Key Takeaways TELUS reported Q3 EPS of C$0.24 on C$5.1B revenue, with modest 1% adjusted EBITDA growth.Health revenue surged 19% on acquisitions and strong digital health solutions momentum.New ventures like Terrion and full TELUS Digital ownership aim to enhance AI, efficiency, and cash flow.TELUS Corporation (TU) reported third-quarter 2025 adjusted earnings per share (EPS) of C$0.24, down from C$0.28 a year ago.Quarterly total operating revenues remained almost flat year over year at C$5,106 million.The ...

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Financial Data and Key Metrics Changes - In Q3 2025, TELUS reported a net income of CAD 431 million, with an EPS of CAD 0.32, reflecting a 68% increase primarily due to a gain on the purchase of long-term debt [18] - Adjusted net income decreased by 10% to CAD 370 million, with an EPS of CAD 0.24, down 14% [18] - Free cash flow increased by 8% to CAD 611 million, driven by TELUS International EBITDA growth and lower capital expenditures [19] - Capital expenditure, excluding real estate, declined by CAD 16 million, or 2%, with capital intensity improving to 12% from 13% in the prior year [18][19] Business Line Data and Key Metrics Changes - TELUS Health achieved revenue and adjusted EBITDA growth of 18% and 24%, respectively, with a significant expansion in its global reach [6] - The mobile segment saw healthy phone net additions of 82,000 and connected device net additions of 169,000, supported by a focus on profitable customer growth [4] - Wireline services delivered an industry-best 40,000 internet net additions, continuing a 15-year track record of positive wireline net additions [5] Market Data and Key Metrics Changes - TELUS reported a total of 288,000 customer additions, reflecting a 5% growth in customer connections year-over-year [3][4] - The company maintained an industry-best post-paid mobile phone churn rate of 0.91%, marking the twelfth consecutive year below 1% [4] Company Strategy and Development Direction - TELUS is focused on operational excellence and the strategic rollout of TELUS Pure Fiber connectivity, enhancing customer experiences through AI-powered solutions [3] - The acquisition of TELUS Digital is expected to generate annualized cash synergies of CAD 150 million to CAD 200 million, enhancing digital and AI capabilities [8] - The company aims to achieve a leverage ratio of approximately three times by the end of 2027 while eliminating its discount dividend reinvestment plan [12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained success driven by ongoing EBITDA expansion and disciplined capital deployment [11] - The company anticipates continued growth in TELUS Health, supported by strong sales bookings and improved customer experiences [56] - TELUS expects AI-enabling capabilities to drive significant revenue growth, projecting an increase from CAD 800 million in 2025 to approximately CAD 2 billion by 2028 [9][42] Other Important Information - TELUS increased its quarterly dividend by 4% to CAD 0.4184, reflecting a commitment to sustainable shareholder returns [11] - The company completed the acquisition of TELUS Digital, marking a significant milestone in its strategic evolution [8] Q&A Session Summary Question: Overview of ARPU growth and churn outlook - Management indicated that ARPU growth will depend on continued efforts in pricing and customer acquisition, with churn slightly increasing but still low [23][25] Question: Capital needs for Tereon - TELUS is looking to acquire towers and build new co-location towers, with cash flows from Tereon being net of capital expenditures [23][24] Question: Financial implications of partner build model - The partner build model is expected to have a margin profile similar to a wholesale model, with a focus on achieving better economic returns [29][30] Question: Revenue growth from sovereign AI - Revenue from sovereign AI is expected to manifest within TELUS Business Solutions and TELUS Digital, with additional guidance to be provided in February [46][47] Question: Health business outlook - Management sees strong organic growth in the health business, driven by improved sales bookings and customer experiences [55]

Financial Performance - TELUS reported Q3 2025 operating revenues of $5.1 billion[41] - Adjusted EBITDA reached $1.9 billion, a 1% year-over-year increase[41] - Free cash flow increased by 8% year-over-year to $611 million[41] - Capital expenditures (excluding real estate) decreased by 4% year-over-year to $616 million[41] - The company is targeting a net debt to EBITDA ratio of approximately 3.0x by 2027[10] Customer Growth and Loyalty - Total customer additions were strong at 288,000[10] - Industry-best postpaid mobile phone churn of 0.91%[10] - Internet net additions were +40,000[15] TELUS Health and Digital - TELUS Health revenue grew by 18% year-over-year to $517 million[35] - TELUS Health Adjusted EBITDA increased by 24% year-over-year to $91 million[35] - TELUS Health covers more than 160 million lives globally[10] - TELUS Digital revenue grew by 5% year-over-year to $708 million[37] - TELUS Digital Adjusted EBITDA was $105 million[37] Strategic Initiatives - TELUS completed the privatization of TELUS Digital, expecting $150 million in annualized cash synergies by the end of 2026[18] - AI-enabling revenue is approaching $800 million for 2025 and is expected to reach approximately $2 billion by 2028, with a CAGR of over 30%[21]

Core Insights - Telus reported $3.71 billion in revenue for Q3 2025, a year-over-year decline of 0.8% and an EPS of $0.17, down from $0.21 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $3.72 billion by 0.27%, and the EPS was 10.53% below the consensus estimate of $0.19 [1] Financial Performance - The stock has returned -3.7% over the past month, compared to the Zacks S&P 500 composite's -0.2% change, and currently holds a Zacks Rank 3 (Hold) [3] - Key subscriber metrics include: - Mobile Phone Subscribers: 10.27 million, matching the average estimate - Connected Device Subscribers: 4.16 million, exceeding the average estimate of 4.12 million - Internet Subscribers: 2.78 million, slightly above the average estimate of 2.77 million - TV Subscribers: 1.43 million, slightly below the average estimate of 1.44 million - Security Subscribers: 1.15 million, matching the average estimate - Residential Voice Subscribers: 986 thousand, below the average estimate of 991 thousand [4] Churn and Net Additions - Mobile phone churn rate was 1.1%, in line with the average estimate [4] - Net additions for various services were as follows: - Connected Device: 169 thousand, exceeding the estimate of 134.82 thousand - Internet: 40 thousand, above the estimate of 24.97 thousand - TV: 5 thousand, below the estimate of 15.71 thousand - Security: 6 thousand, below the estimate of 10.32 thousand - Residential Voice: -14 thousand, worse than the estimate of -9 thousand [4]

Telus (TU) came out with quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -10.53%. A quarter ago, it was expected that this telecommunications company would post earnings of $0.17 per share when it actually produced earnings of $0.16, delivering a surprise of -5.88%.Over the last four quarters, the ...

Core Insights - TELUS Corporation reported strong customer growth with a total of 288,000 net additions in the third quarter of 2025, driven by demand for core connectivity services and the expansion of TELUS PureFibre connectivity [1][2][7] - The company achieved a 3% growth in TTech Adjusted EBITDA, reflecting a focus on profitable customer growth and cost efficiency [1][4] - TELUS Health demonstrated significant growth with an 18% increase in operating revenue and a 24% increase in Adjusted EBITDA, indicating successful execution of its global growth strategy [1][2][24] - Net income rose by 68% to $431 million, with basic earnings per share increasing to $0.32 [5][14] - Free cash flow grew by 8% to $611 million, supporting a quarterly dividend increase of 4% to $0.4184 per share [1][10][30] Financial Performance - Consolidated operating revenues were flat at $5.1 billion compared to the previous year, with a 2% increase in service revenue offset by lower mobile equipment revenue [1][14] - Adjusted EBITDA increased by 1% to approximately $1.9 billion, with varied results across segments [6][15] - Cash provided by operating activities increased by 4% to $1.5 billion, driven by working capital changes [10][14] Customer Growth and Segmentation - The total TTech subscriber base grew by 5% to 20.8 million, with mobile phone subscribers increasing by 2% and connected devices by 18% [8][15] - TELUS Health expanded its coverage to 160.6 million lives, a significant increase attributed to recent acquisitions and changes in service definitions [9][24] - Mobile phone net additions were 82,000, reflecting a decrease due to competitive pressures and changing customer preferences [7][19] Capital Expenditures and Investments - Consolidated capital expenditures decreased by 2% to $652 million, with a planned slowdown in network builds [11][14] - TELUS Digital's acquisition and integration are expected to generate approximately $150 million in annual cash synergies [3][11] Strategic Initiatives - TELUS closed a transaction with La Caisse to establish Terrion as Canada's largest dedicated wireless tower operator, enhancing connectivity and shareholder value [3][4] - The company celebrated planting 25 million trees, contributing to sustainability efforts and environmental leadership [3][34] Future Outlook - TELUS expects TTech operating revenue growth to be at the lower end of the original target range for 2025, while targets for Adjusted EBITDA and free cash flow remain unchanged [1][26][29] - The company is focused on maintaining a strong financial foundation and delivering sustainable growth through disciplined capital deployment [3][4][26]

Core Insights - Railtown AI collaborates with TELUS to develop advanced agentic software solutions on TELUS' Sovereign AI Infrastructure, ensuring Canadian innovation remains within Canada [1][2][3] - The partnership aims to provide Canadian software companies with secure, domestic AI compute capacity, promoting the growth of Canada's AI ecosystem [2][5] - Railtown AI's technologies are designed for businesses to build, deploy, and manage AI-driven solutions, focusing on autonomous AI agents and integration into existing products [3][4] Company Overview - Railtown AI Technologies Inc. specializes in advanced AI Agentic Frameworks and Observability tools, enabling efficient AI solution development [7] - TELUS Corporation operates a Sovereign AI Factory, addressing the need for Canadian companies to access cutting-edge AI capabilities while maintaining data sovereignty [5][6] Strategic Importance - The collaboration supports Canadian software companies by providing world-class tools for code optimization and system monitoring, while ensuring control over intellectual property [4] - The initiative reflects a broader trend of Canadian companies seeking alternatives to foreign cloud platforms for AI development, enhancing technological independence [5]

Core Insights - TELUS Corporation has successfully completed the acquisition of TELUS Digital, enhancing its position as a global leader in AI-powered digital customer experience and SaaS transformation across various industries [1] - The integration is expected to drive growth in TELUS' telecommunications, health, agriculture, and consumer goods sectors, while also expanding growth opportunities for TELUS Digital within its external client base [1] - Operational efficiencies from this acquisition are projected to generate approximately $150 million annually [1] Financial Details - The acquisition involved purchasing all outstanding multiple voting shares and subordinate voting shares of TELUS Digital not already owned by TELUS, at a price of US$4.50 per share [1] - The total consideration for the acquisition amounts to approximately US$539 million [1] - Following the acquisition, TELUS now owns 100% of TELUS Digital [1]

VANCOUVER, British Columbia--(BUSINESS WIRE)--TELUS International (Cda) Inc. ("TELUS Digital†) (NYSE and TSX: TIXT), a leading global technology company specializing in digital customer experience, today announced the results from its special meeting (the "Meeting†) of the holders (the "Shareholders†) of its Multiple Voting Shares ("MVS†) and Subordinate Voting Shares ("SVS†, and together with MVS, the "Shares†) which took place on October 27, 2025. The Meeting was called to consider the plan o. ...