BCE lifts margins to multi-decade highs, pivots to U.S. fibre and AI as 2026 execution year

BCE reported fourth-quarter and full-year 2025 results that show a company moving from strategy-setting into operational execution. The quarter produced a meaningful expansion in adjusted EBITDA margin and higher net earnings on a year-over-year basis, while adjusted net earnings and adjusted EPS softened. Management credited margin gains to tighter cost control, lower product sales, workforce reductions and efficiencies from automation, and it highlighted the contribution from the August acquisition of Ziply Fiber in the U.S. as a near-term earnings and subscriber growth driver. Wireless operating trends were steady: postpaid net additions remained positive and churn improved sequentially, while retail fibre subscriber activations benefitted from the Ziply footprint even as Canadian fibre additions moderated. Digital and AI initiatives also moved the needle—AI-powered solutions revenue accelerated and Crave streaming subscriptions jumped, supporting Bell Media’s digital transition despite advertising headwinds. Capital spending rose sharply in the quarter as BCE accelerated U.S. fibre investment, which compressed quarter-level free cash flow but underpinned full-year free cash flow growth. For 2026 the company issued guidance that assumes revenue and adjusted EBITDA growth, stable capital spending versus 2025, lower capital intensity, a continued focus on free cash flow generation and a planned exclusion of taxes on significant divestitures from the free cash flow metric. Management warned that adjusted EPS will likely be pressured by higher depreciation, interest and lower tax adjustments. The report also re-emphasized regulatory and macro risks—including Canadian regulatory decisions that previously constrained domestic fibre expansion—that will influence capital allocation and rollout tempo. In short, BCE’s results show a business that has improved profitability metrics and is reinvesting selectively to capture U.S. fibre and enterprise AI opportunities, while accepting near-term volatility in quarterly cash flow and EPS as it executes the plan.