BCE Inc.

Q2 consolidated revenue was up 1.5% year over year, adjusted EBITDA increased 1%, adjusted EPS was $0.65, and adjusted EBITDA margin was 43.8%. Free cash flow was over $1 billion in the quarter, while CapEx was up $317 million year over year due to Ziply Fiber build-out and Bell AI Fabric investments. BCE said it is reconfirming all 2026 financial guidance targets and remains on track for a 3.5x net debt leverage target by the end of 2027. Management also said the majority of expected 2026 Saskatchewan AI data center CapEx of approximately $1.3 billion will be incurred in the second half, and it received its first tenant payment in the quarter as part of roughly $400 million in setup fees and prepayments.

Mirko Bibic framed the quarter as evidence that BCE is executing the strategy laid out at Investor Day: disciplined core operations, selective investment in higher-growth businesses, and a path to sustainable free cash flow growth. He highlighted improving wireless pricing, strong fiber momentum, rising enterprise AI demand, and Bell Media’s digital growth as signs the company’s portfolio is working. His tone was confident and consistent, repeatedly stressing that BCE is doing what it said it would do and that the company remains focused on monetizing structural advantages in fiber, wireless, and AI infrastructure.

Curtis Millen emphasized that the quarter’s results were driven by Ziply Fiber and Bell Media, with revenue up 1.5% and adjusted EBITDA up 1% while margin held at 43.8%. He noted adjusted EPS of $0.65, free cash flow above $1 billion, and CapEx up $317 million year over year due to U.S. fiber build-out and AI Fabric spending. On the balance sheet, he cited $4.6 billion of total available liquidity, net debt leverage of approximately 3.7x, a $2.5 billion June debt issuance, and a defined benefit pension solvency surplus of approximately $4.9 billion with an aggregate solvency ratio of about 125%.

Analysts focused on the timing of Saskatchewan AI data center CapEx, the Ziply Fiber revenue ramp, wireless pricing and ARPU trends, and whether BCE might expand capital spending further if AI data center demand stays strong. Management said Saskatchewan timing had not changed; the CapEx shift is about when cash is spent, not construction timing, and the site remains on track. On Ziply, management said the build is ramping in the second half and into next year, but revenue growth will follow fiber deployment and wholesale/legacy mix effects can obscure the underlying trend in the near term. On wireless, BCE said postpaid adds included an enterprise contract, but excluding it performance was still in line with peers, and management declined to give a precise ARPU timing forecast, preferring to emphasize stability and profitability.