Millicom International Cellular (TIGO) Q4 2025 earnings summary

Executive summary

• Achieved record Equity Free Cash Flow (EFCF) of $916 million for FY 2025, surpassing guidance, with strong topline growth, margin expansion, and successful integration of Ecuador and Uruguay, expanding to 12 countries including Chile.

• Adjusted EBITDA reached $2,749 million for FY 2025, up 11.4% year-over-year, with margin improving to 47.2%.

• FY 2025 revenue was $5.8 billion, up 2.0% organically, with Q4 revenue at $1.7 billion, up 15.7% year-over-year; net profit for the year was $1.3 billion, including $727 million from infrastructure transactions.

• Major acquisitions in Uruguay and Ecuador expanded the South American footprint; entry into Chile via joint venture and agreement to acquire Coltel in Colombia.

• Leverage ended the year at 2.31x, or 2.17x pro forma for new operations, reflecting acquisitions and increased debt.

Financial highlights

• Q4 2025 Adjusted EBITDA was $778 million, up 25.9% year-over-year, with a margin of 47.1%.

• Q4 2025 EFCF was $278 million, contributing to the full-year record; full year EFCF $916 million, or $864 million excluding infrastructure sales.

• Service revenue by country: Colombia $375 million (+22.5% YoY), Guatemala $352 million (+6.6%), Panama $181 million (+4.9%).

• Net debt at year-end was $5.36 billion, gross debt $6.89 billion, leverage at 2.31x, below the 2.5x target.

• Distributed $334 million in dividends (ordinary and extraordinary) during the quarter.

Outlook and guidance

• Projecting at least $900 million in Equity Free Cash Flow for 2026, with year-end leverage expected around 2.5x, including restructuring costs.

• New shareholder remuneration policy aims to sustain or grow annual cash dividends.

• Leverage expected to temporarily rise above 2.5x in early 2026 due to acquisitions, returning to 2.5x by year-end and within 2.0-2.5x in 2027.

• Uruguay and Ecuador expected to contribute low to mid double-digit millions in EFCF in 2026; Coltel expected to be EFCF neutral after restructuring.