Megacable Holdings SAB de CV (MHSDF) Q4 2025 Earnings Call Highlights: Strong Revenue Growth ...

This article first appeared on GuruFocus .

• Total Revenue:9.2 billion pesos for the quarter, an 8% increase year over year.

• Mass Segment Revenue Growth:10% year over year.

• Corporate Telecom Segment Revenue:3.3% contraction.

• 2025 Total Revenue:35.4 billion pesos, an 8% increase over 2024.

• EBITDA:4.5 billion pesos for the quarter, a 15% increase year over year with a margin of 44%.

• 2025 EBITDA:15.9 billion pesos, an 11% increase year over year with a margin of 45%.

• Net Income:721 million pesos for the quarter, a 74% increase year over year.

• 2025 Net Income:2.8 billion pesos, a 20% growth versus 2024.

• Net Debt:21.5 billion pesos, with a net debt to EBITDA ratio of 1.35 times.

• CapEx:9.1 billion pesos for 2025, representing 25.9% of total revenue.

• Cash Generation:Increased from 1.75 billion in 2024 to 4.68 billion in 2025, a 1.6 times increase.

• Homes Passed:19.2 million, a 10% increase year over year.

• Fiber Penetration:84% of the footprint served by fiber to the home.

• Internet Subscribers:5.8 million, a 9% increase year over year.

• Telephony Subscribers:5.1 million, an 8% increase year over year.

• MVNO Lines:679,000, a 23% annual increase.

• Video Subscribers:4 million, with 3.9 million traditional video users and 151,000 apps-only users.

• ARPU:Broadband ARPU at 439.8 pesos, ARPU per unique subscriber at 426.3 pesos.

• Warning! GuruFocus has detected 12 Warning Signs with MHSDF.

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Release Date: February 20, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Megacable Holdings SAB de CV ( MHSDF ) successfully expanded its network footprint to over 19 million homes, marking a significant milestone in its consolidation phase.

• The company achieved strong revenue growth, with an 8% increase year over year, driven by robust performance in the mass market segment.

• Broadband remains a key growth driver, with consistent net additions in the range of 100,000 to 150,000 quarterly, and a high level of fiber penetration at 84%.

• Megacable Holdings SAB de CV ( MHSDF ) reported improved profitability, with EBITDA increasing by 11% year over year and a margin expansion to 45%.

• The company maintained a strong balance sheet with a favorable net debt to EBITDA ratio, decreasing to 1.35 times, and a solid cash flow generation profile.

Negative Points

• The corporate segment experienced softness, with a 3.3% contraction in revenues, impacting overall performance.

• Despite revenue growth, the market remains price-sensitive, particularly among lower and middle-income households, posing challenges for pricing strategies.

• The company faces competitive pressures in the Mexican telecom market, requiring continuous investment in network upgrades and service offerings.

• There is uncertainty regarding the use of excess cash generated, with decisions pending on whether to reduce debt or increase dividends.

• The transition to a lower investment intensity phase may be impacted by external factors such as chipset shortages, affecting CapEx reduction speed.