TELUS (T) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 customer growth with 218,000 net additions, driven by integrated product offerings, strong fiber and wireless networks, and operational excellence.

• Maintained postpaid mobile phone churn at 0.84%, marking a 12-year streak below 1%.

• Announced a 7% dividend increase to $0.4163 per share, with a yield of ~8%, and extended the dividend growth program targeting 3%-8% annual growth from 2026-2028.

• Acquired Workplace Options, expanding global health coverage to over 160 million lives, and continued strong performance in Health and Agriculture & Consumer Goods.

• Maintained focus on bridging digital divides, investing in broadband and 5G networks, and celebrating 20th annual TELUS Days of Giving.

Financial highlights

• Consolidated operating revenues and other income rose 3% year-over-year to $5.1 billion.

• Net income was $301 million, up 115% year-over-year; adjusted net income was $388 million, flat year-over-year.

• Adjusted EBITDA was $1.84 billion, down 1% year-over-year; consolidated EBITDA increased 6% to over $1.7 billion.

• Free cash flow increased 22% year-over-year to $488 million, supported by lower CapEx and higher EBITDA.

• Capital expenditures (excluding real estate) declined by 19% year-over-year to $587 million.

Outlook and guidance

• Reiterated 2025 targets: TTech operating revenue and adjusted EBITDA growth of 2%-4% and 3%-5%, respectively.

• Capital expenditures (excluding real estate) targeted at ~$2.5 billion; free cash flow guidance for 2025 confirmed at ~$2.15 billion.

• Net debt-to-EBITDA ratio targeted at approximately 3x by 2027, with deleveraging supported by asset monetization and operational growth.

• Dividend growth program extended, targeting 3%-8% annual growth from 2026-2028.