TELUS (TU) Reports Strong Q3 2025 Adjusted EBITDA Growth, Reiterates Full-Year Outlook

TELUS (TU.CA) announced robust financial performance for the third quarter of 2025, with adjusted net income of C$370 million and adjusted basic EPS of C$0.24. Consolidated operating revenues and other income reached C$5.1 billion, remaining flat year-over-year. The company's adjusted basic EPS of C$0.24 fell short of the analyst estimate of C$0.19, while revenue of C$5.1 billion also did not meet the analyst estimate of C$3,689,184,793, although direct comparability is limited by currency and potential GAAP vs. non-GAAP differences.

Strong Segment Performance

TELUS Health demonstrated significant growth, with operating revenue and Adjusted EBITDA increasing by 18% and 24%, respectively. This performance was driven by global business acquisitions, growth in payor and provider solutions, and successful cost reduction efforts.

The TTech segment also saw its Adjusted EBITDA increase by 2%, bolstered by cost reduction initiatives, subscriber growth in mobile, residential internet, and security and automation services. Mobile phone ARPU, however, decreased by 2.8% to C$57.21 due to competitive pricing and lower roaming revenues, partially offset by higher IoT revenue.

Management Outlook

Management reiterated its full-year 2025 targets for TTech Adjusted EBITDA, consolidated capital expenditures, and free cash flow, indicating confidence in the company's operational execution and business resilience. The target for TTech operating revenue growth is expected to be at the lower end of the original range due to variability in mobile phone equipment revenue.

The company remains on track to achieve its targeted net debt to EBITDA leverage ratio of approximately 3-times by 2027. Furthermore, TELUS increased its quarterly dividend by 4% to C$0.4184 per share, reflecting a commitment to sustainable shareholder returns.

Strategic Developments and Operational Changes

TELUS completed key strategic transactions, including the establishment of Terrion as Canada's largest dedicated wireless tower operator and the acquisition of the remaining non-controlling interest in TELUS Digital. These initiatives are expected to enhance wireless connectivity, strengthen the balance sheet, accelerate deleveraging, and drive AI-powered transformation across the business.

Operational efficiencies from the TELUS Digital integration are projected to generate approximately C$150 million in annual cash synergies. The company also highlighted its significant contributions to communities, including over C$2 billion in taxes remitted in the first nine months of 2025 and over C$1.9 billion invested in capital expenditures primarily across Canada during the same period.