BCE NYSE: BCE reported second-quarter 2026 revenue growth of 1.5%, adjusted EBITDA growth of 1%, and more than C$1 billion in free cash flow, as the telecommunications company continued investing in U.S. fiber expansion and AI data-center infrastructure.
President and CEO Mirko Bibic said the results reflected execution against the strategy outlined at the company’s investor day last year, combining cost discipline in its core Canadian telecom operations with investment in higher-growth platforms. BCE’s net debt leverage ratio improved to approximately 3.7 times at quarter-end, and management reaffirmed its target of reaching 3.5 times by the end of 2027.
“We’re focused on the operating drivers that support long-term revenue, EBITDA, and free cash flow growth,” Bibic said, citing improving wireless trends, fiber subscriber additions, expanding AI-related enterprise services and growth at Bell Media.
Wireless churn improves as BCE emphasizes profitability
BCE added 41,594 postpaid mobile-phone customers during the quarter. While the figure was modestly below the prior year amid a less active market and lower promotional intensity, postpaid churn improved by four basis points to 1.02%, its lowest quarterly level since the second quarter of 2023.
CFO Curtis Millen said wireless average revenue per user was down about 0.2% year over year after excluding the effect of G7-related revenue recorded in the prior-year period. However, monthly recurring charges, a component of ARPU, rose 0.7%, supported by higher-quality customer additions and improved transaction rates.
Bibic said industry pricing improved during the latter half of the quarter and continued to improve in July. He said BCE intends to remain disciplined on handset discounts and instead use device trade-in and residual-value programs to address customer affordability.
During the question-and-answer session, Bibic confirmed that BCE’s postpaid additions included a government enterprise contract. Excluding that contract, he said BCE’s wireless additions were in line with peers. He also said sporting events during the quarter did not create unusual effects in the wireless results.
Wireless product revenue declined 6.6%, which Millen attributed to the company’s focus on healthier product margins, fewer contracted handset sales, more bring-your-own-device activations and fewer device upgrades.
Fiber growth continues in Canada and U.S. build ramps
In Canada, BCE added 45,271 residential fiber-to-the-home internet subscribers. Total residential FTTH net additions, including Ziply Fiber in the U.S., were nearly 55,000. Internet revenue increased 14.2%, according to Bibic.
Video net additions were 8,741, compared with a loss of 15,851 a year earlier. Management attributed the improvement to streaming bundles and the rollout of hardware-free TV offerings.
At Ziply Fiber, BCE reported its highest quarterly residential net additions since acquiring the business, at 99,600. Revenue was broadly stable sequentially, as consumer and small-business fiber growth was offset by declines in legacy copper and voice services as well as wholesale pressure. Ziply’s adjusted EBITDA was C$95 million, representing a 40.6% margin.
Millen said the margin reflected increased subscriber-acquisition activity as fiber customer additions increased. Gross fiber additions rose 25% from the preceding quarter, he said. Management maintained that penetration rates in areas where Ziply has fiber remain consistent with its investment case.
Construction activity at Ziply is expected to accelerate in the second half of 2026. Permit submissions increased more than fourfold from April through June, while state-level approvals have been obtained for about 75% of the company’s 2027 location funnel. BCE said high-level engineering has been completed for approximately 60% of the 2026 and 2027 funnel, with contractor capacity and fiber supply secured.
Bibic said the build has entered a new phase outside of Ziply’s incumbent territory, requiring additional planning and approvals. BCE remains on track to reach 3 million fiber locations by the end of 2028, though it did not provide interim location targets.
AI Fabric projects advance as capital spending rises
BCE is continuing to build its Bell AI Fabric platform, which combines data-center infrastructure, connectivity, cloud, cybersecurity and AI services for enterprise and government customers. Combined revenue at Ateko and Bell Cyber rose 29% year over year in the second quarter.
The company said construction is progressing at its 300-megawatt Saskatchewan data-center facility, where piling has been completed and structural steelwork is underway. The first phase remains scheduled to enter operation in the first half of 2027. A Winnipeg facility is expected to begin service in the second half of 2026, while Merritt Phase II is expected in early 2027.
BCE said it has approximately 335 megawatts of contracted capacity and line of sight to 800 megawatts of power. Bibic said BCE’s medium-term plan through 2028 assumes 373 megawatts of contracted capacity, meaning the company is already about 90% contracted against that plan.
Capital expenditures rose C$317 million year over year, reflecting the Ziply buildout and AI Fabric investments. Millen said most of the approximately C$1.3 billion of expected 2026 capital spending for the Saskatchewan facility will occur in the second half, primarily because capital spending is recognized when cash is paid. He said the construction timeline has not changed and that equipment orders are in place.
BCE received just under C$100 million in tenant prepayments during the quarter, part of roughly C$400 million in setup fees and prepayments related to the Saskatchewan project. The amount was reflected in working capital and partially offset construction costs.
Bell Media posts growth on World Cup and Crave gains
Bell Media’s revenue increased 8.9% and adjusted EBITDA rose 3.8%, supported by FIFA World Cup coverage, the Formula One Canadian Grand Prix, program sales and subscriber growth at Crave.
Crave subscribers rose 23% year over year to 5.1 million, including 49% growth in direct-to-consumer streaming subscribers. Digital video advertising revenue climbed 39%, while total digital revenue increased 6%.
BCE said its World Cup coverage reached 30.5 million Canadians across TSN, RDS, CTV, Noovo and Crave. The tournament final in July averaged 6.4 million viewers, which the company described as the most-watched World Cup match ever in Canada.
Looking ahead, BCE reaffirmed all of its 2026 financial guidance targets. Management also said the pending sale of its Land Mobile Radio Networks service business is expected to further support deleveraging. Bibic said BCE has generated C$6.6 billion toward a previously stated C$7 billion objective for non-core asset-disposition proceeds.
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.
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