Millicom International Cellular S.A.

Reported service revenue was $2 billion, up 60.1% year-over-year on a reported basis and up 5.4% organically. Adjusted EBITDA reached $1 billion, up 58% reported and up 9.1% organically, with margin at 46.3%. Equity free cash flow was a record $327 million, up more than 50% year-over-year. Management raised 2026 equity free cash flow guidance to around $1.1 billion from at least $900 million and improved the year-end leverage target to below 2.5x. They also announced an additional interim dividend of $1.50 per share, paid in two $0.75 installments in January and April 2027.

Marcelo Benitez framed the quarter as proof that Millicom can grow while integrating acquisitions, simplifying the business, and improving cash generation. He emphasized disciplined prepaid-to-postpaid migration, more rational competition in Home, and better execution in Colombia and Chile. His tone was confident and upbeat, while still acknowledging that some subscriber trends were distorted by integration-related harmonization and that Chile remains a tough market.

Bart Vanhaeren highlighted the operating leverage in the quarter, noting that adjusted EBITDA of $1 billion grew faster than service revenue and that the business absorbed about $35 million of restructuring charges in Q2. He broke down the cash flow bridge, citing $274 million of cash CapEx, $41 million of spectrum payments, $47 million from working capital and other items, $131 million of finance charges, and $161 million of lease payments. He also said net debt rose to $8.1 billion, but leverage still improved from 2.76x to 2.73x, and he cautioned that Q2 benefited from favorable expense timing and working capital movements.

Analysts pressed on cash-flow phasing, ARPU strength, cost discipline, and whether Colombia margins can hold up. Management said Q2 was unusually strong for cash flow, with a lower Q3 and stronger Q4 expected, and they warned against extrapolating Q2 run-rate cash flow too aggressively. On ARPU, Marcelo said the improvement reflects the core strategy of more-for-more pricing and prepaid-to-postpaid migration, not a one-off distortion, while on cost discipline he said there is no fatigue and efficiency work has become business as usual. They also said Colombia full-year margin should be roughly in line with 2025, restructuring charges for the full year are expected around $160 million-$170 million, and Chile, while highly competitive, is showing early benefits from the efficiency playbook.