By Adriano Marchese

Canadian telecom giant BCE on Tuesday laid out a new three-year strategic plan that looks to grow revenue while boosting free cash flow and paying down debt.

BCE is targeting annual revenue growth of 2% to 4% through 2028, but expects its free cash flow to grow at a much faster 15% annual rate. The strategy also includes 1.5 billion Canadian dollars, roughly the equivalent of $1.07 billion, in cost savings.

The three-year strategic plan is focused on delivering sustainable growth through fiber, wireless, as well as artificial intelligence-powered enterprise solutions and digital media.

Behind its new targets, the telecommunications giant plans to expand its internet service into Western Canada, launching internet services in British Columbia and Alberta, and expand its presence in the U.S., leveraging its Ziply Fiber business, which it had acquired and recently closed in August.

BCE said that with Ziply under its wing, it has become the third-largest fiber internet provider in North America and expects to double its fiber footprint to about three million locations by the end of 2028 in the U.S.

Revenue by in 2028 is expected to reach between C$26.2 billion and C$27.8 billion, up from 2025's expected revenue of C$24.7 billion, according to its guidance.

Adjusted earnings before interest, taxes, depreciation and amortization is also expected to rise by 2% to 3% compounded annually to reach C$11.2 billion to C$11.7 billion.

At the same time, BCE said that it is committed to deleveraging. It has targeted a net debt leverage ratio of 3.5 times by the end of 2027, then below 3.5 times in 2028, and approaching 3 times by 2030.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

October 14, 2025 07:09 ET (11:09 GMT)

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