Millicom (TIGO) Q2 2026 earnings summary

Executive summary

• Achieved record service revenue of $2.18 billion in Q2 2026, up 59.4% year-over-year, driven by acquisitions in Colombia, Ecuador, and Uruguay, and strong organic growth of up to 5.4%.

• Adjusted EBITDA reached a record $1.01 billion, up 58.0% year-over-year, with organic growth of 9.1% and margin at 46.3%.

• Equity free cash flow hit a record $327 million, up over 50% year-over-year, driven by operational efficiency and successful integration of acquisitions.

• Raised 2026 equity free cash flow guidance from at least $900 million to around $1.1 billion and improved year-end leverage target to below 2.5x.

• Board approved an additional interim dividend of $1.50 per share, payable in two installments in 2027.

Financial highlights

• Service revenue grew 60.1% year-over-year to $2.04 billion, with organic growth of 5.4%; mobile service revenue up 6.9% to $1.2 billion and home service revenue up 3% to $513 million.

• Adjusted EBITDA margin was 46.3%, slightly below last year due to restructuring costs.

• Cash CapEx totaled $274 million, reflecting investments in new businesses and network expansion, especially in Colombia.

• Net debt increased to $8.1 billion, but leverage declined to 2.73x due to strong cash flow.

• Operating profit increased 30.4% year-over-year to $462 million.

Outlook and guidance

• 2026 equity free cash flow guidance raised to $1.1 billion, reflecting confidence in cash generation and integration progress.

• Leverage target improved to below 2.5x by year-end.

• CapEx expected to be around 12% of revenue for the full year, with acceleration in Colombia for 5G and site expansion.

• Dividend policy remains at two-thirds of equity free cash flow, with future guidance to be updated after Q4.

• Guidance includes restructuring costs from all acquired businesses.