Telus hires advisers for Telus Health monetization

Executive Summary

• Telus Corp. has engaged TD Securities Inc. and Jefferies Securities Inc. as financial advisors to support the monetization strategy of its Telus Health business, which may include identifying and evaluating potential strategic partnerships.
• Telus Health is a significant asset with a global footprint serving over 160 million lives across 200+ countries, generating $1.5 billion in year-to-date operating revenue, $258 million in EBITDA, and $99 million in cash flow as of Q3 2025.
• The monetization of Telus Health is a key component of Telus's broader deleveraging strategy, aiming to reduce net debt to adjusted EBITDA to approximately 3.3x or lower by year-end 2026 and 3.0x by the end of 2027.

Key Details

• Financial Advisors: TD Securities Inc. and Jefferies Securities Inc. engaged to assist with strategy and timeline for Telus Health monetization.
• Monetization Scope: Includes identification and evaluation of potential strategic partnerships and all partnership structures.
• Telus Health Financials (Year-to-Date as of Q3 2025):
  • Operating Revenue: $1.5 billion
  • EBITDA: $258 million
  • Cash Flow: $99 million
• Telus Health Reach: Serves more than 160 million lives across a global footprint of over 200 countries and territories.
• Deleveraging Targets:
  • Current projected 2025 net debt to adjusted EBITDA: ~3.4 times.
  • Target by year-end 2026: ~3.3 times or lower.
  • Target by end of 2027: 3.0 times.
• Capital Allocation Framework:
  • Systematic removal of the discounted Dividend Reinvestment Plan (DRIP).
  • Targeting a minimum 10% compounded annual growth rate through 2028.
  • Strong free cash flow outlook.
• Strategic Rationale: To maximize value creation by adding complementary skills, customer reach, and economic capacity to drive growth and scale for Telus Health.

Notable Quotes

• "Our engagement of TD Securities and Jefferies demonstrates progress toward executing on the commitments we have made to the investment community. We are confident that these advisers will provide the strategic expertise, business network connectivity and business acumen necessary to accelerate still further Telus Health's considerable development momentum." — Darren Entwistle, President and CEO, Telus
• "Telus Health is a world-class digital asset with roots in Canada but rapidly expanding its international presence and AI product set, capturing meaningful industry, technology and societal tailwinds to drive a compelling future growth profile for this business." — Darren Entwistle, President and CEO, Telus
• "The Telus Health monetization strategy is part of our disciplined capital allocation framework and long-term orientation that has consistently defined Telus's approach to value creation for the benefit of the many stakeholders we serve." — Darren Entwistle, President and CEO, Telus