Rogers Communications Raises Free Cash Flow Guidance on Capital Cuts
The communications company increased its 2026 free cash flow target by approximately $0.8 billion following a 30% reduction in projected capital expenditures.
Rogers Communications Inc. (RCI) raised its 2026 free cash flow guidance to a range of $4.1 billion to $4.3 billion, according to the company. This outlook follows a reprioritization of capital expenditures, which the company now expects to be between $2.5 billion and $2.7 billion for 2026 and future annual periods. This represents a reduction of roughly 30% compared to 2025.
For the first quarter ended March 31, 2026, the communications, sports and entertainment company reported free cash flow of $776 million, a 32% increase from the $586 million reported in the same period in 2025. Total service revenue rose 10% to $4.9 billion. Net income for the period was $482 million, compared to $280 million in the prior-year quarter.
Growth was distributed across the company's three reportable segments. Total revenue for the Media segment rose 82% to $988 million. The segment's adjusted EBITDA reached breakeven, reflecting a year-over-year improvement of approximately $60 million. Wireless revenue was $2.59 billion, up 2% from $2.54 billion in the prior-year period. Cable revenue rose to $1.95 billion from $1.94 billion.
In the Wireless segment, the company added 33,000 total mobile phone net additions, including 28,000 postpaid. Postpaid mobile phone churn was 1.22%, with a mobile phone ARPU of $55.60. The Cable segment added 7,000 retail Internet subscribers.
Adjusted EBITDA for the first quarter was $2.36 billion, a 5% increase over the $2.25 billion reported in the first quarter of 2025. The company said this growth was supported by capital efficiency gains. Capital intensity improved 500 basis points to 15%.
The company used the period to advance its deleveraging plan. The debt leverage ratio was 3.8x as of March 31, 2026, down from 3.9x at December 31, 2025. Available liquidity stood at $6.0 billion at the end of the quarter.
Rogers intends to purchase the remaining 25% minority interest in Maple Leaf Sports & Entertainment (MLSE) in 2026. The company said it remains focused on monetizing the unrecognized value of its sports and media assets.