Cogeco Stock Earnings Reports

Q1 results were in line with plan and management reaffirmed full-year guidance. Canada delivered stable revenue and modest EBITDA growth driven by Internet subscriber additions (including strong performance from the oxio brand), wireless momentum, and cost efficiencies from the company’s 3-year transformation. The U.S. (Breezeline) revenue and adjusted EBITDA declined year-over-year (revenue down ~9.9% in constant currency) but subscriber trends materially improved for a second consecutive quarter — management called the U.S. turnaround “working.” Key initiatives in the U.S. include selective, capital-efficient network upgrades (2.5 Gbps launch), simplified pricing, new sales channels, an oxio-like digital second brand launching next month, and quantified cost/revenue actions expected to meaningfully improve results in H2 FY26. Consolidated CapEx intensity rose to 22.2% (on track for guidance); free cash flow was down vs. prior year (partly due to last year’s one-time proceeds); net debt/EBITDA was ~3.2x and management targets the low-3x range. The board declared a quarterly dividend up 7% to $0.987/share. Near-term headwinds: competitive promotional activity (esp. around Black Friday) and continued U.S. legacy subscriber declines; management expects Q2 consolidated revenue and EBITDA to decline low-to-mid single digits (constant currency) driven by the U.S., with stronger U.S. performance expected in the second half. Management flagged that once leverage is reduced and FY27 cash flow visibility improves, opportunistic share buybacks are a realistic option alongside continued debt reduction.