BCE Inc.

BCE reported Q2 consolidated revenue of 1.5% year-over-year growth, adjusted EBITDA up 1%, adjusted EBITDA margin essentially stable at 43.8%, and adjusted EPS of $0.65, up $0.02 from last year. Free cash flow was over $1 billion, while CapEx increased by $317 million year over year due to Ziply Fiber build-out and Bell AI Fabric investments. Reported net debt leverage ended at approximately 3.7x, down about 0.1x since Q4, with $4.6 billion of total available liquidity. On the segment side, Bell CTS Canada postpaid churn improved to 1.02% and residential FTTH net adds were 45,271; Ziply EBITDA was $95 million with a 40.6% margin; and Bell Media revenue grew 8.9% with adjusted EBITDA up 3.8%. Management reaffirmed all 2026 financial guidance targets and said it remains on track to reach 3.5x net debt leverage by the end of 2027.

Mirko Bibic framed the quarter as proof that BCE is executing the strategy laid out at Investor Day: disciplined core telecom operations, targeted investment in higher-growth opportunities, and a path to sustainable free cash flow growth. He highlighted better wireless pricing, lower churn, stronger fiber performance, rising AI-powered solutions demand, and Bell Media’s digital momentum as evidence the company is moving in the right direction. His tone was confident and consistent, repeatedly emphasizing transparency, execution, and confidence in the longer-term plan.

Curtis Millen said the quarter reflected continued execution with a balance of measured investment and free cash flow focus. He pointed to revenue up 1.5%, adjusted EBITDA up 1%, adjusted EBITDA margin at 43.8%, adjusted EPS of $0.65, and free cash flow above $1 billion. He also noted CapEx was up $317 million year over year, mainly for Ziply Fiber and Bell AI Fabric, but said Canadian telco CapEx declined year over year and that the quarter included the first tenant payment on Saskatchewan, with about $400 million in setup fees and prepayments partially offsetting build costs. He added that liquidity was $4.6 billion, leverage was about 3.7x, and BCE remains on track for 3.5x by end-2027.

Analysts focused heavily on Saskatchewan data center timing, Ziply’s build ramp and revenue conversion, wireless ARPU trends, and the impact of an enterprise/government wireless contract. Management said Saskatchewan CapEx timing shifted because of cash-spend recording, not construction delays, and reiterated that the facility remains on schedule with the majority of expected 2026 CapEx in the second half. On Ziply, management said build execution is ramping, permits and approvals are progressing, and the long-term thesis remains intact because subscriber gains follow fiber availability. On wireless, BCE said pricing improved in late Q2 and into July, ARPU and service revenue remain stable when adjusted for the prior-year G7 impact, and the enterprise contract helped net adds but performance excluding it was still in line with peers.