Core Insights - BCE Inc. reported a decline in fourth-quarter 2025 adjusted earnings per share (EPS) to C$0.69 from C$0.79 in the prior-year quarter, exceeding the Zacks Consensus Estimate of 45 cents [2] - Total operating revenues for the quarter decreased by 0.3% year over year to C$6.4 billion, below the consensus estimate of $4.7 billion, primarily due to a 15% drop in Product revenues [3] Financial Performance - For 2025, BCE's operating revenue increased slightly by 0.2% to C$24.5 billion, with a quarterly dividend declared at C$0.4375 per share [4] - The company anticipates higher revenue and adjusted EBITDA for 2026, driven by contributions from Ziply Fiber and growth in AI-powered enterprise solutions, despite a forecasted decline in adjusted EPS [5] Segment Results - The Bell CTS segment generated C$5.7 billion in revenue, a 0.2% year-over-year increase, supported by higher service revenue [7] - Bell CTS Canada experienced a 3.9% decline in operating revenue to C$5.5 billion, impacted by lower product and service sales [8] Subscriber Metrics - Postpaid net additions slightly decreased to 56,124, with improved churn rates at 1.49%, while prepaid subscriber losses narrowed [11] - The acquisition of Ziply Fiber contributed to the new Bell CTS U.S. segment, generating C$232 million in operating revenues since its inception [12] Media Performance - Bell Media's operating revenue fell by 3.4% to C$804 million, affected by weak advertising demand, although subscriber revenue increased by 1.5% [13] - Total digital revenue rose by 3%, supported by growth in Crave and sports direct-to-consumer subscribers [14] Operational Efficiency - BCE's adjusted EBITDA increased by 2.3% year over year to C$2.66 billion, with an expanded adjusted EBITDA margin of 41.6%, the highest in over 30 years [15] - Capital expenditures surged by 36.8% to C$1.3 billion, primarily due to investments in Ziply Fiber's FTTP expansion [16] Cash Flow Analysis - Operating cash flow decreased by 16.8% to C$1.6 billion, while free cash flow plummeted by 74.3% to C$225 million due to higher capital expenditures [17] 2026 Outlook - Management projects revenue growth of 1-5% and adjusted EBITDA growth of 0-4% for 2026, with adjusted EPS expected to decline between 11% and 5% [18]

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 previous quarters, with consumer wireless service revenue stable year-over-year [20][22] - Fiber-to-the-Home internet net additions reached 43,000 in Q4, contributing to a year-over-year internet revenue growth of 8% [7][21] - AI-powered solutions revenue grew by 31% in the enterprise segment, driven by strong performance from Ateco and Bell Cyber [21] Market Data and Key Metrics Changes - The acquisition of Ziply Fiber contributed positively to revenue, with total revenue for Bell CTS US reaching CAD 232 million in Q4, supported by strong customer penetration [23] - Ziply added over 6,000 net new fiber customers in Q4, with a focus on expanding its fiber footprint [24] Company Strategy and Development Direction - The company has aligned its organization around four strategic priorities: enhancing customer experience, strengthening fiber and wireless network leadership, accelerating enterprise and digital media growth, and positioning for sustainable free cash flow growth [3][4] - The strategy includes a focus on disciplined capital allocation, with a target of approximately CAD 1.5 billion in AI-powered solutions revenue by 2028 [11][15] 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 maintaining momentum in AI-powered solutions and digital media [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 - The company reported a net debt leverage ratio of approximately 3.8 times adjusted EBITDA at the end of 2025, unchanged from the previous year, despite the Ziply Fiber acquisition [30][31] - The company is focused on maintaining a dividend payout ratio within the target range of 40%-55% while generating strong free cash flow [29] Q&A Session Summary Question: Guidance ranges for revenue and EBITDA - Management indicated that the guidance reflects growth in core segments while managing legacy declines, with potential swings from wireless penetration gains and overall market growth [36][38] Question: Wireless pricing environment - Management noted that they are focused on disciplined execution and are not participating in aggressive promotions, aiming for profitable transactions [39][40] Question: Growth and margins for Ziply - Management confirmed that Ziply's performance is in line with expectations, with strong demand for fiber and plans to expand beyond the existing footprint [45][46] Question: Impact of recent wireless discounts - Management stated that recent pricing activity does not change their execution strategy, emphasizing a disciplined approach to subscriber loading [57][58] Question: Convergence opportunities - Management acknowledged the potential for increased wireless market share through their fiber footprint and indicated a belief in significant upside from disciplined execution [60][61]

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]

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] - Capital expenditures decreased by CAD 197 million to CAD 3.7 billion, resulting in a capital intensity of 15.1% [19] - Free cash flow increased by 10% to CAD 3.2 billion, driven by higher EBITDA, lower CapEx, 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 0.4% decline in Q3 and significantly better than the 1.5% decline in Q4 of the previous year [22] - Fiber continued to be a key growth driver with approximately 200,000 net new subscriber additions, contributing to an 8% growth in internet revenue [7][19] - AI-powered solutions revenue grew by 31% in the enterprise segment, driven by momentum in Ateco and Bell Cyber [22] Market Data and Key Metrics Changes - Postpaid churn improved by 17 basis points to 1.49%, marking the third consecutive quarter of year-over-year improvement [20] - Consumer wireless service revenue remained stable year-over-year in Q4, indicating a positive trend as the company enters 2026 [22] - Ziply Fiber's total revenue reached CAD 232 million in Q4, with internet revenue growing in double digits [24] Company Strategy and Development Direction - The company has aligned its organization around four strategic priorities: fiber, wireless, enterprise, and media, aiming for sustainable free cash flow growth [3][4] - The acquisition of Ziply Fiber is a key milestone in the fiber growth strategy, with plans to reach approximately 3 million fiber passings by the end of 2028 [9] - The focus remains on delivering premium content through digital platforms and enhancing customer experience across all segments [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth segments while acknowledging the need to manage declines in legacy services carefully [36] - The company expects consolidated revenue growth of 1%-5% and adjusted EBITDA growth of 0%-4% for 2026, reflecting continued momentum in core growth engines [27] - Management highlighted the importance of maintaining disciplined execution and focusing on customer value amidst competitive pressures [40] Other Important Information - The company is targeting a net debt leverage ratio of approximately 3.5x by the end of 2027, with a focus on deleveraging [32] - The company has CAD 2.5 billion of available liquidity and a pension solvency surplus of CAD 4.4 billion, providing financial flexibility [31] Q&A Session Summary Question: Could you talk about your guidance ranges? - Management indicated that the guidance reflects growth in segments while managing legacy declines, with factors such as wireless penetration and overall market growth influencing the ranges [35][36] Question: Any comment on the wireless pricing environment? - Management noted that consumers are receiving significant value from wireless services, with a focus on disciplined execution and premium brand positioning [40][41] Question: What are the expectations for Ziply's growth and margins in 2026? - Management expressed satisfaction with Ziply's performance and indicated strong demand for fiber, with plans to expand beyond the existing footprint [46][47] Question: Any updates on asset sales? - Management confirmed ongoing efforts to optimize the balance sheet through asset sales, with transparency to be provided as agreements are reached [71][72]

Q4 2025 Results & 2026 Financial Guidance Conference Call February 5, 2026 Safe harbour notice Certain statements made in this presentation are forward-looking statements. These forward-looking statements include, but are not limited to, statements relating to: BCE's 2026 guidance (including revenue, adjusted EBITDA, capital intensity, adjusted EPS, free cash flow and annualized common share dividend) and outlook; BCE's capital allocation priorities for 2026, including BCE's net debt leverage ratio expected ...

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]

BCE Conference Call Summary Company Overview - **Company**: BCE Inc. (NYSE: BCE) - **Date of Conference**: November 24, 2025 Key Industry Insights - **Canadian Telecom Market**: The competitive environment in Canada is stabilizing, with a return to rational pricing compared to the US market, which has been more aggressive recently [4][5] - **Market Trends**: The company is experiencing a shift in revenue sources, moving from legacy services to growth areas such as wireless, internet, and AI-powered solutions [2][3] Financial Performance and Projections - **EBITDA Growth**: BCE expects a resumption of EBITDA growth over the next three years, although margin improvement may not be anticipated during this period [1][2] - **Free Cash Flow**: The company is targeting a 15% growth in free cash flow while deleveraging and funding new business initiatives [3] - **Revenue Per User (RPU)**: Monthly rates are increasing year-over-year, indicating a healthier competitive environment with new subscribers contributing to higher RPU [5][6] Strategic Initiatives - **Fiber Expansion**: BCE has set a target to pass 8 million homes with fiber in the US, leveraging partnerships and funding to support this initiative [10][11] - **B2B Opportunities**: The company is focusing on improving its B2B segment, which has been outperforming other enterprise businesses in North America [17] - **AI and Technology Solutions**: BCE is investing in AI-powered solutions and cybersecurity, aiming to provide comprehensive solutions to government and enterprise customers [18][20] Capital Allocation and Investment Strategy - **CapEx Guidance**: BCE plans to maintain a CapEx of $3.7 billion in 2025 and 2028, focusing on efficiency and strategic growth initiatives [30][31] - **Investment Criteria**: The company has established a higher bar for capital investments, prioritizing projects with strong returns and operational efficiencies [30][31] Market Share and Subscriber Growth - **Subscriber Strategy**: BCE is focused on profitable subscriber growth, emphasizing the importance of maintaining a strong brand and reducing churn [9][28] - **Fiber Penetration**: The company aims to increase fiber penetration significantly, with a target of over 50% market share in areas where fiber is available [29] Conclusion - **Future Outlook**: BCE is positioned for positive growth in free cash flow by 2026, with a clear strategy to execute its plans in fiber expansion, technology solutions, and capital allocation [32][33]

Financial Performance - Revenue increased by 1.3% year-over-year to $6,049 million[12] - Adjusted EBITDA increased by 1.5% year-over-year to $2,762 million[12] - Adjusted EPS increased by 5.3% to $0.79[12] - Free cash flow increased by 20.6% to $1,003 million[14] - Capital expenditures decreased by 6.6% year-over-year to $891 million[12] Subscriber Metrics - Postpaid churn rate improved by 15 bps year-over-year[6] - Retail FTTH Internet net additions were 65,239[9] - Crave subscribers increased by 24% year-over-year to 4.3 million[9] Bell Media - Bell Media revenue decreased by 6.4% year-over-year to $732 million[23] - Bell Media adjusted EBITDA decreased by 6.7% year-over-year to $237 million[24] Bell CTS U.S.(Ziply Fiber) - Bell CTS U.S revenue was $160 million for the 2-month period from August 1, 2025 through September 30, 2025[18] - Bell CTS U.S adjusted EBITDA was $71 million for the 2-month period from August 1, 2025 through September 30, 2025[18]

Core Insights - BCE Inc. reported a consolidated revenue growth of 1.3% in Q3 2025, with adjusted EBITDA increasing by 1.5% year-over-year, reflecting the company's strategic focus on customer service and network improvements [3][16][18] - Net earnings for Q3 2025 reached $4,555 million, a significant recovery from a net loss of $1,191 million in Q3 2024, driven by gains on investments and lower asset impairments [17][18] - The acquisition of Ziply Fiber contributed positively, with the new Bell CTS U.S. segment generating $160 million in operating revenue and $71 million in adjusted EBITDA, indicating a successful integration [4][20][38] Financial Performance - Operating revenues for BCE were $6,049 million in Q3 2025, up from $5,971 million in Q3 2024, attributed to a 0.8% increase in service revenue and a 5.1% rise in product revenue [16][18] - Free cash flow increased by 20.6% to $1,003 million, supported by higher cash flows from operating activities and lower capital expenditures [3][19][63] - Adjusted net earnings rose by 6.5% to $733 million, leading to an adjusted EPS of $0.79, up 5.3% from the previous year [17][18] Subscriber Metrics - Bell CTS Canada experienced a reduction in postpaid mobile phone subscribers by 51,541, while the total mobile phone customer base increased by 0.4% to 10,398,934 [7][35] - Retail high-speed Internet net subscriber activations totaled 26,111, contributing to an 11.2% growth in Internet revenue [3][37] - Crave subscriptions reached 4.3 million, driven by a 67% increase in direct-to-consumer streaming subscribers [43] Strategic Initiatives - BCE's three-year strategic plan focuses on sustainable free cash flow growth through investments in fiber, wireless, AI-powered enterprise solutions, and digital media [5][10] - The company is expanding its wireless infrastructure, including a partnership with the Government of New Brunswick to enhance 5G access [14] - BCE launched Bell Cyber, a unified cybersecurity platform, and formed a strategic partnership with Simon Fraser University to advance AI and supercomputing initiatives in Canada [14][18] Segment Performance - Bell CTS U.S. reported operating revenues of $160 million and adjusted EBITDA of $71 million, reflecting strong performance post-acquisition of Ziply Fiber [20][38] - Bell Media's operating revenue decreased by 6.4% to $732 million, primarily due to lower advertising and subscriber revenues [39][42] - Bell CTS Canada saw a slight decline in operating revenue by 0.6% to $5,248 million, with service revenue down 1.5% [29][30]

BCE 2025 Investor Day Summary Company Overview - **Company**: BCE Inc. (NYSE: BCE) - **Event**: 2025 Investor Day - **Date**: October 14, 2025 - **Location**: Toronto, Canada Key Industry Insights - **Telecommunications Industry**: BCE operates in the highly competitive telecommunications sector, focusing on connectivity through fiber and wireless networks. Core Strategic Priorities 1. **Customer First**: BCE aims to enhance customer experience, having improved from the highest share of complaints among major carriers in 2019 to the lowest today [24][60]. 2. **Best Fiber and Wireless Networks**: BCE emphasizes the superiority of its fiber and 5G networks, which are critical for future growth and customer satisfaction [22][39]. 3. **Enterprise Solutions with AI**: BCE is positioning itself as a leader in enterprise solutions powered by AI, aiming for a $1.5 billion AI-powered solutions business by 2028 [29][30]. 4. **Digital Media Powerhouse**: BCE's media division, Bell Media, is expected to drive consistent revenue and cash flow, targeting a 60% digital revenue mix by 2028 [30][31]. Financial Goals - **Revenue Growth**: BCE targets a compound annual revenue growth of 2% to 4% from 2025 to 2028 [23][33]. - **Cost Savings**: Aiming for an additional $750 million in savings, totaling $1.5 billion by 2028 [23][33]. - **Adjusted EBITDA Growth**: Expected CAGR of 2% to 3% from 2025 to 2028 [23][33]. - **Free Cash Flow Growth**: Projected growth of approximately 15% after lease payments [32][33]. - **Dividend Payments**: Anticipating approximately $5 billion in dividend payments to shareholders through a sustainable strategy [33]. Network and Technology Advancements - **Fiber Network Expansion**: BCE has expanded its fiber network significantly, with a goal to reach up to 8 million locations in the U.S. through strategic partnerships [26][39]. - **5G Network Coverage**: BCE's 5G network now reaches 89% of Canadians, with plans for further enhancements, including space-based direct-to-cell services by 2026 [27][28]. - **AI Integration**: BCE is leveraging AI to improve customer service and operational efficiency, with initiatives like the AI-powered Virtual Repair tool that has eliminated over a million technical support calls [66][75]. Customer Experience Enhancements - **Self-Service Initiatives**: Introduction of self-install programs and a user-friendly MyBell app to streamline customer interactions [65][66]. - **Churn Reduction Strategies**: Targeting a 30 basis points reduction in churn by 2028 through improved customer engagement and service offerings [49][64]. - **Personalized Experiences**: Utilizing AI to provide tailored recommendations and support, enhancing customer satisfaction and loyalty [61][72]. Market Position and Competitive Advantage - **Unique Asset Portfolio**: BCE's combination of fiber, wireless, and media assets provides a competitive edge that is difficult for rivals to replicate [39][46]. - **Customer Base**: BCE boasts 3 million fiber Internet customers, 10.5 million wireless subscribers, and 4 million TV content subscribers, positioning it as a market leader in Canada [39]. Conclusion - BCE is strategically positioned for growth through its focus on customer experience, network superiority, and innovative solutions. The company aims to deliver sustainable financial performance while navigating the challenges of a rapidly evolving telecommunications landscape.