BCE (NYSE:BCE) executives used the company’s fourth-quarter 2025 earnings call to highlight what CEO Mirko Bibic called a “pivotal year” of deliberate change, including balance sheet actions, tighter capital allocation discipline, and the rollout of a long-term strategy first outlined at an October 2025 Investor Day. Management said those priorities are now driving operational momentum across fibre, wireless, enterprise services, and media, while the company issued 2026 guidance it characterized as aligned with its three-year financial framework.
Customer experience and wireless trends
Bibic said a “customer-first” approach is showing up in churn and service metrics. BCE reported postpaid churn improved for the third consecutive quarter, with Bibic citing a 17-basis-point year-over-year improvement in the fourth quarter. CFO Curtis Millen added postpaid churn improved 17 basis points to 1.49% in Q4.
On fourth-quarter wireless performance in Canada, Millen reported:
- Postpaid wireless net adds of 56,124, “essentially stable” year-over-year despite what he called a less active market.
- Mobile phone ARPU declined 0.8%, improving from a 2.7% decline in the prior-year quarter.
- Wireless service revenue declined 0.2% year-over-year, with consumer wireless service revenue stable in the quarter.
In the Q&A, Bibic said BCE is maintaining a disciplined approach to subscriber acquisition, including “sitting out” what he described as ARPU-dilutive promotions. He referenced aggressive peer promotions in January 2026 and said BCE chose not to match them, similar to its approach in January 2025. Responding to questions about industry conditions, Bibic said BCE’s view of wireless market growth remains “low single-digit,” reflecting a more mature market.
On ARPU, Bibic said that after Black Friday 2025 the company believed moderate ARPU growth by Q4 2026 was possible, but recent pricing activity in December 2025 and January 2026 “might be more difficult” for that outcome, while noting there were still 11 months left in the year.
Fibre growth in Canada and the U.S.
Management positioned fibre as a key growth driver. Bibic said BCE generated roughly 200,000 net new fibre subscriber additions in 2025, including U.S. operations, contributing to 8% internet revenue growth. In Canada during Q4, Millen reported 43,000 fibre-to-the-home internet net adds, which he called strong given a slowdown in BCE’s Canadian fibre build and “disciplined pricing.” Internet revenue in Bell CTS Canada increased about 2% in the quarter.
BCE also highlighted third-party network recognition, with Bibic noting Bell Pure Fibre and 5G wireless were again recognized by Ookla as Canada’s fastest networks, and Bell Pure Fibre was recognized as the fastest internet service in North America.
In the U.S., executives discussed Ziply Fiber, which is reported in Bell CTS U.S. Bibic said Ziply’s 2025 financial performance was in line with expectations shared at Investor Day and “remains above” the initial investment case outlined when the transaction was announced. Millen said Bell CTS U.S. posted Q4 total revenue of $232 million and EBITDA of $100 million, representing a 43.1% margin, with internet revenue growing in the double digits. Ziply added more than 6,000 net new fibre customers in Q4, according to Millen.
Bibic and Millen said the fibre build plan has been reprioritized toward higher-growth markets, with construction set to ramp meaningfully in the second half of 2026 and beyond. Bibic described a “deliberate reset” of Ziply’s build approach, shifting from upgrading existing copper footprints within its ILEC territory to building both within and beyond the ILEC footprint and outside its four core states, using the Network FiberCo partnership. Management reiterated a target of approximately 3 million fibre passings by the end of 2028.
On capital spending, Bibic said BCE manages capital intensity on a consolidated basis, expecting overall capital intensity to decline while total CapEx dollars remain stable. He said Canada CapEx is expected to decrease year-over-year while U.S. CapEx increases, within a stable consolidated envelope.
Enterprise strategy and AI-powered solutions
BCE said Bell Business Markets delivered “relatively stable” revenue and EBITDA in 2025, which management contrasted with broader pressure in enterprise telecom. Bibic said three AI-powered solutions businesses launched in 2025—Ateco, Bell Cyber, and Bell AI Fabric—collectively grew about 60% year-over-year to around CAD 700 million in revenue, supporting a goal of CAD 1.5 billion in AI-powered solutions revenue by 2028. In Q4, Millen said AI-powered solutions revenue grew 31%, driven by Ateco and Bell Cyber.
Bibic also highlighted Ateco’s acquisition of SDK Tech Services in December 2025, saying it adds data engineering and analytics expertise and improves BCE’s “full-stack AI solution set.” On Bell AI Fabric, he said the 2026 plan assumes monetization of a “relatively small portion” of existing capacity, while the company remains in active discussions on additional opportunities.
Millen added that BCE plans to enhance disclosure around the enterprise segment starting in the first quarter.
Media shift to digital and Crave growth
BCE executives said Bell Media delivered positive revenue and EBITDA growth for the full year 2025, consistent with their objective for the segment to be a stable and growing contributor. Bibic said digital revenues rose 6% year-over-year and represented 44% of total media revenue, while Crave ended 2025 with 4.6 million subscribers after adding more than 1 million subscribers during the year.
In Q4, Millen said Bell Media revenue declined 3.4%, while total advertising revenue fell 11.1% due to softness in traditional advertising and demand for non-sports programming, as well as the impact of divesting 45 radio stations in the first half of 2025. Subscriber revenue increased 1.5%, driven by D2C Crave and sports streaming. Millen said Crave’s direct streaming subscribers grew 65% year-over-year, and operating costs declined 1.5% due to lower content costs and efficiencies.
Looking ahead, Bibic said Bell Media started 2026 strongly, citing encouraging NFL viewership through the playoffs and the upcoming FIFA World Cup as an audience and monetization opportunity.
Financial results, balance sheet, and 2026 guidance
Millen said BCE achieved all 2025 financial guidance targets. For 2025, he reported service revenue increased 0.6%, adjusted EBITDA rose 0.7%, and adjusted EBITDA margin improved 20 basis points to 43.6%, which he said was the strongest annual margin result in more than 30 years. Adjusted EPS declined 7.9%, which management attributed primarily to higher depreciation and amortization and increased interest expense. Capital expenditures fell CAD 197 million to CAD 3.7 billion, with capital intensity of 15.1%.
Free cash flow increased 10% to CAD 3.2 billion, near the upper end of guidance, driven by higher EBITDA, lower CapEx, and improved working capital. Millen also said free cash flow after lease payments rose 17.5%.
For 2026, BCE guided to:
- Consolidated revenue growth of 1% to 5% and adjusted EBITDA growth of 0% to 4%.
- Adjusted EPS of CAD 2.50 to CAD 2.65 per share, down 5% to 11% year-over-year, driven largely by an expected CAD 250 million increase in depreciation and amortization and about CAD 100 million higher interest expense.
- Free cash flow growth of 4% to 10%, with CapEx expected to remain about CAD 3.7 billion and capital intensity at 15% or less.
Millen said BCE is targeting CAD 1.5 billion in cost savings by 2028 and expects the dividend payout ratio to remain within its 40% to 55% policy range. He also cited CAD 2.5 billion of available liquidity and a pension solvency surplus of CAD 4.4 billion at the start of 2026.
On leverage, Millen said net debt leverage was about 3.8x adjusted EBITDA at year-end 2025 (3.7x on a pro forma basis including a full year of Ziply). Nominal net debt was CAD 40.2 billion, slightly lower than the prior year, and BCE reiterated an expectation for leverage to trend down toward a 3.5x target by the end of 2027. Management also said asset sales are expected to play a role in balance sheet strengthening, with “files underway” and more detail to be provided as agreements are reached.
About BCE (NYSE:BCE)
BCE Inc (NYSE: BCE) is a Canadian communications, media and entertainment company that operates through its primary subsidiaries, including Bell Canada and Bell Media. As a large integrated telecommunications provider, BCE delivers a broad range of connectivity services and content to residential, business and wholesale customers across Canada. The company combines network infrastructure with media assets to offer bundled communications and entertainment solutions.
On the services side, BCE provides fixed-line and wireless voice services, mobile data, high-speed internet, fibre and broadband access, and television services through platforms such as Bell Fibe and Bell TV.
