Quebecor Inc.

Quebecor reported second-quarter 2026 revenue of $1.44 billion, up 4% year over year, EBITDA of $627 million, up 4%, and net income attributable to shareholders of $271 million versus $218 million a year ago. Excluding stock-based compensation, EBITDA was $691 million, up $62 million or 10%, and free cash flow was $419 million, up $44 million or 12%. Telecom revenue was $1.2 billion, up 4%, with adjusted EBITDA of $642 million, up $32 million or 5%, and a 52% margin; service revenue was $1.03 billion, up 4.2%, and mobile ARPU was $35.62, up 2.5% year over year. For the first half, revenue rose 4% to $2.84 billion and EBITDA increased 4% to $1.20 billion. Management did not give formal full-year revenue or EPS guidance, but said 2026 free cash flow should be stable to slightly better than stable year over year and CapEx should remain in line with annual guidance.

Pierre Péladeau framed the quarter as evidence that Quebecor is executing consistently across all businesses, with growth in wireless market share, improving ARPU, and strong cash generation. He emphasized that the company is investing in network quality, 5G/5G Plus, and the migration to shared digital platforms like Etiya to reduce long-term operating costs and improve agility. His tone was confident and combative, especially around pricing discipline and avoiding deep discounting, while repeatedly stressing the company’s resilience and balance-sheet strength.

Hugues Simard highlighted consolidated revenue of $1.44 billion, EBITDA of $627 million, free cash flow of $419 million, and operating cash flow of $570 million, with EBITDA up $62 million excluding stock-based compensation. He said Telecom adjusted EBITDA reached $642 million with a 52% margin, operating expenses fell to 48% of revenue from 48.6% last year, and Telecom CapEx excluding spectrum was up $18 million, or 12%, due to network and 5G investments. He also noted liquidity of $926 million, a stable 2.87x net debt-to-EBITDA ratio, the repayment of a $500 million term-loan balance plus $300 million more on another tranche and an additional $100 million early repayment in July, as well as 3.1 million Class B shares repurchased and canceled for $185 million in the first half. The board renewed the NCIB and raised the dividend 12.5% to $0.45 per share.

Analysts focused on the sustainability of free cash flow, the pace of CapEx, and whether the strong ARPU trend can continue, especially given pricing and step-up dynamics in wireless. Management said 2026 free cash flow should remain stable to slightly better than stable, with no unusual working-capital boost, and that CapEx is tracking guidance with some quarterly timing noise. On ARPU, management said there is still room to grow and that avoiding Q1-style aggressive discounting should support both loading and ARPU, while also acknowledging some impact from existing $5 step-ups. Questions on Etiya led management to explain it as a more-than-$100 million revenue business with internal and external revenue streams, but they declined to provide a precise pro forma run rate on the call.