TELUS (T) investor relations material

Executive summary

• Core telecom stabilization, including mobile network and fixed data growth, was offset by TELUS Digital weakness; consolidated service revenue fell 1% to $4.481B.

• Transformation priorities include balance-sheet repair, operational discipline, asset monetization and targeted investment in Canadian telecom and AI infrastructure.

• Multi-year efficiency program targets ~$900M in annualized cash savings exiting 2028; ~80% is expected from core Telecom.

Financial highlights

• Adjusted EBITDA was $1.760B, down 5% YoY, or down 2% excluding prior-year real estate gains and other one-time items.

• Net loss was $660M and basic loss per share was $0.42, including an $800M non-cash goodwill impairment; adjusted net income fell 32% to $251M and adjusted EPS fell 33% to $0.16.

• Cash from operations was $1.485B, down 1%; free cash flow fell 35% to $396M on lower EBITDA and higher capital expenditures.

• Operating revenues and other income were $5.026B, down 2% YoY; operating expenses rose 21% to $5.274B.

Outlook and guidance

• FY2026 guidance reaffirmed: service revenue flat to down 2%, Adjusted EBITDA down 2% to 4%, capex ~$2.6B and free cash flow ~$1.8B.

• Efficiency program targets ~$900M in annualized cash savings exiting 2028 through operating cost, margin and capital-efficiency improvements.

• Restructuring and other cost assumptions rose to ~$900M from ~$500M; expected cash disbursements rose to ~$650M from ~$450M.

• AI infrastructure pipeline exceeds $1B in potential contracts, with projected revenue of ~$500M over three years and healthy margins.