Quebecor's C$1.05 Non-GAAP EPS and C$1.41B Revenue: A Sustainable Edge in a Crowded Media/Telecom Sector?

In the ever-shrinking pie of the media and telecom sector, Quebecor Inc. (TSX:QBR.A) has carved out a niche with its recent financial performance. The company's Q3 2025 results, up 1.4% year-over-year-have sparked renewed interest among investors. But can this growth sustain itself in a landscape dominated by giants like Bell Canada and Rogers Communications? Let's dissect the numbers and the broader context.

A Decade of Earnings Resilience

Quebecor's Non-GAAP EPS trajectory from 2018 to 2024 tells a compelling story. , , , according to Quebecor's earnings per share data. This outpaces the S&P/TSX Composite's average telecom sector EPS growth of roughly 8% over the same period. The key question: Is this driven by operational efficiency or one-time gains?

According to data from Quebecor's investor relations portal, the company has consistently reinvested in its telecom infrastructure, particularly in 5G expansion and fiber-optic networks. This capital allocation strategy has allowed Quebecor to maintain a 12% EBITDA margin in 2024, , per the earnings data. For context, , suggesting Quebecor's cost discipline is a differentiator.

Revenue Growth: A Tale of Two Metrics

While earnings have soared, revenue growth has been more modest. , as reported in its Q3 2025 results. This contrasts sharply with its EPS growth, .

This dynamic is not unique to Quebecor. Across the telecom sector, companies are grappling with price compression in core services like broadband and mobile plans. However, Quebecor's ability to offset this with higher-margin offerings-such as its streaming platform, TELUS TV-provides a buffer. As of 2024, digital services accounted for 22% of total revenue, , according to the earnings data.

Competitive Positioning: Navigating a Crowded Field

Quebecor's primary rivals-Bell Canada (BCE) and Rogers Communications (ROG)-are larger and more diversified, but they also face similar margin pressures. What sets Quebecor apart is its "telecom-first" strategy, which prioritizes customer retention through bundled services (e.g., home internet + mobile + streaming). , , according to the earnings data.

However, the company's lack of international expansion remains a vulnerability. While BCE and ROG have footholds in the U.S. and Latin America, , per the investor relations portal. This geographic concentration could limit growth if domestic market saturation accelerates.

The Sustainability Factor

, , according to its Q3 2025 results. .

Yet, the company's reliance on non-GAAP metrics raises eyebrows. While GAAP EPS in Q3 2025 was C$0.81 (per the latest stock news), . Investors must scrutinize the quality of these adjustments, as aggressive non-GAAP reporting can mask underlying challenges.

Final Verdict: Buy, But With Caution

, but they must be viewed through the lens of a sector in transition. , .

For investors, the key takeaway is this: Quebecor is a "buy" for those comfortable with its risk profile, but a "wait and see" for those seeking broader diversification. As the telecom sector pivots toward AI and 5G, .