Cogeco (CGO) Q4 2026 earnings summary

Executive summary

• Q4 revenue fell 2.4% YoY to $713.9M and adjusted EBITDA declined 4.1% to $342.3M; profit attributable to owners rose 9.2% to $18.0M.

• Canadian Internet customer growth re-accelerated, while U.S. competition drove elevated subscriber losses and weaker results.

• FY2026 free cash flow was C$554M on the Communications basis and $552.9M consolidated; the dividend rose 2% for a 23rd consecutive year.

• Priorities include mobile and digital-brand growth, cost efficiencies, and AI initiatives for customer experience, revenue growth and operational efficiency.

Financial highlights

• Q4 revenue was $713.9M, down 2.4% reported and 3.3% in constant currency; adjusted EBITDA was $342.3M, down 4.1% and 5.0%, respectively.

• FY2026 Communications-basis revenue was C$2.793B, adjusted EBITDA C$1.388B and free cash flow C$554M; free cash flow grew 7.3% YoY on a constant-currency basis.

• Consolidated FY2026 revenue was $2.887B, down 4.0%; adjusted EBITDA was $1.398B, down 3.8%, and adjusted profit attributable to owners was $99.0M, up 8.5%.

• Consolidated FY2026 reported loss attributable to owners was $340.5M, including $2.255B in asset impairments; FY2025 profit attributable to owners was $85.0M.

• Q4 adjusted profit attributable to owners was $19.6M, down 4.1%; adjusted diluted EPS was $2.04 versus $2.12.

Outlook and guidance

• FY2027 constant-currency revenue is expected to decline low-to-mid single digits and adjusted EBITDA mid-to-high single digits; transformation savings are expected to partly offset U.S. pressure.

• Communications-basis FY2027 net CapEx guidance is C$425M–C$475M and free cash flow C$500M–C$550M; consolidated guidance is $430M–$480M and $505M–$555M, respectively.

• FY2027 financial expense guidance is $250M–$300M and current income tax $30M–$60M; guidance uses USD/CAD 1.3865.

• Canadian revenue and EBITDA are expected to remain relatively stable; U.S. subscriber trends are not expected to improve significantly, and Q1 may remain difficult.

• FY2027 free cash flow reflects U.S. EBITDA pressure, higher financial expenses and taxes, partly offset by capital efficiencies; AI initiatives are included in guidance.