QUEBECOR INC. REPORTS CONSOLIDATED RESULTS FOR SECOND QUARTER 2026

QUEBECOR INC. REPORTS CONSOLIDATED RESULTS FOR SECOND QUARTER 2026

PR Newswire

MONTRÉAL, Aug. 6, 2026

MONTRÉAL, Aug. 6, 2026 /PRNewswire/ -- Quebecor Inc. ("Quebecor" or "the Corporation") today reported its consolidated financial results for the second quarter of 2026.

Second quarter 2026 highlightsIn the second quarter of 2026, Quebecor's free cash flows1 were up $43.8 million (11.7%) compared with the same quarter of 2025 to $418.7 million, revenues were up $59.8 million (4.3%) to $1.44 billion, and adjusted EBITDA2 was up $22.3 million (3.7%) to $627.4 million. Excluding the $39.5 million unfavourable impact of the stock‑based compensation expense, adjusted EBITDA increased by $61.8 million (9.8%).The Telecommunications segment increased its adjusted EBITDA by $32.2 million (5.3%), adjusted cash flows from operations3 by $14.2 million (3.1%), and revenues by $47.8 million (4.0%), including revenue increases of $40.2 million (9.2%) from mobile services and $9.6 million (3.1%) from Internet access services. Average monthly mobile revenue per user ("mobile ARPU")4 was up 2.5%, the third consecutive quarterly increase.The mobile telephony service posted a net increase of 53,200 subscriber connections (1.2%).Quebecor's net income attributable to shareholders was $270.9 million ($1.21 per basic share), an increase of $53.2 million ($0.26 per basic share) or 24.4%.Adjusted net income5 was $241.3 million ($1.07 per basic share), an increase of $14.5 million ($0.08 per basic share) or 6.4%.The consolidated net debt leverage ratio6 was stable at 2.87x, still the lowest among Canada's major telecommunications providers.The quarterly dividend on the Corporation's Class A Multiple Voting Shares ("Class A Shares") and Class B Subordinate Voting Shares ("Class B Shares") was increased by 12.5% from $0.40 to $0.45.The normal course issuer bid was renewed until August 14, 2027.Building on its success with Fizz over the past several years, Quebecor increased its stake in Etiya, in which it has held an equity interest since 2021, to 70% on April 21, 2026, to support the ongoing rollout of a unified business support system (BSS) platform for its Videotron and Freedom Mobile ("Freedom") brands. Turkey‑based Etiya is a global software company with more than 1,500 employees that is a leading provider of digital BSS platforms powered by artificial intelligence. This transaction will also strengthen Etiya's ability to deliver large‑scale BSS transformation projects worldwide.On June 23, 2026, Quebecor was named one of Canada's Best 50 Corporate Citizens, according to Corporate Knights' rankings for 2026. Quebecor was placed 19th in recognition of its overall environmental, social and governance (ESG) record. Quebecor's commitment is reflected, in particular, in concrete initiatives on climate action, the circular economy and environmentally responsible production.During the second quarter of 2026, Videotron Ltd. ("Videotron") repaid the full $500.0 million outstanding under the second tranche of its term credit facility and $300.0 million of the $700.0 million outstanding under the third tranche. On July 8, 2026, Videotron made an additional repayment of $100.0 million under its term credit facility. ______________________1 See "Free cash flows" under "Definitions."2 See "Adjusted EBITDA" under "Definitions."3 See "Adjusted cash flows from operations" under "Definitions."4 See "Average monthly mobile revenue per unit" under "Definitions."5 See "Adjusted net income" under "Definitions."6 See "Consolidated net debt leverage ratio" under "Definitions." Comments by Pierre Karl Péladeau, President and Chief Executive Officer of QuebecorQuebecor delivered another strong performance in the second quarter of 2026, driven by disciplined operational and financial execution. Free cash flows increased by 11.7%, revenues by 4.3% and adjusted EBITDA by 3.7%, or 9.8% when excluding the impact of the stock‑based compensation expense. The Telecommunications segment continued to perform solidly during the quarter, with increases of 5.3% in adjusted EBITDA, or 7.0% excluding the stock‑based compensation expense, 9.2% in mobile telephony service revenues, 4.0% in total revenues and 3.1% in adjusted cash flows from operations.Our mobile subscriber base has expanded steadily over the past 12 months, adding 269,700 lines, a 6.4% increase, including 53,200 lines in the second quarter. Combined with an $0.86 or 2.5% increase in our mobile ARPU, this growth underscores the appeal of our offering and our competitive positioning and demonstrates our ability to simultaneously grow our subscriber base, revenues and profitability.These strong results reflect the tangible payoffs of our strategic investments, advantageous network agreements and robust growth model. In Québec and Ontario, Videotron continues to upgrade its networks and enhance its Internet and mobile services with faster speeds and new integrated solutions for both consumers and businesses. Meanwhile, Freedom is pressing ahead with its expansion in Western Canada, while Fizz is accelerating its rollout and establishing itself as the Canadian leader in the digital marketplace, a rapidly growing sector that is poised to define the future of telecommunications services.We also continue to invest in the technologies that will shape the telecommunications industry of tomorrow. Quebecor has fortified its strategic position by acquiring a majority stake in Etiya, a leading provider of AI‑powered digital business support systems. Etiya will help accelerate the rollout of a unified platform across our Videotron, Freedom and Fizz brands, while also positioning itself in the high‑potential global market for large‑scale BSS transformation projects.In the Media segment, TVA Group Inc. ("TVA Group") reported adjusted EBITDA of $23.3 million, up $21.6 million from the second quarter of 2025. This performance was driven in part by the excellent results of the TVA Sports channel, fuelled by the NHL playoffs and the Montréal Canadiens' extended postseason run, which boosted advertising and subscription revenues for the channel and its "TVA Sports Direct" platform. TVA Sports grew its market share to 8.6% in the second quarter, a substantial 3.0‑percentage‑point gain. Canadiens games drew up to two million viewers for a nearly 50% market share. The restructuring initiatives implemented over the past few years, along with the long‑awaited increase in specialty channel carriage rates, also contributed to TVA Group's improved profitability.Our original productions also continued to outperform in the second quarter of 2026. Indéfendable remained the most‑watched drama in Québec, while Révolution was the most popular entertainment show during the spring season. TVA Group maintained its leadership in Québec on the strength of its programming with a 44.2% market share.For Quebecor, strong performance and corporate responsibility go hand in hand. We are particularly proud to have ranked 19th on Corporate Knights' 2026 list of Canada's Best 50 Corporate Citizens. This recognition reflects our long‑standing commitment to sustainable growth, based on concrete action for the climate, the circular economy and environmentally responsible production.In view of our strong financial results, modest dividend payout ratio, and with a view to maintaining a sound, disciplined capital allocation strategy—which combines improving our financial ratios through steady debt reduction with continuing and renewing our normal course issuer bid—Quebecor's Board of Directors approved a 12.5% increase in the quarterly dividend on the Corporation's Class A and Class B Shares, from $0.40 to $0.45.Backed by the strongest balance sheet in the industry, Quebecor is better positioned than ever to actively pursue its cross‑Canada expansion. We will continue executing our strategy with discipline—investing in growth‑enabling technologies, seizing the most promising opportunities, and rigorously allocating capital to create long‑term value for our shareholders, customers, employees and all stakeholders.Non‑IFRS financial measures The Corporation uses financial measures not standardized under International Financial Reporting Standards ("IFRS"), such as adjusted EBITDA, adjusted net income, adjusted cash flows from operations, free cash flows and consolidated net debt leverage ratio, and key performance indicators, including RGUs and mobile ARPU. Definitions of the non‑IFRS measures and key performance indicators used by the Corporation in this press release are provided in the "Definitions" section. Financial tableTable 1Consolidated summary of income, cash flows and balance sheet(in millions of Canadian dollars, except per basic share data)Three months ended June 30Six months endedJune 302026202520262025IncomeRevenues:Telecommunications$1,234.6$1,186.8$2,451.5$2,346.9Media184.8174.4341.3339.0Sports and Entertainment48.451.597.4101.2Inter‑segments (27.6)(32.3)(54.8)(63.6)1,440.21,380.42,835.42,723.5Adjusted EBITDA (negative adjusted EBITDA):Telecommunications641.7609.51,261.31,190.9Media26.89.324.6(9.3)Sports and Entertainment3.14.74.98.2Head Office (44.2)(18.4)(86.8)(35.1)627.4605.11,204.01,154.7Depreciation and amortization(217.4)(213.8)(426.8)(429.1)Financial expenses(79.5)(86.0)(155.7)(178.5)Restructuring, impairment of assets and other(2.3)(16.0)(6.4)(19.3)Other items29.92.039.38.6Income taxes(82.6)(75.1)(154.8)(135.9)Net income$275.5$216.2$499.6$400.5Net income attributable to shareholders$270.9$217.7$496.3$408.4Adjusted net income241.3226.8460.8411.9Per basic share: Net income attributable to shareholders1.210.952.201.77Adjusted net income1.070.992.041.79Table 1 (continued)Three months endedJune 30Six months endedJune 302026202520262025Capital expenditures:Telecommunications$167.8$149.8$298.1$292.0Media4.21.05.43.9Sports and Entertainment1.71.53.02.7Head Office ––0.1–173.7152.3306.6298.6Cash flows: Adjusted cash flows from operations:Telecommunications473.9459.7963.2898.9Media22.68.319.2(13.2)Sports and Entertainment1.43.21.95.5Head Office (44.2)(18.4)(86.9)(35.1)453.7452.8897.4856.1 Free cash flows1418.7374.9654.2612.7 Cash flows provided by operating activities 569.6538.0989.9958.2June 30, 2026Dec. 31, 2025Balance sheet Cash and cash equivalents$97.6$160.6 Working capital(877.0)(233.2) Net assets related to derivative financial instruments93.524.3 Total assets12,954.712,812.2 Short term borrowings661.0– Total long‑term debt (including current portion)6,120.46,824.3 Lease liabilities (current and long term)413.7410.6 Equity attributable to shareholders2,743.72,625.0 Equity2,980.12,737.0Consolidated net debt leverage ratio12.87x2.95x1 See "Non‑IFRS financial measures." 2026/2025 second quarter comparisonRevenues: $1.44 billion, a $59.8 million (4.3%) increase.Revenues increased in Telecommunications ($47.8 million or 4.0% of segment revenues) and in Media ($10.4 million or 6.0%).Revenues decreased in Sports and Entertainment ($3.1 million or ‑6.0%).Adjusted EBITDA: $627.4 million, an increase of $22.3 million (3.7%), despite the $39.5 million unfavourable impact of the stock‑based compensation charge across all of the Corporation's segments, due mainly to a significant increase in Quebecor's share price.Adjusted EBITDA increased in Telecommunications ($32.2 million or 5.3% of segment adjusted EBITDA) and in Media ($17.5 million).There was an unfavourable variance at Head Office ($25.8 million), essentially due to the increase in the stock‑based compensation charge.Adjusted EBITDA decreased in Sports and Entertainment ($1.6 million).Net income attributable to shareholders: $270.9 million ($1.21 per basic share) in the second quarter of 2026, compared with $217.7 million ($0.95 per basic share) in the same period of 2025, an increase of $53.2 million ($0.26 per basic share) or 24.4%.The favourable variances were:$27.9 million favourable variance in other items;$22.3 million increase in adjusted EBITDA;$13.7 million decrease in the charge for restructuring, impairment of assets and other;$6.5 million decrease in financial expenses.The unfavourable variances were:$7.5 million increase in the income tax expense;$6.1 million unfavourable variance in non‑controlling interest;$3.6 million increase in the depreciation and amortization charge.Adjusted net income: $241.3 million ($1.07 per basic share) in the second quarter of 2026, compared with $226.8 million ($0.99 per basic share) in the same period of 2025, an increase of $14.5 million ($0.08 per basic share) or 6.4%.Adjusted cash flows from operations: $453.7 million, a $0.9 million (0.2%) increase in the second quarter of 2026 due to the $22.3 million increase in adjusted EBITDA, partially offset by a $21.4 million increase in capital expenditures, mainly in the Telecommunications segment.Cash flows provided by operating activities: $569.6 million in the second quarter of 2026, a $31.6 million (5.9%) increase due primarily to the increase in adjusted EBITDA, the decrease in the cash portion of the charge for restructuring, impairment of assets and other, and a decrease in the cash portion of financial expenses, partially offset by an unfavourable net change in non‑cash balances related to operating activities and an increase in current income taxes.2026/2025 year‑to‑date comparisonRevenues: $2.84 billion, a $111.9 million (4.1%) increase.Revenues increased in Telecommunications ($104.6 million or 4.5% of segment revenues) and in Media ($2.3 million or 0.7%).Revenues decreased in Sports and Entertainment ($3.8 million or ‑3.8%).Adjusted EBITDA: $1.20 billion, an increase of $49.3 million (4.3%), despite the $86.8 million unfavourable impact of the stock‑based compensation charge across all of the Corporation's segments, due mainly to a significant increase in Quebecor's share price.Adjusted EBITDA increased in Telecommunications ($70.4 million or 5.9% of segment adjusted EBITDA) and in Media ($33.9 million).There was an unfavourable variance at Head Office ($51.7 million), essentially due to the increase in the stock‑based compensation charge.Adjusted EBITDA decreased in Sports and Entertainment ($3.3 million).Net income attributable to shareholders: $496.3 million ($2.20 per basic share) in the first half of 2026, compared with $408.4 million ($1.77 per basic share) in the same period of 2025, an increase of $87.9 million ($0.43 per basic share) or 21.5%.The main favourable variances were:$49.3 million increase in adjusted EBITDA;$30.7 million favourable variance in other items;$22.8 million decrease in financial expenses;$12.9 million decrease in the charge for restructuring, impairment of assets and other.The unfavourable variances were:$18.9 million increase in the income tax expense;$11.2 million unfavourable variance in non‑controlling interest.Adjusted net income: $460.8 million ($2.04 per basic share) in the first half of 2026, compared with $411.9 million ($1.79 per basic share) in the same period of 2025, an increase of $48.9 million ($0.25 per basic share) or 11.9%.Adjusted cash flows from operations: $897.4 million, a $41.3 million (4.8%) increase due to the $49.3 million increase in adjusted EBITDA, partially offset by an $8.0 million increase in capital expenditures, mainly in the Telecommunications segment.Cash flows provided by operating activities: $989.9 million, a $31.7 million (3.3%) increase due primarily to the increase in adjusted EBITDA, a decrease in the cash portion of financial expenses and a decrease in the cash portion of the charge for restructuring, impairment of assets and other, partially offset by the increase in current income taxes and an unfavourable net change in non‑cash balances related to operating activities.Financing operationsOn August 5, 2026, the Board of Directors of Quebecor declared a quarterly dividend of $0.45 per share on the Corporation's Class A Shares and Class B Shares, a 12.5% increase.During the second quarter of 2026, Videotron repaid the full $500.0 million outstanding under the second tranche of its term credit facility and $300.0 million of the $700.0 million outstanding under the third tranche. On July 8, 2026, Videotron made an additional repayment of $100.0 million under its term credit facility. On April 1, 2026, Videotron established a commercial paper program in the United States by way of private placement, under which it may issue unsecured senior notes (ranking pari passu with its other unsecured and unsubordinated debt) with a maximum maturity of 364 days, up to an outstanding amount of US$1.00 billion. Videotron's revolving credit facility is serving as a liquidity backstop and the foreign exchange risk related to the commercial paper is being fully hedged by Videotron.Capital stockNormal course issuer bid On August 5, 2026, the Board of Directors of the Corporation authorized a normal course issuer bid for a maximum of 1,000,000 Class A Shares representing approximately 1.3% of issued and outstanding Class A Shares, and for a maximum of 7,000,000 Class B Shares representing approximately 4.7% of issued and outstanding Class B Shares as of July 31, 2026. The purchases will be made from August 15, 2026 to August 14, 2027, at prevailing market prices on the open market through the facilities of the Toronto Stock Exchange or other alternative trading systems in Canada. All shares repurchased under the bid will be cancelled. As of July 31, 2026, 74,742,122 Class A Shares and 148,751,359 Class B Shares were issued and outstanding.The average daily trading volume of the Corporation's Class A Shares and Class B Shares between February 1, 2026 and July 31, 2026 through the facilities of the Toronto Stock Exchange, in accordance with its requirements, or through other alternative trading systems in Canada, was 638 Class A Shares and 947,548 Class B Shares. Consequently, the Corporation will be authorized to purchase a maximum of 1,000 Class A Shares and 236,887 Class B Shares during the same trading day, pursuant to its normal course issuer bid.The Corporation believes that the repurchase of these shares under this normal course issuer bid is in the best interests of the Corporation and its shareholders.Between August 15, 2025 and July 31, 2026, of the 1,000,000 Class A Shares and 7,000,000 Class B Shares it was authorized to repurchase under its previous normal course issuer bid, the Corporation repurchased no Class A Shares and 6,049,900 Class B Shares at a weighted average price of $54.31 per share on the open market through the facilities of the Toronto Stock Exchange and alternative trading systems in Canada.Cancellation and issuance of sharesDuring the first half of 2026, the Corporation repurchased and cancelled 3,124,900 Class B Shares for a total cash consideration of $184.9 million (2,570,000 Class B Shares repurchased and cancelled for a total cash consideration of $90.7 million in 2025) and 24,333 Class B Shares were issued following the exercise of stock options for a total cash consideration of $0.8 million (48,444 Class B Shares issued for a total cash consideration of $1.3 million in 2025).Dividends declared On August 5, 2026, the Board of Directors of Quebecor declared a quarterly dividend of $0.45 per share on its Class A Shares and Class B Shares, payable on September 15, 2026 to shareholders of record at the close of business on August 21, 2026. This dividend is designated an eligible dividend, as provided under subsection 89(14) of the Canadian Income Tax Act and its provincial counterpart.Detailed financial informationFor a detailed analysis of Quebecor's second quarter 2026 results, please refer to the Management Discussion and Analysis and condensed consolidated financial statements of Quebecor, available on the Corporation's website at www.quebecor.com/en/investors/financial-documentation and the SEDAR+ website at www.sedarplus.ca.Conference call for investors and webcastQuebecor will hold a conference call to discuss its second quarter 2026 results on August 6, 2026, at 9:00 a.m. EDT. There will be a question period reserved for financial analysts. To access the conference call, please dial 1‑800‑990‑4777. The conference call will also be broadcast live on Quebecor's website at www.quebecor.com/en/investors/conferences‑and‑annual‑meeting. A recording will be available at the same address until November 4, 2026 for anyone unable to attend the call.Cautionary statement regarding forward‑looking statementsThe statements in this press release that are not historical facts are forward‑looking statements and are subject to significant known and unknown risks, uncertainties and assumptions that could cause Quebecor's actual results for future periods to differ materially from those set forth in forward‑looking statements. Forward‑looking statements may be identified by the use of the conditional or by forward‑looking terminology such as the terms "plans," "expects," "may," "anticipates," "intends," "estimates," "projects," "seeks," "believes," or similar terms, variations of such terms or the negative of such terms. Some important factors that could cause actual results to differ materially from those expressed in these forward‑looking statements include, but are not limited to:Quebecor's ability to continue successfully developing its network and the facilities that support its mobile services;general economic and political climate, financial and economic market conditions, including hyperinflation in Turkey, global business challenges, such as tariffs and trade barriers, as well as market conditions and variations in the businesses of local, regional and national advertisers in Quebecor's newspapers, television outlets and other media properties;Quebecor's ability to implement its business and growth strategies successfully;the intensity of competitive activity in the industries in which Quebecor operates and its ability to penetrate new markets and successfully develop its business, including in growth sectors and new geographies;fragmentation of the media landscape and its impact on the advertising market and the media properties of Quebecor;new technologies that might change consumer behaviour with respect to Quebecor's product suites;impacts related to cybersecurity and the protection of personal information;unanticipated higher capital spending required for developing Quebecor's network or to address the continued development of competitive alternative technologies, or the inability to obtain additional capital to continue the development of Quebecor's business segments;the impacts of the significant and recurring investments that will be required for development and expansion and to compete effectively with the incumbent local exchange carriers and other current or potential competitors in the Telecommunications segment's target markets;disruptions to the network through which Quebecor provides its television, Internet access, mobile and wireline telephony and OTT video services, and its ability to protect such services against piracy, unauthorized access and other security breaches;labour disputes and strikes, service interruptions resulting from equipment breakdown, network failure, the threat of natural disasters, epidemics, public‑health crises and political instability in some countries;changes in Quebecor's ability to obtain services and equipment critical to its operations;impacts related to environmental issues;changes in laws and regulations, or in their interpretations, which could result, among other things, in increased competition, changes in Quebecor's markets, increased operating expenses, capital expenditures or tax expenses, or a reduction in the value of some assets; and Quebecor's indebtedness, interest rate and exchange rate fluctuations, the tightening of credit markets and the restrictions on its business imposed by the terms of its debt.The forward‑looking statements in this document are made to provide investors and the public with a better understanding of the Corporation's circumstances and are based on assumptions it believes to be reasonable as of the day on which they are made. Investors and others are cautioned that the foregoing list of factors that may affect future results is not exhaustive and that undue reliance should not be placed on any forward‑looking statements. For more information on the risks, uncertainties and assumptions that could cause the Corporation's actual results to differ from current expectations, please refer to the Corporation's public filings, available at www.sedarplus.ca and www.quebecor.com, including, in particular, the "Trend Information" and "Risks and Uncertainties" sections of the Corporation's Management Discussion and Analysis for the year ended December 31, 2025.The forward‑looking statements in this document reflect the Corporation's expectations as of August 5, 2026, and are subject to change after that date. The Corporation expressly disclaims any obligation or intention to update or revise any forward‑looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.About Quebecor Quebecor, a Canadian leader in telecommunications, entertainment, news media and culture, is one of the best‑performing integrated communications companies in the industry. Driven by their determination to deliver the best possible customer experience, all of Quebecor's subsidiaries and brands are differentiated by their high‑quality, multiplatform, convergent products and services.Quebecor (TSX: QBR.A, QBR.B) is headquartered in Québec and employs more than 11,000 people in Canada.A family business founded in 1950, Quebecor is strongly committed to the community. Every year, it actively supports more than 400 organizations in the vital fields of culture, health, education, the environment and entrepreneurship.Visit our website: www.quebecor.comFollow us on X: www.x.com/Quebecor DEFINITIONS Adjusted EBITDAIn its analysis of operating results, the Corporation defines adjusted EBITDA, as reconciled to net income under IFRS, as net income before depreciation and amortization, financial expenses, restructuring, impairment of assets and other, other items and income taxes. Adjusted EBITDA as defined above is not a measure of results that is consistent with IFRS. It is not intended to be regarded as an alternative to IFRS financial performance measures or to the statement of cash flows as a measure of liquidity. This measure should not be considered in isolation or as a substitute for other performance measures prepared in accordance with IFRS. The Corporation's management and Board of Directors use this measure in evaluating its consolidated results as well as the results of the Corporation's operating segments. This measure eliminates the significant level of impairment and depreciation/amortization of tangible and intangible assets and is unaffected by the capital structure or investment activities of the Corporation and its business segments.Adjusted EBITDA is also relevant because it is a component of the Corporation's annual incentive compensation programs. A limitation of this measure, however, is that it does not reflect the capital expenditures and acquisitions of spectrum licences needed to generate revenues in the Corporation's segments. The Corporation also uses other measures that do reflect capital expenditures, such as adjusted cash flows from operations and free cash flows. The Corporation's definition of adjusted EBITDA may not be the same as similarly titled measures reported by other companies.Table 2 provides a reconciliation of adjusted EBITDA to net income as disclosed in Quebecor's condensed consolidated financial statements.Table 2Reconciliation of adjusted EBITDA to the net income measure used in the condensed consolidated financial statements(in millions of Canadian dollars)Three months ended June 30Six months ended June 302026202520262025Adjusted EBITDA (negative adjusted EBITDA):Telecommunications$641.7$609.5$1,261.3$1,190.9Media26.89.324.6(9.3)Sports and Entertainment3.14.74.98.2Head Office (44.2)(18.4)(86.8)(35.1)627.4605.11,204.01,154.7Depreciation and amortization(217.4)(213.8)(426.8)(429.1)Financial expenses(79.5)(86.0)(155.7)(178.5)Restructuring, impairment of assets and other(2.3)(16.0)(6.4)(19.3)Other items29.92.039.38.6Income taxes(82.6)(75.1)(154.8)(135.9)Net income$275.5$216.2$499.6$400.5Adjusted net income The Corporation defines adjusted net income, as reconciled to net income attributable to shareholders under IFRS, as net income attributable to shareholders before restructuring, impairment of assets and other, and other items, net of income tax related to adjustments and net income attributable to non‑controlling interest related to adjustments. Adjusted net income as defined above is not a measure of results that is consistent with IFRS. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The Corporation uses adjusted net income to analyze trends in the performance of its businesses. The above‑listed items are excluded from the calculation of this measure because they impair the comparability of financial results. Adjusted net income is more representative for forecasting income. The Corporation's definition of adjusted net income may not be the same as similarly titled measures reported by other companies. Table 3 provides a reconciliation of adjusted net income to the net income attributable to shareholders measure used in Quebecor's condensed consolidated financial statements.Table 3Reconciliation of adjusted net income to the net income attributable to shareholders measure used in the condensed consolidated financial statements(in millions of Canadian dollars)Three months ended June 30Six months ended June 302026202520262025Adjusted net income$241.3$226.8$460.8$411.9Restructuring, impairment of assets and other(2.3)(16.0)(6.4)(19.3)Other items29.92.039.38.6Income taxes related to adjustments11.64.21.96.1Non‑controlling interest related to adjustments0.40.70.71.1Net income attributable to shareholders$270.9$217.7$496.3$408.41 Includes impact of fluctuations in income tax applicable to adjusted items, either for statutory reasons or in connection with tax transactions.Adjusted cash flows from operations and free cash flows Adjusted cash flows from operationsAdjusted cash flows from operations represents adjusted EBITDA less capital expenditures (excluding spectrum licence acquisitions). Adjusted cash flows from operations represents funds available for interest and income tax payments, expenditures related to restructuring programs, business acquisitions, acquisitions of spectrum licences, payment of dividends, repayment of long‑term debt and lease liabilities, and share repurchases. Adjusted cash flows from operations is not a measure of liquidity that is consistent with IFRS. It is not intended to be regarded as an alternative to IFRS financial performance measures or to the statement of cash flows as a measure of liquidity. Adjusted cash flows from operations is used by the Corporation's management and Board of Directors to evaluate the cash flows generated by the operations of all of its segments, on a consolidated basis, in addition to the operating cash flows generated by each segment. Adjusted cash flows from operations is also relevant because it is a component of the Corporation's annual incentive compensation programs. The Corporation's definition of adjusted cash flows from operations may not be identical to similarly titled measures reported by other companies.Free cash flows Free cash flows represents cash flows provided by operating activities calculated in accordance with IFRS, less cash flows used for capital expenditures (excluding spectrum licence acquisitions), plus proceeds from disposal of assets. Free cash flows is used by the Corporation's management and Board of Directors to evaluate cash flows generated by the Corporation's operations. Free cash flows represents available funds for business acquisitions, acquisitions of spectrum licences, payment of dividends, repayment of long‑term debt and lease liabilities, and share repurchases. Free cash flows is not a measure of liquidity that is consistent with IFRS. It is not intended to be regarded as an alternative to IFRS financial performance measures or to the statement of cash flows as a measure of liquidity. The Corporation's definition of free cash flows may not be identical to similarly titled measures reported by other companies.Tables 4 and 5 provide a reconciliation of adjusted cash flows from operations and free cash flows to cash flows provided by operating activities reported in the condensed consolidated financial statements.Table 4Adjusted cash flows from operations(in millions of Canadian dollars)Three months ended June 30Six months ended June 302026202520262025Adjusted EBITDA (negative adjusted EBITDA)Telecommunications$641.7$609.5$1,261.3$1,190.9Media26.89.324.6(9.3)Sports and Entertainment3.14.74.98.2Head Office(44.2)(18.4)(86.8)(35.1)627.4605.11,204.01,154.7MinusCapital expenditures:1Telecommunications(167.8)(149.8)(298.1)(292.0)Media(4.2)(1.0)(5.4)(3.9)Sports and Entertainment(1.7)(1.5)(3.0)(2.7)Head Office‑‑(0.1)‑(173.7)(152.3)(306.6)(298.6)Adjusted cash flows from operationsTelecommunications473.9459.7963.2898.9Media22.68.319.2(13.2)Sports and Entertainment1.43.21.95.5Head Office(44.2)(18.4)(86.9)(35.1)$453.7$452.8$897.4$856.11 Reconciliation to cash flows used for capital expenditures as per condensed consolidated financial statementsThree months ended June 30Six months ended June 302026202520262025 Capital expenditures$(173.7)$ (152.3)$ (306.6)$ (298.6) Net variance in current operating items related to capital expenditures (excluding government credits receivable for large investment projects)22.7(11.4)(29.8)(47.6) Cash flows used for capital expenditures$(151.0)$ (163.7)$ (336.4)$ (346.2)Table 5Free cash flows and cash flows provided by operating activities reported in the condensed consolidated financial statements(in millions of Canadian dollars)Three months ended June 30Six months ended June 302026202520262025Adjusted cash flows from operations from Table 4$453.7$452.8$897.4$856.1Plus (minus)Cash portion of financial expenses(77.4)(83.6)(151.4)(173.8)Cash portion of restructuring, impairment of assets and other(3.0)(15.6)(6.8)(18.9)Current income taxes(86.1)(83.1)(193.1)(158.3)Other0.20.2(0.3)(0.2)Net change in non‑cash balances related to operating activities108.6115.6138.2155.4Net variance in current operating items related to capital expenditures (excluding government credits receivable for large investment projects)22.7(11.4)(29.8)(47.6)Free cash flows418.7374.9654.2612.7Plus (minus)Cash flows used for capital expenditures (excluding spectrum licence acquisitions)151.0163.7336.4346.2Proceeds from disposal of assets(0.1)(0.6)(0.7)(0.7)Cash flows provided by operating activities$569.6$538.0$989.9$958.2Consolidated net debt leverage ratioThe consolidated net debt leverage ratio represents consolidated net debt divided by the trailing 12‑month adjusted EBITDA. Consolidated net debt consists of total long‑term debt, lease liabilities, short‑term borrowings, derivative financial instruments and cash and cash equivalents. The consolidated net debt leverage ratio serves to evaluate the Corporation's financial leverage and is used by management and the Board of Directors in decisions on the Corporation's capital structure, including its financing strategy, and in managing debt maturity risks. Consolidated net debt leverage ratio is not a measure established in accordance with IFRS. It is not intended to be used as an alternative to IFRS measures or the balance sheet to evaluate the Corporation's financial position. The Corporation's definition of consolidated net debt leverage ratio may not be identical to similarly titled measures reported by other companies.Table 6 provides the calculation of consolidated net debt leverage ratio and the reconciliation to balance sheet items reported in Quebecor's condensed consolidated financial statements.Table 6Consolidated net debt leverage ratio(in millions of Canadian dollars)June 30, 2026Dec. 31, 2025Total long‑term debt1$6,120.4$6,824.3Plus (minus)Lease liabilities2413.7410.6Short term borrowings661.0–Derivative financial instruments3(93.5)(24.3)Cash and cash equivalents(97.6)(160.6)Consolidated net debt 7,004.07,050.0Divided by:Trailing 12‑month adjusted EBITDA$2,442.5$2,393.2Consolidated net debt leverage ratio2.87x 2.95x1 Excluding financing costs.2 Total liabilities.3 Assets less liabilities.Key performance indicatorsRevenue‑generating unit The Corporation uses RGU, an industry metric, as a key performance indicator. An RGU represents a subscriber connection to the mobile or wireline telephony service or a subscription to the Internet access or television service. RGU is not a measurement that is consistent with IFRS and the Corporation's definition and calculation of RGU may not be the same as identically titled measurements reported by other companies or published by public authorities.Average monthly mobile revenue per unitThe Corporation uses mobile ARPU, an industry metric, as a key performance indicator. This indicator is calculated by dividing mobile telephony revenues by the average number of mobile RGUs during the applicable period, and then dividing the resulting amount by the number of months in the applicable period. Mobile ARPU is not a measurement that is consistent with IFRS and the Corporation's definition and calculation of mobile ARPU may not be the same as identically titled measurements reported by other companies.QUEBECOR INC. CONSOLIDATED STATEMENTS OF INCOME (in millions of Canadian dollars, except for earnings per share data) Three months ended Six months ended (unaudited) June 30 June 30 2026202520262025Revenues $1,440.2$1,380.4$2,835.4$2,723.5Employee costs 251.1207.7492.0413.4Purchase of goods and services561.7567.61,139.41,155.4Depreciation and amortization 217.4213.8426.8429.1Financial expenses 79.586.0155.7178.5Restructuring, impairment of assets and other2.316.06.419.3Other items(29.9)(2.0)(39.3)(8.6)Income before income taxes 358.1291.3654.4536.4Income taxes: Current 86.183.1193.1158.3Deferred(3.5)(8.0)(38.3)(22.4)82.675.1154.8135.9Net income$275.5$216.2$499.6$400.5Net income (loss) attributable toShareholders$270.9$217.7$496.3$408.4Non-controlling interests4.6(1.5)3.3(7.9)Earnings per share attributable to shareholdersBasic$1.21$0.95$2.20$1.77Diluted1.180.942.151.76Weighted average number of shares outstanding (in millions) 224.8230.0225.6230.6Weighted average number of diluted shares (in millions) 230.5231.6230.8232.2QUEBECOR INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions of Canadian dollars) Three months endedSix months ended(unaudited) June 30June 302026202520262025Net income$275.5$216.2$499.6$400.5Other comprehensive (loss) income:Items that may be reclassified to income:Cash flow hedges:(Loss) gain on valuation of derivative financial instruments(25.3)38.0(23.5)46.0Deferred income taxes2.9(1.6)1.5(2.5)Gain (loss) on translation of foreign operations10.1(1.7)16.0(3.1)Items that will not be reclassified to income:Equity investments:(Loss) gain on revaluation of equity investments(4.1)19.7(6.7)22.0Deferred income taxes0.6(2.6)0.9(2.9)(15.8)51.8(11.8)59.5Comprehensive income$259.7$268.0$487.8$460.0Comprehensive income (loss) attributable toShareholders$252.9$269.5$482.3$467.9Non-controlling interests6.8(1.5)5.5(7.9)QUEBECOR INC.SEGMENTED INFORMATION (in millions of Canadian dollars) (unaudited) Three months ended June 30, 2026SportsHeadandofficeTelecommuni-Enter-and Inter-cationsMediatainmentsegmentsTotalRevenues$1,234.6$184.8$48.4$(27.6)$1,440.2Employee costs146.544.214.545.9251.1Purchase of goods and services446.4113.830.8(29.3)561.7Adjusted EBITDA1641.726.83.1(44.2)627.4Depreciation and amortization217.4Financial expenses79.5Restructuring, impairment of assets and other2.3Other items(29.9)Income before income taxes$358.1Cash flows used for capital expenditures$147.6$1.7$1.7$-$151.0Three months ended June 30, 2025SportsHeadandofficeTelecommuni-Enter-and Inter-cationsMediatainmentsegmentsTotalRevenues$1,186.8$174.4$51.5$(32.3)$1,380.4Employee costs128.445.113.121.1207.7Purchase of goods and services448.9120.033.7(35.0)567.6Adjusted EBITDA1609.59.34.7(18.4)605.1Depreciation and amortization213.8Financial expenses86.0Restructuring, impairment of assets and other16.0Other items(2.0)Income before income taxes$291.3Cash flows used for capital expenditures$159.8$2.5$1.4$-$163.7QUEBECOR INC. SEGMENTED INFORMATION (continued)(in millions of Canadian dollars) (unaudited) Six months ended June 30, 2026SportsHeadandofficeTelecommuni-Enter-and Inter-cationsMediatainmentsegmentsTotalRevenues$2,451.5$341.3$97.4$(54.8)$2,835.4Employee costs282.088.028.993.1492.0Purchase of goods and services908.2228.763.6(61.1)1,139.4Adjusted EBITDA11,261.324.64.9(86.8)1,204.0Depreciation and amortization426.8Financial expenses155.7Restructuring, impairment of assets and other6.4Other items(39.3)Income before income taxes$654.4Cash flows used for capital expenditures$330.9$2.4$3.0$0.1$336.4Six months ended June 30, 2025SportsHeadandofficeTelecommuni-Enter-and Inter-cationsMediatainmentsegmentsTotalRevenues$2,346.9$339.0$101.2$(63.6)$2,723.5Employee costs257.590.326.139.5413.4Purchase of goods and services898.5258.066.9(68.0)1,155.4Adjusted EBITDA11,190.9(9.3)8.2(35.1)1,154.7Depreciation and amortization429.1Financial expenses178.5Restructuring, impairment of assets and other19.3Other items(8.6)Income before income taxes$536.4Cash flows used for capital expenditures$335.5$8.1$2.6$-$346.21The Chief Executive Officer uses adjusted EBITDA as the measure of profit to assess the performance of each segment. Adjusted EBITDA is a non-IFRS measure and is defined as net income before depreciation and amortization, financial expenses, restructuring, impairment of assets and other, other items and income taxes.QUEBECOR INC. CONSOLIDATED STATEMENTS OF EQUITY(in millions of Canadian dollars)(unaudited) Equity attributable to shareholders EquityAccumulatedattributable other com- to non- Capital ContributedRetained prehensive controlling Total stocksurplusearnings(loss) income interests equityBalance as of December 31, 2024$1,041.2$17.4$1,143.6$(45.0)$107.5$2,264.7Net income (loss)--408.4-(7.9)400.5Other comprehensive income ---59.5-59.5Dividends--(161.2)--(161.2)Repurchase of Class B Shares (16.9)-(73.8)--(90.7)Issuance of Class B Shares1.30.5---1.8Balance as of June 30, 20251,025.617.91,317.014.599.62,474.6Net income--447.6-12.7460.3Other comprehensive income ---82.50.182.6Dividends--(160.0)-(0.4)(160.4)Repurchase of Class B Shares (18.1)-(109.0)--(127.1)Issuance of Class B Shares5.31.7---7.0Balance as of December 31, 20251,012.819.61,495.697.0112.02,737.0Net income--496.3-3.3499.6Other comprehensive income ---(14.0)2.2(11.8)Dividends--(180.2)--(180.2)Repurchase of Class B Shares (20.6)-(164.3)--(184.9)Issuance of Class B Shares0.80.7---1.5Business acquisition----118.9118.9Balance as of June 30, 2026$993.0$20.3$1,647.4$83.0$236.4$2,980.1QUEBECOR INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions of Canadian dollars) Three months endedSix months ended(unaudited) June 30June 302026202520262025Cash flows related to operating activitiesNet income$275.5$216.2$499.6$400.5Adjustments for: Depreciation of property, plant and equipment 126.2127.4252.6253.5Amortization of intangible assets 58.054.3108.1111.7Depreciation of right-of-use assets 33.232.166.163.9Impairment of assets0.40.90.71.5Amortization of financing costs2.12.44.34.7Gain on revaluation of an equity interest(30.1)-(30.1)-Share of results in associates0.2(2.0)(7.1)(8.6)Deferred income taxes (3.5)(8.0)(38.3)(22.4)Other(1.0)(0.9)(4.2)(2.0)461.0422.4851.7802.8Net change in non-cash balances related to operating activities108.6115.6138.2155.4Cash flows provided by operating activities569.6538.0989.9958.2Cash flows related to investing activitiesCapital expenditures(151.0)(163.7)(336.4)(346.2)Deferred subsidies (used) received to finance capital expenditures(8.3)(3.4)(8.1)14.9Business acquisitions(91.3)-(91.3)-Proceeds from disposals of assets0.10.60.70.7Other2.90.15.51.2Cash flows used in investing activities(247.6)(166.4)(429.6)(329.4)Cash flows related to financing activitiesNet change in short-term borrowings591.5(6.2)591.5(3.3)Net change under revolving facilities, net of financing costs8.759.47.359.4Repayment of long-term debt (800.0)(400.0)(800.0)(400.0)Repayment of lease liabilities(31.8)(30.3)(63.0)(60.2)Issuance of Class B Shares 0.6-0.81.3Repurchase of Class B Shares (99.7)(29.9)(184.9)(90.7)Dividends(180.2)(161.2)(180.2)(161.2)Cash flows used in financing activities(510.9)(568.2)(628.5)(654.7)Net change in cash, cash equivalents and restricted cash(188.9)(196.6)(68.2)(25.9)Effect of translation on cash and cash equivalents in foreign currencies (2.9)-(2.9)-Cash, cash equivalents and restricted cash at beginning of period 316.5266.7195.896.0Cash, cash equivalents and restricted cash at end of period$124.7$70.1$124.7$70.1QUEBECOR INC. CONSOLIDATED BALANCE SHEETS (in millions of Canadian dollars) (unaudited)June 30December 3120262025AssetsCurrent assetsCash and cash equivalents $97.6$160.6Restricted cash27.135.2Accounts receivable 1,043.91,067.8Contract assets95.7109.2Inventories384.7414.3Derivative financial instruments 12.1-Other current assets209.6195.21,870.71,982.3Non-current assetsProperty, plant and equipment3,224.13,282.7Intangible assets3,672.53,441.9Right-of-use assets374.9374.1Goodwill 2,892.22,713.4Derivative financial instruments 81.457.9Deferred income taxes57.042.0Other assets 781.9917.911,084.010,829.9Total assets$12,954.7$12,812.2Liabilities and equity Current liabilities Short-term borrowings$661.0$-Accounts payable, accrued charges and provisions1,079.91,142.2Deferred revenue373.5376.3Other current liabilities109.595.6Current portion of long-term debt 410.1491.6Current portion of lease liabilities113.7109.82,747.72,215.5Non-current liabilities Long-term debt 5,681.56,301.5Lease liabilities300.0300.8Derivative financial instruments-33.6Deferred income taxes851.0871.7Other liabilities394.4352.17,226.97,859.7EquityCapital stock 993.01,012.8Contributed surplus20.319.6Retained earnings1,647.41,495.6Accumulated other comprehensive income83.097.0Equity attributable to shareholders2,743.72,625.0Non-controlling interests 236.4112.02,980.12,737.0Total liabilities and equity$12,954.7$12,812.2