América Móvil, S.A.B. de C.V. (AMX) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals strong financial performance, with significant EBITDA growth, increased operating and net profits, and a robust free cash flow. The company's focus on reducing debt and returning value to shareholders through buybacks and dividends is promising. Although there are concerns about regulatory complexities in Chile and unclear responses on nonoperating expenses, the overall sentiment is positive due to strong revenue growth, particularly in mobile services, and a sustainable broadband increase in Mexico. The positive outlook on market consolidation in Latin America further supports a positive sentiment.
Key Financial Performance
Wireless Subscribers Added 2.5 million in the quarter, with 2.8 million postpaid net gains and 298,000 prepaid losses. Ended December with 331 million wireless subscribers. Postpaid base increased by 8.4% year-on-year, driven by growth in Brazil, Colombia, Peru, and Mexico.
Fixed Line Segment Connected 524,000 broadband accesses, with notable contributions from Mexico (84,000), Brazil (113,000), Argentina (57,000), and Colombia (49,000). PayTV added 77,000 units, while 79,000 voice lines were disconnected. Total access lines exceeded 410 million.
Revenue Fourth quarter revenue rose 3.4% in Mexican peso terms year-over-year to MXN 245 billion, up 6.2% at constant exchange rates. Service revenue expanded 5.3%. The growth was influenced by the 9.6% appreciation of the Mexican peso versus the U.S. dollar and the incorporation of the Chilean operation from November 2024.
EBITDA Increased by 4.2% in Mexican peso terms to MXN 95 billion, up 6.9% at constant exchange rates. Growth was driven by greater operating leverage and strong mobile service revenue growth of 6.2%, supported by a 7.6% increase in postpaid revenue.
Fixed Line Service Revenue Increased by 3.6% year-over-year, with fixed broadband revenue growing by 6.4%. Mexico showed strong performance, with broadband revenue growth rising from 2% to 4%.
Operating Profit Totaled MXN 49 billion, up 5.9% in nominal terms and 8.3% at constant exchange rates.
Net Profit Achieved MXN 19 billion in the quarter, 4 times larger than the previous year. Equivalent to MXN 0.32 per share or $0.35 per ADR. Growth was supported by reduced comprehensive financing costs.
Operating Cash Flow For 2025, reached MXN 213 billion after deducting increases in working capital and interest payments. Free cash flow was MXN 82 billion, representing a nearly 40% year-over-year increase.
Shareholder Distributions and Debt Shareholder distributions totaled MXN 45 billion, including MXN 12 billion in share buybacks. Net debt was reduced by MXN 20 billion, with a net debt to EBITDA ratio of 1.52x, showing a downward trend.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Wireless Subscribers: Added 2.5 million wireless subscribers in the quarter, with 2.8 million postpaid net gains and 298,000 prepaid losses. Postpaid base grew 8.4% year-on-year.
Fixed Line Segment: Connected 524,000 broadband accesses, with notable contributions from Mexico (84,000), Brazil (113,000), Argentina (57,000), and Colombia (49,000). PayTV added 77,000 units.
Regional Currency Impact: The dollar depreciated against most regional currencies, except the Brazilian real and Argentinian peso. This impacted revenue growth in nominal terms.
Chilean Operations: Incorporation of Chilean operations from November 2024 affected revenue growth rates.
Revenue Growth: Fourth quarter revenue rose 3.4% in Mexican peso terms to MXN 245 billion, up 6.2% at constant exchange rates. Service revenue expanded 5.3%.
EBITDA Growth: EBITDA increased 4.2% in Mexican peso terms to MXN 95 billion, up 6.9% at constant exchange rates. Operating profit totaled MXN 49 billion, up 5.9% nominally.
Free Cash Flow: Free cash flow for 2025 was MXN 82 billion, a 40% year-on-year increase. Shareholder distributions reached MXN 45 billion, including MXN 12 billion in share buybacks.
Debt Reduction: Net debt reduced by MXN 20 billion, with a net debt to EBITDA ratio of 1.52x, showing a downward trend.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Economic Uncertainty in the U.S.: The U.S. government shutdown during the fourth quarter created uncertainty about economic activity, impacting employment and delaying the release of economic indicators. This could affect the company's operations in the U.S. market.
Currency Volatility: The depreciation of the U.S. dollar against regional currencies, except for the Brazilian real and Argentinian peso, could impact financial results and operational costs in various markets.
Prepaid Subscriber Losses: Significant prepaid subscriber losses were reported in Brazil (381,000) and Chile (315,000), which could affect revenue from these markets.
Fixed Line Disconnections: The company disconnected 79,000 voice landlines, which may indicate challenges in maintaining fixed-line services.
Chilean Operations Impact: The incorporation of Chilean operations led to an apparent deceleration in service revenue growth, which could affect overall financial performance.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Revenue Growth: Revenue is expected to grow at a constant exchange rate, with service revenue expanding by 5.3%.
Mobile Service Revenue: Mobile service revenue growth is projected to remain strong, supported by postpaid revenue growth of 7.6%.
Fixed Line Service Revenue: Fixed line service revenue is expected to grow by 3.6% year-over-year, with fixed broadband revenue increasing by 6.4%.
Free Cash Flow: Free cash flow is projected to continue its upward trend, following a nearly 40% year-on-year increase in 2025.
Net Debt to EBITDA Ratio: The net debt to EBITDA after leases ratio is on a downward trend, currently at 1.52x.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Shareholder distributions: MXN 45 billion, including MXN 12 billion in share buybacks.
Share buybacks: MXN 12 billion in share buybacks as part of the shareholder distributions.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What is the CapEx outlook for 2026 and the coming years?
A:The target is to allocate around 14% to 15% of revenues to CapEx, which translates to approximately $6.8 billion to $7 billion. This range is expected to remain consistent over the next 2-3 years, depending on factors like spectrum and other variables.
Q:What caused the significant increase in pretax nonoperating expenses this quarter?
A:Management did not provide a direct answer and suggested following up with Daniela for details on the difference between the 4.9% and 7.8% figures.
Q:Why did América Móvil and Entel step out of the deal for Telefonica's operations in Chile?
A:América Móvil decided not to proceed due to complexities such as regulation, company split, high leverage, and valuation issues. Management believes the competitive landscape in Chile remains unchanged and hopes for future market consolidation.
Q:What are the plans for capital allocation given the strong growth in free cash flow and slowdown in share buybacks?
A:The focus is on reducing debt to achieve a target debt-to-EBITDA ratio of 1.3x to 1.5x, preparing for potential M&A opportunities in Latin America, and returning value to shareholders through buybacks and dividends. Management is not looking for material M&A outside their current region.
Q:How should the impact of FX on overall results be understood?
A:The company operates in multiple currencies, which affects both revenue and debt. Management balances capital allocation between reducing leverage, share buybacks, and dividends, while managing exposure to 3-4 key currencies. They emphasize constant exchange rates to remove noise from FX fluctuations.
Q:What is the outlook for regulatory environments and market consolidation in Latin America?
A:Management anticipates more market consolidation in Latin America over the next 5-10 years, which they believe will benefit the industry. They note that asymmetric regulation only exists in Mexico and expect regulatory environments to adapt to industry dynamics requiring scale.
Q:What is driving the strong number portability trends in Brazil?
A:Both NuCel (MVNO) and the core operations in Brazil are contributing to strong number portability trends. The fourth quarter saw a boost due to NuCel, new handsets, and promotions, but the overall growth is attributed to a combination of factors.
Q:How sustainable is the recent growth in broadband net additions in Mexico?
A:Management believes the growth is sustainable due to successful promotions, bundling with streaming services, increased speeds, and 92% of customers already on fiber. They expect the trend to continue through the year.
Q:Review of Unclear Management Responses
A:Management avoided providing a direct answer to the question about the significant increase in pretax nonoperating expenses this quarter, suggesting a follow-up with Daniela for details.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Argentina Colombia
CFO Welcome
COO Mr
Chile loss
Colombia PayTV
Conference Instructions
Fed policy
Hajj QA
MXN cash
MXN end
MXN exchange
MXN figure
MXN interest
MXN share
MXN term
Mexico chart
Mexico recovery
Mexico subscriber
Shareholder distribution
Welcome rica
absence inflation
access chart
access rate
account shutdown
activity employment
agency month
appearance economy
base Brazil
base broadband
broadband MXN
broadband access
broadband couple
flow MXN
government
loss subscriber
subscriber line
term MXN
term exchange
AMX Transcript
América Móvil, S.A.B. de C.V. (AMX) Q4 2025 Earnings Call Transcript
Positive2-11
The earnings call reveals strong financial performance, with significant EBITDA growth, increased operating and net profits, and a robust free cash flow. The company's focus on reducing debt and returning value to shareholders through buybacks and dividends is promising. Although there are concerns about regulatory complexities in Chile and unclear responses on nonoperating expenses, the overall sentiment is positive due to strong revenue growth, particularly in mobile services, and a sustainable broadband increase in Mexico. The positive outlook on market consolidation in Latin America further supports a positive sentiment.
América Móvil, S.A.B. de C.V. (AMX) Q3 2025 Earnings Call Transcript
Positive10-15
The earnings call summary shows strong financial performance, with revenue, EBITDA, and net income growth. Mobile platform service revenue is up, and net debt is reduced. The Q&A reveals positive sentiment about mobile prepaid revenues and margin expansion in key regions. Potential acquisitions are in early stages but could offer strategic benefits. The competitive environment is manageable, with the company leveraging its strengths. While some uncertainties exist, the overall sentiment is positive, suggesting a potential stock price increase of 2% to 8% over the next two weeks.
América Móvil, S.A.B. de C.V. (AMX) Q2 2025 Earnings Call Transcript
Positive7-23
The earnings call summary shows strong financial performance, with subscriber and revenue growth, and increased EBITDA. The Q&A section reveals positive drivers in Brazil and Mexico, regulatory changes viewed positively, and a strong network and commercial strategy. Despite some unclear responses, the overall sentiment is positive, driven by strong financial metrics and optimistic guidance. The company's strategic focus on network quality and customer care supports a positive outlook, likely resulting in a stock price increase of 2% to 8% over the next two weeks.
América Móvil, S.A.B. de C.V. (AMX) Q1 2025 Earnings Call Transcript
Unknown4-30
The earnings call shows mixed signals. Positive revenue growth and share buybacks are offset by economic slowdown, prepaid losses, and regulatory uncertainty. The Q&A reveals management's optimism about recovery and strategic focus but lacks clarity on some issues. Despite strong financials, concerns over regulatory changes and economic conditions in Mexico temper expectations. Given these factors, the stock price is likely to remain stable in the short term, leading to a neutral rating.
AMX Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
