Cogeco Communications (CCA) investor relations material

Executive summary

• Canadian revenue and adjusted EBITDA grew YoY, with renewed Internet subscriber growth and continued wireless momentum; U.S. competition and customer losses weighed on results.

• Q4 revenue was $695.5M and adjusted EBITDA was $344.8M; FY2026 free cash flow reached $554.1M.

• FY2027 guidance calls for lower revenue and adjusted EBITDA, with free cash flow of $500M–$550M.

Financial highlights

• Q4 revenue fell 1.9% to $695.5M; adjusted EBITDA declined 3.8% to $344.8M, with a 49.6% margin versus 50.6%.

• Q4 profit was $87.0M, up 6.5%; adjusted profit attributable to owners was $86.5M, down 2.3%.

• FY2026 revenue declined 4.0% to $2.793B and adjusted EBITDA fell 3.8% to $1.388B; adjusted profit attributable to owners rose 6.5% to $359.0M.

• FY2026 free cash flow rose 7.1% to $554.1M; on a constant-currency basis it increased 7.3%.

• FY2026 free cash flow included $81M from network expansion; excluding network expansion, it was $635M.

Outlook and guidance

• FY2027 constant-currency revenue is expected to decline by a low- to mid-single-digit percentage and adjusted EBITDA by a mid- to high-single-digit percentage.

• FY2027 net capital expenditures are guided at $425M–$475M; free cash flow is expected at $500M–$550M.

• Guidance includes current income tax expense of $30M–$60M and financial expense of $250M–$300M; USD/CAD is assumed at 1.3865.

• U.S. subscriber losses and pricing pressure are expected to continue; cost efficiencies partly offset lower revenue, while Canada is expected to be relatively stable.