Rogers earnings for the third quarter of 2026 showed stronger cash generation despite lower adjusted profit, as the Canadian communications company reaffirmed its full-year outlook. Results announced on October 23 for the quarter ended September 30 put revenue at CAD 5.443 billion and free cash flow at CAD 1.370 billion, up 65% from a year earlier.
Key Takeaways
- Adjusted diluted earnings per share fell 6% to CAD 1.29, while revenue increased 2%.
- Lower capital spending and cash taxes helped free cash flow grow much faster than operating earnings.
- Rogers maintained its 2026 outlook and is pursuing a minority sale of its sports and media assets to repay debt.
Table of Contents
- Rogers earnings show stronger cash flow, lower adjusted profit
- Telecom margins improve despite wireless revenue pressure
- MLSE purchase puts the planned sports stake sale in focus
- Full-year guidance remains unchanged
- Conclusion
Rogers earnings show stronger cash flow, lower adjusted profit
Rogers’ third-quarter 2026 results announcement showed adjusted EBITDA rising 1% to CAD 2.535 billion. Adjusted net income nevertheless declined 3% to CAD 701 million, primarily because higher finance costs outweighed part of the operating improvement.
Reported net income fell 91% to CAD 495 million. That comparison was heavily affected by a CAD 5 billion non-cash gain recorded a year earlier when Rogers remeasured its existing interest in Maple Leaf Sports & Entertainment, or MLSE. The reported profit decline therefore does not represent an equivalent deterioration in ongoing operations.
Cash provided by operating activities increased 9% to CAD 1.658 billion. Free cash flow rose substantially faster, reflecting lower capital expenditures, higher adjusted EBITDA and lower cash income taxes, partly offset by distributions to non-controlling interests. Free cash flow is a company-defined capital management measure.
| Item | Details |
|---|---|
| Q3 capital expenditures | CAD 524 million |
| Q3 capital intensity | 9.6%, down 840 basis points year over year |
| Wireless adjusted EBITDA margin | 68%, up 130 basis points year over year |
| Cable adjusted EBITDA margin | 59%, up 40 basis points year over year |
| Mobile phone net additions | 17,000 in Q3 |
| Retail Internet net additions | 10,000 in Q3 |
Telecom margins improve despite wireless revenue pressure
Wireless service revenue declined 1% to about CAD 2.0 billion. Rogers attributed the decline primarily to lower average revenue per mobile phone customer amid competition and reduced fee revenue following a Canadian Radio-television and Telecommunications Commission decision prohibiting certain fees.
Wireless adjusted EBITDA still increased 1%, helped by higher equipment margins. Cable service revenue was stable at about CAD 2.0 billion, while efficiency initiatives supported a 1% increase in cable adjusted EBITDA.
Media supplied a stronger source of growth: revenue rose 9% to CAD 821 million and adjusted EBITDA increased 12% to CAD 84 million. Higher sports revenue and subscriber revenue from the Warner Bros. Discovery channels helped offset lower advertising revenue.
MLSE purchase puts the planned sports stake sale in focus
After the quarter ended, Rogers completed its acquisition of the remaining 25% of MLSE on October 1 for CAD 4.35 billion in cash, funded through short-term credit facilities. The transaction made MLSE a wholly owned subsidiary.
Rogers is pursuing a sale of a minority interest in its consolidated sports, media and entertainment assets, known as Rogers Sports, by the first half of 2027. Management expects to use the proceeds to repay debt; the sale remains a plan, not a completed transaction.
The company’s debt leverage ratio was 3.7 times at September 30, down from 4.0 times at the end of 2025. That quarter-end figure preceded the borrowing used to complete the remaining MLSE purchase.
Full-year guidance remains unchanged
Rogers reaffirmed its 2026 outlook for total service revenue, adjusted EBITDA, capital expenditures and free cash flow. The unchanged guidance distinguishes the company’s stated expectations from the competitive and regulatory pressures affecting wireless revenue.
The company returned CAD 270 million in dividends during the quarter and declared a CAD 0.50-per-share dividend on October 22. Those payments are separate from its planned asset-sale proceeds and debt-reduction objectives.
Conclusion
Rogers earnings paired modest operating growth with substantially stronger cash generation, while financing costs weighed on adjusted profit. The next stated milestone is the planned Rogers Sports minority stake sale by the first half of 2027, with proceeds intended for debt repayment.
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