Stock Markets May 27, 2026 05:06 PM

America Movil Lays Out 2026-2028 Targets, Keeps Annual Capex Near $7 Billion

Investor presentation emphasizes steady service revenue and EBITDA growth, continued 5G build completed and focus on M&A, debt reduction and returns

By Marcus Reed AMX

At a closed investor day in New York, America Movil presented multi-year guidance that projects steady service revenue and EBITDA growth from 2026 through 2028 while maintaining capital expenditures at about $7 billion per year. The company said most of its costly 5G radio frequency purchases are behind it, enabling a stable investment profile and the generation of cash to fund acquisitions, debt paydown and shareholder returns. Executives identified acquisition targets in Brazil and parts of Eastern Europe and reiterated a long-term profitability aspiration for key markets.

America Movil Lays Out 2026-2028 Targets, Keeps Annual Capex Near $7 Billion
AMX

Key Points

  • America Movil projects service revenue growth of 4.0% to 5.0% annually from 2026-2028 and EBITDA growth of 4.5% to 6.0% annually over the same period.
  • Capital expenditures are planned at about $7 billion per year, totaling $21 billion across 2026-2028, enabled by having completed most costly 5G radio frequency purchases.
  • Generated cash is earmarked for acquisitions, debt reduction and shareholder returns; acquisition targets include struggling ISPs in Brazil and telecom operators in Serbia and Slovenia.

America Movil provided investors with a financial road map through 2028 during a presentation in New York that was closed to the press, according to a J.P. Morgan analyst note. The company set out a plan that emphasizes steady top-line and core-profit expansion while keeping capital spending largely unchanged at roughly $7 billion annually.

Guidance and growth assumptions

  • Service revenue: Management projected that revenue from services will expand at a compound rate averaging between 4.0% and 5.0% per year from 2026 to 2028.
  • EBITDA: Core earnings before interest, taxes, depreciation and amortization are expected to rise in the range of 4.5% to 6.0% annually over the same three-year span.

Capital spending and the 5G transition

The company told investors it intends to sustain capital expenditures at around $7 billion each year, which would amount to $21 billion over the 2026-2028 interval. Executives said this level of investment is feasible because most of the expensive radio frequency purchases required for its 5G network deployment have already been completed.

Uses of free cash flow

With a stable spending profile, America Movil said it expects to generate substantial cash flow. Management outlined three primary uses for that cash: to pursue acquisitions, to reduce outstanding debt, and to return capital to investors. Company representatives confirmed they are actively seeking acquisition targets, naming struggling internet service providers in Brazil and telecom operators in Eastern European countries such as Serbia and Slovenia as areas of interest.

Market-level ambitions

For major operating markets including Brazil and Colombia, management described an "aspiration to join the club of 50," identifying a long-term objective of attaining a 50% profit margin in those territories. The presentation did not provide a firm timeline for reaching that milestone, framing it as an ambition rather than a guaranteed outcome.

Disclosure and availability of details

The investor day was closed to the press, and a company spokesperson had not immediately replied to a request for confirmation of the figures cited in the analyst note.

Taken together, the guidance indicates a deliberate strategy: sustain network investment at current levels now that major spectrum costs are largely behind the company, and deploy the resulting cash to strengthen the balance sheet and pursue selective consolidation opportunities in underperforming markets. The approach ties capital allocation to a mix of growth, financial repair and shareholder returns, while management pursues higher profitability in core Latin American markets.

Risks

  • Figures presented in the investor meeting are not independently confirmed - a company spokesperson had not immediately responded to a request for confirmation.
  • Planned acquisitions remain an objective rather than a certainty - interest in struggling internet providers and Eastern European operators does not guarantee completed deals.
  • The goal to reach a 50% profit margin in markets like Brazil and Colombia is described as an aspiration, indicating uncertainty about timing and achievability.

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