Liberty Latin America (LILA) Q4 2025 Earnings Call Summary

1Key Financial Results and Metrics

Q4 Revenue: $1.2 billion, reflecting 1% year-over-year rebased growth.

Full Year Revenue: $4.4 billion, slightly down on a rebased basis.

Adjusted OIBDA:

Q4: $451 million, 8% rebased growth.

Full Year: $1.7 billion, 9% rebased growth.

Adjusted OIBDA Margin: Improved by approximately 300 basis points in 2025.

Adjusted Free Cash Flow (FCF):

Q4: $278 million.

Full Year: $150 million, a 29% year-over-year increase.

Capital Expenditures: $640 million for 2025, down from $725 million in 2024.

2Strategic Updates and Business Highlights

Subscriber Growth: Added over 225,000 mobile postpaid subscribers in 2025, driven by Costa Rica and fixed-mobile convergence efforts.

Hurricane Recovery: Despite Hurricane Melissa's impact, the mobile network in Jamaica recovered quickly, with over 75% of fixed broadband customers back online.

B2B Performance: Strong growth in B2B, particularly in C&W Panama, with a notable contract win from the Ministry of Education.

5G Expansion: Continued rollout of 5G across multiple markets, enhancing competitive positioning.

Partnership with AWS: Focused on leveraging AWS for cloud services and AI, aiming for operational efficiencies.

3Forward Guidance and Outlook

2026 Expectations: Anticipate continued recovery in Jamaica and stable growth in mobile and B2B segments.

Financial Performance: Expected to be weighted towards the second half of 2026, with a target to return to pre-hurricane profitability levels by year-end.

Shareholder Returns: Management indicated potential for shareholder returns announcements later in 2026 as cash flow improves.

4Bad News, Challenges, or Points of Concern

Impact of Hurricane Melissa: Significant revenue and OIBDA declines in Jamaica due to the hurricane, with ongoing recovery efforts expected to impact near-term financial results.

Puerto Rico Challenges: Declines in B2B revenue and residential mobile revenue due to customer migration issues and competitive pressures.

Fixed Revenue Pressures: Fixed broadband revenue facing headwinds from competitive pricing and legacy product declines.

Leverage Concerns: Liberty Puerto Rico has high leverage levels, nearing 8x, with ongoing liability management exercises needed to stabilize its financial position.

5Notable Q&A Insights

AI and Cost Improvements: Management sees significant potential for AI to enhance operational efficiencies and reduce costs, though translating these into tangible free cash flow improvements is a key focus.

Fixed-Mobile Convergence (FMC): FMC is a strategic priority, with potential for higher ARPU and reduced churn, particularly in Puerto Rico where the company has substantial market share in fixed broadband.

Revenue Growth Projections: Management refrained from providing specific guidance but indicated expectations for respectable single-digit growth in mobile and stable performance in fixed broadband, with B2B growth driven by cloud services.

Shareholder Returns: Management is optimistic about future cash flow and potential shareholder returns, with plans to communicate updates later in the year. This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, challenges faced, and insights from the Q&A session during Liberty Latin America's Q4 2025 earnings call.