The Canadian telecom trade has skilled some actual disruption in the previous few years. This has despatched telecom shares like BCE Inc. (TSX:BCE) in a tailspin. The longer term will not be as sure because it as soon as was, not only for BCE, however for telecoms generally. This has despatched these historically conservative lower-growth corporations on a quest for progress.
Let’s check out how BCE is doing. Is the telecom firm lastly turning the tide? Has BCE inventory on the TSX lastly hit all-time low?
BCE inventory: A lesson in endurance
The Canadian telecom trade contains landline telephone connections, cell phone connections, information companies, broadcast distribution, and the web. This enterprise was as soon as a really low-risk and predictable one.
In current occasions, nevertheless, telecom corporations have been thrown a curveball. Because the Authorities of Canada was in search of to decrease cell phone costs, policymakers elected to open the market as much as competitors. This despatched shockwaves by way of the telecom trade. At a time when telecoms spent a large sum of money (financed with debt, in fact) on 5G infrastructure, cellular costs fell, together with revenue margins and money flows.
This left corporations like BCE feeling like sitting geese – making an attempt to finance their massive debt hundreds whereas grappling with declining profitability. BCE’s inventory value under highlights the consequences of elevated competitors on the corporate – the inventory has fallen by greater than 50% since its 2022 highs. The truth is, it’s buying and selling at lows not seen for greater than 15 years.
Latest outcomes present indicators of enhancements
Within the fourth quarter of 2025, BCE reported adjusted internet earnings per share (EPS) of $0.69. This was 12.7% decrease than the identical interval final 12 months, but it surely was above expectations that have been calling for EPS of $0.63. That is the second consecutive quarter that BCE beat expectations, after falling quick within the prior two quarters.
The highlights of the quarter included a 2.3% enhance in adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA), in addition to a 100 basis-point enhance in its margin to 41.6%. Curiously, this was BCE’s highest This fall margin in 30 years. BCE skilled working momentum in its wi-fi enterprise, and web revenues elevated 16.6%. The rise in web revenues was pushed partly by the contribution from Ziply Fiber. Recall that Ziply was the U.S. acquisition that BCE accomplished final 12 months. It’s the biggest broadband and fibre web supplier within the US Pacific Northwest. In an underpenetrated US fibre market, BCE good points extra scale, whereas diversifying its working footprint and establishing a platform for additional growth.
BCE’s stability sheet
Earlier than I shut off my article, let’s check out BCE’s stability sheet and debt load. As of 2025, BCE’s internet debt leverage ratio was secure versus final 12 months. Because of this the Ziply Fiber acquisition was leverage impartial. This ratio is anticipated to lower to three.5 occasions by the top of 2027.
Lastly, BCE’s dividend is effectively supported and its dividend payout ratio is a wholesome 41%.
Wanting forward
For 2026, administration is guiding for EPS to lower between 5% to 11% to $2.50 to $2.65. However free money circulation has a significantly better outlook. Administration is anticipating free money circulation to extend between 4% and 10% to $3.3 billion to $3.5 billion.
The underside line
BCE’s enterprise is altering – a few of these modifications are for the higher, some are for the more severe. At the moment, BCE’s inventory value appears to solely be factoring within the worst. Thus, BCE inventory is buying and selling at a mere 13.5 occasions this 12 months’s anticipated earnings and 12.9 occasions subsequent 12 months’s anticipated earnings. I might undoubtedly counsel having a look at this attractively valued 5% yielder for revenue and long-term capital good points. Whereas there are not any ensures, BCE has an unlimited community, buyer base, and a restoration plan that’s leading to enhancements. The danger is greater than priced into BCE’s inventory value on the TSX.