BCE reports results of conversion of its series R preferred shares into series Q preferred shares
Conversion of Preferred Shares: BCE Inc. announced that none of its Series R Preferred Shares will be converted into Series Q Preferred Shares on December 1, 2025, due to insufficient shares being tendered for conversion.
Shareholder Notification: Only 6,025 out of 7,115,900 Series R Preferred Shares were submitted for conversion, leading to the decision that no conversions will take place, and affected shareholders will receive their original shares.
Dividend Information: The Series R Preferred Shares will continue to be listed on the Toronto Stock Exchange and will pay a fixed cash dividend of 4.733% quarterly for the five-year period starting December 1, 2025.
Company Overview: BCE is Canada's largest communications company, focusing on advanced technology and services to keep customers connected and competitive in the global market.
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- IT Spending Surge: Gartner projects that global IT spending will reach $6.15 trillion by 2026, with data center expenditures exceeding $650 billion, indicating a significant acceleration in AI infrastructure investments by hyperscalers that will drive overall industry growth.
- Cybersecurity Trends: Gartner identifies six major cybersecurity trends for 2026, including the migration to post-quantum cryptography and agentic AI oversight, which will reshape enterprise security architecture and compel companies to strategically adjust their security technologies.
- Government Cloud Spending: Sovereign cloud IaaS spending is expected to reach $80 billion in 2026, a 35.6% increase, highlighting how geopolitical tensions are pushing governments toward domestically operated infrastructure to enhance data security and control.
- Educational Webinar: QSE Corp. is hosting a webinar on February 17, 2026, focusing on post-quantum security, aimed at helping organizations understand the impact of quantum computing on traditional encryption methods, reflecting growing awareness of post-quantum risks among enterprises.
- IT Spending Forecast: Gartner projects that global IT spending will reach $6.15 trillion in 2026, with data center expenditures exceeding $650 billion, indicating a significant acceleration in enterprise investments in AI infrastructure that is reshaping the industry landscape.
- Cybersecurity Trends: Gartner identifies six major cybersecurity trends for 2026, including the migration to post-quantum cryptography and agentic AI oversight, highlighting a critical shift in enterprise security architecture that companies must adapt to in order to address emerging threats.
- Webinar Announcement: QSE Corp. is set to host a webinar on February 17, 2026, focused on post-quantum security, aimed at helping organizations understand the implications of quantum computing on traditional encryption methods and enhancing data security strategies, reflecting a growing awareness of post-quantum risks.
- International Expansion: QSE has renewed its agreement with The Muthoot Group in India, covering approximately 14,000 user licenses, and has entered South America with a three-year security agreement supporting three Brazilian government clients, marking a rapid expansion of its global commercial footprint.
Company Performance: AST Space Mobile has seen a significant increase in its stock, climbing over 240% since 2025, with shares up 24% year-to-date despite some volatility and setbacks in its launch schedule.
Government Contracts: The company was awarded a government contract for its scalable homeland defense services, which is expected to bolster its operations and credibility in the space communications sector.
Upcoming Launches: AST Space Mobile is preparing for the launch of its Bluebird 7 satellite, which is set to transport its next-generation technology into low Earth orbit, aiming to meet ambitious launch targets by the end of 2026.
Market Position and Challenges: Despite its growth, analysts express skepticism about AST's ability to meet its launch goals, with concerns about its current pace and the potential for missing targets, which could impact its long-term market position against competitors like SpaceX.
- Earnings Beat: BCE reported a Q4 non-GAAP EPS of $0.69, exceeding expectations by $0.23, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Stable Revenue Performance: The company achieved Q4 revenue of $6.4 billion, a slight decline of 0.3% year-over-year, yet it surpassed market expectations of $5.64 billion, indicating BCE's resilience in a competitive market.
- 2025 Guidance: BCE's guidance for 2025 indicates revenue growth of 0% to 2% and adjusted EBITDA growth of 0% to 2%, reflecting a cautious outlook on future growth while providing clear expectations for investors.
- Free Cash Flow Growth: The company anticipates free cash flow growth between 6% and 11%, with an actual growth of 10%, demonstrating effective capital management that supports maintaining an annual common dividend of $1.75 per share.
- Strong Financial Performance: BCE achieved a 2.3% growth in adjusted EBITDA for Q4 2025, reaching CAD 2.664 billion, with an EBITDA margin of 41.6%, the highest in over 30 years, indicating successful operational cost optimization and service quality enhancement.
- Free Cash Flow Growth: Free cash flow increased by 10% to CAD 3.178 billion for 2025, although Q4 free cash flow dropped 74.3% to CAD 225 million due to higher capital expenditures and reduced operating cash flow, reflecting the company's cautious capital allocation strategy.
- Strategic Investments and Acquisitions: BCE completed the acquisition of Ziply Fiber in 2025, driving growth in the U.S. market and expected to further enhance the company's competitive position and revenue streams, particularly in fiber services.
- 2026 Financial Guidance: BCE anticipates revenue growth of 1% to 5% for 2026, with adjusted EBITDA growth of 0% to 4%, and plans to maintain a quarterly dividend of CAD 1.75 per share, demonstrating confidence in future growth and commitment to shareholders.
- Strong Financial Performance: BCE achieved a 2.3% adjusted EBITDA growth in Q4 2025, reaching $2.664 billion, with an EBITDA margin of 41.6%, the highest in over 30 years, indicating successful strategic focus on customer service and network development.
- Revenue and Net Income Growth: For the full year 2025, net income rose to $6.514 billion, an increase of $6.139 billion year-over-year, primarily driven by higher investment gains and reduced asset impairments, reflecting effective capital allocation.
- Improved Free Cash Flow: BCE's free cash flow increased by 10% to $3.178 billion in 2025, although Q4 free cash flow dropped 74.3% to $225 million, the overall performance indicates robust cash flow management strategies.
- Positive Future Outlook: BCE expects revenue growth in 2026 to range from 1% to 5%, with adjusted EBITDA growth targets set at 0% to 4%, and plans to further expand its fiber business in the U.S., demonstrating confidence in future growth.






