Liberty Latin America (LILA) Q2 2026 earnings summary

Executive summary

• Achieved 45,000 net additions in postpaid and broadband in Q2 2026, with operational strength across all segments and strong broadband momentum, especially in Jamaica.

• Adjusted OIBDA grew 3% year-over-year rebased in Q2 2026, with sequential improvements in cash flow and strong free cash flow before distributions.

• Distributed $500 million in preferred stock and accelerated share repurchases exceeding $60 million year-to-date, reflecting confidence in future prospects.

• Launched Unbeatable Network and 5G in Jamaica and Cayman, and announced a 10-year AI-driven IT services agreement with Amdocs expected to deliver over $250 million NPV in cost savings.

• Hurricane Melissa in Jamaica caused ongoing service disruptions, impacting revenue and Adjusted OIBDA, though recovery efforts are underway.

Financial highlights

• Q2 2026 revenue was $1,103 million, up 1% year-over-year; Adjusted OIBDA was $436 million, up 3% rebased year-over-year.

• Adjusted OIBDA margin for Q2 2026 was 39.5%, up from 38.2% in Q2 2025.

• Adjusted free cash flow before distributions was $83 million in Q2 and $19 million for H1, both significantly higher than prior year periods.

• Operating income for Q2 2026 was $181 million, a significant improvement from a loss of $333 million in Q2 2025.

• Total debt stood at $8.53 billion, with $746.9 million in cash and consolidated net leverage of 4.6x as of June 30, 2026.

Outlook and guidance

• Management expects continued operational momentum into H2, supported by innovation, capital allocation strategies, and the Amdocs partnership.

• Expectation for improved results in Q4 as the business laps the October 2025 Jamaica hurricane.

• H2 P&E additions anticipated to be higher than H1, but full-year ratio to revenue expected to match 2025.

• Free cash flow in H2 likely to be less robust than last year due to absence of weather derivative proceeds.

• No material non-compliance with debt covenants anticipated in the next 12 months.