BCE (BCE) Q4 2025 earnings summary

Executive summary

• Achieved all 2025 financial guidance targets, with revenue of $24.47B (up 0.2% year-over-year), adjusted EBITDA of $10.66B (up 0.7%), and free cash flow up 10% to $3.18B, driven by disciplined execution on strategic priorities including customer focus, fibre/wireless leadership, U.S. fibre growth, AI-powered enterprise solutions, and digital media expansion.

• Acquisition of Ziply Fiber in the U.S. and Network FiberCo partnership advanced long-term fibre growth, with plans to reach 3 million passings by 2028.

• Bell Media and AI-powered enterprise solutions delivered strong digital and subscription revenue growth, with Crave direct streaming subscribers up 26% to 4.6 million.

• Q4 adjusted EBITDA grew 2.3% year-over-year, with margin up 1.0 percentage point to 41.6%, the highest Q4 margin in over 30 years; net earnings in Q4 rose 25.1% to $632 million.

• Strategic focus on balance sheet optimization, deleveraging, and non-core asset sales, with $2.5B available liquidity and $4.4B pension solvency surplus at year-end 2025.

Financial highlights

• 2025 service revenue increased 0.6% year-over-year, while product revenue declined 2.2%; adjusted EBITDA margin reached 43.6%, the highest in over 30 years.

• Adjusted EPS was $2.80, exceeding guidance, but is expected to decline in 2026 due to higher depreciation/amortization and interest expense.

• Free cash flow after lease liabilities rose 17.5% to $2.05B; capital expenditures fell by $197 million to $3.7B, reducing capital intensity to 15.1%.

• Net earnings surged 25.1% to $6.51B; statutory EPS was $6.79.

• Q4 free cash flow was $225 million, down 74.3% due to higher capex and lower operating cash flow.

Outlook and guidance

• 2026 guidance: consolidated revenue growth of 1–5%, adjusted EBITDA growth of 0–4%, and capital intensity at or below 15%.

• Adjusted EPS expected at $2.50–$2.65, down 5–11% year-over-year due to higher D&A and interest from Ziply acquisition.

• Free cash flow projected to grow 4–10% to $3.3–$3.5B in 2026, with stable CapEx at $3.7B.

• Dividend payout ratio expected to remain within 40–55% target range, with annualized dividend $1.75 per share.

• Net debt leverage ratio targeted to trend down toward 3.5x by end of 2027.