Rogers Posts Record $1.4B Free Cash Flow, Reaffirms 2026 Outlook
RCI sits 16% above its 52-week low of $29.255 on elevated volume (1.8× avg).
Summary
Rogers delivered a steady but unspectacular quarter: total service revenue and adjusted EBITDA each grew 1%, while free cash flow jumped 65% to $1.4 billion on capital expenditures of $524 million and capital intensity of 9.6%, down 840 basis points year over year. Wireless service revenue slipped 1% to $2.0 billion as ARPU fell to $55.22 amid competitive intensity and the CRTC's fee prohibition, though wireless margin rose 130 basis points to 68%; cable service revenue was flat at $2.0 billion with margin up 40 basis points to 59%. Media was the bright spot, with revenue up 9% to $821 million and adjusted EBITDA up 12% to $84 million, helped by Blue Jays attendance above 97% of capacity. The company reaffirmed its full-year 2026 guidance and said leverage fell to 3.7x, down 0.1x sequentially, following the October 1 close of the C$4.35 billion MLSE minority buyout that made it 100% owner. Management now intends to sell a minority stake in the consolidated Rogers Sports assets by the first half of 2027 and use proceeds to repay debt — that sale, and league approvals for it, is the next real swing factor for the equity.
At the time of this announcement, RCI was trading at $33.90 on NYSE in the Trade & Services sector, with a market capitalization of approximately $17.9B. The 52-week trading range was $29.26 to $41.14. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.