BCE (BCE) Investor Day 2025 summary

Strategic priorities and transformation

• Four core priorities: customer focus, best fiber and wireless networks, enterprise AI-powered solutions, and digital media powerhouse, supported by company-wide transformation and efficiency initiatives.

• Targeting $1.5 billion in cost savings by 2028 through operational simplification, digitalization, and transformation.

• Sustainable dividend policy with ~$5 billion in common share dividends planned over the next three years and a payout ratio of 40-55% of free cash flow.

• Cultural transformation aligning 40,000 employees to deliver superior customer outcomes and operational efficiency.

• Strategic partnerships and acquisitions, including PSP Investments and Ziply Fiber, expand fiber reach to over 16 million locations in North America.

Financial guidance and growth outlook

• Projected consolidated revenue CAGR of 2%-4% and adjusted EBITDA CAGR of 2%-3% through 2028, with free cash flow after lease payments expected to grow at a 15% CAGR, reaching ~$3.1 billion by 2028.

• $22 billion cumulative free cash flow before CapEx and lease payments expected by 2028, with $5 billion returned to shareholders via dividends.

• CapEx to remain relatively flat, with capital intensity declining to ~14% of revenue by 2028, supporting improved cash flow and investment flexibility.

• Net leverage targeted at 3.5x by 2027 and 3.0x by 2030, supported by organic growth and asset monetization.

• Financial outlook assumes stable economic growth, manageable inflation, and no major regulatory or market disruptions.

Network expansion and technology investments

• Canadian fiber footprint to double by 2028; U.S. fiber locations to reach 3 million by 2028 and 8 million longer term via Ziply Fiber and Network Fiber Company partnership.

• 5G+ coverage to reach 89% by 2025, with copper decommissioning and 3G shutdown by Q1 2027.

• Wi-Fi 7 and multi-gig speeds enabled by fiber, supporting higher product intensity and reliability.

• Platform transformation to unify billing, ordering, and customer knowledge management.

• Partnership with PSP Investments enables accelerated U.S. fiber build with BCE investing only 20-25 cents per dollar, leveraging non-recourse debt.