Financial Data and Key Metrics Changes - In 2025, consolidated service revenue increased by 0.6%, with adjusted EBITDA rising by 0.7%, leading to a 20 basis point improvement in adjusted EBITDA margin to 43.6%, the strongest annual margin in over 30 years [18] - Adjusted EPS declined by 7.9% in 2025, primarily due to higher depreciation and amortization from network investments and increased interest expense [18] - Free cash flow increased by 10% to CAD 3.2 billion, driven by higher EBITDA, lower capital expenditures, and improved working capital [19] Business Line Data and Key Metrics Changes - Wireless service revenue declined by 0.2% in Q4, an improvement from the 1.5% decline in Q4 of the previous year, with consumer wireless service revenue stable year-over-year [20][22] - Fibre-to-the-home internet net additions were 43,000 in Q4, reflecting disciplined pricing and strong demand [21] - AI-powered solutions revenue grew by 31% in Q4, driven by momentum in Ateco and Bell Cyber, contributing to the goal of reaching CAD 1.5 billion in AI-powered solutions revenue by 2028 [22] Market Data and Key Metrics Changes - Ziply Fiber's total revenue in Q4 was CAD 232 million, with internet revenue growing in double digits due to fibre expansion and strong customer penetration [23] - Ziply added over 6,000 net new fibre customers in Q4, with a focus on higher growth markets for future expansion [24] Company Strategy and Development Direction - The company has aligned its organization around four strategic priorities: enhancing customer experience, strengthening fibre and wireless network leadership, establishing a fibre growth platform in the U.S., and accelerating enterprise and digital media momentum [3][4] - The acquisition of Ziply Fiber is a key milestone in the fibre growth strategy, with plans to reach approximately 3 million fibre passings by the end of 2028 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of core segments while managing declines in legacy services, indicating a focus on disciplined execution and customer-first initiatives [36] - The company anticipates consolidated revenue growth of 1%-5% and adjusted EBITDA growth of 0%-4% for 2026, reflecting continued momentum in growth engines [26][27] Other Important Information - Capital expenditures are expected to remain stable at approximately CAD 3.7 billion in 2026, with a lower capital intensity of 15% or less [29] - The company has CAD 2.5 billion of available liquidity and a pension solvency surplus of CAD 4.4 billion, providing financial flexibility for executing the 2026 business plan [30] Q&A Session Summary Question: Guidance ranges for 2026 - Management indicated that the guidance reflects growth in segments while managing legacy declines, with potential swings from wireless penetration gains and overall market growth [35][36] Question: Wireless pricing environment - Management noted that while there has been aggressive promotion in the market, they remain disciplined in their strategy, focusing on premium brand value and customer experience [39][40] Question: Ziply's growth and margins - Management confirmed that Ziply's performance is consistent with expectations, with strong demand for fibre and plans for broader geographic expansion [45][46] Question: U.S. competitive environment - Management stated that the strategy in the U.S. remains unchanged, focusing on penetration and capital discipline while assessing opportunities for expansion [67] Question: Asset sales and capital allocation - Management confirmed ongoing asset sales as part of capital allocation discipline, with updates to be provided as agreements are reached [71]

Core Insights - BCE Inc. reported strong financial results for Q4 2025 and the full year, achieving all financial guidance targets for 2025 and setting a clear strategy for 2026 [2][3][4] Financial Performance - Q4 2025 adjusted EBITDA grew by 2.3% to $2,664 million, with an adjusted EBITDA margin of 41.6%, the highest in over 30 years [4][21] - Net earnings for Q4 2025 increased by 25.1% to $632 million, with net earnings attributable to common shareholders rising by 28.9% to $594 million, or $0.64 per share [6][16] - For the full year 2025, operating revenues increased by 0.2% to $24,468 million, driven by a 0.6% rise in service revenue [15][17] Subscriber Growth and Churn - Wireless operating momentum continued with postpaid churn improving to 1.49%, marking the third consecutive quarter of year-over-year improvement [4][40] - In Q4 2025, BCE added 56,124 postpaid mobile phone subscribers, while retail fibre Internet net activations totaled 49,168, contributing to a 16.6% growth in Internet revenues [6][29] Strategic Initiatives - The company emphasized its four strategic priorities: customer focus, superior fibre and wireless networks, AI-powered enterprise solutions, and digital media expansion [3][4] - BCE's acquisition of Ziply Fiber on August 1, 2025, contributed significantly to its U.S. operations, enhancing its fibre-to-the-premise network [25][53] Media and Content Growth - Crave subscriptions surged by 26% in Q4 2025, reaching approximately 4.6 million, making it the most-watched quarter in Crave's history [60][67] - Bell Media's operating revenue for Q4 decreased by 3.4% to $804 million, primarily due to lower advertising revenue, but subscriber revenue increased by 1.5% [55][56] Capital Expenditures and Cash Flow - Capital expenditures in Q4 2025 rose by 36.8% to $1,317 million, reflecting investments in the U.S. and higher spending at Bell CTS Canada [22][23] - Free cash flow for Q4 2025 was $225 million, down 74.3% from the previous year, while full-year free cash flow increased by 10% to $3.2 billion [23][24] 2026 Financial Guidance - BCE expects revenue growth of 1% to 5% and adjusted EBITDA growth of 0% to 4% for 2026, with stable capital expenditures compared to 2025 [64][65]

Core Insights - BCE Inc. reported a consolidated revenue increase of 1.3% year-over-year for Q2 2025, with net earnings rising by 6.6% to $644 million, attributed to improved customer service and strategic investments [3][15][16]. Financial Performance - Operating revenues reached $6,085 million in Q2 2025, up from $6,005 million in Q2 2024, while service revenue decreased by 0.8% to $5,267 million [15][16]. - Net earnings attributable to common shareholders increased by 7.8% to $579 million, translating to an earnings per share (EPS) of $0.63, a 6.8% rise [15][16]. - Adjusted net earnings fell by 16.9% to $592 million, resulting in a 19.2% decrease in adjusted EPS to $0.63 [15][16]. - Free cash flow increased by 5.0% to $1,152 million, despite cash flows from operating activities declining by 8.9% to $1,947 million [15][19]. Subscriber Metrics - Total mobile phone net subscriber activations were 94,479, with postpaid churn improving to 1.06%, marking the first year-over-year improvement since Q3 2022 [7][22][23]. - Consumer fibre Internet net subscriber activations totaled 26,583, contributing to a 3% growth in Internet revenue [7][34]. - The mobile phone customer base reached 10,382,457, a 0.4% increase year-over-year, with postpaid subscribers up by 1.3% [24][25]. Strategic Developments - BCE completed the acquisition of Ziply Fiber, enhancing its fibre growth strategy in North America [13]. - The company announced a strategic partnership with Cohere to provide AI solutions, aiming to create Canada's largest AI compute capacity project [13]. - BCE's Bell Media segment saw a revenue increase of 3.8% to $843 million, driven by subscriber growth and acquisitions [34][36]. Capital Expenditures - Capital expenditures in Q2 2025 were $763 million, down 22.0% from $978 million in Q2 2024, reflecting a planned reduction in spending [19][15]. - The capital intensity ratio decreased to 12.5% from 16.3% in the previous year [19]. Updated Guidance - BCE updated its 2025 financial guidance, projecting revenue growth of 0% to 2% and adjusted EBITDA growth of 0% to 2% [40].