TELUS reports operational and financial results for second quarter 2025

Executive Summary

• TELUS reported its second quarter 2025 financial results, showing consolidated operating revenues of $5.1 billion (up 2% year-over-year) and adjusted EBITDA of $1.8 billion (up 1%). The company reaffirmed its 2025 financial targets, including 2-4% growth in TTech and TELUS Health operating revenues and 3-5% growth in adjusted EBITDA.
• TELUS announced a definitive agreement to sell a 49.9% interest in its newly formed wireless tower infrastructure operator, Terrion, to La Caisse for $1.26 billion. This transaction is expected to reduce the company's leverage ratio by 0.17-times on a pro-forma basis, targeting a net debt to EBITDA ratio of circa 3.55-times by the end of 2025.
• The quarter saw strong performance in TELUS Health, with operating revenue and adjusted EBITDA growing 16% and 29% respectively, driven by the acquisition of Workplace Options. Conversely, TELUS Digital reported a 26% decline in adjusted EBITDA due to non-recurring net reversals of provisions. The company also declared a quarterly dividend of $0.4163 per share, a 7% increase.

Key Details

• Financial Performance (Q2 2025):
  • Consolidated Operating Revenues: $5.1 billion (up 2% YoY).
  • Consolidated Adjusted EBITDA: $1.8 billion (up 1% YoY).
  • Consolidated Free Cash Flow: $535 million (up 11% YoY).
  • Adjusted Net Income: $342 million (down 7% YoY).
  • Adjusted Basic EPS: $0.22 (down 12% YoY).
  • Net Loss: $245 million, primarily due to a $500 million goodwill impairment in TELUS Digital.
• M&A Activity (Terrion):
  • TELUS will sell a 49.9% interest in Terrion (wireless tower infrastructure operator) to La Caisse.
  • Transaction Value: $1.26 billion.
  • Purpose: Monetize tower infrastructure and accelerate balance sheet deleveraging.
  • Impact: Expected to reduce leverage ratio by 0.17-times pro-forma; targeting ~3.55x net debt to EBITDA exiting 2025.
• Segment Results:
  • TTech: Operating revenues up 2%; Adjusted EBITDA up 3%. Mobile phone ARPU decreased 3.3% to $56.58 due to price competition. Mobile phone net additions were 55,000.
  • TELUS Health: Operating revenues up 16%; Adjusted EBITDA up 29%. Healthcare lives covered reached 157.1 million (up 82 million YoY), largely due to the acquisition of Workplace Options (79.3 million lives).
  • TELUS Digital: Operating revenues up 8%; Adjusted EBITDA down 26% due to non-recurring reversals of provisions for written put options.
• Capital Allocation & Debt:
  • Dividend Declared: $0.4163 per share (up 7% from prior year), payable Oct 1, 2025.
  • Debt Management: Raised $2.85 billion in hybrid debt securities in June; completed debt tender in July to retire ~$1.8 billion of debt for under $1.6 billion cash, capturing ~$230 million in reduced future cash obligations.
  • Leverage Ratio: Declined to 3.7-times (down 20 bps sequentially).
• Operational Metrics:
  • Total Mobile and Fixed customer growth: 198,000.
  • Mobile phone gross additions: 376,000; Net additions: 55,000.
  • Internet connections: 2.7 million (up 2% YoY).
  • 5G Network Coverage: 32.6 million Canadians (88% of population).
  • Capital Expenditures: $678 million (down 2% YoY).

Notable Quotes

• Darren Entwistle, President and CEO: "In the second quarter of 2025, our team's commitment to operational excellence has empowered TELUS to deliver another quarter of industry-leading customer growth and strong financial performance... These results demonstrate the strength of our leading portfolio of bundled offerings across Mobile and Home, and the strategic expansion of TELUS PureFibre connectivity..."
• Doug French, Executive Vice-president and CFO: "Our second quarter 2025 results reflect our strategic operational excellence... This underscores our solid financial foundation to support sustainable growth and our transparent capital allocation priorities... The monetization of our wireless towers will reduce our leverage ratio by 0.17-times on a pro-forma basis, accelerating our path toward our 2027 target."