BCE Inc.

BCE reported Q2 consolidated revenue of 1.5% year-over-year growth, adjusted EBITDA up 1%, and adjusted EPS of $0.65, up $0.02 from last year. Adjusted EBITDA margin was essentially stable at 43.8%. Free cash flow was over $1 billion. On the operating side, BCE said postpaid churn improved 4 basis points to 1.02%, Canada residential FTTH net adds were 45,271, and Ziply delivered 9,600 residential net adds, its highest since BCE acquired the business. Bell Media revenue rose 8.9% and adjusted EBITDA rose 3.8%. Management reconfirmed all 2026 financial guidance and said it remains on track to reach 3.5x net debt leverage by the end of 2027.

Mirko Bibic framed the quarter as evidence that BCE’s Investor Day strategy is working: disciplined execution in core telecom, selective growth investment, and a path to sustainable free cash flow growth. He highlighted better wireless pricing, lower churn, stronger fiber monetization, progress at Bell AI Fabric, and strong Bell Media execution. His tone was confident and consistent throughout, repeatedly stressing that BCE is doing what it said it would do.

Curtis Millen emphasized the financial quality of the quarter: revenue up 1.5%, adjusted EBITDA up 1%, adjusted EPS at $0.65, and free cash flow over $1 billion despite higher CapEx. He said CapEx rose $317 million year over year because of Ziply Fiber and Bell AI Fabric, while Canadian telecom CapEx declined. He also noted $4.6 billion of total available liquidity, net debt leverage at about 3.7x, approximately $4.9 billion of pension solvency surplus, and around $2.5 billion of debt offerings completed in June. He reconfirmed 2026 guidance and said the company remains focused on the 3.5x leverage target by end-2027.

Analysts focused on three themes: the timing and pace of Saskatchewan AI data center CapEx, whether Ziply’s build ramp would translate into faster revenue growth, and the outlook for wireless pricing and ARPU. Management said Saskatchewan timing had not changed, only the cash recording of CapEx, and that the first tenant payment was about 1/4 of the roughly $400 million in setup fees and prepayments received in the quarter. On Ziply, management said build activity is ramping in the second half and into next year, with permit submissions up more than fourfold from April to June, but near-term revenue remains constrained by the build phase, a small revenue base, and some wholesale renewal pressure. On wireless, BCE said the quarter reflected an enterprise contract but that underlying postpaid adds were in line with peers, and it declined to predict exact ARPU timing beyond saying pricing has normalized and profitability remains the focus.