Quebecor Inc.

Second-quarter consolidated revenue was $1.44 billion, up 4% year over year. Consolidated EBITDA was $627 million, up $22 million or 4%; excluding share-based compensation, EBITDA was $691 million, up $62 million or 10%. Free cash flow was $419 million, up $44 million or 12%, and cash flows from operating activities were $570 million, up $32 million or 6%. Net income attributable to shareholders was $271 million, or $1.21 per share, versus $218 million, or $0.95 per share, last year. In Telecom, revenue was $1.2 billion, up 4%, service revenue was $1.03 billion, up 4.2%, adjusted EBITDA was $642 million, up 5%, and margin was 52%, up 60 basis points. Wireless service revenue was $476 million, up 9%, while wireline service revenue was $559 million, up 0.3%. Mobile ARPU was $35.62, up $0.86 sequentially and 2.5% year over year, and Quebecor added 53,200 net mobile subscribers. Media revenue was $185 million, up 6%, and adjusted EBITDA was $27 million, up $18 million year over year. Net debt-to-EBITDA was 2.87x, and liquidity was $926 million at quarter-end. The company said CapEx for Telecom, excluding spectrum, was up $18 million or 12% in the quarter, and management said spending remains in line with full-year guidance. For the rest of 2026, management described free cash flow as stable to slightly better than stable year over year and said the balance of the year should remain in line with CapEx guidance.

Pierre Péladeau framed the quarter as another step in Quebecor’s strategy of growing subscribers, ARPU, and cash flow while keeping leverage low. He emphasized disciplined execution, network investment, and using the balance sheet conservatively, saying Quebecor does not use hybrid debt or “financial engineering.” He also highlighted the dividend increase, renewed buyback program, Freedom’s national expansion, and the Etiya investment as part of a broader effort to improve operating efficiency and long-term competitiveness.

Hugues Simard focused on the financial execution: revenue of $1.44 billion, EBITDA of $627 million, free cash flow of $419 million, operating cash flow of $570 million, and net debt-to-EBITDA of 2.87x. He said Telecom EBITDA margin improved to 52%, operating expenses fell to 48% of revenue from 48.6% last year, and the business is gaining efficiency without headcount reductions. He also noted the USD 1 billion commercial paper program is now operational, debt was repaid in the quarter, liquidity ended at $926 million, and the company bought and canceled 3.1 million Class B shares for $185 million in the first half before renewing the NCIB for another year.

Analysts pressed for updates on CapEx and free cash flow, and management said both remain in line with prior guidance, with free cash flow expected to be stable or slightly better than stable year over year. On ARPU, management said there is still room to grow and that avoiding aggressive Q1-style discounting should support both loading and ARPU, but they stayed cautious about forecasting the exact pace. Questions on Etiya led management to explain that the acquisition is meant to lower BSS/OSS costs, unify platforms, and use AI to drive efficiency; they said the business is a bit more than a $100 million revenue company, but the contribution requires adjustments and had no material EBITDA impact this quarter. On churn, Hugues said it improved in Q2 after a setback in Q1, helped by better network performance, a more rational market, and stronger customer experience.