BCE Unveils Strategic Plan for Sustainable Growth and Shareholder Value

BCE's Strategic Plan for Sustainable Growth

On October 14, 2025, ahead of its Investor Day, BCE Inc. (TSX BCE, NYSE BCE) announced an ambitious three-year strategic plan that emphasizes delivering sustainable growth through advanced fiber networks, wireless technology, AI-driven business solutions, and robust digital media offerings. This initiative is designed to enhance long-term shareholder value while focusing on operational efficiency and customer-centric innovations.

Key Highlights of the Plan

The plan lays out an impressive framework that aims for a compound annual growth rate (CAGR) of 15% in free cash flow from 2025 to 2028, post lease liabilities payment. BCE targets to achieve approximately $1.5 billion in cost savings by 2028 through comprehensive operational transformations. Additionally, capital intensity is projected to decrease to about 14% by 2028, establishing a strong foundation for improved cash flows and strategic investments. The targeted net debt leverage ratio is set at 3.5x by 2027, with aspirations of reaching approximately 3.0x by 2030. BCE also plans to implement a sustainable dividend policy, with around $5 billion in expected payments to common shareholders in the next three years.

Focusing on Core Priorities

BCE's strategic plan revolves around four main priorities:
1. Customer First Approach: BCE aims to enhance customer experience through simplified operations and the integration of AI technologies to improve retention and efficiency. The company anticipates achieving a higher Net Promoter Score (NPS) and lowering churn rates progressively over the coming years.
2. Fiber and Wireless Leadership: As Canada's largest communications provider, BCE forecasts reaching 3 million fiber Internet subscribers and approximately 10.5 million wireless subscribers by the end of 2025. The company continues to invest in expanding its fiber footprint and wireless infrastructure, with innovative offerings like Unbreakable Internet, which maintains connectivity during power outages.
3. AI-Powered Enterprise Solutions: BCE's new AI-driven services are poised to revolutionize enterprise operations. With the establishment of dedicated AI units across Canada, BCE targets substantial growth in its AI-driven revenue streams, aiming for an AI solutions business valued at roughly $1.5 billion by 2028.
4. Digital Media Expansion: BCE is enhancing its media services with a focus on streaming platforms. The digital revenue mix for Bell Media is expected to rise from 45% in 2025 to approximately 60% in 2028 as the company continues to attract new subscribers and expand its content offerings. Crave, Bell’s flagship streaming service, aims to reach about 6 million subscribers and generate $1 billion in annual revenue by 2028.

Financial Outlook and Future Growth

From 2025 to 2028, BCE anticipates steady revenue growth, with expectations of total revenue climbing from approximately $24.7 billion to between $26.2 and $27.8 billion. Adjusted EBITDA is projected to grow 2% to 3% annually, reinforcing BCE's commitment to solid returns and financial stability.

In addition to these growth metrics, BCE's disciplined capital allocation strategy ensures that it effectively manages debt and optimizes the cost of capital. The company is adamant about utilizing future cash flows to bolster strategic priorities and enhance operational efficiencies.

A Vision for the Future

Mirko Bibic, President and CEO of BCE Inc. and Bell Canada, emphasized that the foundation of BCE's operations is connection. He stated, "As we build infrastructure for future generations—from fiber to 5G and AI solutions—we remain committed to securing total shareholder returns through our focused strategic approach."

As BCE moves forward with this strategic plan, it aims not only to enhance its competitive edge but also to address the growing demand for high-quality telecommunications solutions in an increasingly digital world. Investors and customers alike can look forward to BCE’s sustained commitment to innovation, efficiency, and superior service delivery over the coming years.

For more detailed information about BCE’s Investor Day presentation and strategic initiatives, please visit BCE.ca.