20-F: América Móvil Reports Strong 2025 Financial Results

América Móvil announced its fiscal year 2025 results, showcasing significant revenue growth and improved net profit, driven by strong performance across its key markets.

Summary

• América Móvil reported total operating revenues of Ps. 943.6 billion for 2025, an increase of 8.6% over 2024.
• Net profit for 2025 was Ps. 88.1 billion, a substantial increase of 219.4% compared to Ps. 27.6 billion in 2024.
• The company's wireless operations generated Ps. 500.5 billion in revenue in 2025, representing 53.0% of consolidated revenues.
• Fixed operations contributed Ps. 292.0 billion in revenues, accounting for 30.9% of consolidated revenues.
• Total RGUs (Revenue Generating Units) increased to 410,596 thousand as of December 31, 2025.
• Capital expenditures for 2025 totaled Ps. 130.8 billion, used for network expansion and upgrades.
• The company reported a net foreign currency exchange gain of Ps. 19.8 billion in 2025, a significant improvement from a net loss of Ps. 70.7 billion in 2024.
• Management identified material weaknesses in internal control over financial reporting related to IT general controls and controls for assessing information produced by the entity.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this filing positively due to strong revenue and profit growth, improved foreign exchange results, and continued network investment. However, the recurring material weaknesses in internal controls temper the overall sentiment.

Positives

• Significant increase in operating revenues by 8.6% to Ps. 943.6 billion in 2025.
• Substantial growth in net profit, up 219.4% to Ps. 88.1 billion in 2025.
• Positive trend in fixed services revenue contributing to overall growth.
• Increase in wireless subscriptions by 2.7% in Brazil and 4.2% in Colombia.
• Improvement in net foreign currency exchange gain to Ps. 19.8 billion in 2025.
• Capital expenditures of Ps. 130.8 billion were maintained for network improvements.
• Cost savings programs are noted as partially offsetting increased operating costs.
• Brand recognition for Claro and Telcel ranked among the top in global and regional telecom sectors.

Negatives

• Operating margin slightly decreased to 20.3% in 2025 from 20.7% in 2024.
• Commercial, administrative and general expenses increased by 11.0% as a percentage of operating revenues.
• Depreciation and amortization increased by 10.2% as a percentage of operating revenues.
• Net interest expense increased by 8.9% due to higher debt and interest rates.
• Material weaknesses in internal control over financial reporting were identified for the third consecutive year.
• Decrease in Pay TV RGUs in Brazil and a decrease in total fixed RGUs in Chile, Paraguay, and Uruguay.
• Decrease in prepaid wireless subscriptions in Brazil and Central America.
• The company faces intense competition across its markets, leading to pressure on pricing and increased marketing/acquisition costs.

Risks

• Intense competition in the telecommunications industry could adversely affect revenues and profitability.
• Governmental or regulatory actions and changes in law, regulation or policy could adversely affect operations.
• Failure to meet or maintain quality of service goals and standards could result in fines and other adverse consequences.
• Dominant carrier related regulations could adversely affect business by limiting competitive strategies.
• Inability to acquire additional radio spectrum capacity could affect the ability to compete successfully.
• Concessions and licenses have fixed terms and may be revoked or terminated by the government.
• Future acquisitions and related financing could have a material effect on business, results of operations and financial condition.
• The Company is subject to significant litigation.
• The Company is contesting significant tax assessments in Brazil, Mexico, and Colombia.
• Failure to comply with anti-corruption, anti-bribery and anti-money laundering laws and economic and trade sanctions could harm reputation and subject the Company to fines.
• Cybersecurity incidents and other breaches of network or information technology security could adversely affect business and reputation.
• Failure to achieve proper data governance could lead to data mismanagement.
• An increase in the churn rate could negatively affect the business.
• Reliance on key suppliers for equipment could lead to disruptions.
• The ability to pay dividends and repay debt depends on subsidiaries' ability to pay dividends and make other transfers.
• Potential failure to realize benefits anticipated from acquisitions, divestitures and significant investments.
• A downgrade of Mexico's credit rating could affect the Company.
• Changing stakeholder expectations regarding ESG practices may impose additional costs or risks.
• Negative or inaccurate information on social media or elsewhere could adversely affect reputation.
• AI-related issues, deficiencies or failures could give rise to legal or regulatory action, damage reputation or materially harm business.
• Changes in the telecommunications industry, including new technologies and evolving consumer preferences, could affect future financial performance.
• Intellectual property used by the Company or its suppliers may infringe on third-party intellectual property rights.
• Concerns about health risks relating to wireless handset and base station use may adversely affect business.
• Developments in the telecommunications sector may result in substantial write-downs of the carrying value of certain assets.
• Members of one family may be deemed to control the Company and may exercise control in a manner that diverges from the interests of other shareholders.
• Significant transactions with affiliates may create potential for conflicts of interest.
• Economic, political and social conditions in Latin America, the Caribbean and Europe may adversely affect business.
• Adverse changes in global financial markets could limit the ability to access capital or increase the cost of capital.
• Changes in exchange rates could adversely affect financial condition and results of operations.
• Developments in other countries may affect the market price of securities and the ability to raise additional financing.

Future Outlook

The company has budgeted capital expenditures for 2026 of approximately U.S.$7.0 billion (Ps.129.4 billion), which will be primarily funded by operating activities. The company anticipates generating sufficient cash to satisfy its long-term liquidity needs.

Management Comments

• We believe that this approach provides a clearer view of the financial impact resulting from the consolidation.
• We believe that Europe and other areas beyond Latin America present opportunities for investment in the telecommunications sector that could benefit us and our shareholders over the long term.
• We continue to seek ways to optimize our portfolio, including by finding investment opportunities in telecommunications and related companies worldwide, including in markets where we are already present, and we often have several possible acquisitions under consideration.
• We believe that our working capital is sufficient for our present requirements, and we anticipate generating sufficient cash to satisfy our long-term liquidity needs.
• We seek to maintain access to diverse sources of funding.
• In managing our funding, we generally seek to keep our leverage, as measured by the ratio of net debt to EBITDA, at a level that is consistent with maintaining the ratings given to our debt by the principal credit rating agencies.

Industry Context

StockSavvy.ai notes that América Móvil's performance reflects broader industry trends of increasing data demand, competition, and the ongoing investment in network technologies like 5G. The company's strategic focus on integrated telecommunication services and expansion into new markets aligns with industry consolidation and the drive for higher data speeds at lower prices.

Comparison to Industry Standards

• América Móvil's operating margin of 20.3% in 2025 is competitive within the global telecommunications sector, though slightly below the previous year's 20.7%.
• The company's capital expenditure of Ps. 130.8 billion aligns with industry trends of significant investment in network upgrades and expansion, particularly for 5G deployment.
• The reported revenue growth of 8.6% is robust and indicates strong market positioning, especially when compared to some of its larger multinational competitors who may be experiencing slower growth in more mature markets.
• The company's brand recognition, with Claro and Telcel ranking among the top forty strongest brands in the telecom sector worldwide according to Brand Finance, highlights its strong market presence and customer loyalty, a key differentiator in the competitive landscape.

Corporate Governance

Legal Proceedings

• Telcel is involved in ongoing legal proceedings regarding mobile termination rates with other network operators, with final resolutions pending.
• A class action lawsuit has been filed against Telcel concerning quality of service and wireless and broadband rates.
• Telcel was fined Ps. 1,782.6 million by the IFT for alleged relative monopolistic practices in the distribution and commercialization of SIM cards.
• The IRS is conducting audits of TracFone Wireless, Inc. for tax years 2013-2019, with proposed adjustments of approximately USD$364 million, exclusive of interest.
• Brazilian subsidiaries face aggregate tax contingencies of Ps. 130,738,939 (R$40,039,514) with provisions of Ps. 25,361,197 (R$7,767,005) for probable losses.
• Anatel has challenged inflation-related adjustments under concession agreements with Tess S.A. and Algar Telecom Leste S.A., with a provision of Ps. 6,231,892 (R$1,908,551) established for probable losses.

Related Party Transactions

• Purchases of materials or services from companies under common control, including Telesites, Sitios Latam, Grupo Carso, and Grupo Financiero Inbursa, on terms no less favorable than those from unaffiliated parties.
• Sales of products in Mexico through Sanborns and Sears Operadora store chains.
• Insurance and banking services provided by Grupo Financiero Inbursa and its subsidiaries.
• Transactions with Telesites for site usage fees, with annual price escalations and fixed annual charges.
• Master service agreements and site agreements with Sitios Latam for tower and support structure access.
• The company's investment in Telekom Austria AG, where it holds a 60.9% ownership interest as of December 31, 2025, is a significant related party transaction.

Stakeholder Impact

• Shareholders benefit from increased net profit and dividends, though the material weaknesses in internal controls may raise concerns.
• Employees are subject to a Code of Ethics and policies on workplace security, human rights, and anti-corruption, with a focus on ethical conduct and professional development.
• Customers benefit from continued investment in network quality and coverage, and a focus on customer experience.
• Suppliers and commercial partners are expected to adhere to Amrica Móvil's Code of Ethics and Due Diligence Protocols.
• Creditors are impacted by the company's debt levels and financial performance, with covenants in place for certain debt instruments.

Next Steps

• Continue investing in networks to increase coverage and implement new technologies.
• Focus on cost savings programs to mitigate cost pressures.
• Continue to seek investment opportunities in telecommunications and related companies worldwide.
• Implement measures to remediate identified material weaknesses in internal control over financial reporting.
• Shareholders approved the allocation of up to Ps. 10 billion for the buyback program for the April 2026 to April 2027 period.
• Shareholders approved the payment of a Ps. 0.54 ordinary dividend per share in two equal installments.

Key Dates

Recommendation

América Móvil demonstrates strong operational performance with significant revenue and profit growth, driven by its extensive network and market presence. The positive financial results and strategic investments in technology are encouraging. However, the persistent material weaknesses in internal controls over financial reporting, identified for the third consecutive year, present a governance concern that warrants a cautious 'hold' recommendation. Investors should monitor the company's progress in remediating these control deficiencies while appreciating the operational strengths.

Keywords

América Móvil, Form 20-F, Annual Report, Telecommunications, Wireless Services, Fixed-line Services, Broadband, Pay TV, Financial Results, Revenue Growth, Net Profit, Capital Expenditures, RGUs, 5G, Mexico, Brazil, Latin America, Europe