Cogeco Communications announces its Q2 2026 financial results

Apr 09 2026 22:02 BST

Achieving continued positive year-on-year revenue and adjusted EBITDA performance in Canada
Wireless business continues to scale up sales in both countries
Successfully launched welo, a new U.S. digital challenger brand
Delivered positive Ohio Internet subscriber growth for a third consecutive quarter
3-year transformation program on track
Updated fiscal 2026 financial guidelines for revenue, adjusted EBITDA and capital spending on network expansion projects; free cash flows and net capital expenditures projections maintained
Cogeco on Forbes' list of best Canadian employers (#1 telecom)

MONTRÉAL , April 9, 2026 /CNW/ - Today, Cogeco Communications Inc. (TSX: CCA) ("Cogeco Communications" or the "Corporation") announced its financial results for the second quarter ended February 28, 2026.

"Our Canadian performance remains strong and resilient," stated Frédéric Perron, President and CEO. "While, in the U.S., we were expecting financial results to be more challenging in the first half of the year, I am pleased to report that we are still on track to deliver clear improvements in the second half.

"I am encouraged by the turnaround progress in our U.S. operations, including the scaling up of new sales channels and the launch of welo, our digital challenger brand. Those actions should enable us to grow in areas where we currently have market share upside.

"As we hit the halfway mark of our three-year transformation program, we are pleased with the advancements we have made to date, as well as additional opportunities leveraging new artificial intelligence-based tools.

"Our wireless businesses continue to scale up and give us a powerful new tool to compete with, in both countries," concluded Mr. Perron.

Consolidated financial highlights

Three months ended February 28	2026	2025	Change	Change in constant currency	⁽¹⁾
(In thousands of Canadian dollars, except % and per share data) (unaudited)	$	$	%	%
Revenue	693,560	732,426	(5.3)	(3.6)
Adjusted EBITDA ⁽¹⁾	337,745	356,499	(5.3)	(3.6)
Adjusted EBITDA margin ⁽¹⁾	48.7 %	48.7 %
Profit for the period	83,585	79,637	5.0
Profit for the period attributable to owners of the Corporation	80,006	74,674	7.1
Adjusted profit attributable to owners of the Corporation ⁽¹⁾⁽²⁾	83,217	80,693	3.1

Cash flows from operating activities	170,558	253,212	(32.6)
Free cash flow ⁽¹⁾	155,045	116,603	33.0	33.6
Free cash flow, excluding network expansion projects ⁽¹⁾	169,073	132,176	27.9	28.7

Acquisition of property, plant and equipment	123,626	159,371	(22.4)
Net capital expenditures ⁽¹⁾⁽³⁾	121,778	157,895	(22.9)	(20.9)
Net capital expenditures, excluding network expansion projects ⁽¹⁾	107,750	142,322	(24.3)	(22.3)

Capital intensity ⁽¹⁾	17.6 %	21.6 %
Capital intensity, excluding network expansion projects ⁽¹⁾	15.5 %	19.4 %

Diluted earnings per share	1.89	1.76	7.4
Adjusted diluted earnings per share ⁽¹⁾⁽²⁾	1.96	1.90	3.2

Operating results

For the second quarter of fiscal 2026 ended on February 28, 2026:

Revenue decreased by 5.3% to $693.6 million. On a constant currency basis⁽¹⁾, revenue decreased by 3.6% due to a decline in the American telecommunications segment, offset in part by revenue growth in the Canadian telecommunications segment, as explained below:
- American telecommunications' revenue decreased by 11.6%, or 8.1% in constant currency, mainly due to a lower subscriber base compared to the previous year, and to a higher proportion of customers subscribing to Internet-only services, as well as a competitive pricing environment.
- Canadian telecommunications' revenue increased by 0.9%, mainly resulting from the cumulative effect of high-speed Internet service additions over the past year, offset in part by an overall decline in video and wireline phone service subscribers, as an increasing proportion of customers subscribe to Internet-only services, as well as a competitive pricing environment.
Adjusted EBITDA decreased by 5.3% to $337.7 million. On a constant currency basis, adjusted EBITDA decreased by 3.6%, mainly due to lower revenue in the American telecommunications segment, offset in part by cost reduction initiatives and operating efficiencies across the Corporation as a result of our ongoing three-year transformation program.
- American telecommunications' adjusted EBITDA decreased by 11.7%, or 8.1% in constant currency.
- Canadian telecommunications' adjusted EBITDA increased by 2.3%⁽⁴⁾, or 2.0%⁽⁴⁾ in constant currency.
Profit for the period amounted to $83.6 million, of which $80.0 million, or $1.89 per diluted share, was attributable to owners of the Corporation compared to $79.6 million, $74.7 million, and $1.76 per diluted share, respectively, in the comparable period of fiscal 2025. The increases in profit for the period and profit attributable to owners of the Corporation resulted mainly from lower depreciation and amortization expense, financial expense, and acquisition, integration, restructuring and other costs, partly offset by lower adjusted EBITDA.
- Adjusted profit attributable to owners of the Corporation⁽²⁾ was $83.2 million, or $1.96 per diluted share⁽²⁾, compared to $80.7 million, or $1.90 per diluted share, last year.
Net capital expenditures were $121.8 million, a decrease of 22.9% compared to $157.9 million in the same period of the prior year. In constant currency, net capital expenditures⁽¹⁾ were $124.9 million, a decrease of 20.9% compared to last year, mainly due to lower capital spending related to customer premise equipment and the timing of certain initiatives in both the American and Canadian telecommunications segments.
- Net capital expenditures in connection with network expansion projects were $14.0 million, or $14.2 million in constant currency⁽¹⁾, compared to $15.6 million in the same period of the prior year. Excluding network expansion projects, net capital expenditures were $107.8 million, a decrease of 24.3% compared to $142.3 million in the same period of the prior year. In constant currency, net capital expenditures, excluding network expansion projects⁽¹⁾ were $110.6 million, a decrease of 22.3% compared to last year.
- Capital intensity was 17.6% compared to 21.6% last year. Excluding network expansion projects, capital intensity was 15.5% compared to 19.4% in the same period of the prior year.
Acquisition of property, plant and equipment decreased by 22.4% to $123.6 million, mainly resulting from lower spending.
Free cash flow increased by 33.0%, or 33.6% in constant currency, and amounted to $155.0 million, or $155.8 million in constant currency⁽¹⁾, mainly due to lower net capital expenditures, as well as lower current income taxes, mostly due to a retroactive adjustment of $14.8 million recognized following the reintroduction of accelerated tax depreciation measures in Canada, offset in part by lower adjusted EBITDA. Free cash flow, excluding network expansion projects, increased by 27.9%, or 28.7% in constant currency, and amounted to $169.1 million, or $170.1 million in constant currency.
Cash flows from operating activities decreased by 32.6% to $170.6 million, mostly due to the timing of payments made to suppliers and to lower adjusted EBITDA, as well as to higher income taxes paid.
At its April 9, 2026 meeting, the Board of Directors of Cogeco Communications declared a quarterly dividend of $0.987 per share, an increase of 7.0% compared to $0.922 per share in the comparable quarter of fiscal 2025.

Fiscal 2026 revised financial guidelines

Cogeco Communications revised its fiscal 2026 financial guidelines as issued on October 29, 2025.

In Canada, the Corporation's revenue and adjusted EBITDA performance remains in line with assumptions in its original guidelines. In the U.S., while Internet subscriber trends are improving, the Corporation faces higher pressure on its revenue than initially anticipated when guidelines were introduced in October 2025 due to the ongoing competitive pricing environment. Consequently, Cogeco Communications is lowering its revenue and adjusted EBITDA projections for fiscal 2026, while maintaining its free cash flow projection. Furthermore, while it does not expect a significant impact on its overall net capital expenditures, the Corporation expects lower capital spending in connection with network expansions projects than initially planned, due to the timing of certain initiatives. Accordingly, Cogeco Communications also revised its projections for net capital expenditures in connection with network expansion projects and capital intensity, excluding network expansion projects, while maintaining its projection for free cash flow, excluding network expansion projects.

The following table outlines the Corporation's fiscal 2026 revised financial guidelines ranges compared to fiscal 2025 actual results, on a constant currency and consolidated basis, as well as the previous financial guidelines issued on October 29, 2025:


	April 9, 2026		October 29, 2025
	Revised projections	⁽ⁱ⁾	Original projections	⁽ⁱ⁾	Actual
(In millions of Canadian dollars, except percentages)	Fiscal 2026 (constant currency)	⁽ⁱⁱ⁾	Fiscal 2026 (constant currency)	⁽ⁱⁱ⁾	Fiscal 2025
(In millions of Canadian dollars, except percentages)	$		$		$

Financial guidelines
Revenue	Decrease of 2% to 4%		Decrease of 1% to 3%		2,910
Adjusted EBITDA	Decrease of 1.5% to 3.5%		Decrease of 0% to 2%		1,443
Net capital expenditures	$560 to $600		$560 to $600		588
Net capital expenditures in connection with network expansion projects	$85 to $110		$100 to $140		108
Capital intensity	19.5% to 21.5%		19% to 21%		20.2 %
Capital intensity, excluding network expansion projects	16% to 18%		15% to 17%		16.5 %
Free cash flow	Increase of 0% to 10%	⁽ⁱⁱⁱ⁾	Increase of 0% to 10%	⁽ⁱⁱⁱ⁾	517
Free cash flow, excluding network expansion projects	Increase of 0% to 10%	⁽ⁱⁱⁱ⁾	Increase of 0% to 10%	⁽ⁱⁱⁱ⁾	626

(i)	Percentage of changes compared to fiscal 2025.
(ii)	Fiscal 2026 financial guidelines are based on a USD/CDN constant exchange rate of 1.3962 USD/CDN.
(iii)	Following the reintroduction of accelerated tax depreciation measures in Canada, for which the legislation became substantively enacted on February 26, 2026, the assumed current effective income tax rate is now expected to be approximately 8.5% (11.5% under the previous financial guidelines).

These financial guidelines, including the various assumptions underlying them, contain forward-looking statements concerning the business outlook for Cogeco Communications, and should be read in conjunction with the "Forward-looking statements" section of this press release and the Corporation's fiscal 2025 annual Management's Discussion and Analysis.

The Corporation presents its fiscal 2026 revised financial guidelines on a constant currency basis and believes this presentation enables an improved understanding of the Corporation's underlying financial performance, undistorted by the effects of changes in foreign currency rates. Measures on a constant currency basis are considered non-IFRS Accounting Standards measures and ratios, and do not have any standardized meaning prescribed by IFRS Accounting Standards and therefore, may not be comparable to similar measures presented by other companies. The financial guidelines exclude the impact from possible business acquisitions and/or disposals, and do not take into consideration unusual adjustments that could result from regulatory environment changes (including changes to Internet wholesale rates), and/or unforeseeable legal matters or non-recurring items.

Overall, compared to fiscal 2025, on a constant currency and consolidated basis, the Corporation expects fiscal 2026 revenue to decrease by 2% to 4%, resulting mostly from a growing Internet subscriber base, a decline in video and wireline phone subscriptions, as well as a competitive pricing environment. On a constant currency basis, fiscal 2026 adjusted EBITDA is expected to decrease by 1.5% to 3.5%, as we continue to face revenue pressures in the U.S., and are investing into new sales and marketing capabilities, especially in the U.S., as part of our three-year transformation program, while generating additional operational efficiencies. In addition, fiscal 2026 adjusted EBITDA reflects operating costs and investments to scale wireless in Canada. Net capital expenditures are anticipated to be between $560 and $600 million, including net investments of approximately $85 to $110 million in growth-oriented network expansions, which will increase the Corporation's footprint in Canada and the United States. Capital intensity is expected to range between 19.5% and 21.5%, or 16% and 18% excluding network expansion projects.

On a constant currency basis, free cash flow and free cash flow, excluding network expansion projects are expected to increase by 0% to 10%, due to lower financial expense and current income tax, partly offset by continued growth-oriented investments.


(1)	Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Constant currency basis, adjusted profit attributable to owners of the Corporation, net capital expenditures, excluding network expansion projects, free cash flow and free cash flow, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS^® Accounting Standards, as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the "Non-IFRS Accounting Standards and other financial measures" section of this press release.
(2)	Excludes the impact of acquisition, integration, restructuring and other costs (gains), and gains/losses on debt modification and/or extinguishment, which include gains/losses on repurchase of debt (all net of tax and non-controlling interest).
(3)	Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.
(4)	Following a full-scale launch of its Canadian wireless service offering across the majority of its operating footprint in Québec and Ontario during the first quarter of fiscal 2026, the Corporation changed the presentation of its reportable segments by including the Canadian wireless operations within its Canadian telecommunications segment. Cogeco Mobile's operations were previously included within "Corporate and eliminations" during the start-up phase. Comparative figures were restated to conform to the current presentation.

Financial highlights

				Change in constant currency					Change in constant currency
Three and six months ended February 28	2026	2025	Change	Change in constant currency	⁽¹⁾ ⁽²⁾	2026	2025	Change	Change in constant currency	⁽¹⁾ ⁽²⁾
(In thousands of Canadian dollars, except % and per share data)	$	$	%	%		$	$	%	%
Operations
Revenue	693,560	732,426	(5.3)	(3.6)		1,400,807	1,471,121	(4.8)	(4.2)
Adjusted EBITDA ⁽²⁾	337,745	356,499	(5.3)	(3.6)		691,568	721,714	(4.2)	(3.7)
Adjusted EBITDA margin ⁽²⁾	48.7 %	48.7 %				49.4 %	49.1 %
Acquisition, integration, restructuring and other costs (gains) ⁽³⁾	6,335	8,035	(21.2)			7,633	(1,923)	--
Profit for the period	83,585	79,637	5.0			176,680	186,797	(5.4)
Profit for the period attributable to owners of the Corporation	80,006	74,674	7.1			168,682	175,262	(3.8)
Adjusted profit attributable to owners of the Corporation⁽²⁾⁽⁴⁾	83,217	80,693	3.1			172,741	171,367	0.8
Cash flow
Cash flows from operating activities	170,558	253,212	(32.6)			346,881	472,077	(26.5)
Free cash flow ⁽²⁾	155,045	116,603	33.0	33.6		280,582	265,461	5.7	5.8
Free cash flow, excluding network expansion projects ⁽²⁾	169,073	132,176	27.9	28.7		313,364	302,833	3.5	3.7
Acquisition of property, plant and equipment	123,626	159,371	(22.4)			280,777	312,614	(10.2)
Net capital expenditures⁽²⁾⁽⁵⁾	121,778	157,895	(22.9)	(20.9)		278,741	308,540	(9.7)	(9.0)
Net capital expenditures, excluding network expansion projects ⁽²⁾	107,750	142,322	(24.3)	(22.3)		245,959	271,168	(9.3)	(8.6)
Capital intensity ⁽²⁾	17.6 %	21.6 %				19.9 %	21.0 %
Capital intensity, excluding network expansion projects ⁽²⁾	15.5 %	19.4 %				17.6 %	18.4 %
Per share data ⁽⁶⁾
Earnings per share
Basic	1.90	1.77	7.3			4.01	4.17	(3.8)
Diluted	1.89	1.76	7.4			3.97	4.13	(3.9)
Adjusted diluted ⁽²⁾⁽⁴⁾	1.96	1.90	3.2			4.07	4.04	0.7
Dividends per share	0.987	0.922	7.0			1.974	1.844	7.0

(1)	Key performance indicators presented on a constant currency basis are obtained by translating financial results from the current periods denominated in US dollars at the foreign exchange rates of the comparable periods of the prior year. For the three and six-month periods ended February 28, 2025, the average foreign exchange rates used for translation were 1.4298 USD/CDN and 1.4028 USD/CDN, respectively.
(2)	Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Adjusted profit attributable to owners of the Corporation, free cash flow, free cash flow, excluding network expansion projects and net capital expenditures, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS Accounting Standards and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the "Non-IFRS Accounting Standards and other financial measures" section of this press release.
(3)	For the three-month periods ended February 28, 2026 and 2025, and for the six-month period ended February 28, 2026, acquisition, integration, restructuring and other costs were mainly related to additional restructuring costs incurred related to the Corporation's transformation initiatives, as well as costs associated with the configuration and customization related to cloud computing and other arrangements. For the six-month period ended February 28, 2025, acquisition, integration, restructuring and other costs (gains) were mostly related to a $13.8 million non-cash gain recognized during the first quarter of fiscal 2025 in connection with a sale and leaseback transaction, offset in part by restructuring costs incurred and costs associated with the configuration and customization related to cloud computing and other arrangements.
(4)	Excludes the impact of acquisition, integration, restructuring and other costs (gains), and gains/losses on debt modification and/or extinguishment, which include gains/losses on repurchase of debt (all net of tax and non-controlling interest).
(5)	Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.
(6)	Per multiple and subordinate voting share.


As at	February 28, 2026	August 31, 2025
(In thousands of Canadian dollars)	$	$
Financial condition
Cash	54,501	75,152
Total assets	9,671,995	9,692,395
Long-term debt
Current	271,769	43,632
Non-current	4,283,813	4,510,769
Net indebtedness ⁽¹⁾	4,551,591	4,527,171
Equity attributable to owners of the Corporation	3,220,997	3,160,522

(1)

Net indebtedness is a capital management measure. For more information on this financial measure, please consult the "Non-IFRS Accounting Standards and other financial measures" section of the Corporation's MD&A for the three and six-month periods ended February 28, 2026, available on SEDAR+ at www.sedarplus.ca.

Forward-looking statements

Certain statements contained in this press release constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Cogeco Communications Inc.'s ("Cogeco Communications" or the "Corporation") future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee"; "ensure" or other similar expressions concerning matters that are not historical facts. Particularly, statements relating to the Corporation's financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, purchase price allocation, tax rates, weighted average cost of capital, performance and business prospects and opportunities, which Cogeco Communications believes are reasonable as of the current date. Refer in particular to the "Corporate objectives and strategy" and "Fiscal 2026 financial guidelines" sections of the Corporation's fiscal 2025 annual Management's Discussion and Analysis ("MD&A"), and the "Fiscal 2026 revised financial guidelines" presented in the current press release for a discussion of certain key economic, market and operational assumptions we have made in preparing forward-looking statements. While management considers these assumptions to be reasonable based on information currently available to the Corporation, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco Communications currently expects. These factors include risks such as general market conditions, competitive risks (including changing competitive and technology ecosystems and disruptive competitive strategies adopted by our competitors), business risks, regulatory risks (including changes in laws or government policies and the impact of regulatory decisions, such as those of the Canadian Radio-television and Telecommunications Commission ("CRTC") in Canada or of the Federal Communications Commission in the U.S.), tax risks, technology risks (including the evolution of technology and the threat of cybersecurity), financial risks (including variations in currency and interest rates), economic conditions (including inflation, trade tariffs, reduced consumer spending and increasing costs), talent management risks (including the highly competitive market for a limited pool of digitally skilled employees), human-caused and natural threats to the Corporation's network (including increased frequency of extreme weather events with the potential to disrupt operations), infrastructure and systems, sustainability and sustainability reporting risks, ethical behavior risks, ownership risks, litigation risks and public health and safety, many of which are beyond the Corporation's control. For more exhaustive information on these risks and uncertainties, the reader should refer to the "Uncertainties and main risk factors" section of the Corporation's fiscal 2025 annual MD&A and of the fiscal 2026 second-quarter MD&A. These factors are not intended to represent a complete list of the factors that could affect Cogeco Communications and future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information contained in this press release and the forward-looking statements contained in this press release represent Cogeco Communications' expectations as of the date of this press release (or as of the date they are otherwise stated to be made) and are subject to change after such date. While management may elect to do so, the Corporation is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information at any particular time, whether as a result of new information, future events or otherwise, except as required by law.

All amounts are stated in Canadian dollars unless otherwise indicated. This press release should be read in conjunction with the Corporation's MD&A for the three and six-month periods ended February 28, 2026, the Corporation's condensed interim consolidated financial statements and the notes thereto for the same periods prepared in accordance with IFRS^® Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and the Corporation's fiscal 2025 Annual Report.

Non-IFRS Accounting Standards and other financial measures

This press release includes references to non-IFRS Accounting Standards and other financial measures used by Cogeco Communications. These financial measures are reviewed in assessing the performance of Cogeco Communications and used in the decision-making process with regard to its business units.

Reconciliations between non-IFRS Accounting Standards and other financial measures to the most directly comparable IFRS Accounting Standards measures are provided below. Certain additional disclosures for non-IFRS Accounting Standards and other financial measures used in this press release have been incorporated by reference and can be found in the "Non-IFRS Accounting Standards and other financial measures" section of the Corporation's MD&A for the three and six-month periods ended February 28, 2026, available on SEDAR+ at www.sedarplus.ca. The following non-IFRS Accounting Standards measures are used as a component of Cogeco Communications' non-IFRS Accounting Standards ratios.


Specified non-IFRS Accounting Standards measures	Used in the component of the following non-IFRS Accounting Standards ratios
Adjusted profit attributable to owners of the Corporation	Adjusted diluted earnings per share
Constant currency basis	Change in constant currency
Net capital expenditures, excluding network expansion projects	Capital intensity, excluding network expansion projects

Financial measures presented on a constant currency basis for the three and six-month periods ended February 28, 2026 are translated at the average foreign exchange rate of the comparable periods of the prior year, which were 1.4298 USD/CDN and 1.4028 USD/CDN, respectively.

Constant currency basis and foreign exchange impact reconciliation

Consolidated

Three months ended February 28

2026

2025

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

Actual

constant
currency

Revenue

693,560

12,708

706,268

732,426

(5.3)

(3.6)

Operating expenses

349,801

6,944

356,745

371,006

(5.7)

(3.8)

Management fees – Cogeco Inc.

6,014

4,921

22.2

Adjusted EBITDA

337,745

5,764

343,509

356,499

(5.3)

(3.6)

Free cash flow

155,045

777

155,822

116,603

33.0

33.6

Net capital expenditures

121,778

3,112

124,890

157,895

(22.9)

(20.9)

Six months ended February 28

2026

2025

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

Actual

constant
currency

Revenue

1,400,807

7,924

1,408,731

1,471,121

(4.8)

(4.2)

Operating expenses

697,211

4,342

701,553

739,564

(5.7)

(5.1)

Management fees – Cogeco Inc.

12,028

9,843

22.2

Adjusted EBITDA

691,568

3,582

695,150

721,714

(4.2)

(3.7)

Free cash flow

280,582

394

280,976

265,461

5.7

5.8

Net capital expenditures

278,741

2,006

280,747

308,540

(9.7)

(9.0)

Canadian telecommunications segment

Three months ended February 28

2026

2025

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

⁽¹⁾

Actual

constant
currency

Revenue

373,448

370,211

0.9

Operating expenses

178,495

522

179,017

179,665

(0.7)

(0.4)

Adjusted EBITDA

194,953

(522)

194,431

190,546

2.3

2.0

Net capital expenditures

70,243

1,095

71,338

77,493

(9.4)

(7.9)

(1)

Effective as of the first quarter of fiscal 2026, the Canadian telecommunications segment includes the Canadian wireless operations, which were previously included within "Corporate and eliminations" during the start-up phase. Comparative figures were restated to conform to the current presentation, including $1.9 million of operating expenses for the second quarter of fiscal 2025, which were reclassified from "Corporate and eliminations" to the Canadian telecommunications segment.

Six months ended February 28

2026

2025

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

⁽¹⁾

Actual

constant
currency

Revenue

750,360

747,477

0.4

Operating expenses

355,086

324

355,410

360,371

(1.5)

(1.4)

Adjusted EBITDA

395,274

(324)

394,950

387,106

2.1

2.0

Net capital expenditures

175,934

738

176,672

154,411

13.9

14.4

(1)

Effective as of the first quarter of fiscal 2026, the Canadian telecommunications segment includes the Canadian wireless operations, which were previously included within "Corporate and eliminations" during the start-up phase. Comparative figures were restated to conform to the current presentation, including $4.9 million of operating expenses for the first six months of fiscal 2025, which were reclassified from "Corporate and eliminations" to the Canadian telecommunications segment.

American telecommunications segment

Three months ended February 28

2026

2025

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

Actual

constant
currency

Revenue

320,112

12,708

332,820

362,215

(11.6)

(8.1)

Operating expenses

163,123

6,420

169,543

184,506

(11.6)

(8.1)

Adjusted EBITDA

156,989

6,288

163,277

177,709

(11.7)

(8.1)

Net capital expenditures

51,535

2,017

53,552

80,402

(35.9)

(33.4)

Six months ended February 28

2026

2025

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

Actual

constant
currency

Revenue

650,447

7,924

658,371

723,644

(10.1)

(9.0)

Operating expenses

328,625

4,016

332,641

367,123

(10.5)

(9.4)

Adjusted EBITDA

321,822

3,908

325,730

356,521

(9.7)

(8.6)

Net capital expenditures

102,807

1,268

104,075

154,129

(33.3)

(32.5)

Adjusted profit attributable to owners of the Corporation


	Three months ended February 28		Six months ended February 28
	2026	2025	2026	2025
(In thousands of Canadian dollars)	$	$	$	$
Profit for the period attributable to owners of the Corporation	80,006	74,674	168,682	175,262
Acquisition, integration, restructuring and other costs (gains)	6,335	8,035	7,633	(1,923)
Gain on repurchase of debt ⁽¹⁾	(1,454)	--	(1,454)	--
Tax impact for the above items	(1,268)	(1,861)	(1,605)	(1,580)
Non-controlling interest impact for the above items	(402)	(155)	(515)	(392)
Adjusted profit attributable to owners of the Corporation	83,217	80,693	172,741	171,367

(1)	Included within financial expense.

Free cash flow and free cash flow, excluding network expansion projects reconciliations


	Three months ended February 28		Six months ended February 28
	2026	2025	2026	2025
(In thousands of Canadian dollars)	$	$	$	$
Cash flows from operating activities	170,558	253,212	346,881	472,077
Changes in other non-cash operating activities	72,378	24,343	164,820	98,517
Income taxes paid	21,380	7,443	49,924	14,082
Current income taxes	4,433	(9,670)	(6,545)	(24,298)
Interest paid	69,474	62,195	127,028	123,666
Financial expense	(60,246)	(63,003)	(121,889)	(128,492)
Gain on repurchase of debt ⁽¹⁾	(1,454)	--	(1,454)	--
Amortization of deferred transaction costs and discounts on long-term debt ⁽¹⁾	2,646	2,228	5,266	3,692
Net capital expenditures⁽²⁾	(121,778)	(157,895)	(278,741)	(308,540)
Proceeds from disposals of property, plant and equipment, including sale and leaseback transactions	1,412	931	2,624	20,544
Repayment of lease liabilities	(3,758)	(3,181)	(7,332)	(5,787)
Free cash flow	155,045	116,603	280,582	265,461
Net capital expenditures in connection with network expansion projects	14,028	15,573	32,782	37,372
Free cash flow, excluding network expansion projects	169,073	132,176	313,364	302,833

(1)	Included within financial expense.
(2)	Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.

Adjusted EBITDA reconciliation


	Three months ended February 28		Six months ended February 28
	2026	2025	2026	2025
(In thousands of Canadian dollars)	$	$	$	$
Profit for the period	83,585	79,637	176,680	186,797
Income taxes	22,388	22,904	48,096	49,529
Financial expense	60,246	63,003	121,889	128,492
Depreciation and amortization	165,191	182,920	337,270	358,819
Acquisition, integration, restructuring and other costs (gains)	6,335	8,035	7,633	(1,923)
Adjusted EBITDA	337,745	356,499	691,568	721,714

Net capital expenditures and net capital expenditures, excluding network expansion projects reconciliations


Three months ended February 28	2026			2025		Change
	Actual	Foreign exchange impact	In constant currency	Actual	Actual	In constant currency
(In thousands of Canadian dollars, except percentages)	$	$	$	$	%	%
Acquisition of property, plant and equipment	123,626			159,371	(22.4)
Subsidies received in advance recognized as a reduction of the cost of property, plant and equipment during the period	(1,848)			(1,476)	25.2
Net capital expenditures	121,778	3,112	124,890	157,895	(22.9)	(20.9)
Net capital expenditures in connection with network expansion projects	14,028	217	14,245	15,573	(9.9)	(8.5)
Net capital expenditures, excluding network expansion projects	107,750	2,895	110,645	142,322	(24.3)	(22.3)


Six months ended February 28	2026			2025		Change
	Actual	Foreign exchange impact	In constant currency	Actual	Actual	In constant currency
(In thousands of Canadian dollars, except percentages)	$	$	$	$	%	%
Acquisition of property, plant and equipment	280,777			312,614	(10.2)
Subsidies received in advance recognized as a reduction of the cost of property, plant and equipment during the period	(2,036)			(4,074)	(50.0)
Net capital expenditures	278,741	2,006	280,747	308,540	(9.7)	(9.0)
Net capital expenditures in connection with network expansion projects	32,782	143	32,925	37,372	(12.3)	(11.9)
Net capital expenditures, excluding network expansion projects	245,959	1,863	247,822	271,168	(9.3)	(8.6)

Free cash flow, excluding network expansion projects reconciliations


Three months ended February 28	2026			2025		Change
(In thousands of Canadian dollars, except percentages)	Actual	Foreign exchange impact	In constant currency	Actual	Actual	In constant currency
(In thousands of Canadian dollars, except percentages)	$	$	$	$	%	%
Free cash flow	155,045	777	155,822	116,603	33.0	33.6
Net capital expenditures in connection with network expansion projects	14,028	217	14,245	15,573	(9.9)	(8.5)
Free cash flow, excluding network expansion projects	169,073	994	170,067	132,176	27.9	28.7


Six months ended February 28	2026			2025		Change
(In thousands of Canadian dollars, except percentages)	Actual	Foreign exchange impact	In constant currency	Actual	Actual	In constant currency
(In thousands of Canadian dollars, except percentages)	$	$	$	$	%	%
Free cash flow	280,582	394	280,976	265,461	5.7	5.8
Net capital expenditures in connection with network expansion projects	32,782	143	32,925	37,372	(12.3)	(11.9)
Free cash flow, excluding network expansion projects	313,364	537	313,901	302,833	3.5	3.7

Additional information

Additional information relating to the Corporation is available on SEDAR+ at www.sedarplus.ca and on the Corporation's website at corpo.cogeco.com.

About Cogeco Communications Inc.

Cogeco Communications Inc. is a leading telecommunications provider committed to bringing people together through powerful communications and entertainment experiences. We provide world-class Internet, wireless, video and wireline phone services to 1.6 million residential and business subscribers in Canada and thirteen states in the United States. Our services are marketed under the Cogeco and oxio brands in Canada, and under the Breezeline and welo brands in the U.S. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future. Cogeco Communications Inc.'s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).

For information:

Investors
Troy Crandall
Head, Investor Relations
Cogeco Communications Inc.
Tel.: 514 764-4600
troy.crandall@cogeco.com

Media
Isabelle Famery
Manager, External Communications
Cogeco Communications Inc.
Tel.: 514 764-4600
media@cogeco.com

Conference Call:	Friday, April 10, 2026 at 8:00 a.m. (Eastern Daylight Time)

	A live audio webcast of the analyst call will be available on both the Investor Relations and the Events and Presentations pages of Cogeco Communications' website. Financial analysts will be able to access the live conference call and ask questions. Media representatives may attend as listeners only. A recording of the conference call will be available on Cogeco Communications' website for a three-month period.

	Please use the following dial-in number to access the conference call 5 to 10 minutes before the start of the conference:

	Local - Toronto: 1 289 514-5100 Toll Free - North America: 1 800 717-1738


	To join this conference call, participants are required to provide the operator with the name of the company hosting the call, that is, Cogeco Inc. or Cogeco Communications Inc.

SOURCE Cogeco Communications Inc.

Company Announcements

Cogeco Communications announces its Q2 2026 financial results