TELUS (T) Q2 2025 earnings summary

Executive summary

• Achieved 198,000 total customer additions, driven by bundled offerings and PureFibre expansion in Ontario and Quebec.

• Announced a $2 billion investment to expand broadband in Ontario and Quebec and a $1.26 billion tower monetization deal with CDPQ, accelerating balance sheet deleveraging.

• TELUS Health saw 16% revenue growth and 29% adjusted EBITDA growth, now covering 157.1 million global lives.

• Free cash flow rose 11% year-over-year to $535 million, supporting sustainable growth and capital allocation.

• Reaffirmed 2025 financial targets for revenue, EBITDA, capex, and free cash flow.

Financial highlights

• Consolidated Q2 2025 operating revenues reached $5.1 billion, up 2% year-over-year.

• Adjusted EBITDA was $1.81 billion, up 1% year-over-year, with margin expansion to 41.7%.

• Adjusted net income was $342 million and EPS $0.22; net loss of $245 million due to $500 million goodwill impairment in TELUS Digital.

• Capital expenditures (excluding real estate) were $678 million, down 2% year-over-year.

• Free cash flow grew 11% year-over-year to $535 million.

Outlook and guidance

• Reiterated 2025 targets: TTech (including Health) revenue growth of 2–4%, adjusted EBITDA growth of 3–5%.

• Capex (excluding real estate) expected at ~$2.5 billion; free cash flow target of ~$2.15 billion.

• Targeting net debt/EBITDA of 3.55x by end of 2025 and 3x by 2027, with gradual removal of dividend reinvestment discount.

• Targeting 3–8% annual dividend growth from 2026 through 2028.