducing leverage, maintaining a sustainable dividend, and funding high-return growth initiatives.

Financial highlights

• 2025 service revenue increased 0.6% year-over-year, with total revenue at $24.47B (up 0.2%), and adjusted EBITDA up 0.7% to $10.66B, with a margin of 43.6%, the highest in over 30 years.

• Free cash flow grew 10% to $3.18B, and after lease liabilities rose 17.5% to $2.05B.

• Adjusted EPS declined 7.9% to $2.80, mainly due to higher depreciation, amortization, and interest expense.

• Capital expenditures totaled $3.7B, down from $3.9B, reducing capital intensity to 15.1%.

• Net earnings surged 25.1% to $6.51B; statutory EPS was $6.79.

Outlook and guidance

• 2026 guidance targets consolidated revenue growth of 1%-5% and adjusted EBITDA growth of 0%-4%.

• Adjusted EPS expected at $2.50–$2.65, down 5%-11% year-over-year, reflecting higher D&A and interest from Ziply acquisition.

• Free cash flow projected to grow 4%-10% in 2026, with stable CapEx at $3.7B and capital intensity at or below 15%.

• Net debt leverage ratio targeted to trend down toward 3.5x by end of 2027.

• Dividend payout ratio expected to remain within 40%-55% policy range, with annualized dividend of $1.75 per share.