This article first appeared on GuruFocus .
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Revenue:MXN237 billion, up 2.1% in Mexican peso terms.
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Service Revenue:Increased by 0.6%.
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Equipment Revenue:Rose by 7.4%.
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EBITDA Margin:Reached 40%.
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Net Income:MXN23.4 billion, a 25% increase.
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Net Debt:Stood at MXN437 billion, equivalent to 1.41 times EBITDA after leases.
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CapEx:MXN21.6 billion covered by cash flow.
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Share Buybacks:MXN1.4 billion.
Release Date: April 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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America Movil SAB de CV ( NYSE:AMX ) reported a 25% increase in net income to MXN23.4 billion, equivalent to MXN0.39 per share.
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The company achieved an 8% expansion in EBITDA, with a consolidated EBITDA margin reaching 40%, one of its highest margins.
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Mobile service revenue growth remained resilient, with positive revenue growth at 7.3% and prepaid revenue at 5%.
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The company is experiencing strong growth in regions like Eastern Europe, Central America, Peru, and Ecuador, driven by residential demand.
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America Movil SAB de CV ( NYSE:AMX ) has been successful in gaining number portability in Brazil, enhancing its competitive position.
Negative Points
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The company faces operational challenges in Argentina, particularly in accessing clients in the Buenos Aires metropolitan area.
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There is uncertainty regarding the impact of recent M&A activities in Mexico, specifically Telefonica's asset sale, on the market and competition.
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Working capital increased in Q1 2026 compared to Q1 2025, partly due to higher inventory levels and leasing of handsets.
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The fixed-line market in Argentina has become more challenging due to difficulties in infrastructure expansion in Buenos Aires.
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The company is cautious about potential supply chain disruptions and price increases in memory chips, impacting handset availability.
Q & A Highlights
Q: With the reduction of net debt to 1.4%, how should we think about the balance between continued deleveraging and a more visible acceleration of buybacks? What leverage would make you more comfortable stepping up capital returns? A: We aim to maintain a balance between buybacks, deleveraging, and seizing opportunities in Latin America and Eastern Europe. We are targeting a debt level of around 1.3% and are increasing our buyback fund to MXN21,000. We see good opportunities in some countries that fit well with our strategy.
Q: Could you provide an update on the CapEx plan for 2026, considering currency fluctuations? A: We anticipate a CapEx of around $7 billion for 2026, subject to exchange rate fluctuations. We will finalize numbers for the coming years during our Investor Day in May.
Q: Are you considering working with Starlink for direct-to-cell service in Mexico? A: We are open to collaborating with Starlink if it makes sense for us. The real direct-to-cell service is expected in 2027 with new satellite launches. We are in discussions with them to explore potential opportunities.
Q: What are the major drivers behind the growth in Mexico Mobile, and can we expect this growth to continue in 2026? A: Growth is driven by an improving Mexican economy, increased minimum wages, and strong postpaid promotions. We have seen consistent growth in postpaid over the last five quarters, and prepaid is recovering as the economy improves.
Q: Can you comment on the competition in Mexican broadband and the impact of Televisa upgrading to fiber? A: We have upgraded our network and offer value-added services to small businesses. Despite competition, we continue to perform well with strong market adoption of our products. We aim to maintain our competitive edge.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
