Cogeco (CGO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $735.6M, down 3.8% year-over-year, mainly due to U.S. segment declines, while Canadian operations remained stable and customer growth continued.

• Adjusted EBITDA decreased by 2.5% to $361.8M, reflecting lower U.S. revenue, partially offset by cost reductions and operational efficiencies.

• Profit for the period was $96.1M, down 11.3% year-over-year, with adjusted profit attributable to owners up 6.3% to $28.9M.

• Canadian wireless service was fully launched and integrated, and a new digital brand is planned for the U.S. next month.

• Fiscal 2026 financial guidelines were reaffirmed, and credit outlooks were upgraded by S&P and Moody's.

Financial highlights

• Revenue: $735.6M (down 3.8% year-over-year; 4.5% in constant currency); adjusted EBITDA: $361.8M (down 2.5%).

• Profit for the period: $96.1M (down 11.3%); adjusted profit attributable to owners: $28.9M (up 6.3%).

• Free cash flow: $130.9M (down 14.1%); net capital expenditures: $157.2M (up 4.2%).

• Dividend per share increased 7% to $0.987.

• Net debt-to-EBITDA ratio at 3.2x; weighted average cost of debt at 5.5%.

Outlook and guidance

• Fiscal 2026 guidance maintained, with expectations for improved U.S. financials in the second half and continued Canadian customer growth.

• Free cash flow projected to increase 0–10% for fiscal 2026.

• Net capital expenditures expected between $560M and $600M.