Cogeco Announces Q4 2025 Financial Results

Executive Summary

• Cogeco reported Q4 FY 2025 results (three months ended Aug 31, 2025) showing revenue of C$731.4 M (‑4.9% YoY) and adjusted EBITDA of C$357.1 M (‑3.8% YoY).
• Net profit fell to C$76.2 M (‑6.4% YoY); diluted EPS declined to $1.71 (‑14.1%). Adjusted diluted EPS dropped 20% to $2.12.
• The Board increased the quarterly dividend by 7.0% to $0.987 per share.
• FY 2026 financial guidance was released: revenue expected to decline 1‑3% (constant currency), adjusted EBITDA flat to down 2%, net capital expenditures of $565‑$605 M, and free cash flow projected to rise 0‑10%.

Key Details

• Revenue: C$731.4 M vs. C$768.7 M YoY (‑4.9%); constant‑currency decline ‑5.0%.
• Adjusted EBITDA: C$357.1 M vs. C$371.2 M YoY (‑3.8%); constant‑currency decline ‑3.9%.
• Profit for the period: C$76.2 M vs. C$81.4 M YoY (‑6.4%).
• Diluted EPS: $1.71 vs. $1.99 YoY (‑14.1%).
• Adjusted Diluted EPS: $2.12 vs. $2.65 YoY (‑20.0%).
• Free Cash Flow: C$101.6 M vs. C$143.1 M YoY (‑29.0%); excluding network expansion projects, $159.4 M vs. $200.0 M YoY (‑20.3%).
• Net Capital Expenditures: $155.9 M (↑0.8% YoY). Network‑expansion capex: $57.8 M (up from $56.9 M).
• Dividend: Quarterly dividend increased 7.0% to $0.987 per share (Board declaration on Oct 29, 2025).
• Subscriber Highlights: Canadian Internet added 16,988 new subscribers (best growth in 13 years); wireless rollout ahead of schedule; U.S. Internet subscriber net additions positive for first time in four years.
• FY 2026 Guidance (constant‑currency):
• Revenue: down 1‑3% (target $3,008 M).
• Adjusted EBITDA: flat to –2% (target $1,453 M).
• Net Capital Expenditures: $565‑$605 M (incl. $100‑$140 M for growth‑oriented network expansion).
• Free Cash Flow (including/excluding network projects): up 0‑10%.

Notable Quotes

“Our Canadian business is firing on all cylinders, achieving its best Internet subscriber growth in 13 years… The turnaround efforts in the U.S. are starting to take hold.” – Frédéric Perron, President & CEO

Materiality Assessment: Material – Neutral (the release contains full quarterly financial results and forward‑looking guidance that are material to investors, though the performance trends are mixed.)