Cogeco Communications (COG) Q4 2026 Earnings Report
DE:COG Q4 2026 EPS Results
- Actual EPS
- EUR 1.31
- Consensus EPS
- EUR 1.55
- Beat/Miss
- Missed by -EUR 0.24
- One Year Ago EPS
- EUR 1.34
DE:COG Q4 2026 Revenue Results
- Actual Revenue
- EUR 444.36M
- Expected Revenue
- EUR 441.99M
- Beat/Miss
- Beat by +EUR 2.37M
- YoY Revenue Growth
- -1.86%
Earnings Announcement Details
- Quarter
- Q4 2026
- Date
- 10/28/2026
- Time
- After Close
- Conference Call
- Wednesday, October 28, 2026
Cogeco Communications's next earnings date is estimated for January 14, 2027, based on past reporting schedules.
Q4 2026 Earnings Call Audio
Q4 2026 Earnings Slide Deck
Q4 2026 Earnings Call Summary
The call had a mixed tone. Canadian operations, oxio, wireless, free cash flow, transformation efficiencies, AI deployment, and debt reduction were strong positives. However, these were offset by significant U.S. competitive pressures, elevated subscriber losses, expected fiscal 2027 declines in revenue and adjusted EBITDA, margin pressure, and a more modest dividend increase. Overall, the positive execution and cash generation were balanced against material U.S. challenges and weaker forward guidance.
For Fiscal 2027, in constant currency, Cogeco Communications expects revenue to decrease by a low to mid-single digit percentage and adjusted EBITDA to decrease by a mid to high single-digit percentage, while capital expenditures are expected to be between $425 million and $475 million and free cash flow is expected to be between $500 million and $550 million; financial expenses are assumed to be in the range of $250 million and $300 million, and current income tax is expected to be in the range of $30 million-$60 million. Canada revenue and EBITDA are expected to be relatively stable, working capital is expected to be positive, probably not by a huge extent, and leverage is expected to decline from 3.1x to around 3x by year-end; Cogeco Inc. issued the same financial guidelines as Cogeco Communications, except that net capital expenditures and free cash flows are slightly higher.
- Strong Canadian Operating PerformanceThe Canadian business delivered re-accelerating internet customer growth, continued strong wireless sales, growing year-on-year adjusted EBITDA, strong internet customer additions, and growing revenue in the fourth quarter.
- Oxio Brand MomentumOxio was recognized as the most loved telecom brand in Canada, sales are beating new internal records, and management said it sees no sign of slowing down. A significant portion of sales comes from referrals due to high customer satisfaction, with low marketing costs and good internet margins.
- Canadian Network Upgrade ProgressCogeco continued upgrading its Canadian high-speed internet network and now offers 1 G residential speeds across approximately 95% of its Canadian footprint and 2 G speeds across approximately 50%.
- Transformation Program Delivering EfficienciesThe company said it is hitting its CapEx and OpEx reduction targets under its transformation program. The program has supported costs, capital expenditures, and revenue, with the third year disproportionately focused on CapEx benefits.
- AI Deployment Across OperationsAI agents are deployed across most key operational functions, including customer operations, customer service, and revenue management. Management said the automation is beginning to produce benefits and is expected to provide some level of inflection during fiscal 2027, with benefits already included in guidance.
- Strong Free Cash Flow GenerationCogeco Communications delivered CAD 554 million of free cash flow in fiscal 2026, near the top end of its original guidance and representing 33% growth over three years. Full-year free cash flow also grew 7.3% on a constant-currency basis.
- Continued Dividend GrowthThe company increased the dividend for both Cogeco Communications and Cogeco Inc. by 2%, marking the 23rd consecutive year of dividend growth.
- Debt Reduction and Improved LeverageThe consolidated debt leverage ratio declined to 3.1x at the end of the fourth quarter from 3.2x in the prior quarter. Cogeco refinanced maturing debt with a new CAD 200 million Canadian tranche, repurchased $46 million of Term Loan B debt securities, and expects to continue using excess cash to repay debt.
- Breezeline Operational InitiativesDespite the challenging U.S. market, management said it is delivering significant operational improvements at Breezeline, including new sales channels, a second digital brand, and a newly launched over-the-top TV streaming solution.
- Welo Customer Satisfaction and MarginsWelo subscribers have given the service 4.9 stars out of 5 on Google, with a net promoter score as high as oxio's in Canada and described as among the highest management has seen in global telecom. Welo subscriber margins are as high as, or slightly higher than, Breezeline's margins.
- Capital Efficiency and Network Investment OptimizationFiscal 2027 capital expenditures are guided to CAD 425 million-CAD 475 million, driven by operational efficiencies and the near completion of many network expansion and upgrade projects. Management said it is comfortable reducing CapEx because of network-management synergies, vendor and team consolidation, and recent investments that have brought speeds beyond what is currently needed.
- Positive Working Capital OutlookManagement expects working capital to be positive in fiscal 2027, albeit not by a large amount, with some receivables related to subsidized bills expected to be collected during fiscal 2027 and fiscal 2028.
- Cogeco Media Audience EngagementCogeco Media's radio audience engagement reached 4.6 million listeners per week.
- Improved Customer Acquisition Economics in the U.S.After rationalizing promotional offers in the U.S., management said the company is achieving a better net present value per customer acquired, even though subscriber trends are weaker.
- Potential Deleveraging in Fiscal 2027Using the midpoint of the fiscal 2027 guidance, management expects consolidated debt leverage to decline from 3.1x to approximately 3.0x by year-end.
DE:COG Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 14, 2027 | 2027 (Q1) | 1.19- | 1.35 | ― | ― |
| Oct 28, 2026 | 2026 (Q4) | 1.551.31 | 1.34 | -1.91% (-0.03) | |
| Jul 15, 2026 | 2026 (Q3) | 1.391.50 | 1.16 | 29.12% (+0.34) | |
| Apr 09, 2026 | 2026 (Q2) | 1.301.25 | 1.21 | 3.16% (+0.04) | |
| Jan 14, 2026 | 2026 (Q1) | 1.321.35 | 1.37 | -1.40% (-0.02) | |
| Oct 29, 2025 | 2025 (Q4) | 1.241.34 | 1.5 | -11.06% (-0.17) | |
| Jul 15, 2025 | 2025 (Q3) | 1.221.16 | 1.57 | -25.71% (-0.40) | |
| Apr 09, 2025 | 2025 (Q2) | 1.071.21 | 1.41 | -14.03% (-0.20) | |
| Jan 13, 2025 | 2025 (Q1) | 1.311.37 | 1.49 | -8.15% (-0.12) | |
| Oct 31, 2024 | 2024 (Q4) | 1.281.50 | 1.4 | 7.31% (+0.10) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
