América Móvil Earnings Call Highlights Growth And Cash
America Movil S.a.b. De C.v. ((AMX)) has held its Q4 earnings call. Read on for the main highlights of the call.
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America Movil’s latest earnings call struck an upbeat tone, with management highlighting broad-based growth in higher-value subscribers, expanding margins, and a fourfold jump in net profit. While foreign-exchange swings, prepaid losses in some markets, and a spike in nonoperating costs added noise, executives stressed strong cash generation and a disciplined, shareholder-friendly capital plan.
Subscriber Growth Shifts Toward High-Value Postpaid Users
América Móvil added 2.5 million wireless subscribers in Q4, driven entirely by 2.8 million postpaid net gains that offset prepaid losses of 298,000. The postpaid base expanded 8.4% year over year, led by Brazil with 644,000 net adds, Colombia with 276,000, Peru with 148,000, and Mexico with 135,000, taking the group to 331 million wireless users.
Fixed Broadband and PayTV Support Revenue Mix
Fixed services continued to add scale, with 524,000 new broadband accesses in Q4 and 77,000 PayTV additions, reinforcing a convergent product strategy. Broadband connections grew 5.6% versus last year, with Mexico, Brazil, Argentina, and Colombia all contributing, pushing fixed broadband revenue up a solid 6.4%.
Revenue Growth Solid Despite FX Headwinds
Group revenue rose 3.4% in Mexican pesos to MXN 245 billion, but growth was a stronger 6.2% at constant exchange rates, underscoring healthy underlying demand. Service revenue expanded 5.3% year over year, with management noting that currency effects, including a stronger peso, are masking the true operating performance.
EBITDA and Operating Profit Outpace Top Line
Profitability improved as EBITDA climbed 4.2% in pesos to MXN 95 billion and 6.9% at constant currencies, growing faster than revenue on operating leverage. Operating profit reached MXN 49 billion, up 5.9% nominally and 8.3% at constant exchange rates, signaling effective cost control and scale benefits.
Net Profit and EPS Rebound Strongly
Lower comprehensive financing costs were a key tailwind, running at roughly half last year’s level and feeding straight through to the bottom line. Net profit surged to MXN 19 billion, around four times the prior-year quarter, translating into MXN 0.32 per share or $0.35 per ADR, a sharp improvement in earnings power.
Free Cash Flow Jumps Nearly 40%
For fiscal 2025, operating cash flow reached MXN 213 billion, providing ample funding for investment and capital returns. After MXN 131 billion in CapEx, free cash flow came in at MXN 82 billion, representing almost 40% year-on-year growth and reinforcing the balance sheet and distribution capacity.
Capital Returns and Deleveraging Stay in Focus
Shareholders benefited from MXN 45 billion of distributions, including MXN 12 billion in buybacks, as the company balanced returns with balance-sheet discipline. Net debt fell by MXN 20 billion on a cash flow basis and net debt to EBITDA after leases stood at 1.52x, just above target but clearly trending downward.
CapEx Intensity Anchored Around Mid-Teens
Management reiterated that CapEx should run at roughly 14%–15% of revenues in 2026, equivalent to about $6.8–$7.0 billion, supporting network and fiber expansion. They also indicated that a similar investment intensity is likely over the next two to three years, though final levels will depend on spectrum auctions and local decisions.
Brazil Stands Out With Strong Postpaid and ARPU
Brazil was again a star performer, leading group postpaid net adds and delivering strong number portability inflows, suggesting competitive gains. Management highlighted growth in higher-ARPU segments, helped by initiatives such as the NuCel MVNO, which collectively shift the mix toward more profitable users.
Prepaid Weakness Emerges in Select Markets
Beneath the postpaid strength, prepaid trends were softer, with an overall decline of 298,000 subscribers during the quarter. Brazil and Chile were notable weak spots, losing 381,000 and 315,000 prepaid users respectively, underscoring competitive and macro pressures in those segments.
FX Volatility Distorts Reported Metrics
Currency swings continued to complicate reporting, with the Mexican peso appreciating about 9.6% versus the U.S. dollar year on year, dampening peso-denominated revenue growth. Management cautioned that FX adds complexity to leverage management and cash planning across multiple markets, even as underlying constant-currency trends remain stronger.
Unusual Spike in Nonoperating Expenses
Other pretax nonoperating expenses surged to MXN 7.9 billion in the quarter, far above the historical quarterly average of around MXN 700 million. Management did not fully detail the drivers on the call and directed analysts to investor relations, marking this as a key area for further clarification.
Chile Remains Difficult After Missed Deal
In Chile, América Móvil and Entel ultimately decided not to proceed with an acquisition of Telefonica Chile, with Millicom emerging as the buyer instead. Executives emphasized that Chile remains a challenging, fragmented market where consolidation faces regulatory hurdles, leverage constraints, and complex divestiture requirements.
Leverage Slightly Above Target Range
The company’s net debt to EBITDA ratio after leases finished the year at 1.52x, just above its stated 1.3x–1.5x target band, keeping leverage in focus. Management reiterated that bringing leverage back within the range is a key priority, even as they continue buybacks, dividends, and selective regional M&A.
Accounting Scope Change Masks Service Trends
An apparent slowdown in service revenue growth raised some eyebrows, but management explained it largely reflects a change in accounting scope. The incorporation of the Chile operation from November 2024 created one-off reporting effects, rather than signaling a fundamental deterioration in service momentum.
Guidance Highlights Steady CapEx, Deleveraging, and Selective M&A
Looking ahead, management expects CapEx to remain around 14%–15% of revenues through 2026 and likely for the following two to three years, while staying flexible around spectrum and country-specific needs. Excess free cash flow, which reached MXN 82 billion in 2025, is earmarked primarily for reaching the 1.3x–1.5x leverage target and sustaining shareholder distributions, with only opportunistic, mostly regional fiber or small-scale M&A on the table.
América Móvil’s call painted a picture of a telecom giant leaning into high-value growth, stronger margins, and robust cash generation, even as FX and prepaid softness create bumps in the road. For investors, the key takeaways are the clear commitment to deleveraging, consistent mid-teens CapEx, and ongoing capital returns, all underpinned by solid postpaid and broadband momentum.
