TELUS reports strong and industry leading operational and financial results for the fourth quarter and full year 2025; establishes compelling and industry-best 2026 financial targets

Executive Summary

• TELUS reported strong Q4 2025 and full‑year results with net income of C$290 M (down 9 % YoY) but record free cash flow of C$2.2 B (+11 %) and cash from operations stable at C$4.9 B.
• The company set ambitious 2026 financial targets: service revenue & Adjusted EBITDA growth of 2‑4 %, free cash flow ≈C$2.45 B (+10 %), and capital expenditures down ~10 % to ≈C$2.3 B.
• CEO Darren Entwistle announced retirement (effective 30 Jun 2026) and successor Victor Dodig will assume the role on 1 Jul 2026; the Board also declared a quarterly dividend of C$0.4184 per share payable 1 Apr 2026.

Key Details

• Financial Highlights – Q4 2025 (unaudited):
• Consolidated operating revenues & other income: C$5,261 M vs. C$5,381 M YoY (‑2 %).
• Net income attributable to common shares: C$292 M vs. C$358 M YoY (‑18 %).
• Adjusted net income: C$311 M vs. C$380 M YoY (‑18 %).
• Basic EPS: $0.19 vs. $0.24 YoY (‑21 %); Adjusted basic EPS: $0.20 vs. $0.25 (‑20 %).
• EBITDA: C$1,746 M vs. C$1,770 M YoY (‑1 %); Adjusted EBITDA: C$1,839 M vs. C$1,838 M YoY (flat).
• Free cash flow: C$574 M vs. C$534 M YoY (+7 %).

• Capital expenditures: C$649 M vs. C$551 M YoY (+18 %).

• Full‑Year 2025 Highlights:

• Net income attributable to common shares: C$292 M (‑18 % YoY).
• Adjusted net income: C$311 M (‑18 % YoY).
• Consolidated free cash flow: C$2.2 B (+11 %).
• Cash from operations: C$4.9 B (stable YoY).

• Net debt/Adjusted EBITDA ratio: 3.4× at year‑end, targeting ≤3.3× by end‑2026 and ≈3.0× by end‑2027.

• Subscriber & Service Growth:

• Total net customer additions Q4 2025: 377,000 (50k mobile phones, 287k connected devices, 35k internet).
• Full‑year 2025 total additions: 1,081,000 (first‑time >1 M combined mobility & fixed).
• Postpaid mobile churn FY 2025: 0.97 % (12th consecutive year <1 %).
• TTech subscriber base: 21.2 M connections (+5 % YoY).

• TELUS Health lives covered: 161.2 M (up 85 M YoY, driven by Workplace Options acquisition).

• Segment Performance:

• TTech: Operating revenues down 4 % YoY; Adjusted EBITDA up 1 % YoY to C$1.84 B. Mobile network revenue +<1 %; mobile equipment revenue –C$159 M (lower contracted volumes). ARPU $57.10, down 1.6 %.
• TELUS Health: Revenue +13 % YoY; Adjusted EBITDA +10 % YoY; direct contribution +C$31 M. Synergies from Workplace Options acquisition delivered C$431 M annualized synergies (≈3× target).

• TELUS Digital: Operating revenues +2 % YoY; Adjusted EBITDA –5 % YoY (‑C$5 M) due to higher salaries/benefits.

• 2026 Financial Targets (Guidance):

• Consolidated service revenue growth: 2‑4 %.
• Consolidated Adjusted EBITDA growth: 2‑4 %.
• Free cash flow ≈C$2.45 B (+10 %).

• Capital expenditures ≈C$2.3 B (‑10 %).

• CEO Succession:

• Darren Entwistle to retire 30 Jun 2026 after 26 years as President & CEO.

• Victor Dodig appointed President & CEO effective 1 Jul 2026.

• Dividend Declaration:

• Quarterly dividend of C$0.4184 per share, payable 1 Apr 2026 to shareholders of record 11 Mar 2026.

• Deleveraging Initiatives:

• Terrion partnership with La Caisse reduced net debt by C$1.26 B (‑0.17×).

• Ongoing restructuring and other costs ~C$500 M YoY; cash restructuring disbursements projected ≈C$450 M in 2026.

• Outlook & Forward‑Looking Statements:

• Emphasis on profitable growth, AI/GenAI expansion, network investment, and continued capital allocation discipline.
• Risks disclosed include regulatory changes, competitive pressure, technology disruption, macroeconomic uncertainty, and integration of acquisitions.

Notable Quotes

• “In the fourth quarter of 2025, TELUS delivered strong, quality customer growth and robust financial performance… ” – Darren Entwistle, President & CEO (final remarks).
• “Our strong financial and operational performance are underpinned by our world‑class networks… ” – Doug French, EVP & CFO.