TELUS reports strong operational and financial results for third quarter 2025

Executive Summary

• TELUS reported unaudited Q3 2025 results with net income of C$ 431 million and basic EPS of $0.32, both up 68 % year‑over‑year, driven largely by a gain on the purchase of long‑term debt.
• Consolidated operating revenues were flat at C$ 5.1 billion; service revenue grew 2 % while mobile equipment revenue fell sharply. Adjusted EBITDA was C$ 1.862 billion (up 1 %) and free cash flow rose 8 % to C$ 611 million, supporting a quarterly dividend increase to $0.4184 per share (+4 %).
• Strategic highlights include the closing of the Terrion wireless‑tower partnership, completion of the TELUS Digital acquisition, strong health‑segment growth (operating revenue +18 %, Adjusted EBITDA +24 %), and continued subscriber additions (net 288 k total).

Key Details

• Financial Highlights
• Net income: C$ 431 M (+68 % YoY)
• Basic EPS: $0.32 (+68 %)
• Adjusted net income: C$ 370 M (‑10 % YoY) – includes gain on debt purchase and restructuring costs
• Adjusted basic EPS: $0.24 (‑14 % YoY)
• Consolidated operating revenues & other income: C$ 5,106 M (flat YoY)
• Service revenue growth: +2 % (driven by health, mobile, internet, security)
• Mobile equipment revenue: –12 % (C$ 518 M vs. C$ 591 M prior year)
• Adjusted EBITDA: C$ 1.862 B (+1 %)
• Free cash flow: C$ 611 M (+8 %)

• Cash provided by operating activities: C$ 1.493 B (+4 %)

• Dividend

• Quarterly dividend declared at $0.4184 per share, payable 2 Jan 2026 – a 4 % increase YoY.

• Subscriber & Usage Metrics

• Total net additions: 288 k (down 59 k YoY) – 82 k mobile phone, 40 k internet, 169 k connected devices.
• Mobile phone ARPU: $57.21 (‑2.8 % YoY).
• Mobile phone churn: 1.11 % (vs. 1.09 % prior year).

• Total TTech subscriber base: 20.8 M (+5 % YoY).

• Segment Performance

• TTech – Operating revenue down 2 % (C$ 3,877 M); Adjusted EBITDA +2 %; adjusted EBITDA margin 43.4 % (up 2.1 pp).
• TELUS Health – Operating revenue +18 % (C$ 517 M); Adjusted EBITDA +24 % (C$ 115 M); health lives covered 160.6 M (↑84.6 M YoY, largely from Workplace Options acquisition).

• TELUS Digital – Operating revenue +5 % (C$ 957 M); Adjusted EBITDA down 18 % (C$ 131 M) due to higher personnel and cloud costs.

• Capital Expenditures

• Total capex: C$ 652 M (‑2 % YoY).
• TTech capex: C$ 534 M (‑6 %); shift toward partner‑build model for fibre.

• TELUS Digital capex: +C$ 12 M (focus on Asia‑Pacific & Europe sites).

• Strategic Transactions

• Closed Terrion partnership – Canada’s largest dedicated wireless‑tower operator (≈3,000 sites).

• Completed acquisition of remaining non‑controlling interest in TELUS Digital; expected $150 M annual cash synergies.

• Guidance & Targets

• FY 2025 TTech operating revenue growth target remains 2–4 % (expected at lower end).
• TTech Adjusted EBITDA growth target unchanged at 3–5 %.

• Consolidated free‑cash‑flow target: ≈C$ 2.15 B; capital‑expenditure target ≈C$ 2.5 B – both unchanged.

• Other Notable Items

• 25 million trees planted milestone (environmental CSR).
• Updated macro‑economic assumptions for 2025 (growth, inflation, unemployment) disclosed in forward‑looking statements.

Notable Quotes

“In the third quarter of 2025, TELUS delivered another period of strong customer growth and robust financial performance… our sustained focus on delivering exceptional client experiences continues to drive leading customer loyalty metrics.” – Darren Entwistle, President & CEO

“Our third quarter 2025 performance demonstrates continued strategic execution… TTech Adjusted EBITDA, including our health segment, achieving growth of 3 %.” – Doug French, EVP & CFO