America Movil stock: Q3 cash flow cuts net debt after 7% profit growth

América Móvil reported stronger third-quarter operating results on October 20, 2026, as revenue, EBITDA and net profit all increased from the year-earlier period. MarketBeat's report on the company's October 21 earnings call said cash generation also funded investment and reduced leverage.

Total revenue rose 7.6 percent to MXN 251 billion. EBITDA increased 6.7 percent at constant exchange rates, while net profit grew 7 percent to MXN 24 billion. Operating profit advanced 13.9 percent to MXN 57 billion, helped by depreciation and amortization growth of only 3 percent. The EBITDA margin reached 40.8 percent, an improvement of 0.5 percentage points from a year earlier.

Postpaid offsets prepaid pressure

Customer trends were mixed. América Móvil added 3.1 million postpaid subscribers and 390,000 fixed-broadband customers during the quarter. Brazil led postpaid additions with 743,000, followed by Colombia with 348,000 and Peru with 229,000.

Prepaid subscriptions declined by 5 million, mainly because of customer-base cleanups in Mexico and Colombia. Management said Mexico's prepaid registration mandate contributed to disconnections and could weigh on prepaid revenue in the short term, while customers may return after completing registration. Year over year, postpaid mobile accesses increased 8.9 percent and fixed-broadband accesses rose 5.6 percent.

Service revenue increased 5.3 percent at constant exchange rates. Mobile service revenue grew 6.3 percent, while fixed-line revenue growth accelerated to 3.7 percent from 2.7 percent in the preceding quarter. Management also pointed to higher-value postpaid plans, stronger customer retention and fiber upgrades as operating supports.

Cash flow lowers financial pressure

Capital expenditure totaled MXN 76 billion in the first nine months and was fully funded by cash flow. That generation also reduced net debt by MXN 34 billion in cash-flow terms, while MXN 27 billion went to shareholders through buybacks and dividends. Free cash flow was 41 percent higher than in 2025.

Net debt excluding leases stood at MXN 400 billion at the quarter-end, equal to 1.21 times EBITDA after leases, down from 1.50 times at the end of 2025. Management retained its target leverage range of 1.2 to 1.5 times, leaving room for shareholder returns and acquisitions while limiting balance-sheet expansion.

The company expects capital expenditure to remain near USD 7 billion next year, with potential variation of 5 percent above or below that level. Management also cited the planned consolidation of VTR, a remaining dividend payment of about MXN 17 billion, and possible transactions in Peru and Colombia as competing uses of capital.

Investor focus shifts to execution

The results give investors two contrasting signals. Stronger service revenue, postpaid growth and broadband additions point to resilient demand across several markets. At the same time, prepaid cleanups and regulatory registration requirements make subscriber totals harder to interpret and could pressure near-term revenue in affected markets.

The real-time quote of America Movil stock was 21.50 euros on Lang & Schwarz at 11:07 CET on Friday, October 30, 2026.

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More results, operating updates and analysis are available in more news and analyses on America Movil stock.

Source: MarketBeat, October 21, 2026.