BCE Inc

BCE delivered a disappointing first quarter, missing on both the top and bottom lines as investors absorbed the weight of a dramatic dividend cut alongside the headline numbers. The Canadian telecom posted earnings per share of $0.51, falling 18.48% short of the $0.62 consensus estimate, while revenue of $4.34 billion trailed expectations by 26.77% and declined 1.4% year over year, pressured by a 7.4% drop in product revenues tied to lower government wireless device sales and ongoing The Source store closures. The quarter's defining moment, however, was BCE's decision to slash its annualized common share dividend to $1.28, framing the reduction as a necessary step to deleverage a strained balance sheet amid elevated cost of capital and regulatory headwinds. On the positive side, free cash flow surged to $584.06 million from $62.21 million a year earlier, and the company confirmed its 2025 guidance, pointing to roughly $500 million in planned capital expenditure reductions and a new dividend payout policy targeting 40% to 55% of free cash flow as it pursues its U.S. fiber expansion through the pending Ziply Fiber acquisition.