Three-year strategic plan, guided by four core priorities, designed to deliver sustainable growth across all key business units
Approximately 15% expected CAGR in free cash flow after payment of lease liabilities1 between 2025 and 2028
$1.5 billion in expected cost savings by 2028 through company-wide transformation and continued focus on operational efficiencies
Capital intensity2 expected to decrease to approximately 14% by 2028, supporting improved cash flow and investment flexibility
Net debt leverage ratio3 target of 3.5x by the end of 2027, with clear path toward approximately 3.0x by 2030
Sustainable dividend strategy with approximately $5 billion in anticipated dividend payments to common shareholders over next three years4
Strategic partnership with PSP Investments for the formation of Network FiberCo enables a long-term future potential fibre expansion of up to 8 million U.S. locations, increasing BCE's potential total fibre reach to up to 16+ million locations in North America
TORONTO, Oct. 14, 2025 /PRNewswire/ - Ahead of its Investor Day, BCE (TSX:BCE) (NYSE:BCE) unveiled its three-year strategic plan focused on delivering sustainable growth through fibre, wireless, AI-powered enterprise solutions and digital media. This growth is expected to drive total return for shareholders, supported by a disciplined capital allocation strategy tailored to a reshaped operating environment.
"For the past 145 years, Bell has been connecting Canadians. Connection is the foundation of our company and at the heart of our purpose: to advance how people connect with each other and the world," said Mirko Bibic, President and CEO, BCE Inc. and Bell Canada.
"As we look ahead to the next several years and connecting future generations through the infrastructure we're building today, from fibre to 5G to AI-powered solutions, I'm pleased to unveil BCE's plan to deliver total shareholder return. Our strategy, anchored by four strategic priorities, put the customer first; deliver the best fibre and wireless networks; lead in enterprise with AI-powered solutions; and build a digital media and content powerhouse, is focused on the core areas that will deliver sustainable growth for our investors."
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1 Free cash flow after payment of lease liabilities is a Non-GAAP financial measure. The most directly comparable financial measure for free cash flow after payment of lease liabilities ($1,746 million for 2024) under IFRS Accounting Standards is cash flows from operating activities ($6,988 million for 2024). Refer to the Non-GAAP and Other Financial Measures section in this news release for more information on this measure.
2 Capital intensity is defined as capital expenditures divided by operating revenues. Refer to the Key Performance Indicators (KPIs) section in this news release for more information on capital intensity.
3 Net debt used in the calculation of the net debt leverage ratio is a Non-GAAP financial measure. Net debt leverage ratio is a capital management measure. The most directly comparable financial measure for net debt ($40,299 million for 2024) under IFRS® Accounting Standards is long-term debt ($32,835 million for 2024), debt due within one year ($7,669 million for 2024) and cash ($1,572 million for 2024). Refer to the Non-GAAP and Other Financial Measures section in this news release for more information on these measures.
4 Subject to the discretion of, and dividends being declared by, the BCE Board of Directors. Refer to the Caution Regarding Forward-Looking Statements section in this news release for more information.
BCE 2025-2028 financial outlook
Between 2025 and the end of 2028, BCE expects to deliver total shareholder return with a focus on sustainable revenue and EBITDA growth across its core operating businesses and drive operating efficiencies, including:
Revenue growth at a compound annual growth rate (CAGR) of 2% to 4%
$1.5 billion in cost savings through company-wide transformation and efficiency initiatives
Adjusted EBITDA5 growth at 2% to 3% CAGR
Free cash flow after payment of lease liabilities growth at approximately 15% CAGR
Approximately $5 billion in common share dividend payments, supported by a sustainable and disciplined dividend strategy
BCE provided its financial outlook for the 2025-2028 period, as per the table below.
($ billions)
2025
(mid-point of guidance)6
2028 outlook
CAGR
2025-2028E
Revenue
~ $24.7
$26.2 - $27.8
2% - 4%
Adjusted EBITDA
~ $10.7
$11.2 - $11.7
2% - 3%
Capital intensity
~ 15%
~ 14%
n.m.
Free cash flow7
~ $3.1
~ $3.9
~ 7%
Free cash flow after payment of lease liabilities
~ $2.0
~ $3.1
~ 15%
Net debt leverage ratio
~ 3.8x
<3.5x
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5 Adjusted EBITDA is a total of segments measure. The most directly comparable financial measure for adjusted EBITDA ($10,589 million for 2024) under IFRS Accounting Standards is net earnings ($375 million for 2024). Refer to the Non-GAAP and Other Financial Measures section in this news release for more information on this measure.
6 Updated 2025 financial guidance targets were released on August 7, 2025.
7 Free cash flow is a non-GAAP financial measure. The most directly comparable financial measure for free cash flow ($2,888 million for 2024), under IFRS Accounting Standards is cash flows from operating activities ($6,988 million for 2024). Refer to the Non-GAAP and Other Financial Measures section in this news release for more information on this measure.
Focused capital allocation priorities
BCE's disciplined capital allocation strategy, supported by strong free cash flow growth, positions the company to drive total shareholder return. Over the next three years, BCE expects to generate approximately $22 billion of cumulative free cash flow before capital expenditures and payment of lease liabilities8.
The company's capital allocation strategy is anchored to the following priorities:
Balance sheet strength: BCE is committed to deleveraging, with a target net debt leverage ratio of 3.5x by the end of 2027, falling below 3.5x in 2028, and approaching approximately 3.0x by 2030.
Cost of capital optimization: The company continues to pursue strategic partnerships and initiatives aimed at optimizing its cost of capital.
Funding strategic priorities: Capital will be directed toward initiatives that drive long-term growth and operational efficiency.
Sustainable dividend policy: BCE's current annualized common share dividend of $1.75 per share represents a meaningful and sustainable return to shareholders. The company targets a long-term dividend payout policy9 range of 40%-55% of free cash flow and expects to distribute approximately $5 billion in dividends to common shareholders over the next three years.
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8 Free cash flow pre-capex and payment of lease liabilities is a non-GAAP financial measure. The most directly comparable financial measure for free cash flow pre-capex and payment of lease liabilities ($6,785 million for 2024), under IFRS Accounting Standards is cash flows from operating activities ($6,988 million for 2024). Refer to the Non-GAAP and Other Financial Measures section in this news release for more information on this measure.
9 Dividend payout ratio is a non-GAAP ratio. Refer to the Non-GAAP and Other Financial Measures section in this news release for more information on this measure.
Core business priorities to deliver long-term growth
Bell's long-term strategy is centered on its unique and differentiated set of assets, focused strategic priorities, proven track record of driving efficiencies and disciplined approach to capital allocation. Bell is poised to meet growing industry demand, generate strong free cash flow and provide investors with a total return that balances growth and a sustainable dividend.
The next era at Bell will be guided by four focused strategic priorities:
Put the customer first
Deliver the best fibre and wireless networks
Lead in enterprise with AI-powered solutions
Build a digital media and content powerhouse
Put the customer first
Over the past five years, Bell has made foundational investments in customer experience and operational simplicity driven by AI that will continue to improve customer retention and generate significant annual cost efficiencies.
Bell has over 240 million direct customer interactions every year, and this reach has enabled Bell to identify the services customers want and refine its customer tools and delivery for a seamless experience. Over the next three years, through ongoing improvements to customer experience, Bell expects to achieve a higher Net Promoter Score, lower churn, higher product intensity and higher customer lifetime value.
Deliver the best fibre and wireless networks
Bell is Canada's largest communications company and expects to reach 3 million fibre Internet subscribers10, 10.5 million wireless subscribers, and 4 million TV and content subscribers by the end of 2025. Bell anticipates scaling its subscriber base across these growth services from 14 million in 2020 to nearly 20 million by 2028.
Bell's fibre footprint leads in the Canadian market with more than double the locations passed versus our next leading competitor. In new fibre footprints, we see penetration more than double from 20% to 46% within five years. In some of Bell's more tenured markets, the penetration rate is over 50%.
Where Bell has fibre, 39% of households have both mobility and Internet from Bell, compared to 18% in Bell's non-fibre footprint. Bell expects its converged household mix to grow to 50% by the end of 2028, encouraging cross-sell opportunities between Internet, mobility and Bell Media content.
Over the next three years, Bell expects to reduce postpaid wireless and converged household churn10 rates by approximately 30 bps and drive 25% higher product intensity.
Bell today announced several new initiatives to reach more customers, enhance resiliency and deliver the easy experience customers want:
Introduction of tiered wireless plans with rates differing based on class of service, content, and handset financing, available now across Canada.
Launch of Internet services in British Columbia and Alberta in the coming weeks.
Introduction of Unbreakable Internet in Spring 2026, a unique product proposition that ensures ultra resilient Internet that keeps working during power outages through a combination of wireless backups enabled by Bell Mobility 5G smartphones and the fibre network's passive optical technology.
Planned elimination of the TV set-top box, as Bell delivers a cutting-edge, full-service experience through apps on devices customers already own.
Expansion of Bell Streaming bundles in select markets to include Crave with TSN/RDS, alongside existing partnerships with Netflix and Disney+, and by integrating high-value third party services for AI, gaming, and security.
Bell, with AST SpaceMobile, recently announced the successful completion of a satellite direct-to-cell 4G voice over LTE (VoLTE) call, video call, broadband data connectivity and video streaming over a Canadian wireless network. The demonstration lays the groundwork for Bell's planned nationwide deployment of low Earth orbit direct-to-cell service in 2026.
Bell is also simplifying its go-to-market strategy to be more agile and more efficient by streamlining its brands, focusing its Internet and mobility bundling with the Bell brand. As a first step, Bell will stop selling Virgin Plus Internet and TV in Ontario in January 2026. Virgin Plus wireless will continue to be Bell's flanker post-paid mobility brand, with Lucky Mobile as Bell's prepaid brand. EBOX will continue to be Bell's flanker Internet brand.
In addition, Bell expects to more than double its digital transaction mix by 2028, supporting a better customer experience at lower cost.
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10 Refer to the Key Performance Indicators (KPIs) section in this news release for more information on churn and subscriber units.
Expanding BCE's reach
In August 2025, BCE completed its acquisition of Ziply Fiber, the leading fibre Internet provider in the Pacific Northwest of the United States. With this acquisition, Bell reinforced its position as the third-largest fibre Internet provider in North America and has the potential to reach up to 8 million fibre locations in the United States through Network FiberCo, its strategic partnership with PSP Investments.
Ziply Fiber expects to double its fibre footprint to approximately 3 million locations by the end of 2028.
Lead in enterprise with AI-powered solutions
Bell has created a portfolio of AI-powered enterprise solutions, helping customers unleash the potential of AI within their businesses. These new services leverage Bell's leadership position as the trusted telecommunications solutions provider to most of Canada's largest businesses and government.
Bell extended its expertise across the country this year, establishing Ateko in Montréal, Bell AI Fabric in British Columbia and Bell Cyber in Ontario. Bell is targeting industry-leading growth of 100% for its new technology businesses over the next three years with an objective to build an approximately $1.5 billion revenue AI-powered solutions business, aligned to four strategic pillars:
Reinvent our core services and service delivery
Lead in cybersecurity through Bell Cyber
Build Ateko into the leading service integrator of AI automation platforms
Extend Bell AI Fabric's leadership
Build a digital media and content powerhouse
In 2020, Bell understood that the media industry was undergoing a major shift toward digital. By embracing this change and meeting customers where they are in the world of on-demand and streaming services, the company began repositioning itself to become a digital media and content powerhouse.
Bell Media digital revenue mix was 16% in 2020 and has steadily increased year-over-year. Digital revenue11 is expected to increase from 45% of Bell Media revenue by 2025 to approximately 60% in 2028. Crave, the largest Canadian-owned streaming platform, now has 4.3 million subscribers, with plans to reach approximately 6 million subscribers and ...
