Tigo Projects $900M FCF in 2026; Chile Acquisition, Dividends at Two-Thirds of FCF
Tigo forecasts 2026 equity free cash flow of $900 million, up from $864 million organic, including Uruguay and Ecuador contributions and macro risks. The Telefonica Chile acquisition targets FCF neutrality this year; leverage will peak in H1 then return to 2.5X by year-end, and dividends aim at two-thirds of FCF.
1. 2026 Equity Free Cash Flow Outlook
Tigo expects 2026 equity free cash flow of $900 million, up from an organic base of $864 million, after adding contributions from Uruguay and Ecuador while factoring in macroeconomic uncertainties and Coltel’s negative run rate.
2. Chile Acquisition Integration Plan
The acquisition of Telefonica’s Chile operations leverages Chile’s stable currency and Tigo’s leading Home and Mobile subscriber positions to drive operational synergies and achieve equity free cash flow neutrality within the year.
3. Leverage Profile and Shareholder Remuneration
Net leverage is projected to peak in the first half of 2026 due to acquisition financing, then decline to about 2.5x by year-end; Tigo plans to distribute two-thirds of equity free cash flow as dividends and sustain payout growth as leverage falls.
4. Margin Improvements and M&A Focus
Efficiency programs and top-line growth underpin sustainable margin gains in Colombia, Ecuador, and Uruguay, while M&A efforts remain targeted at in-market consolidation and adjacent markets like Peru and Venezuela, with Brazil and Mexico off the current radar.