Millicom International Cellular (TIGO) Q4 2025 earnings summary

Executive summary

• Achieved record Equity Free Cash Flow (EFCF) of $916 million for FY 2025, surpassing guidance, with strong topline growth, margin expansion, and rapid integration of Ecuador and Uruguay, expanding to 12 countries including Chile.

• Adjusted EBITDA reached $2,749 million for FY 2025, up 11.4% year-over-year, with margin improving to 47.2%.

• FY 2025 revenue was $5.8 billion, up 2.0% organically; net profit for the year was $1.3 billion, including $727 million from infrastructure transactions.

• Leverage ended the year at 2.31x, or 2.17x pro forma for recent acquisitions, reflecting acquisitions and increased debt.

• Major acquisitions in Uruguay, Ecuador, and Colombia, and entry into Chile via joint venture, expanded the South American footprint.

Financial highlights

• Q4 2025 revenue reached $1.7 billion, up 15.7% year-over-year; Adjusted EBITDA for Q4 was $778 million, up 25.9% year-over-year, with a margin of 47.1%.

• Service revenue by country: Colombia $375 million (+22.5% YoY), Guatemala $352 million (+6.6%), Panama $181 million (+4.9%).

• Net profit attributable to owners was $252 million in Q4, a significant increase from $31 million in Q4 2024.

• Net debt at year-end was $5.36 billion, with gross debt at $6.89 billion and cash at $1.55 billion.

• Dividend payments totaled $334 million, with new shareholder remuneration policy aiming to sustain or grow annual cash dividends.

Outlook and guidance

• FY 2026 targets at least $900 million EFCF and year-end leverage around 2.5x, including restructuring costs of acquired businesses.

• Uruguay and Ecuador expected to contribute low to mid double-digit EFCF in 2026; Coltel (Colombia) expected to be neutral or slightly negative initially.

• Focus remains on integrating recent acquisitions and achieving operational improvements, especially in Chile and Coltel.

• Multiple dividend payments approved for 2025 and into 2026, including interim and quarterly installments.