TELUS reports operational and financial results for second quarter 2025

  Delivered industry-leading total Mobile and Fixed customer growth of 198,000, driven by strong demand for our superior bundled services and strategic expansion of TELUS PureFibre connectivity

Achieved strong TTech, including TELUS health segment, Operating Revenue and Adjusted EBITDA growth of 2 and 4 per cent, respectively, demonstrating the strength of our diversified portfolio of businesses

Consolidated free cash flow higher by 11 per cent

Reaffirmed our 2025 Financial Targets: TTech, including TELUS health segment, Operating Revenues and Adjusted EBITDA growth of 2 to 4 per cent and 3 to 5 per cent, respectively; Consolidated Capital Expenditures, excluding real estate, of approximately $2.5 billion; and Free Cash Flow of approximately $2.15 billion

Announced definitive agreement with La Caisse who will acquire a 49.9 per cent interest in newly formed wireless tower infrastructure operator Terrion for $1.26 billion, monetizing our world class portfolio of tower infrastructure; Targeting circa 3.55-times net debt to EBITDA outcome exiting 2025

VANCOUVER, BC, Aug. 1, 2025 /PRNewswire/ - TELUS Corporation today released its unaudited results for the second quarter of 2025. Consolidated operating revenues and other income increased by 2 per cent over the same period a year ago to $5.1 billion. This growth was driven by higher service revenues in our TTech and TELUS Health reportable segments, as well as higher external revenues in our TELUS Digital reportable segment. See 'Second Quarter 2025 Operating Highlights' within this news release for a discussion on TTech, TELUS Health and TELUS Digital results.

"In the second quarter of 2025, our team's commitment to operational excellence has empowered TELUS to deliver another quarter of industry-leading customer growth and strong financial performance," said Darren Entwistle, President and CEO. "These results demonstrate the strength of our leading portfolio of bundled offerings across Mobile and Home, and the strategic expansion of TELUS PureFibre connectivity to Canadian homes and businesses, including in Ontario and Quebec, where we are delivering much more than just affordable internet—providing Canadians with differentiated and unique competitive services. This includes new and advanced digital services such as AI-fuelled smart home energy management, next-generation healthcare, affordable security and exciting entertainment solutions that are driving innovation across all sectors of the economy and our societies, propelling our productivity and quality of life as a nation. Notably, we achieved total mobile and fixed customer growth of 198,000, driven by mobile phone and connected device additions of 167,000, alongside fixed customer additions of 31,000. The dedication of our team in delivering customer service excellence contributed to continued strong loyalty results once again this quarter. Notably, postpaid mobile phone churn was 0.90 per cent, as we realize our twelfth consecutive year below the one per cent level."

"Our TELUS Health business continues to demonstrate strong operating momentum globally, achieving operating revenue and Adjusted EBITDA growth of 16 and 29 per cent, respectively, while global lives covered now stand at 157 million, inclusive of Workplace Options. This growth was fueled by strategic investments, product enhancements, expanding sales channels including cross selling, and effective cost management through technology and synergy optimization - underpinned by a deeply rooted dedication to putting customers first. Since acquiring LifeWorks, we have realized $400 million in combined annualized synergies - $322 million from cost efficiencies and $78 million from successful cross-selling strategies. We remain on track to meet our goal of $427 million by the end of 2025. We are excited to accelerate this momentum through 2025 and beyond."

Darren further commented, "The consistency of our results reflects our dedicated team's passion for delivering superior customer experiences over our world-leading wireless and PureFibre broadband networks. Our significant broadband network investments drive extensive socio-economic benefits for Canadians in communities from coast-to-coast while enabling continued advancement in our operational, financial and customer experience performance. Looking ahead, our financial position and operational outlook remains strong, supported by continued EBITDA growth and stable capital expenditures, resulting in meaningful free cash flow expansion. This will be enhanced by significant value creation in our growth businesses and asset monetization opportunities. Indeed, today, we announced a definitive agreement with La Caisse, subject to closing conditions and regulatory approvals, who will acquire a 49.9 per cent interest in newly formed Canadian wireless tower infrastructure operator Terrion for $1.26 billion. This initiative will monetize our world class portfolio of tower infrastructure while accelerating balance sheet deleveraging, including achieving a leverage target ratio of 3-times net debt to EBITDA by 2027, while gradually turning off our discounted dividend reinvestment program over the same time period."

"In June, we held our second annual gala benefiting the TELUS Friendly Future Foundation", continued Darren. "Thanks to the generosity of the 860 guests in attendance, we raised more than $2.625 million in sponsorships, cash donations and in-kind contributions to support the Foundation's TELUS Student Bursary fund. Moreover, in June, we launched a transformative $2 million partnership with the CIBC Foundation, which will equip even more future leaders with the essential tools to realize their dream of post-secondary education, while also effecting meaningful change within their communities. Since its launch in 2023, the Foundation has provided over $4 million in TELUS Student Bursaries, helping 1,025 students from underserved communities reach their full potential."

Doug French, Executive Vice-president and CFO said, "Our second quarter 2025 results reflect our strategic operational excellence. Within TTech, including our TELUS health segment, Operating Revenues increased by 2 per cent and Adjusted EBITDA grew by 4 per cent, in line with our full year targets that we are reiterating today. These results reflect the benefits from our ongoing focus on cost efficiency and effectiveness, improving health margins, as well as gains from our real estate and copper monetization programs. Additionally, we generated free cash flow of $535 million, up 11 per cent. This underscores our solid financial foundation to support sustainable growth and our transparent capital allocation priorities."

"Additionally, our financial position remains robust with our leverage ratio declining to 3.7-times, down 20 basis points sequentially from the first quarter of 2025. As we progress through 2025 and beyond, we expect continued improvements to our leverage ratio, targeting a net debt to EBITDA ratio of 3-times by 2027, alongside removing the discount associated with our dividend reinvestment program. In June, we successfully raised $2.85 billion in hybrid debt securities across multiple offerings in Canada and the United States, building upon the $1.6 billion raised in April. These financings support deleveraging, with 50 per cent of the proceeds receiving equity credit treatment by credit rating agencies. In July, we completed our debt tender to retire approximately $1.8 billion of debt securities in Canada and the United States for a cash purchase amount of under $1.6 billion, capturing approximately $230 million of reduced future cash debt obligations. Our continued organic operational growth, including EBITDA expansion, declining capital intensity and free cash flow growth, combined with ongoing asset monetization initiatives, will further strengthen our balance sheet. Notably, the monetization of our wireless towers will reduce our leverage ratio by 0.17-times on a pro-forma basis, accelerating our path toward our 2027 target. Including this transaction, we expect to achieve a leverage ratio of circa 3.55-times exiting 2025, as we progress towards our 2027 target of 3-times."

"Looking ahead through 2025, we are well-positioned to drive strong, sustainable performance as we maintain our focus on profitable growth. Our strategic initiatives in customer expansion, product innovation, and service enhancement will further strengthen our market position and drive long-term value creation. We continue leveraging our formidable strengths to deliver unparalleled value for our stakeholders, firmly positioning TELUS as an industry leader in operational excellence and financial resilience," concluded Doug.

In the quarter, TELUS recognized an impairment of goodwill of $500 million as it relates to TELUS Digital. TELUS recognized a net loss of $245 million, however, as this impairment was in respect of TELUS Digital, net income for TELUS shareholders was largely offset by the impairment (after deducting the non-controlling interest share) and basic EPS was zero. These decreases were partially offset by the after-tax impacts of a decrease in Financing costs, largely driven by the reclassification of unrealized changes in the forward element of virtual power purchase agreements from Financing costs to Other comprehensive income. When excluding certain costs and other adjustments (see 'Reconciliation of adjusted Net income' in this news release), adjusted net income of $342 million decreased by 7 per cent over the same period last year, while adjusted basic EPS of $0.22 was down 12 per cent over the same period last year. Adjusted net income is a non-GAAP financial measure and adjusted basic EPS is a non-GAAP ratio. For further explanation of these measures, see 'Non-GAAP and other specified financial measures' in this news release.

Compared to the same period last year, consolidated EBITDA increased by $3 million to approximately $1.7 billion. In addition to the growth drivers discussed within Adjusted EBITDA below, EBITDA was also partially offset by higher restructuring and other costs of $12 million in the quarter, primarily related to TELUS Digital's restructuring program in one of its European delivery locations. Adjusted EBITDA increased by 1 per cent to more than $1.8 billion reflecting varied results across our reportable segments. TTech saw Adjusted EBITDA growth of 3 per cent in the second quarter of 2025. This growth was driven by: (i) cost reduction efforts, including workforce reductions and increased utilization of TELUS Digital resulting in competitive benefits given the lower cost structure in TELUS Digital, as well as savings in administrative and marketing costs; (ii) mobile, residential internet, security and automation, and TV subscriber growth; and (iii) higher Other income. These factors were partially offset by: (i) lower mobile ARPU; (ii) lower mobile equipment margins; (iii) an increase in bad debt expense; (iv) declining fixed legacy voice and TV margins; (v) lower agriculture and consumer goods margins due to the divestiture of non-core assets; and (vi) increased costs of subscription-based licenses and cloud usage. TELUS Health experienced a 29 per cent increase in Adjusted EBITDA in the second quarter of 2025, driven by revenue growth and cost reduction efforts, as well as continued realization of acquisition integration synergies. TELUS Digital Adjusted EBITDA decreased by 26 per cent in the second quarter of 2025, primarily due to non-recurring net reversals of provisions related to business combinations.

In the second quarter of 2025, we added 198,000 net customer additions, down 134,000 over the same period last year due to decelerating growth in the Canadian population from slowing immigration, in addition to a greater emphasis on premium and profitable loading, competitive pressures and changing customer preferences. Please see 'Second Quarter 2025 Operating Highlights' within this news release for additional information with regards to mobility and fixed net additions. Our total TTech subscriber base of 20.5 million is up 5 per cent over the last twelve months, reflecting a 2 per cent increase in our mobile phones subscriber base to 10.2 million and an 18 per cent increase in our connected devices subscriber base to 4.0 million. Additionally, our internet connections grew by 2 per cent over the last twelve months to over 2.7 million customer connections, our TV connections grew by 6 per cent over the last twelve months to over 1.4 million customer connections, and our security and automation subscriber base increased by 4 per cent to more than 1.1 million customer connections. Our residential voice subscriber base declined by 5 per cent to 1.0 million.

In TELUS Health, as of the end of the second quarter of 2025, healthcare lives covered were 157.1 million, an increase of 82 million over the past 12 months, primarily due to the addition of 79.3 million healthcare lives covered from our second quarter acquisition of Workplace Options and the prospective change to the definition of healthcare lives covered to include clients who utilize TELUS Health services indirectly. Organically, healthcare lives covered increased mainly reflecting robust growth in our employee and family assistance programs (EFAP) across all of our operating regions, in addition to continued demand for virtual solutions.

Cash provided by operating activities of $1.2 billion decreased by 16 per cent in the second quarter of 2025, primarily driven by other working capital changes and increased income taxes paid. Free cash flow of $535 million increased by 11 per cent compared to the same period a year ago primarily reflecting the timing related to device subsidy repayments and associated revenue recognition and our TELUS Easy Payment® device financing program.

Consolidated capital expenditures of $678 million decreased by $13 million or 2 per cent in the second quarter of 2025. Capital expenditures in support of TTech operations of $570 million decreased by $20 million in the second quarter of 2025 and primarily resulted from the completion of certain projects for wireless and fibre network builds and the planned transition of fibre builds to a partner-build model for brownfield and new growth markets. Capital expenditures in support of TTech real estate development of $21 million decreased by $2 million in the second quarter of 2025, driven by the substantial completion of an investment property at the end of 2024. TELUS Health capital expenditures of $59 million increased by $9 million in the second quarter of 2025, driven by increased investments to support clinic expansions and business acquisitions. Our TELUS Health capital expenditures continue to invest in the expansion of our digital health product offerings and capabilities, as well as support for business integration. TELUS Digital capital expenditures of $43 million increased by $3 million in the second quarter of 2025, primarily driven by increased investments in site builds in the Asia-Pacific and Europe regions, as well as increased investments in our digital solutions service line.

As at June 30, 2025, our 5G network covered more than 32.6 million Canadians, representing over 88 per cent of the population.

Consolidated Financial Highlights

C$ millions, except footnotes and unless noted otherwise

Three months ended June 30

Per cent

(unaudited)

2025

2024

change

Operating revenues (arising from contracts with customers)

5,031

4,900

3

Operating revenues and other income

5,082

4,974

2

Total operating expenses

4,907

4,292

14

Net income (loss)

(245)

221

n/m

Net income attributable to common shares

7

228

(97)

Adjusted Net income(1)

342

366

(7)

Basic EPS ($)

–

0.15

(73)

Adjusted basic EPS(1) ($)

0.22

0.25

(12)

EBITDA(1)

1,679

1,676

–

Adjusted EBITDA(1)

1,812

1,797

1

Capital expenditures(2)

678

691

(2)

Cash provided by operating activities

1,166

1,388

(16)

Free cash flow(1)

535

481

11

Total telecom subscriber connections(3) (thousands)

20,495

19,500

5

Healthcare lives covered(4) (millions)

157.1

75.1

n/m

  Notations used in the tables above: n/m, not meaningful.

(1)

These are non-GAAP and other specified financial measures, which do not have standardized meanings under IFRS Accounting Standards and might not be comparable to those used by other issuers. For further definitions and explanations of these measures, see 'Non-GAAP and other specified financial measures' in this news release.

(2)

Capital expenditures include assets purchased, excluding right-of-use lease assets, but not yet paid for, and consequently differ from cash payments for capital assets, excluding spectrum licences, as reported in the interim consolidated financial statements. Refer to Note 31 of the condensed interim consolidated financial statements for further information.

(3)

The sum of active mobile phone subscribers, connected device subscribers, internet subscribers, residential voice subscribers, TV subscribers, and security and automation subscribers, measured at the end of the respective periods based on information in billing and other source systems. Effective January 1, 2025, we adjusted our mobile phone subscriber base to remove 30,000 subscribers on a prospective basis, following an in-depth review of customer accounts. Effective January 1, 2025, we adjusted our internet subscriber base to remove 66,000 subscribers on a prospective basis, due to a review of our subscriber base.

(4)

During the second quarter of 2025, we added 79.3 million healthcare lives covered as a result of the Workplace Options acquisition and a prospective change to the definition of healthcare lives covered to include clients who utilize TELUS Health services indirectly.

Second Quarter 2025 Operating Highlights

TELUS technology solutions (TTech)

TTech operating revenues (arising from contracts with customers) increased by $4 million in the second quarter of 2025, primarily reflecting an increase in fixed data services revenues, partially offset by decreases in mobile network revenue, mobile equipment and other service revenues, fixed voice services revenues, fixed equipment and other service revenues, and agriculture and consumer goods services, as described below.

TTech EBITDA increased by $76 million or 5 per cent in the second quarter of 2025, while TTech Adjusted EBITDA increased by $43 million or 3 per cent, reflecting: (i) cost reduction efforts, including workforce reductions, and increased adoption of TELUS Digital's solutions across TTech operations, resulting in competitive benefits given the lower cost structure in TELUS Digital, as well as reductions in marketing and administrative costs; (ii) mobile, residential internet, security and automation, and TV subscriber growth; and (iii) higher Other income. These factors were partially offset by: (i) lower mobile phone ARPU; (ii) lower mobile equipment margins; (iii) an increase in bad debt expense; (iv) declining fixed legacy voice and TV margins; (v) lower agriculture and consumer goods margins due to the divestiture of non-core assets; and (vi) increased costs of subscription-based licences and cloud usage.

Mobile products and services

Mobile network revenue decreased by $11 million or 1 per cent in the second quarter of 2025, largely due to lower mobile phone ARPU, partially offset by growth in our mobile phone subscriber base and an increase in IoT connections.

Mobile equipment and other service revenues decreased by $5 million or 1 per cent in the second quarter of 2025 due to a reduction in contracted volumes, partly offset by the impact of higher-value smartphones in the sales mix.

TTech mobile products and services direct contribution decreased by $46 million or 3 per cent in the second quarter of 2025, largely reflecting the impact of lower mobile phone ARPU and lower mobile equipment margin from lower contracted volumes and intense competitive price discounting. These factors were partially offset by mobile phone subscriber growth.

Mobile phone ARPU was $56.58 in the second quarter of 2025, reflecting a decrease of $1.91 or 3.3 per cent attributable to the adoption of base rate plans with lower prices in response to more intense marketing and promotional price competition targeting both new and existing customers, and a decline in overage and roaming revenues, partially offset by higher IoT revenue. We are seeing a continuing increase in the adoption of unlimited data and Canada-U.S.-Mexico plans, which provide higher and more stable ARPU on a monthly basis while also giving customers cost certainty in lower roaming fees to the U.S. and Mexico, and lower data overage fees, respectively.

Mobile phone gross additions were 376,000 in the second quarter of 2025, reflecting a decrease of 39,000, driven by decelerating growth in the Canadian population from slowing immigration, in addition to a greater emphasis on premium and profitable loading.

Mobile phone net additions were 55,000 in the second quarter of 2025, reflecting a decrease of 46,000, driven by lower mobile phone gross additions.

Our mobile phone churn rate was 1.06 per cent in the second quarter of 2025, compared to 1.07 per cent in the second quarter of 2024, largely as a result of our ongoing focus on customer retention and network quality, along with successful promotions and bundled offerings. These factors were partially offset by customer switching decisions in response to more intense marketing and promotional price competition.

Connected device net additions were 112,000 in the second quarter of 2025 a decrease of 49,000, attributable to higher deactivations in IoT connections from customers in the transportation and connectivity industries, partially offset by higher gross additions.

Fixed products and services

Fixed data services revenues increased by $35 million or 3 per cent in the second quarter of 2025, driven by growth in our internet and security and automation subscriber bases, which also saw higher revenue per customer, and growth in our managed services business. These factors were partially offset by lower TV revenues, reflecting an increase in the mix of customers selecting smaller TV combination packages and technological substitution.

Fixed voice services revenues decreased by $8 million or 4 per cent in the second quarter of 2025, reflecting the ongoing decline in legacy voice revenues as a result of technological substitution and shifts in consumer purchasing decisions. This decline was partially mitigated by the success of our bundled product offerings and our retention efforts.

Fixed equipment and other service revenues were relatively unchanged in the second quarter of 2025.

TTech fixed products and services direct contribution decreased by $19 million or 2 per cent in the second quarter of 2025, primarily driven by legacy voice and TV margins attributable to technological substitution as well as lower agriculture and consumer goods margins primarily from the divestiture of non-core assets. This was partially offset by continued internet and security and automation subscriber growth and higher revenue per customer.

Internet net additions were 27,000 in the second quarter of 2025, a decrease of 6,000, reflecting higher churn and heightened competitive pressures, partially offset by higher gross loading with strength in our fibre optic offerings.

TV net additions were 12,000 in the second quarter of 2025, a decrease of 13,000, largely reflecting higher churn and changing customer preferences, partly offset by higher gross loading in our diverse offerings, including Stream+.

Security and automation net additions were 9,000 in the second quarter of 2025, a decrease of 11,000, reflecting higher churn related to shifts in consumer purchasing decisions and lower activations.

Residential voice net losses were 17,000 in the second quarter of 2025, an increased loss of 9,000, attributable to lower gross additions. These were moderated by our commitment to customer retention, with low churn reflecting successful loss mitigation.

Agriculture and consumer goods services

Agriculture and consumer goods services revenues decreased by $6 million or 7 per cent in the second quarter of 2025, primarily attributable to the divestiture of non-core assets, partially offset by improved organic growth across multiple revenue streams.

TELUS Health

Health services revenues increased by $72 million or 16 per cent in the second quarter of 2025, driven by: (i) global business acquisitions in employer solutions, including the acquisition of Workplace Options in May 2025; (ii) growth in payvider, with strong performance in health benefits management services, collaborative health records and virtual pharmacy solutions; and (iii) organic growth in employer solutions. This was offset by a decline in retirement and benefits solutions.

Health equipment revenues decreased by $1 million in the second quarter of 2025, due to lower revenue from a pharmacy hardware upgrade program in our payvider vertical.

TELUS Health direct contribution increased by $33 million or 14 per cent in the second quarter of 2025, reflecting: (i) revenue growth as described above; and (ii) cost reduction efforts, driven by digital transformation programs which have lowered our cost to serve.