Mexican telecommunications giant America Movil has outlined preliminary plans to keep capital expenditure at roughly 14 to 15 percent of revenue in 2026 and the following years, signaling a steady investment strategy as competition intensifies across key Latin American markets.
The guidance was shared by the company’s finance chief during a post earnings conference call following fourth quarter results. While the target remains subject to final approval, it reflects a continued commitment to network upgrades, spectrum deployment, and digital infrastructure expansion across the group’s footprint.
America Movil is one of the largest telecom operators in the Americas, with operations spanning Mexico, Brazil, Colombia, Chile, and several other countries. Through its flagship brand Claro, the company provides mobile, broadband, and pay television services to millions of customers.
Maintaining capital expenditure near 15 percent of revenue places the company in line with global telecom peers that are balancing shareholder returns with ongoing investment needs. The telecom sector remains capital intensive, particularly as operators roll out next generation networks and expand fiber coverage to meet rising data demand.
Executives also highlighted the need for strategic investment in Chile, where competitive dynamics are shifting following recent consolidation moves. French holding company NJJ and Luxembourg based Millicom have agreed to acquire the Chilean unit of Telefonica, a development that could reshape market competition in the country.
America Movil indicated it would allocate the necessary resources to remain competitive in Chile, suggesting that network quality and service offerings will remain priorities. Increased competition in pricing and bundled services could require sustained capital outlays to defend market share and enhance customer retention.
The broader investment outlook comes as telecom operators across Latin America navigate economic volatility, currency fluctuations, and regulatory changes. Stable capital planning provides visibility to investors while ensuring that infrastructure keeps pace with digital transformation trends, including higher mobile data consumption and enterprise connectivity needs.
For financial markets, the capex guidance offers insight into the company’s balance between growth and financial discipline. A consistent investment ratio can help support long term revenue stability while limiting excessive leverage, particularly in an environment where borrowing costs remain relatively elevated compared to previous years.
Industry analysts note that telecom firms must continue investing in network resilience and coverage to capitalize on emerging technologies such as cloud services, internet of things applications, and enhanced mobile broadband. Failure to invest adequately could erode competitive positioning over time.
As America Movil finalizes its capital allocation plans for 2026, investors will be watching how effectively the company converts infrastructure spending into revenue growth and margin stability across its diverse regional markets.
