BCE Reaffirms 2026 Guidance as Free Cash Flow Falls 9.5% in Second Quarter
Key Facts
BCE maintained its 2026 financial outlook after posting operating revenue of C$6,176 million in the second quarter, compared with C$6,085 million in the same period of 2025. Adjusted earnings before interest, taxes, depreciation and amortization were C$2,702 million, compared with C$2,674 million a year earlier. Free cash flow, however, fell to C$1,042 million from C$1,152 million, a year-over-year decline of 9.5%. The company attributed the decrease mainly to higher capital expenditures, which rose 41.5% year over year to support Bell AI Fabric sites and the expansion of Ziply Fiber in the United States. BCE said its full-year outlook includes revenue growth of between 1% and 5%, and adjusted earnings before interest, taxes, depreciation and amortization growth of between 0% and 4%.
In mobile, BCE recorded about 41,594 net additions of postpaid phone subscribers in the second quarter of 2026. The churn rate for this group fell 4 basis points year over year to 1.02%. The company said the rate was its lowest quarterly level in 3 years. In home internet, BCE added a net 54,883 subscribers to its fibre-to-the-home service, up 14.5% from a year earlier. These additions helped drive 14.2% growth in internet revenue, while combined revenue at Ateko and Bell Cyber rose 29% year over year.
BCE's results come as Canadian telecom companies pursue separate infrastructure asset monetization deals, but the Terrion transaction announced in 2025 involved TELUS. On August 1, 2025, TELUS announced an agreement under which La Caisse would acquire a 49.9% stake in Terrion for about C$1.26 billion. The deal closed on September 11, 2025, and TELUS continued to consolidate Terrion's results in its financial statements. TELUS then described the company as Canada's largest dedicated wireless tower operator, providing wholesale access and colocation. TELUS said the partnership reduced its net debt by C$1.26 billion, equivalent to about 0.17 times its net debt-to-adjusted earnings before interest, taxes, depreciation and amortization ratio in that period.
TELUS said when it announced the Terrion deal that it would retain majority ownership and full control of active network components and security systems. It had 3,000 wireless sites by the third quarter of 2025 and had begun building its first multi-operator tower in Nanaimo, British Columbia. On debt, TELUS ended 2025 with a net debt-to-adjusted earnings before interest, taxes, depreciation and amortization ratio of 3.4 times, targeting 3.3 times or less by the end of 2026 and about 3.0 times by the end of 2027. But the company said in its second-quarter 2026 results that the ratio stood at 3.5 times at quarter-end, and set a target of about 3.0 times or less by the end of 2028. It also cut its quarterly cash distribution to C$0.1875 per share and said the reset could free up about C$2.7 billion cumulatively through 2028 to direct toward debt reduction.
In a separate deal involving BCE, Bell Mobility agreed on March 26, 2026, to sell its land mobile radio network services business to Motorola Solutions Canada Networks for C$675 million, before adjustments and working-capital settlement. The company expected the transaction to close in the fourth quarter of 2026, subject to approvals and the satisfaction of conditions. BCE shares closed at C$20.25 on October 26, 2026. The company is due to report third-quarter 2026 results on November 5 and hold an investor call at 10:00 a.m. Eastern Time. Participants are expected to include Chief Executive Mirko Bibic and Chief Financial Officer Curtis Millen.