Cogeco Communications announces Q4 2025 financial results

Executive Summary

• Cogeco Communications reported Q4 2025 revenue of C$708.7 M, down 5.2% year‑over‑year, and adjusted EBITDA of C$358.6 M, down 3.2%.
• Net profit fell to C$81.7 M (C$77.4 M attributable to owners) and diluted EPS declined to $1.82, a 6.2% decrease versus the prior year.
• The Board increased the quarterly dividend by 7.0% to $0.987 per share and released FY 2026 guidance indicating modest revenue decline (‑1% to ‑3%) with adjusted EBITDA roughly flat to down 2%, capital expenditures of $560‑$600 M, and free cash flow expected to rise up to 10%.

Key Details

• Revenue: C$708.7 M (‑5.2% YoY); Canadian telecom revenue ‑1.5%; U.S. telecom revenue ‑9.0%.
• Adjusted EBITDA: C$358.6 M (‑3.2% YoY); margin 50.6% (up from 49.5%).
• Profit & EPS: Net profit C$81.7 M (‑4.4% YoY); attributable profit C$77.4 M (‑5.5% YoY); diluted EPS $1.82 (‑6.2%). Adjusted profit C$88.6 M, adjusted diluted EPS $2.09 (‑11.1%).
• Capital Expenditures: Net CAPEX C$154.3 M (+1.3% YoY); network expansion CAPEX C$57.8 M; non‑expansion CAPEX C$96.5 M.
• Free Cash Flow: $107.8 M (‑27.3% YoY); free cash flow excl. network projects $165.6 M (‑19.3%).
• Dividend: Quarterly dividend increased 7.0% to $0.987 per share (previously $0.922).
• Fiscal 2026 Guidance (constant currency):
• Revenue: down 1%–3% (≈ C$2,910 M).
• Adjusted EBITDA: flat to ‑2% (≈ C$1,443 M).
• Net CAPEX: $560‑$600 M (incl. $100‑$140 M for growth‑oriented network expansion).
• Capital intensity: 19%–21% (15%–17% excl. expansion).
• Free cash flow: increase 0%–10%; free cash flow excl. expansion projects also up 0%–10%.
• Operational Highlights:
• Canadian Internet added 16,988 new subscribers – best growth in 13 years.
• Wireless rollout ahead of schedule across most of the footprint (since Oct 15).
• U.S. Internet subscriber net additions positive for first time in four years (Ohio).
• Year‑one of three‑year transformation program completed; focus now on revenue generation and further cost efficiencies.

Notable Quotes

• “Our Canadian business is firing on all cylinders, achieving its best Internet subscriber growth in 13 years…,” – Frédéric Perron, President & CEO.
• “We just finished year one of our 3‑year transformation program, where we met our internal cost reduction targets…” – Frédéric Perron.

Materiality Assessment: Material – Neutral (the release contains a full set of quarterly financial results, dividend change, and forward‑looking guidance that are material to investors).