Millicom Reports Record Q4 & FY25 Earnings, Exceeds Cash Flow Target, and Advances Strategic Acquisitions
Summary
Millicom reported record Q4 and full-year 2025 financial results, exceeding its equity free cash flow target and successfully executing major strategic acquisitions and asset disposals, while resolving a significant legal overhang.
Key Events
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Record Q4 and FY 2025 Financial Performance
Millicom reported Q4 2025 revenue of $1.7 billion (up 15.7% year-on-year) and Adjusted EBITDA of $778 million (up 25.9%). For the full year 2025, net profit attributable to owners surged to $1.3 billion, including a $741 million gain from the Lati tower sale.
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Exceeded Equity Free Cash Flow Target
The company generated $916 million in Equity Free Cash Flow (EFCF) for FY 2025, surpassing its full-year target of $750 million, demonstrating strong cash generation.
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Successful Strategic Acquisitions and Disposals
Millicom completed the acquisition of Telefonica's operations in Uruguay ($440M) and Ecuador ($380M) in Q4 2025. It also finalized the Lati tower sale for approximately $975 million, generating a $741 million gain. Subsequent to year-end, the company closed acquisitions in Colombia (UNE EPM for $571M, Coltel for $214M) and Chile (jointly with NJJ for $50M cash plus earn-outs).
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Resolution of DOJ FCPA Investigation
TIGO Guatemala settled an FCPA investigation with the U.S. Department of Justice in December 2025, paying a total of $118.2 million in criminal monetary penalty and forfeiture, resolving a significant legal overhang.
Analysis
Millicom's Q4 and full-year 2025 results demonstrate robust financial performance, with significant growth across key metrics like revenue, operating profit, and Adjusted EBITDA. The company notably exceeded its equity free cash flow target for 2025, highlighting strong operational efficiency. Furthermore, the successful completion of major strategic initiatives, including the Lati tower sale and the resolution of the DOJ FCPA investigation, de-risks the business and strengthens its balance sheet. The subsequent acquisitions in Colombia and Chile, while dilutive, expand Millicom's footprint and future growth potential. The positive 2026 financial targets reinforce a stable outlook, positioning the company for continued momentum.
At the time of this filing, TIGO was trading at $70.50 on NASDAQ in the Technology sector, with a market capitalization of approximately $11.8B. The 52-week trading range was $25.50 to $72.23. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.