América Móvil: revenue grows slowly, but EBITDA margin hits 39.9% – a high, and debt fell MXN 284bn over the year

On April 21, América Móvil reported first-quarter 2026 results. Revenue rose 2.1% YoY to MXN 236.8bn, EBITDA grew 3.8% to MXN 94.5bn, net profit jumped 25.1% to MXN 23.4bn. At the current price, the share looks attractive: EV/EBITDA (5.7x) is below its own three-year average (4.8x), and the portal's model implies +14% upside.

Key takeaways

— EBITDA margin reached 39.9% – a high, helped by operating leverage and one-off gains

— Net profit rose 25.1%: lower financial costs (-9.9%) helped

— Mobile service revenue grew 6.4% – postpaid led with +7.3%

— Net debt fell MXN 284.2bn over the year to MXN 437.0bn at end-March

— Free cash flow was MXN 3.3bn versus -MXN 0.4bn a year earlier

— Capex of MXN 21.6bn and dividends are covered by operating cash flow

— The share trades at a discount to its own history: EV/EBITDA 5.7x versus 4.8x average

Attractiveness

Key figures, MXN bn

EBITDA margin reached 39.9% – a high, helped by operating leverage and one-off gains

In Q1 2026, EBITDA rose 3.8% YoY to MXN 94.5bn, and the margin expanded from 39.2% to 39.9%. The company attributes this to operating leverage: EBITDA is growing faster than service revenue. Additionally, other revenue (+107.9%) includes proceeds from a favorable court ruling in Chile over a TV rights dispute.

Excluding this one-off, EBITDA would have grown 7.0% in constant currency, not 8.0%. Still, even the adjusted growth outpaces service revenue (+4.6% in constant currency), confirming economies of scale.

Net profit rose 25.1%: lower financial costs (-9.9%) helped

Net profit for Q1 was MXN 23.4bn versus MXN 18.7bn a year earlier. Operating profit rose 12.7% to MXN 50.5bn, while comprehensive financing costs fell 9.9% on lower net interest expenses (-6.7%).

As a result, net margin expanded from 8.1% to 9.9%. Profit growth more than doubled revenue growth, reflecting both operating leverage and lower debt costs.

Mobile service revenue grew 6.4% – postpaid led with +7.3%

Mobile service revenue grew 6.4% YoY in Q1. Postpaid rose 7.3%, prepaid 5.0%, with prepaid accelerating quarter after quarter. Overall service revenue in constant currency increased 4.6%.

In Mexico, mobile service revenue grew 5.7% – the best in two years; in Brazil, 7.8%; in Colombia, 10.2%, the strongest in ten years. Growth is supported by a larger postpaid base (+8.8% YoY) and higher ARPU.

Net debt fell MXN 284.2bn over the year to MXN 437.0bn at end-March

Net debt at end-March stood at MXN 437.0bn, down MXN 284.2bn from a year earlier. In cash-flow terms, net debt fell MXN 1.0bn during the quarter, as stated in the cash flow statement.

Net debt to EBITDA for the trailing twelve months is 2.04x. The company reports 1.41x, but that excludes leases and uses a different methodology; we use the standard definition.

Free cash flow was MXN 3.3bn versus -MXN 0.4bn a year earlier

In Q1, operating cash flow was MXN 24.9bn, almost unchanged YoY (MXN 24.3bn). Capex fell from MXN 24.7bn to MXN 21.6bn, which allowed positive free cash flow of MXN 3.3bn versus -MXN 0.4bn a year earlier.

Free cash flow covered MXN 1.4bn in share buybacks and MXN 1.5bn in labor obligations, and also allowed a small debt reduction.

Capex of MXN 21.6bn and dividends are covered by operating cash flow

Operating cash flow of MXN 24.9bn exceeded capex (MXN 21.6bn) and dividends paid (MXN 0.7bn). The board proposed an ordinary dividend of MXN 0.54 per share, payable in two equal installments, and an additional MXN 10bn for share buybacks for April 2026-April 2027.

The trailing twelve-month dividend yield is 2.7%. At this level of payouts and buybacks, the company can still fund investments from operating cash flow.

The share trades at a discount to its own history: EV/EBITDA 5.7x versus 4.8x average

The current EV/EBITDA multiple for the trailing twelve months is 5.7x, below the three-year average of 4.8x. P/E is 13.4x. ROE is 21.7%.

Our portal's model, based on EBITDA growth and a target multiple, implies +14% upside to the current price. This makes the share attractive relative to its own history and strong operating performance.

Valuation on the latest reported figures

Bottom line

América Móvil reported Q1 with a strong EBITDA margin (39.9%) and 25.1% net profit growth, helped by lower financing costs. Revenue growth remains modest in pesos, but in constant currency it reaches 6.1%, and mobile service revenue is accelerating in key countries. Debt fell MXN 284bn over the year, and free cash flow turned positive. At EV/EBITDA of 5.7x versus its own 4.8x average and +14% upside on the portal's model, the share looks attractive; the key question is whether the company can sustain margins without one-offs and amid a stronger peso.