TELUS International (Cda) (TIXT) Q1 2025 earnings summary

Executive summary

• Q1 2025 results met expectations, with revenue growth driven by AI, data, and digital solutions, and service diversification providing stability amid market volatility.

• Full-year 2025 outlook reiterated, supported by diversified global services and strong anchor client relationships.

• New client wins across IT, energy, manufacturing, and AI platforms, with growth from existing social media and gaming clients.

• Focus on client retention and satisfaction through AI-powered tools and real-time insights.

• Strong culture of inclusion, innovation, and social responsibility, with 78,000+ team members worldwide.

Financial highlights

• Q1 2025 revenue was $670 million, up 2% year-over-year (3% in constant currency), with growth from existing and new clients, partially offset by declines in technology and eCommerce sectors.

• Adjusted EBITDA margin was 13.4% in Q1 2025, down from 23.3% in Q1 2024, due to higher salaries, benefits, and goods/services costs.

• Free cash flow was $41 million, lower year-over-year due to working capital timing and higher capex.

• Net loss of $25 million and diluted EPS of $(0.09), compared to net income of $28 million and EPS of $0.05 in Q1 2024.

• Adjusted Net Income was $17 million, down from $65 million year-over-year.

Outlook and guidance

• 2025 guidance reiterated: ~2% organic revenue growth, ~$400 million adjusted EBITDA, ~$0.32 adjusted diluted EPS.

• Expecting stable FX and macro environment for the year; cautious optimism for continued growth.

• Margin improvement expected through the year, targeting ~15% average EBITDA margin.

• Commitment to gradual performance improvement while navigating macroeconomic uncertainty and client concentration risks.