BCE unveils strategic plan to boost sustainable cash flow growth and enhance long-term shareholder value
BCE is set to transform its operations with a new strategic plan aimed at enhancing sustainable cash flow growth and boosting long-term shareholder value. This initiative comes as the company prepares for its Investor Day presentation on October 14, 2025.
BCE’s Three-Year Strategic Plan Overview
The strategic plan focuses on four key priorities:
- Putting the customer first
- Delivering superior fibre and wireless networks
- Leading in enterprise AI-powered solutions
- Building a digital media and content powerhouse
Financial Goals and Growth Projections
BCE anticipates a compound annual growth rate (CAGR) of approximately 15% in free cash flow from 2025 to 2028, net of lease liabilities. The plan also outlines the following financial objectives:
- Cost savings of $1.5 billion expected by 2028
- Reduction of capital intensity to approximately 14% by 2028
- Aiming for a net debt leverage ratio of 3.5x by 2027, decreasing to around 3.0x by 2030
- $5 billion in anticipated dividends for common shareholders over the next three years
Revenue and EBITDA Forecast
Between 2025 and 2028, BCE expects significant revenue growth and operating efficiencies:
| Year | Projected Revenue (billions) | Adjusted EBITDA Growth (CAGR) | Free Cash Flow Growth post Leasing Liabilities (CAGR) |
|---|---|---|---|
| 2025 | ~$24.7 | 2% – 3% | ~15% |
| 2028 | $26.2 – $27.8 | 2% – 3% | ~15% |
Strategic Initiatives and Investments
BCE’s initiatives support the expansion of its digital media and fibre reach. The company has partnered with PSP Investments to form Network FiberCo, potential growth can reach up to 16 million fibre locations in North America. Additionally, BCE’s acquisition of Ziply Fiber reinforces its position as a leading fibre provider.
Technological Advancements
Investments in AI-driven solutions are expected to position Bell as a leader in enterprise services. BCE plans to grow revenue from AI solutions significantly by targeting a $1.5 billion market by 2028.
Customer Experience Enhancements
The company aims to improve customer experience through ongoing AI-driven innovations. Key goals include:
- Improving Net Promoter Scores
- Reducing customer churn by 30 basis points
Conclusion
BCE’s strategic plan showcases its commitment to fostering sustainable growth and delivering value to shareholders. The focus on customer experience, network innovation, and digital media positioning sets a solid foundation for future success.
