BCE Q2 Earnings Call Highlights

BCE reported solid Q2 execution , with revenue up 1.5%, adjusted EBITDA up 1% and more than C$1 billion in free cash flow. Net leverage improved to approximately 3.7 times, and the company reaffirmed its 2026 guidance and 3.5-times leverage target by the end of 2027. Fiber and AI infrastructure investment accelerated. Canadian residential fiber additions remained strong, while Ziply Fiber delivered record quarterly additions; BCE also advanced its Bell AI Fabric data-center projects, contributing to a C$317 million year-over-year increase in capital expenditures. Wireless profitability improved despite softer product revenue. Postpaid churn fell to 1.02%, its lowest level since Q2 2023, as BCE prioritized healthier margins over handset sales and discounts. Bell Media also benefited from World Cup coverage and Crave growth, with revenue up 8.9% and Crave subscribers reaching 5.1 million.

BCE NYSE: BCE reported second-quarter 2026 revenue growth of 1.5%, adjusted EBITDA growth of 1%, and more than C$1 billion in free cash flow, as the telecommunications company continued investing in U.S. fiber expansion and AI data-center infrastructure. President and Chief Executive Officer Mirko Bibic said the results reflected execution against the strategy outlined at the company’s investor day last year, combining cost discipline in its core Canadian telecom operations with investment in higher-growth platforms. BCE’s net debt leverage ratio improved to approximately 3.7 times at quarter-end, and management reaffirmed its target of reaching 3.5 times by the end of 2027.

“We’re focused on the operating drivers that support long-term revenue, EBITDA, and free cash flow growth,” Bibic said, citing improving wireless trends, fiber subscriber additions, expanding AI-related enterprise services and growth at Bell Media.

BCE added 41,594 postpaid mobile-phone customers during the quarter. While the figure was modestly below the prior year amid a less active market and lower promotional intensity, postpaid churn improved by four basis points to 1.02%, its lowest quarterly level since the second quarter of 2023.

Chief Financial Officer Curtis Millen said wireless average revenue per user was down about 0.2% year over year after excluding the effect of G7-related revenue recorded in the prior-year period. However, monthly recurring charges, a component of ARPU, rose 0.7%, supported by higher-quality customer additions and improved transaction rates. Bibic said industry pricing improved during the latter half of the quarter and continued to improve in July. He said BCE intends to remain disciplined on handset discounts and instead use device trade-in and residual-value programs to address customer affordability. During the question-and-answer session, Bibic confirmed that BCE’s postpaid additions included a government enterprise contract. Excluding that contract, he said BCE’s wireless additions were in line with peers. He also said sporting events during the quarter did not create unusual effects in the wireless results. Wireless product revenue declined 6.6%, which Millen attributed to the company’s focus on healthier product margins, fewer contracted handset sales, more bring-your-own-device activations and fewer device upgrades.

In Canada, BCE added 45,271 residential fiber-to-the-home internet subscribers. Total residential FTTH net additions, including Ziply Fiber in the U.S., were nearly 55,000. Internet re...