Liberty Latin America Ltd.

What they do

Liberty Latin America provides residential and B2B fixed, mobile, and subsea telecommunications services across over 20 countries in Latin America and the Caribbean. Its reportable segments are Liberty Caribbean, C&W Panama, Liberty Puerto Rico, Liberty Costa Rica, and Liberty Networks. At December 31, 2025, it operated fixed networks passing 4,692,600 homes and served 3,836,600 RGUs and 6,794,000 mobile subscribers. Liberty Networks provides enterprise and wholesale services over subsea and terrestrial fiber optic cable networks connecting over 30 markets.

Revenue drivers

• Liberty Caribbean and C&W Panama — Provide residential and B2B services across over 20 countries; combined, these segments are the primary revenue source.
• Liberty Puerto Rico — Provides residential and B2B services in Puerto Rico and USVI; a distinct reportable segment.
• Liberty Costa Rica — Provides residential and B2B services in Costa Rica; a distinct reportable segment.
• Liberty Networks — Provides enterprise services in select countries and wholesale subsea/terrestrial fiber services; revenue supported by large subsea build projects.

Recent performance

Annual revenue declined from $4.81B in 2021 to $4.44B in 2025, with net losses widening to -$611.2M in 2025 from -$440.6M in 2021. In Q2 2026, revenue was $1.10B, up 1% YoY, and Adjusted OIBDA rose 5% YoY to $436M, returning to growth. Operating income swung from -$333M in Q2 2025 to $181M in Q2 2026. Adjusted FCF before distributions to noncontrolling interests improved to $83M in Q2 2026 from -$41M a year earlier. As of June 30, 2026, the company had $714.1M cash, $8.44B long-term debt, and $528.1M equity.

Strategy

The company aims to build or acquire broadband and mobile businesses with strong growth prospects while maintaining debt levels that balance equity returns and risk. It is pursuing organic growth through bundled services and a focus on postpaid mobile and broadband additions. Management announced a 10-year strategic agreement with Amdocs to bring scale and AI capabilities to IT operations, expected to deliver over $250 million NPV via cost savings. Share repurchases have been accelerated, exceeding $60 million through 2026 to date, alongside the issuance of $500 million in preferred stock paying a 9.0% dividend.

Risks

• Hurricane recovery uncertainty — Hurricane Melissa in late October 2025 caused significant damage in Jamaica; management expects continued revenue headwinds and additional capex in 2026 with no guarantee on reconnection cadence.
• Intense competition — Markets for cable, broadband, telephony, and mobile are highly competitive including from DTH, FTTH, OTT, and other telecom operators, pressuring subscriber volumes and pricing.
• High leverage — Long-term debt of $8.44B against $528.1M equity exposes the company to interest rate and refinancing risk, with multiple debt tranches maturing through 2033.
• Foreign and regulatory exposure — Operations across over 20 countries subject to foreign regulation, currency fluctuations, and geopolitical dynamics such as increased interest in Venezuela from carrier and enterprise customers.

Outlook

Management expects Q2 2026 Adjusted OIBDA growth to continue YoY, though still impacted by Hurricane Melissa headwinds. The Amdocs agreement is projected to drive Adjusted OIBDA margin expansion and improved capital efficiency over the next decade. Hurricane Melissa is expected to cause lower revenue during 2026 plus additional property and equipment additions for network restoration. Management signaled confidence in future cash flow generation with the preferred dividend declaration and opportunistic share repurchases.