-- Ongoing positive year-over-year revenue and adjusted EBITDA performance
in Canada, along with a re-acceleration of Canadian Internet subscriber
growth
-- New TV streaming solution launched for the U.S.
-- Entering the third year of our transformation program, focused on revenue
generation opportunities and cost efficiencies
-- Introducing fiscal 2027 financial guidelines
-- Increasing quarterly dividend by 2% to $1.007 per share, representing our
23rd consecutive year of dividend growth
MONTREAL, Oct. 28, 2026 /CNW/ -- Today, Cogeco Inc. (TSX: CGO) ("Cogeco" or the "Corporation") announced its financial results for the fourth quarter ended August 31, 2026 and is issuing its fiscal 2027 financial guidelines.
"Our Canadian business continued to perform in the quarter, with a re-acceleration of our Internet subscriber growth and year-on-year adjusted EBITDA growth for a fourth consecutive quarter", said Frédéric Perron, President and CEO. "We are particularly pleased with our wireless and oxio sales, and see promising growth potential in both areas", continued Mr. Perron.
"In the U.S., we continue to operate in a challenging competitive environment, resulting in elevated customer losses in the quarter. To help offset these headwinds, we are focusing on several initiatives to improve our performance in the U.S., including wireless, our new welo digital brand, a new TV streaming product and new sales channels.
"At Cogeco Media, we are pleased with our strong radio audience engagement which reached 4.6 million listeners per week.
"Building on the good progress made in our transformation program, the third year will focus on revenue generation and cost efficiencies, supported by AI and digital initiatives."
Consolidated financial highlights
Three months ended Change inconstant August 31 2026 2025 Change currency (1) (In thousands of $ $ % % Canadian dollars, except % and per share data) (unaudited) Revenue 713,887 731,367 (2.4) (3.3) Adjusted EBITDA (1) 342,283 357,084 (4.1) (5.0) Profit for the period 81,508 76,197 7.0 Profit for the period attributable to owners of the Corporation 18,003 16,483 9.2 Adjusted profit attributable to owners of the Corporation (1)(2) 19,643 20,491 (4.1) Cash flows from operating activities 361,300 266,738 35.5 Free cash flow (1) 98,397 101,596 (3.1) (3.6) Free cash flow, excluding network expansion projects (1) 125,228 159,414 (21.4) (21.9) Acquisition of property, plant and equipment 163,118 159,222 2.4 Net capital expenditures (1)(3) 162,930 155,871 4.5 3.5 Net capital expenditures, excluding network expansion projects (1) 136,099 98,053 38.8 37.3 Diluted earnings per share 1.87 1.71 9.4 Adjusted diluted earnings per share (1)(2) 2.04 2.12 (3.8)
Operating results
For the fourth quarter of fiscal 2026 ended on August 31, 2026:
-- Revenue decreased by 2.4% to $713.9 million. On a constant currency
basis(1), revenue decreased by 3.3% due to a decline in the American
telecommunications segment and in the media activities, offset in part by
revenue growth in the Canadian telecommunications segment, as explained
below:
-- American telecommunications' revenue decreased by 4.6%, or 6.6% in
constant currency, mainly due to a lower subscriber base compared
to the previous year, and to a higher proportion of customers
subscribing to Internet-only services, as well as a competitive
environment.
-- Revenue in the media activities decreased by 18.9%, as the
traditional radio advertising market remains challenging.
-- Canadian telecommunications' revenue increased by 0.6%, mainly
resulting from the cumulative effect of high-speed Internet
service additions over the past year, offset in part by a decline
in video and wireline phone service subscribers, as an increasing
proportion of customers subscribe to Internet-only services, as
well as a competitive environment.
-- Adjusted EBITDA decreased by 4.1% to $342.3 million. On a constant
currency basis, adjusted EBITDA decreased by 5.0%, mainly due to lower
revenue in the American telecommunications segment, offset in part by
cost reduction initiatives and operating efficiencies across the
Corporation as a result of its ongoing three-year transformation program.
-- American telecommunications' adjusted EBITDA decreased by 7.7%, or
9.6% in constant currency.
-- Canadian telecommunications' adjusted EBITDA increased by 3.3%(4),
or 3.4%(4) in constant currency.
-- Profit for the period amounted to $81.5 million, of which $18.0 million,
or $1.87 per diluted share, was attributable to owners of the Corporation
compared to $76.2 million, $16.5 million, and $1.71 per diluted share,
respectively, in the comparable period of fiscal 2025. The increases in
profit for the period and profit attributable to owners of the
Corporation resulted mainly from lower depreciation and amortization
expense, financial expense, and restructuring costs related to the
Corporation's transformation initiatives, partly offset by lower adjusted
EBITDA, higher income tax expense, and non-cash pre-tax impairment
charges of $5.2 million in connection with asset write-offs following a
change in strategy.
-- Excluding the non-cash impairment charges and certain other
elements, adjusted profit attributable to owners of the
Corporation(2) was $19.6 million, or $2.04 per diluted share(2), a
decrease compared to $20.5 million, or $2.12 per diluted share,
last year.
-- Net capital expenditures were $162.9 million, an increase of 4.5%
compared to $155.9 million in the same period of the prior year. In
constant currency, net capital expenditures(1) were $161.3 million, an
increase of 3.5% compared to last year, mainly due to higher capital
spending related to customer premise equipment, partly offset by the
timing of certain initiatives, both in the Canadian telecommunications
segment, while net capital expenditures in the American
telecommunications segment remained stable.
-- Net capital expenditures in connection with network expansion
projects were $26.8 million, or $26.7 million in constant
currency(1), compared to $57.8 million in the same period of the
prior year. Excluding network expansion projects, net capital
expenditures were $136.1 million, an increase of 38.8% compared to
$98.1 million in the same period of the prior year. In constant
currency, net capital expenditures, excluding network expansion
projects(1) were $134.6 million, an increase of 37.3% compared to
last year.
-- Acquisition of property, plant and equipment increased by 2.4% to
$163.1 million, mainly resulting from higher capital spending.
-- Free cash flow decreased by 3.1%, or 3.6% in constant currency, and
amounted to $98.4 million, or $97.9 million in constant currency(1),
mainly due to lower adjusted EBITDA, higher net capital expenditures, and
higher current income taxes, partly offset by lower acquisition,
integration, restructuring and other costs, mostly due to lower
restructuring costs related to the Corporation's transformation
initiatives, lower financial expense, and higher proceeds from disposals
of property, plant and equipment. Free cash flow, excluding network
expansion projects, decreased by 21.4%, or 21.9% in constant currency,
and amounted to $125.2 million, or $124.6 million in constant currency.
-- Cash flows from operating activities increased by 35.5% to $361.3 million,
mostly due to higher cash inflows from working capital, primarily due to
the timing of payments made to suppliers and the collection of trade and
other receivables.
-- At its October 28, 2026 meeting, the Board of Directors of Cogeco
declared a quarterly dividend of $1.007 per share, an increase of 2.0%
compared to $0.987 per share last year.
Fiscal 2027 financial guidelines
Cogeco is issuing its fiscal 2027 financial guidelines, as presented below. As we enter the third year of our transformation program, we will focus on revenue generation and cost efficiencies, supported by AI and digital initiatives.
On a constant currency basis, the Corporation expects fiscal 2027 revenue to decrease by a low to mid single digit percentage, reflecting a combination of growth in the Canadian customer base, offset by pricing pressures and subscriber losses in the U.S. due to a highly competitive and promotional market. On a constant currency basis, fiscal 2027 adjusted EBITDA is expected to decrease by a mid to high single digit percentage, due to lower revenue, partly offset by transformation-driven cost efficiencies.
We expect a lower level of capital expenditures than the previous year, ranging from $430 to $480 million. The reduction results from operational efficiencies and the near completion of many network expansion and upgrade projects.
On a constant currency basis, free cash flow is expected to be between $505 and $555 million, due to lower adjusted EBITDA, higher financial expense and current income tax, partly offset by lower net capital expenditures.
The following table outlines the Corporation's fiscal 2027 financial guidelines ranges compared to fiscal 2026 actual results, on a constant currency and consolidated basis:
October 28, 2026
Fiscal 2027financial (i) Fiscal 2026 actual
guidelines(constant
currency)
(In millions of Canadian $ $
dollars, except %)
Low to mid single digit
Revenue % decline (ii) 2,887
Mid to high single digit
Adjusted EBITDA % decline (ii) 1,398
Net capital expenditures $430 to $480 564
Free cash flow $505 to $555 (iii) 553
(i) Financial guidelines are presented on a constant currency
basis and are obtained by translating expected financial
results denominated in US dollars at the foreign exchange
rates of the prior fiscal year. Fiscal 2027 financial
guidelines are based on a USD/CAD constant exchange
rate of 1.3865 USD/CAD.
(ii) Compared to fiscal 2026.
(iii) On a constant currency basis, current income tax expense
is assumed to range from $30 to $60 million, while
financial expense is assumed to range from $250 to
$300 million.
These financial guidelines, including the various assumptions underlying them, contain forward-looking statements concerning the business outlook for Cogeco, and should be read in conjunction with the "Forward-looking statements" section of this press release.
The Corporation presents its fiscal 2027 financial guidelines on a constant currency basis and believes this presentation enables an improved understanding of the Corporation's underlying financial performance, undistorted by the effects of changes in foreign currency rates. Measures on a constant currency basis are considered non-IFRS Accounting Standards measures and ratios, and do not have any standardized meaning prescribed by IFRS Accounting Standards and therefore, may not be comparable to similar measures presented by other companies. The financial guidelines exclude the impact from possible business acquisitions and/or disposals, and do not take into consideration unusual adjustments that could result from regulatory environment changes (including changes to Internet wholesale rates), and/or unforeseeable legal matters or non-recurring items. Financial expense assumptions do not take into consideration any potential impact of gains/losses on debt modification and/or extinguishment, including on repurchase of debt, if any, as those would be excluded from our free cash flow definition.
(1) Adjusted EBITDA and net capital expenditures are total
of segments measures. Constant currency basis, adjusted
profit attributable to owners of the Corporation,
net capital expenditures, excluding network expansion
projects, free cash flow and free cash flow, excluding
network expansion projects are non-IFRS Accounting
Standards measures. Change in constant currency and
adjusted diluted earnings per share are non-IFRS Accounting
Standards ratios. These indicated terms do not have
standardized definitions prescribed by IFRS(R) Accounting
Standards, as issued by the International Accounting
Standards Board ("IFRS Accounting Standards") and
therefore, may not be comparable to similar measures
presented by other companies. For more information
on these financial measures, please consult the "Non-IFRS
Accounting Standards and other financial measures"
section of this press release.
(2) Excludes the impact of non-cash impairment charges,
acquisition, integration, restructuring and other
costs, and gains/losses on debt modification and/or
extinguishment, which include gains/losses on repurchase
of debt (all net of tax and non-controlling interest).
(3) Net capital expenditures exclude non-cash acquisitions
of right-of-use assets and the purchases, and related
borrowing costs, of spectrum licences, and are presented
net of government subsidies, including the utilization
of those received in advance.
(4) Following a full-scale launch of its Canadian wireless
service offering across the majority of its operating
footprint in Québec and Ontario during the first
quarter of fiscal 2026, the Corporation changed the
presentation of its reportable segments by including
the Canadian wireless operations within its Canadian
telecommunications segment. Cogeco Mobile's operations
were previously included within "Corporate and eliminations"
during the start-up phase. Comparative figures were
restated to conform to the current presentation.
Financial highlights
Three months Change Change
and years inconstant inconstant
ended August
31 2026 2025 Change currency (1)(2) 2026 2025 Change currency (1)(2)
(In thousands $ $ % % $ $ % %
of Canadian
dollars,
except % and
per
share data)
Operations
Revenue 713,887 731,367 (2.4) (3.3) 2,886,734 3,008,101 (4.0) (3.7)
Adjusted
EBITDA (2) 342,283 357,084 (4.1) (5.0) 1,398,139 1,452,901 (3.8) (3.5)
Acquisition,
integration,
restructuring
and other
costs (3) 5,158 17,298 (70.2) 15,456 25,290 (38.9)
Impairment of
assets 5,196 (132) -- 2,254,622 2,433 --
Profit (loss)
for the
period 81,508 76,197 7.0 (1,500,962) 335,165 --
Profit (loss)
for the
period
attributable
to owners
of the
Corporation 18,003 16,483 9.2 (340,494) 84,968 --
Adjusted
profit
attributable
to owners of
the
Corporation
(2)(4) 19,643 20,491 (4.1) 98,956 91,187 8.5
Cash flow
Cash flows
from
operating
activities 361,300 266,738 35.5 1,028,274 1,126,848 (8.7)
Free cash flow
(2) 98,397 101,596 (3.1) (3.6) 552,856 514,387 7.5 7.7
Free cash
flow,
excluding
network
expansion
projects
(2) 125,228 159,414 (21.4) (21.9) 634,071 622,862 1.8 2.0
Acquisition of
property,
plant and
equipment 163,118 159,222 2.4 566,305 599,294 (5.5)
Net capital
expenditures
(2)(5) 162,930 155,871 4.5 3.5 563,896 591,398 (4.7) (4.3)
Net capital
expenditures,
excluding
network
expansion
projects (2) 136,099 98,053 38.8 37.3 482,681 482,923 (0.1) 0.3
Per share data
(6)
Earnings
(loss) per
share
Basic 1.90 1.74 9.2 (35.92) 8.94 --
Diluted (7) 1.87 1.71 9.4 (35.92) 8.81 --
Adjusted
diluted
(2)(4)(7) 2.04 2.12 (3.8) 10.26 9.46 8.5
Dividends per
share 0.987 0.922 7.0 3.948 3.688 7.0
(1) Key performance indicators presented on a constant
currency basis are obtained by translating financial
results from the current periods denominated in US
dollars at the foreign exchange rates of the comparable
periods of the prior year. For the three-month period
and year ended August 31, 2025, the average foreign
exchange rates used for translation were 1.3722 USD/CAD
and 1.3962 USD/CAD, respectively.
(2) Adjusted EBITDA and net capital expenditures are total
of segments measures. Adjusted profit attributable
to owners of the Corporation, free cash flow, free
cash flow, excluding network expansion projects and
net capital expenditures, excluding network expansion
projects are non-IFRS Accounting Standards measures.
Change in constant currency and adjusted diluted earnings
per share are non-IFRS Accounting Standards ratios.
These indicated terms do not have standardized definitions
prescribed by IFRS Accounting Standards and therefore,
may not be comparable to similar measures presented
by other companies. For more information on these
financial measures, please consult the "Non-IFRS Accounting
Standards and other financial measures" section of
this press release.
(3) For the three-month periods and years ended August
31, 2026 and 2025, acquisition, integration, restructuring
and other costs were mainly related to additional
restructuring costs incurred in connection with the
Corporation's transformation initiatives, and costs
associated with the configuration and customization
related to cloud computing and other arrangements.
In addition, for the year ended August 31, 2025, these
costs were partly offset by a $13.8 million non-cash
gain recognized during the first quarter of fiscal
2025 in connection with a sale and leaseback transaction.
(4) Excludes the impact of non-cash impairment charges,
acquisition, integration, restructuring and other
costs, and gains/losses on debt modification and/or
extinguishment, which include gains/losses on repurchase
of debt (all net of tax and non-controlling interest).
(5) Net capital expenditures exclude non-cash acquisitions
of right-of-use assets and the purchases, and related
borrowing costs, of spectrum licences, and are presented
net of government subsidies, including the utilization
of those received in advance.
(6) Per multiple and subordinate voting share.
(7) For the year ended August 31, 2026, the weighted average
number of diluted multiple and subordinate voting
shares used for the calculation of the adjusted diluted
earnings per share included 168,561 share-based compensation
units (comprising incentive share units and performance
share units). As for the calculation of the diluted
loss per share, these share-based compensation units
were deemed to be anti-dilutive due to the loss incurred
during the year and therefore were excluded from the
calculation.
As at August 31, 2026 August 31, 2025
(In thousands of Canadian dollars) $ $
Financial condition
Cash 89,487 75,577
Total assets 7,590,766 9,786,463
Long-term debt
Current 67,851 45,543
Non-current 4,433,895 4,664,731
Net indebtedness (1) 4,448,081 4,685,722
Equity attributable to owners of the
Corporation 491,649 862,951
(1) Net indebtedness is a capital management measure.
For more information on this financial measure, please
consult the "Non-IFRS Accounting Standards and other
financial measures" section of the Corporation's MD&A
for the year ended August 31, 2026, available on SEDAR+
at www.sedarplus.ca.
Forward-looking statements
Certain statements contained in this press release constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Cogeco Inc.'s ("Cogeco" or the "Corporation") future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee"; "ensure" or other similar expressions concerning matters that are not historical facts. Particularly, statements relating to the Corporation's financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, purchase price allocation, tax rates, weighted average cost of capital, performance and business prospects and opportunities, which Cogeco believes are reasonable as of the current date. Refer in particular to the "Corporate objectives and strategy" section of the Corporation's fiscal 2026 annual Management's Discussion and Analysis ("MD&A"), and the "Fiscal 2027 financial guidelines" presented in the current press release for a discussion of certain key economic, market and operational assumptions we have made in preparing forward-looking statements. While management considers these assumptions to be reasonable based on information currently available to the Corporation, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco currently expects. These factors include risks such as general market conditions, competitive risks (including changing competitive and technology ecosystems and disruptive competitive strategies adopted by our competitors), business risks, regulatory risks (including changes in laws or government policies and the impact of regulatory decisions, such as those of the Canadian Radio-television and Telecommunications Commission ("CRTC") in Canada or of the Federal Communications Commission in the U.S.), tax risks, technology risks (including the evolution of technology, the rapid advancement of artificial intelligence technologies, and the threat of cybersecurity), financial risks (including the ability to execute debt refinancings, increasing interest rates and variations in currency), economic conditions (including inflation, trade tariffs, reduced consumer spending and increasing costs), talent management risks (including the highly competitive market for a limited pool of digitally skilled employees), human-caused and natural threats to the Corporation's network (including increased frequency of extreme weather events, physical sabotage, and deliberate vandalism such as copper theft with the potential to disrupt operations), infrastructure and systems, sustainability and sustainability reporting risks, ethical behavior risks, ownership risks, litigation risks and public health and safety, many of which are beyond the Corporation's control. Moreover, the Corporation's radio operations are significantly exposed to advertising budgets from the retail industry, which can fluctuate due to increased competition and changing economic conditions. For more exhaustive information on these risks and uncertainties, the reader should refer to the "Uncertainties and main risk factors" section of the Corporation's fiscal 2026 annual MD&A. These factors are not intended to represent a complete list of the factors that could affect Cogeco and future events and results may vary significantly from what management currently foresees. If the market value of our assets or if management's estimates of forecasted results deteriorate, we may be required to recognize material non-cash charges relating to impairment of assets. The reader should not place undue importance on forward-looking information contained in this press release and the forward-looking statements contained in this press release represent Cogeco's expectations as of the date of this press release (or as of the date they are otherwise stated to be made) and are subject to change after such date. While management may elect to do so, the Corporation is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information at any particular time, whether as a result of new information, future events or otherwise, except as required by law.
All amounts are stated in Canadian dollars unless otherwise indicated. This press release should be read in conjunction with the MD&A included in the Corporation's fiscal 2026 Annual Report, the Corporation's consolidated financial statements and the notes thereto prepared in accordance with IFRS(R) Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") for the year ended August 31, 2026.
Non-IFRS Accounting Standards and other financial measures
This press release includes references to non-IFRS Accounting Standards and other financial measures used by Cogeco. These financial measures are reviewed in assessing the performance of Cogeco and used in the decision-making process with regard to its business units.
Reconciliations between non-IFRS Accounting Standards and other financial measures to the most directly comparable IFRS Accounting Standards measures are provided below. Certain additional disclosures for non-IFRS Accounting Standards and other financial measures used in this press release have been incorporated by reference and can be found in the "Non-IFRS Accounting Standards and other financial measures" section of the Corporation's MD&A for the three-month period and year ended August 31, 2026, available on SEDAR+ at www.sedarplus.ca. The following non-IFRS Accounting Standards measures are used as a component of Cogeco's non-IFRS Accounting Standards ratios.
Specified non-IFRS Accounting Used in the component of the following
Standards measures non-IFRS Accounting
Standards ratios
Adjusted profit attributable to owners Adjusted diluted earnings per share
of the Corporation
Constant currency basis Change in constant currency
For the three-month period and year ended August 31, 2026, the average foreign exchange rates used for translation were 1.4015 USD/CAD and 1.3865 USD/CAD, respectively. Financial measures presented on a constant currency basis for the three-month period and year ended August 31, 2026 are translated at the average foreign exchange rate of the comparable periods of the prior year, which were 1.3722 USD/CAD and 1.3962 USD/CAD, respectively.
Constant currency basis and foreign exchange impact reconciliation
Consolidated
Three months 2026 2025 Change
ended August
31
(In thousands Actual Foreign Inconstant Actual Actual Inconstant
of Canadian exchange currency currency
dollars,
except impact
percentages)
$ $ $ $ % %
Revenue 713,887 (6,728) 707,159 731,367 (2.4) (3.3)
Operating
expenses 371,604 (3,705) 367,899 374,283 (0.7) (1.7)
Adjusted
EBITDA 342,283 (3,023) 339,260 357,084 (4.1) (5.0)
Free cash flow 98,397 (495) 97,902 101,596 (3.1) (3.6)
Net capital
expenditures 162,930 (1,616) 161,314 155,871 4.5 3.5
Years ended 2026 2025 Change
August 31
(In thousands Actual Foreign Inconstant Actual Actual Inconstant
of Canadian exchange currency currency
dollars,
except impact
percentages)
$ $ $ $ % %
Revenue 2,886,734 9,093 2,895,827 3,008,101 (4.0) (3.7)
Operating
expenses 1,488,595 5,004 1,493,599 1,555,200 (4.3) (4.0)
Adjusted
EBITDA 1,398,139 4,089 1,402,228 1,452,901 (3.8) (3.5)
Free cash flow 552,856 1,074 553,930 514,387 7.5 7.7
Net capital
expenditures 563,896 1,809 565,705 591,398 (4.7) (4.3)
Canadian telecommunications segment
Three months 2026 2025 Change
ended August
31
(In thousands Actual Foreign Inconstant Actual (1) Actual Inconstant
of Canadian exchange currency currency
dollars,
except impact
percentages)
$ $ $ $ % %
Revenue 375,045 -- 375,045 372,931 0.6 0.6
Operating
expenses 172,243 (274) 171,969 176,569 (2.5) (2.6)
Adjusted
EBITDA 202,802 274 203,076 196,362 3.3 3.4
Net capital
expenditures 94,386 (284) 94,102 87,979 7.3 7.0
(1) Effective as of the first quarter of fiscal 2026,
the Canadian telecommunications segment includes the
Canadian wireless operations, which were previously
included within "Corporate and eliminations" during
the start-up phase. Comparative figures were restated
to conform to the current presentation, including
$3.8 million of operating expenses for the fourth
quarter of fiscal 2025, which were reclassified from
"Corporate and eliminations" to the Canadian telecommunications
segment.
Years ended 2026 2025 Change
August 31
(In thousands Actual Foreign Inconstant Actual (1) Actual Inconstant
of Canadian exchange currency currency
dollars, impact
except
percentages)
$ $ $ $ % %
Revenue 1,502,128 -- 1,502,128 1,495,308 0.5 0.5
Operating
expenses 700,123 400 700,523 715,494 (2.1) (2.1)
Adjusted
EBITDA 802,005 (400) 801,605 779,814 2.8 2.8
Net capital
expenditures 339,715 701 340,416 310,233 9.5 9.7
(1) Effective as of the first quarter of fiscal 2026,
the Canadian telecommunications segment includes the
Canadian wireless operations, which were previously
included within "Corporate and eliminations" during
the start-up phase. Comparative figures were restated
to conform to the current presentation, including
$10.9 million of operating expenses for fiscal 2025,
which were reclassified from "Corporate and eliminations"
to the Canadian telecommunications segment.
American telecommunications segment
Three months 2026 2025 Change
ended August
31
(In thousands Actual Foreign Inconstant Actual Actual Inconstant
of Canadian exchange currency currency
dollars,
except impact
percentages)
$ $ $ $ % %
Revenue 320,445 (6,728) 313,717 335,762 (4.6) (6.6)
Operating
expenses 164,049 (3,427) 160,622 166,327 (1.4) (3.4)
Adjusted
EBITDA 156,396 (3,301) 153,095 169,435 (7.7) (9.6)
Net capital
expenditures 67,304 (1,332) 65,972 66,295 1.5 (0.5)
Years ended 2026 2025 Change
August 31
(In thousands Actual Foreign Inconstant Actual Actual Inconstant
of Canadian exchange currency currency
dollars, impact
except
percentages)
$ $ $ $ % %
Revenue 1,290,850 9,093 1,299,943 1,415,185 (8.8) (8.1)
Operating
expenses 652,860 4,606 657,466 711,775 (8.3) (7.6)
Adjusted
EBITDA 637,990 4,487 642,477 703,410 (9.3) (8.7)
Net capital
expenditures 221,569 1,108 222,677 278,036 (20.3) (19.9)
Adjusted profit attributable to owners of the Corporation
Three months ended August 31 Years ended August 31
2026 2025 2026 2025
(In thousands of $ $ $ $
Canadian dollars)
Profit (loss) for the
period attributable
to owners
of the Corporation 18,003 16,483 (340,494) 84,968
Acquisition,
integration,
restructuring and
other
costs 5,158 17,298 15,456 25,290
Impairment of assets 5,196 (132) 2,254,622 2,433
Gain on repurchase of
debt (1) (4,289) -- (7,187) --
Tax impact for the
above items (1,639) (4,239) (387,115) (8,814)
Non-controlling
interest impact for
the above items (2,786) (8,919) (1,436,326) (12,690)
Adjusted profit
attributable to
owners of the
Corporation 19,643 20,491 98,956 91,187
(1) Included within financial expense.
Free cash flow and free cash flow, excluding network expansion projects reconciliations
Three months ended August 31 Years ended August 31
2026 2025 2026 2025
(In thousands of $ $ $ $
Canadian dollars)
Cash flows from
operating
activities 361,300 266,738 1,028,274 1,126,848
Changes in other
non-cash
operating
activities (98,739) (8,190) 43,399 (1,640)
Income taxes paid 2,931 5,669 63,363 15,451
Current income
taxes (16,152) (11,861) (32,391) (47,743)
Interest paid 74,128 77,297 259,286 277,573
Financial expense (58,668) (71,506) (239,970) (282,533)
Gain on
repurchase of
debt (1) (4,289) -- (7,187) --
Amortization of
deferred
transaction
costs and
discounts
on long-term
debt (1) 2,728 2,614 10,820 9,117
Net capital
expenditures (2) (162,930) (155,871) (563,896) (591,398)
Proceeds from
disposals of
property, plant
and equipment,
including sale
and leaseback
transactions 2,920 606 8,514 23,347
Repayment of
lease
liabilities (4,832) (3,900) (17,356) (14,635)
Free cash flow 98,397 101,596 552,856 514,387
Net capital
expenditures in
connection with
network
expansion
projects 26,831 57,818 81,215 108,475
Free cash flow,
excluding
network
expansion
projects 125,228 159,414 634,071 622,862
(1) Included within financial expense.
(2) Net capital expenditures exclude non-cash acquisitions
of right-of-use assets and the purchases, and related
borrowing costs, of spectrum licences, and are presented
net of government subsidies, including the utilization
of those received in advance.
Adjusted EBITDA reconciliation
Three months ended August 31 Years ended August 31
2026 2025 2026 2025
(In thousands of $ $ $ $
Canadian dollars)
Profit (loss) for the
period 81,508 76,197 (1,500,962) 335,165
Income taxes 30,764 17,274 (272,969) 87,545
Financial expense 58,668 71,506 239,970 282,533
Impairment of assets 5,196 (132) 2,254,622 2,433
Depreciation and
amortization 160,989 174,941 662,022 719,935
Acquisition,
integration,
restructuring and
other
costs 5,158 17,298 15,456 25,290
Adjusted EBITDA 342,283 357,084 1,398,139 1,452,901
Comments