Q4 2025 Results & 2026 Financial Guidance Conference Call February 5, 2026 Safe harbour notice Certain statements made in this presentation are forward-looking statements. These forward-looking statements include, but are not limited to, statements relating to: BCE's 2026 guidance (including revenue, adjusted EBITDA, capital intensity, adjusted EPS, free cash flow and annualized common share dividend) and outlook; BCE's capital allocation priorities for 2026, including BCE's net debt leverage ratio expected ...

Revenue Growth and Financial Performance - BCE expects 2026 revenue growth driven by a focus on fibre, wireless, AI-powered solutions, and digital media[4] - BCE anticipates a free cash flow growth in 2026, with a compound annual growth rate (CAGR) expected between 2025 and 2028[4] - Bell Media is projected to see positive revenue and adjusted EBITDA growth in 2026[4] - The company plans to maintain an annualized common share dividend of $1.75 per share[23] - BCE's capital expenditures for 2026 are planned to support strategic priorities and growth initiatives[4] - The ongoing loss of traditional voice revenues challenges the company's financial performance and compels it to innovate service offerings[68] - Advertising revenue is uncertain due to economic conditions and competition from non-traditional digital services, which may lead to a loss of advertising revenue if viewership is not maintained[72] - The company faces risks from rising content costs and aggressive competition, which could negatively impact subscription levels and revenue streams[74] - Increased programming costs may lead to unplanned expenses, putting pressure on adjusted EBITDA and affecting viewership and subscription revenues[75] - The company is subject to various regulatory frameworks that influence its ability to compete and invest in network improvements[76] Cost Management and Operational Efficiency - The company aims for $1.5 billion in cost savings by 2028, with a focus on operational efficiencies and digital adoption[4] - The company is focused on cost transformation and reduction, but there is no assurance of success in meeting deleveraging targets[192] - The company’s cost reduction objectives depend on successful negotiations with suppliers, which may not always be guaranteed[194] - Timely cost reductions while transitioning to an IP-based network are contingent on disciplined decommissioning, which may face delays[194] Competitive Landscape and Market Pressures - Intense competition from both established and emerging players, including cloud and OTT service providers, is reshaping the market landscape and could adversely affect the company's financial performance[33] - Competitive pressures from national wireless operators and new entrants are intensifying, potentially impacting revenue and adjusted EBITDA[66] - The CRTC's decision to mandate aggregated wholesale high-speed access services could materially improve competitors' business positions, affecting the company's market strategy[67] - The competitive landscape is intensifying with new technologies and distribution platforms, which may affect the company's market share in advertising and subscriptions[73] - Failure to secure favorable agreements with BDUs could result in a loss of subscription revenue, further complicating the company's financial outlook[73] Regulatory Environment and Compliance - Regulatory decisions, particularly from the CRTC, are facilitating new competitors' entry into the market, impacting the company's ability to optimize scale and invest in networks[34] - Increased regulatory scrutiny and compliance obligations related to AI and data privacy may impose substantial operational challenges and costs[43] - Regulatory scrutiny over data privacy is increasing, with various laws imposing significant obligations and potential fines for non-compliance, impacting the company's operations[56] - The CRTC's decision requiring foreign streamers to contribute 5% of their Canadian broadcasting revenue to support Canadian content could impact competitive dynamics in the market[112] - The CRTC's examination of Bell's device unlocking practices may result in operational adjustments and compliance challenges for the company[120] Information Security and Risks - Information security threats are evolving, with increased complexity and frequency of attacks, which could disrupt operations and harm the company's reputation[49] - The company faces increased information security threats due to the use of AI technologies, which can be exploited by malicious actors to automate sophisticated attacks[50] - Remote and hybrid work arrangements have heightened the risk of unauthorized access to systems, contributing to a rise in ransomware and extortion-based attacks targeting critical infrastructure[52] - Information security breaches could lead to significant financial losses, including unauthorized access to sensitive information, resulting in lost revenue and diminished competitive advantages[53] - The company must continuously adapt its information security policies and controls to mitigate risks, but there is no assurance that these measures will be fully effective against all threats[54] Technological Transformation and AI Integration - The company is pursuing operational transformation to modernize infrastructure and simplify business processes, which is essential for effective competition and customer experience[154] - The deployment of next-generation technologies, including AI and machine learning, is critical for transforming networks and systems to improve service delivery and reduce costs[156] - The company has adopted a Responsible AI Policy to address AI-related risks, ensuring alignment with ethics, privacy, and security requirements[160] - AI technologies are being implemented across various business areas, including customer experience and operational efficiency, but they also increase exposure to business and reputational risks[161] - The company faces challenges in maintaining a competitive edge if it cannot effectively leverage AI technologies compared to competitors[166] Economic and External Factors - The company faces significant risks from adverse economic conditions, including trade wars and recessions, which could negatively impact customer spending and financial results[31] - Geopolitical events may exacerbate existing risks, leading to financial market volatility and increased operational costs[32] - The current global economic environment may lead to increased costs and delays in equipment and resources, impacting operations and business continuity[177] - Inflation may lead to higher input costs for equipment, products, and services, along with increased wage pressures[194] - The company faces potential operational cost increases due to tariffs, geopolitical events, and energy price fluctuations influenced by climate change policies[194] Capital and Investment Strategies - The company is facing unprecedented network capacity demands due to increased usage of content offerings and bandwidth-intensive applications[170] - Significant capital expenditures may be required to enhance network capacity and reduce congestion, especially in underserved areas[171] - The company’s ability to raise capital and generate cash flows is critical for funding capital expenditures and planned growth[182] - The formation of Network FiberCo aims to accelerate fiber infrastructure development, but its success is subject to various risks[180]

Core Insights - BCE Inc. reported strong financial results for Q4 2025 and the full year, achieving all financial guidance targets for 2025 and setting a clear strategy for 2026 [2][3][4] Financial Performance - Q4 2025 adjusted EBITDA grew by 2.3% to $2,664 million, with an adjusted EBITDA margin of 41.6%, the highest in over 30 years [4][21] - Net earnings for Q4 2025 increased by 25.1% to $632 million, with net earnings attributable to common shareholders rising by 28.9% to $594 million, or $0.64 per share [6][16] - For the full year 2025, operating revenues increased by 0.2% to $24,468 million, driven by a 0.6% rise in service revenue [15][17] Subscriber Growth and Churn - Wireless operating momentum continued with postpaid churn improving to 1.49%, marking the third consecutive quarter of year-over-year improvement [4][40] - In Q4 2025, BCE added 56,124 postpaid mobile phone subscribers, while retail fibre Internet net activations totaled 49,168, contributing to a 16.6% growth in Internet revenues [6][29] Strategic Initiatives - The company emphasized its four strategic priorities: customer focus, superior fibre and wireless networks, AI-powered enterprise solutions, and digital media expansion [3][4] - BCE's acquisition of Ziply Fiber on August 1, 2025, contributed significantly to its U.S. operations, enhancing its fibre-to-the-premise network [25][53] Media and Content Growth - Crave subscriptions surged by 26% in Q4 2025, reaching approximately 4.6 million, making it the most-watched quarter in Crave's history [60][67] - Bell Media's operating revenue for Q4 decreased by 3.4% to $804 million, primarily due to lower advertising revenue, but subscriber revenue increased by 1.5% [55][56] Capital Expenditures and Cash Flow - Capital expenditures in Q4 2025 rose by 36.8% to $1,317 million, reflecting investments in the U.S. and higher spending at Bell CTS Canada [22][23] - Free cash flow for Q4 2025 was $225 million, down 74.3% from the previous year, while full-year free cash flow increased by 10% to $3.2 billion [23][24] 2026 Financial Guidance - BCE expects revenue growth of 1% to 5% and adjusted EBITDA growth of 0% to 4% for 2026, with stable capital expenditures compared to 2025 [64][65]

Core Insights - Analysts project BCE will report quarterly earnings of $0.46 per share, a decline of 17.9% year over year, with revenues expected to reach $4.71 billion, an increase of 2.7% from the same quarter last year [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions to stock performance, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [2] Key Metrics Projections - Analysts forecast 'Mobile Phone Subscribers - Gross Subscriber Activations - Postpaid' to reach 490,392, down from 510,850 year-over-year [4] - The estimate for 'Mobile Phone Subscribers - Gross Subscriber Activations - Prepaid' is 163,314, compared to 169,621 in the same quarter last year [4] - Total 'Mobile Phone Subscribers - Gross Subscriber Activations' is expected to be 653,706, down from 680,471 year-over-year [5] - 'Mobile Phone Subscribers - Net Subscriber Activations - Postpaid' is projected at 52,029, compared to 56,550 last year [5] - 'Mobile Phone Subscribers - Net Subscriber Activations - Total' is expected to reach 49,906, down from 51,070 year-over-year [6] - 'Mobile Phone Subscribers - Subscribers End of Period - Postpaid' is projected at 9,577,384, slightly up from 9,530,436 last year [6] - 'Mobile Phone Subscribers - Subscribers End of Period - Prepaid' is expected to be 871,456, up from 758,138 year-over-year [7] - Total 'Mobile Phone Subscribers - Subscribers End of Period' is projected at 10,448,840, compared to 10,288,570 last year [7] - 'Mobile Phone Subscribers - Blended churn - Prepaid' is expected to be 5.9%, down from 6.2% year-over-year [8] - 'Mobile Connected Device Subscribers - Net Subscriber Activations' is projected at 95,998, down from 100,343 last year [8] - 'Mobile Connected Device Subscribers - Subscribers EOP' is expected to be 3,348,552, up from 3,043,430 year-over-year [9] - 'Retail high-speed Internet - Retail net subscriber activations' is projected at 25,195, down from 34,187 last year [9] Stock Performance - BCE shares have increased by 8.9% over the past month, outperforming the Zacks S&P 500 composite, which moved up by 1.8% [10]

Group 1: Appointment and Role - Reece Tolworthy has been appointed as a Senior Advisor for Aerospace & Defense at BCE Consulting, focusing on business development in the Middle East [1][2] - CEA Chairman Rick Michaels emphasized the strategic importance of Tolworthy's role and the benefits it brings to BCE Consulting's operations [1][3] Group 2: Expertise and Market Focus - Tolworthy has extensive experience in leading Sales and Marketing teams globally, particularly in complex aerospace and defense environments [1] - His focus will be on assisting clients in navigating the evolving market dynamics and regulatory considerations in the Middle East, especially as Saudi Arabia's influence grows [2] Group 3: Company Background - BCE Consulting specializes in advising clients on strategic, operational, and tactical issues to enhance revenue growth and profitability [3][4] - The firm has a strong presence in various industries, including aerospace, healthcare, and technology, and collaborates with senior leaders to address significant business challenges [4] Group 4: CEA Overview - CEA, founded in 1973, is a prominent investment banking service provider with over 1,000 transactions totaling more than $60 billion across 60 countries [6] - The company is recognized for its depth of industry knowledge and long-standing relationships, delivering innovative solutions to clients worldwide [6]

Group 1 - BCE Inc. is considered one of the best telecom stocks to invest in, with BMO Capital upgrading its rating from Market Perform to Outperform and maintaining a price target of C$37 [1] - The company's dividend has been derisked with reasonable free cash flow payout ratios, alleviating concerns for investors in the high-yield telecom sector [2] - BCE's total revenue increased by 1.3% in Q3 2025, driven by the acquisition of Ziply Fiber, while adjusted EBITDA rose by 1.5% with a margin of 45.7% [3] Group 2 - BCE Inc. provides a range of communication services including wireless, wireline, internet, streaming, and television to various customer segments in Canada [4]

Core Insights - The company has outlined its strategic priorities for the next three years, focusing on strengthening the balance sheet and enhancing shareholder returns [1] - A significant aspect of the strategy includes a dividend reset aimed at deleveraging and driving sustainable free cash flow growth [1] - The company is committed to optimizing its cost of capital while redesigning its growth platform for future development [1] Key Priorities - The company emphasizes a customer-first approach as one of its four key priorities, indicating a shift in momentum and energy [2]

Core Viewpoint - BCE Inc. has received a positive outlook following an upgrade from CIBC, despite mixed actions from institutional investors [1][5]. Group 1: Stock Performance and Market Position - BCE's stock is currently priced at $23.34, reflecting a slight decrease of approximately 0.90% or $0.211 [4]. - The stock has fluctuated between $23.15 and $23.59 on the day, with a one-year high of $27.28 and a low of $20.28 [4]. - BCE's market capitalization is approximately $21.57 billion, with a trading volume of 2,849,599 shares [4]. Group 2: Institutional Investor Actions - CIBC upgraded BCE's stock from Neutral to Outperform, indicating a positive future outlook [1][5]. - The Bank of Nova Scotia reduced its stake in BCE by 8.9%, selling 1,640,322 shares, leaving it with 16,784,340 shares valued at $372 million [2]. - Caisse DE Depot ET Placement DU Quebec increased its stake in BCE by 36.1%, acquiring an additional 6,697,900 shares, bringing its total to 25,249,300 shares valued at $579 million [3]. - Vanguard Group Inc. also raised its position in BCE by 1.4% during the same period [3].

Core Insights - Macro Trading Factory is a macro-driven service managed by experienced investment managers aiming to outperform the SPY on a risk-adjusted basis through two portfolios: "Funds Macro Portfolio" and "Rose's Income Garden" [1] - The service is designed for individuals with limited time, knowledge, or desire to manage their own portfolios, providing a simple yet risk-oriented market exposure [1] Portfolio Offerings - The two portfolios offered by Macro Trading Factory span across all sectors, providing a hassle-free and easy-to-understand investment solution [2] - Both portfolios are structured to deliver performance in a relaxed manner, catering to different investor needs [1][2] Market Positioning - Macro Trading Factory positions itself as a service for those seeking a less volatile investment approach while still engaging with market opportunities [1]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1][3] - The investment group targets high-yield, dividend growth opportunities, aiming for dividend yields up to 10% [3] - Value stocks may remain undervalued for extended periods until market sentiment shifts, similar to overvalued stocks [2]