BCE Targets 15% Free Cash Flow CAGR and $1.5 Billion in Cost Savings with Three-Year Strategic Plan

BCE Sets Ambitious Growth and Efficiency Targets for 2025-2028

BCE has unveiled a bold three-year strategic plan focused on accelerating free cash flow, streamlining operations, and delivering enhanced value to shareholders. Anchored by fibre, wireless, AI-powered enterprise solutions, and digital media, BCE's roadmap seeks to boost financial performance across all key business units. A standout objective: achieving a 15% compound annual growth rate (CAGR) in free cash flow after lease liabilities between 2025 and 2028, paired with $1.5 billion in targeted cost savings by 2028 through sweeping efficiency initiatives.

Strong Financial Targets Backed by Operational Efficiencies

BCE’s new guidance provides specific, measurable goals aimed at strengthening its capital position while returning value to investors. Highlights from the company's financial outlook include:

The company's discipline around capital intensity and debt management is designed to enhance cash flow and give BCE the flexibility to invest in growth opportunities.

Sustainable Dividend Strategy Anchors Shareholder Value

Another highlight is BCE’s dividend commitment. The company projects approximately $5 billion in common share dividend payments over the next three years. The annualized dividend stands at $1.75 per share, with a payout ratio target between 40% and 55% of free cash flow. This dividend strategy is built to balance robust shareholder returns with ample reinvestment in BCE’s expanding service footprint.

Fiber Expansion and AI Services Bolster Long-Term Growth Prospects

BCE continues to widen its competitive moat in fibre connectivity, especially following its acquisition of Ziply Fiber. The company now projects potential reach of over 16 million fibre locations across North America through strategic partnerships, aiming to double Ziply’s fibre footprint in the U.S. by 2028.

In enterprise, BCE has set its sights on rapid scaling of AI-powered solutions, targeting $1.5 billion in segment revenue over three years and 100% growth in its new technology businesses. Recent launches—such as Bell AI Fabric, Ateko, and Bell Cyber—support BCE’s goal to be a leader in cybersecurity and digital automation.

Digital Media and Bundled Offerings Drive Revenue Diversification

BCE is repositioning its media operations for a streaming-first era. Digital revenue is forecast to increase from 45% of Bell Media revenue in 2025 to 60% by 2028. The company’s streaming service, Crave, expects to reach about 6 million subscribers and generate $1 billion in annual revenue by 2028, reflecting BCE’s pivot towards direct-to-consumer engagement and content aggregation.

Operational Excellence: Cost Control, Customer Focus, and Product Innovation

BCE’s transformation initiatives—ranging from eliminating traditional set-top boxes to expanding tiered wireless plans and integrating new digital bundles—underscore a company striving for both simplicity and operational leverage. Plans include the launch of “Unbreakable Internet,” further expansion into western Canada, and deeper integration with global content providers. At the same time, the company aims to double its digital transaction mix and improve customer experience metrics such as Net Promoter Score and churn rates.

Balance Sheet Discipline Positions BCE for Future Flexibility

The capital allocation strategy is clear: deleveraging to a net debt leverage ratio below 3.5x by 2028, with an eventual target of about 3.0x by 2030. Cumulative free cash flow before capex and lease payments is expected to hit $22 billion over the next three years, underpinning both dividend commitments and growth investment. Cost savings initiatives and asset optimization (including cost of capital reduction through partnerships) are expected to further support financial resilience.

Takeaway: BCE's Strategic Priorities Signal Transformation and Shareholder Focus

BCE's updated plan signals a transition from infrastructure building to extracting value from a digital-first, converged business. The focus on free cash flow, disciplined cost management, and new technology revenue puts BCE on a trajectory for balanced growth and sustainable returns. Investors will be watching for execution against these detailed benchmarks, especially as BCE pushes further into AI-powered enterprise and digital media markets. With these strategic moves, BCE positions itself for growth in a highly competitive landscape—offering clear goals for both the company and its shareholders.

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