Rogers Communications (RCI) Q2 2026 earnings summary

Executive summary

• Consolidated service revenue grew 8% year-over-year to $5.1 billion, with adjusted EBITDA up 3% to $2.4 billion.

• Free cash flow increased 6% to $982 million, and capital intensity improved by 350 basis points to 12.4%, the lowest since Q1 2008.

• Net loss attributable to shareholders was $726 million, driven by a $1,034 million non-cash loss on MLSE put liability revaluation; adjusted net income was $640 million, up 3% year-over-year.

• Announced agreement to acquire the remaining 25% minority stake in MLSE for $4.35 billion, expected to close in Q4 2026, with plans to sell a minority interest in consolidated sports, media, and entertainment assets after closing.

• Strong performance across wireless, cable, and media segments, with disciplined subscriber additions and improved margins.

Financial highlights

• Total revenue for the quarter was $5.6 billion, up 8% year-over-year.

• Adjusted diluted EPS was $1.15, up 1% year-over-year; reported diluted EPS was a loss of $1.37 due to the MLSE revaluation.

• Cash provided by operating activities was $1.5 billion, down 5% year-over-year.

• Capital expenditures were $695 million, down 16% year-over-year.

• Debt leverage ratio improved to 3.8x from 4.0 at year-end 2025, with available liquidity of $6.1 billion.

Outlook and guidance

• Reaffirmed 2026 guidance: service revenue growth of 3–5%, adjusted EBITDA growth of 1–3%, capital expenditures of $2.5–2.7 billion, and free cash flow of $4.1–4.3 billion.

• Anticipates further capital spend reductions in Q3 and Q4, targeting annual CapEx of $2.5–2.7 billion.

• Expects free cash flow growth to accelerate in the second half of 2026 as CapEx declines.

• Minority stake sale in combined sports and media assets targeted for first half of 2027, with proceeds to deleveraging.

• Capital expenditures expected to remain within guidance due to slower investment pace and project deferrals.