Cogeco reported steady Canadian growth with improved U.S. outlook, driven by customer momentum, digital expansion, and operational efficiencies.

• Canadian adjusted EBITDA grew YoY, supported by strong internet customer base expansion and robust sales/marketing efforts.
• The U.S. segment faced higher-than-expected competitive pressures, leading to a revised revenue and EBITDA guidance downgrade; signs of recovery are emerging in H2.
• Welo, its digital brand in Ohio, is gaining traction, with expansion plans mirroring the success of Canadian counterpart Oxio.
• The company is on track with its 3-year transformation, including integration of new businesses, OpEx and CapEx synergies, and AI initiatives to enhance customer support.
• Balance sheet remains solid with a leverage ratio of 3.2x and a flexible dividend policy, supporting ongoing deleveraging and potential buybacks.