Cogeco announces its Q1 2026 financial results
Executive Summary
- Cogeco Inc. reported Q1 FY 2026 results (three months ended Nov 30, 2025), showing a modest decline in revenue and profit versus the prior year.
- Adjusted EBITDA fell 2.5% to C$361.8 M; free cash flow decreased 14.1% to C$130.9 M.
- The Board declared a quarterly dividend of $0.987 per share, a 7.0% increase YoY.
Key Details
- Revenue: C$735.6 M (‑3.8% YoY; ‑4.5% in constant currency).
- Adjusted EBITDA: C$361.8 M (‑2.5% YoY; ‑3.1% in constant currency).
- Profit for the period: C$96.1 M (‑11.3% YoY).
- Profit attributable to owners: C$28.2 M, or $2.92 per diluted share (‑5.4% YoY).
- Adjusted profit attributable to owners: C$28.9 M, or $3.00 adjusted diluted EPS (↑6.3% YoY).
- Net capital expenditures: C$157.2 M (↑4.2% YoY); excluding network expansion projects C$138.4 M (↑7.2%).
- Free cash flow: C$130.9 M (‑14.1% YoY); free cash flow excl. network projects C$149.6 M (‑14.1% YoY).
- Cash flows from operating activities: C$174.6 M (‑16.3% YoY).
- Dividend: Quarterly dividend declared at $0.987 per share, up 7.0% from $0.922.
Segment performance
* U.S. telecommunications revenue: down 8.6% (‑9.9% constant currency) due to subscriber base contraction and higher proportion of Internet‑only services.
Canadian telecommunications revenue: stable; offset by lower video/wireline revenues but gains from high‑speed Internet additions.
Media segment revenue: up 8.1%, driven by digital advertising growth.
Operational highlights
* Network expansion added >4,000 homes passed in Q1 FY 2026.
* Canadian wireless operations now included within the Canadian telecommunications segment; comparative figures restated accordingly.
Credit outlooks * S&P and Moody’s improved their credit outlooks on Cogeco Communications following demonstrated capital discipline.
Notable Quotes
“Our consolidated financial results for the quarter were in line with our expectations,” said Frédéric Perron, President and CEO.
“We are turning around our U.S. subscriber trends, leading to improved financials in the second half of the fiscal year.”
All amounts are presented in Canadian dollars unless otherwise noted.