Executives at America Movil (NYSE:AMX) highlighted accelerating growth in key access lines, improving profitability, and a higher free cash flow profile during the company’s fourth-quarter 2025 earnings call, while reiterating a disciplined leverage target and offering an initial view of capital spending expectations for 2026 and beyond.
Operating backdrop and currency moves
Chief Financial Officer Carlos García Moreno opened by pointing to macro uncertainty tied to a U.S. government shutdown that ran through mid-quarter, which he said disrupted employment and delayed the release of some economic indicators. He also noted that the Federal Reserve cut its policy rate by 25 basis points on Dec. 10 amid limited data, muted inflation pressures, and signs of a softening economy.
Subscriber trends: postpaid and broadband acceleration
America Movil reported adding 2.5 million wireless subscribers in the quarter, driven by 2.8 million postpaid net additions partially offset by 298,000 prepaid net losses. The company ended December with 331 million wireless subscribers, and management said the postpaid base increased 8.4% year over year.
García Moreno said Brazil led postpaid net additions with 644,000, followed by Colombia (276,000), Peru (148,000), and Mexico (135,000). In prepaid, Mexico added 197,000 subscribers, Argentina 226,000, and Colombia 224,000, while Brazil and Chile saw prepaid losses of 381,000 and 315,000, respectively.
In fixed services, the company connected 5,240 broadband accesses in the quarter, including 184,000 in Mexico, 133,000 in Brazil, 57,000 in Argentina, and 49,000 in Colombia. Pay-TV added 77,000 units, while the company disconnected 79,000 landline voice lines. Management said access lines totaled more than 4.1 million at quarter-end and that the company had 79 million fixed-line RGUs.
Executives emphasized that the company’s “more dynamic” lines—mobile postpaid and broadband—have accelerated over the last several quarters, with broadband accesses up 5.6% year over year, which García Moreno described as among the highest access growth rates in years.
Revenue, EBITDA, and profit: operating leverage highlighted
Fourth-quarter revenue rose 3.4% year over year in Mexican peso terms to MXN 245 billion. On a constant currency basis, revenue increased 6.2%, with service revenue up 5.3%. García Moreno attributed the gap between nominal and constant-currency growth largely to the peso’s appreciation versus the U.S. dollar compared with the prior year period, and he said comparisons across categories were also affected by the incorporation of the Chilean operation beginning in November 2024.
EBITDA increased 4.2% in peso terms to MXN 95 billion and 6.9% at constant exchange rates. García Moreno said EBITDA again grew faster than revenue, citing operating leverage.
- Mobile service revenue rose 6.2%, with postpaid revenue up 7.6%.
- Management said prepaid revenue growth was the fastest in at least five quarters, with Mexico accelerating from 2.38% to 3.8% amid what the company described as a recovery in private consumption.
- Fixed-line service revenue increased 3.6%, including fixed broadband revenue growth of 6.4%.
Operating profit totaled MXN 49 billion, rising 5.9% in nominal terms and 8.3% at constant exchange rates. García Moreno added that comprehensive financing costs were about half the level of the prior-year quarter, contributing to net profit of MXN 19 billion—about four times the year-ago figure. He said the quarter’s earnings equated to MXN 0.32 per share, or $0.35 per ADR.
Cash flow, leverage, and shareholder returns
For full-year 2025, operating cash flow totaled MXN 213 billion, according to García Moreno, after reflecting an increase in working capital, plus interest payments and taxes. Capital expenditures were MXN 131 billion, leaving free cash flow of MXN 82 billion, which management said represented nearly 40% year-over-year growth.
Shareholder distributions reached MXN 45 billion, including MXN 12 billion in share buybacks, while the company also reduced net debt by MXN 20 billion. At year-end, net debt to EBIT after leases was 1.52x, which management said was trending down.
During Q&A, CEO Daniel Hajj and García Moreno reiterated the company’s stated leverage objective, describing a target range around 1.3x to 1.5x net debt to EBITDA and noting the company ended the period marginally above the upper end. Management said the company is balancing debt reduction, shareholder returns (buybacks and dividends), and maintaining flexibility for potential opportunities within its operating footprint.
2026 CapEx outlook, Chile update, and competitive dynamics
In response to questions on investment plans, Hajj said the company was still finalizing 2026 capital spending by country but is targeting approximately 14% to 15% of revenues, which he framed as roughly $6.8 billion to $7.0 billion. He said it is reasonable to assume a similar percentage over the next two to three years, while noting that spectrum and other factors could influence the final figures.
On Chile, Hajj said America Movil had reviewed a potential bid alongside Entel for Telefónica’s Chilean operations but decided not to proceed, citing factors including regulatory complexity, the need to split the company, high leverage, and valuation considerations. He said the company remains focused on executing in its existing Chile business, including investments and synergies, and expects to remain a strong competitor. Hajj characterized Millicom as a new entrant and said the shift from Telefónica to Millicom did not materially change the company’s competitive approach, while adding he hopes the Chilean market can consolidate in the future, including in fixed services.
Addressing broader consolidation themes, Hajj said the company anticipates further consolidation across Latin America and wants to be prepared, particularly for smaller opportunities such as fiber-related assets. He also emphasized that asymmetric regulation applies only in Mexico, not across the company’s other markets. García Moreno added that scale is increasingly important for telecom returns and investment, which he said regulators are taking into account globally.
On Brazil, Hajj attributed stronger number portability trends to both the company’s core postpaid performance and contributions from NuCel, while noting that fourth-quarter handset launches and promotions can also influence switching behavior.
Finally, on Mexico fixed broadband, COO Óscar Von Hauske said recent strong net additions were supported by promotions, bundling with streaming platforms, and speed increases. He added that the company has 92% of its customers on fiber and said management expects the trend to remain “more or less the same” through the year.
About America Movil (NYSE:AMX)
América Móvil is a Mexican telecommunications company headquartered in Mexico City that provides a broad range of communications services. Established in the early 2000s out of the expansion of the Slim family’s telecommunications holdings, the company is a major provider of mobile and fixed-line telephony, broadband internet and pay-television services in the region. Its operations span retail consumer services as well as wholesale and enterprise solutions, positioning it as an integrated communications provider across multiple customer segments.
The company markets services under several regional brands—most notably Telcel in Mexico and Claro across many Latin American markets—and offers both prepaid and postpaid mobile plans, fixed and mobile broadband, fiber-to-the-home where available, and video/broadcast distribution services.
