BCE Q3 2025 slides: Adjusted EPS beats expectations as strategic acquisitions drive growth

Introduction & Market Context

BCE Inc. (NYSE:BCE) presented its third-quarter 2025 results on November 6, showing positive momentum in key financial metrics despite mixed segment performance. The telecommunications giant reported that its adjusted earnings per share reached $0.79, exceeding analyst expectations of $0.71 by 11.27%, helping drive the stock up 3.57% to $23.19 in regular trading following the announcement.

The company’s quarterly performance was bolstered by strategic acquisitions and partnerships, particularly the Ziply Fiber acquisition completed on August 1, 2025, which contributed to overall revenue growth despite challenges in the media segment.

"All financials are tracking well to FY2025 guidance," BCE noted in its presentation, maintaining its full-year outlook despite macroeconomic pressures affecting parts of its business.

Quarterly Performance Highlights

BCE reported consolidated revenue of $6.05 billion for Q3 2025, representing a 1.3% year-over-year increase, though slightly below analyst expectations of $6.09 billion. The company’s adjusted EBITDA grew by 1.5% to $2.76 billion, maintaining a strong margin of 45.7%.

The company’s wireless segment showed improving metrics with postpaid mobile phone churn improving by 15 basis points year-over-year, marking the second consecutive quarter of improvement. BCE added 68,018 net mobile phone subscribers while mobile connected device net additions surged 48.5% year-over-year to 83,505.

As shown in the following operating metrics overview:

In the wireline segment, retail fiber-to-the-home (FTTH) internet service continued to drive growth with 65,239 net additions. Approximately 50% of internet households now subscribe to both mobility and internet service bundles, highlighting BCE’s successful cross-selling strategy.

The media segment faced headwinds with an 11.5% decline in advertising revenue due to lower demand for traditional advertising and radio station divestitures. However, digital video advertising revenue grew by 21% and Crave subscribers increased by 24% year-over-year to 4.3 million.

Strategic Initiatives

BCE highlighted several strategic initiatives aimed at strengthening its competitive position. The company completed the Ziply Fiber acquisition on August 1 and formed a Network FiberCo partnership with PSP Investments to accelerate fiber deployment.

The company also launched Wi-Fi 7 on its Bell Pure Fibre network, which it claims is Canada’s fastest internet service. Additionally, BCE announced a partnership with AST SpaceMobile to deliver Canadian-owned direct-to-cell service in 2026.

In the enterprise segment, BCE reported 34% year-over-year growth in AI-powered solutions revenue. The company launched Bell Cyber, unifying its cybersecurity capabilities, and began the internal rollout of Cohere’s secure agentic AI platform to team members.

For its media business, BCE launched streaming bundles combining Crave with Netflix and Disney+, secured long-term broadcast rights for Montreal Canadiens and Winnipeg Jets games, and formed strategic partnerships with iHeartMedia and Tubi.

Detailed Financial Analysis

BCE’s consolidated financial results showed positive momentum across key metrics, with particularly strong free cash flow growth of 20.6% year-over-year to $1.003 billion. Capital expenditures decreased by 6.6% to $891 million, consistent with the company’s planned spending reduction for 2025.

The following chart details BCE’s consolidated financial performance:

The company’s Canadian Communication & Technology Services (CTS) segment saw a slight 0.6% decline in both revenue and adjusted EBITDA compared to Q3 2024. However, total internet revenue increased by approximately 2%, and the segment maintained a strong adjusted EBITDA margin of 46.8%, up 10 basis points year-over-year.

The newly formed U.S. CTS segment, which includes Ziply Fiber operations from the August 1 acquisition date, contributed $160 million in revenue and $71 million in adjusted EBITDA, achieving a 44.4% margin. The segment added 4,700 retail internet subscribers, including 9,000 FTTP net additions.

Bell Media faced challenges with revenue declining 6.4% to $732 million and adjusted EBITDA falling 6.7% to $237 million year-over-year. Despite these headwinds, the company stated it remains on track to deliver positive revenue and adjusted EBITDA growth for the full fiscal year 2025.

BCE’s balance sheet showed available liquidity of $3.6 billion, including $460 million in cash as of September 30, 2025. The company’s net debt leverage ratio stood at approximately 3.8x, reflecting the impact of both the MLSE sale and Ziply Fiber acquisition. BCE noted that the MLSE net sale proceeds of approximately $4.2 billion were used toward the total cash financing requirement of approximately $5 billion for the Ziply Fiber acquisition.

Forward-Looking Statements

BCE reconfirmed all of its 2025 financial guidance targets, which were updated on August 7, 2025. The company expects revenue and adjusted EBITDA growth of 0% to 2%, capital intensity of approximately 15%, adjusted EPS growth of -13% to -10%, and free cash flow growth of 6% to 11%. The company also maintained its annualized common share dividend at $1.75.

CEO Mirko Bibic expressed optimism about BCE’s transformation during the earnings call, stating, "It is an exciting time here as we have reset Bell." He emphasized the company’s strategic positioning in the AI sector, noting, "Canada is having its AI moment, and it will be distinctly sovereign," and highlighting BCE’s unique AI solutions by stating, "We are one of one."

Looking ahead, BCE aims to achieve $1.5 billion in AI-powered solutions by 2028 and targets a leverage ratio of 3.5x by 2027. The company also plans to accelerate Ziply Fiber’s expansion in 2026, with the potential to reach a significant number of combined Ziply Fiber-Network FiberCo locations over the long term.

While BCE faces ongoing challenges from economic uncertainties, regulatory changes, and intense competition in wireless and fiber markets, its strategic initiatives and partnerships position the company to navigate these headwinds while pursuing long-term growth opportunities.

Full presentation:

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