Core Insights - TELUS Corporation reported second-quarter 2025 adjusted earnings per share (EPS) of C$0.22, a decrease from C$0.25 in the same period last year [1] - Total operating revenues increased by 2% year over year to C$5,082 million, driven by strong revenue growth across all segments [1] - The company achieved total customer growth of 198,000 in the second quarter, with 167,000 additions in mobile and connected devices, and 31,000 in fixed customers [2] Financial Performance - TELUS' operating revenues from contracts with customers were C$5,031 million, reflecting a 3% year-over-year increase [1] - The company declared a quarterly dividend of C$0.4163 per share, a 7% increase from the previous year's C$0.3891 [2] - Adjusted EBITDA increased modestly by 0.8% year over year to C$1,812 million [18] Segment Results - TTech revenues rose 1% year over year to C$3,848 million, with operating revenues from contracts with customers increasing to C$3,793 million [5] - Mobile network revenues decreased by 1% to C$1,723 million, attributed to a decline in mobile phone ARPU [6] - Fixed data service revenues increased by 3% to C$1,193 million, supported by an expanding subscriber base [9] Strategic Developments - TELUS signed a definitive agreement with La Caisse to sell a 49.9% stake in Terrion for approximately $1.26 billion, valuing the operator at over $2.5 billion [3] - The proceeds from the deal will be used to accelerate debt reduction efforts, aiming for a net debt-to-EBITDA ratio of 3.0 by 2027 [3] Cash Flow and Guidance - Cash generated from operating activities was C$1,166 million, down from C$1,388 million in the previous year, while free cash flow increased by 11% to C$535 million [19] - TELUS reaffirmed its 2025 financial targets, expecting 2-4% growth in TTech operating revenues and 3-5% growth in adjusted EBITDA [20]

Financial Data and Key Metrics Changes - TELUS achieved total mobile and fixed customer growth of 198,000 in Q2 2025, driven by mobile phone and connected device additions of 167,000 and fixed customer additions of 31,000 [7][8] - Postpaid mobile phone churn remained at 0.9%, consistent with Q2 of the previous year, marking the twelfth consecutive year below the 1% level [8] - TTEC EBITDA growth, including TELUS Health, was up 4%, consistent with Q1 results [8][19] - Free cash flow increased by 11% year-over-year to CAD 535 million, driven by higher EBITDA and lower capital expenditures [23][25] - Adjusted net income was CAD 342 million, with an EPS of CAD 0.22 [22] Business Line Data and Key Metrics Changes - TELUS Health reported an extraordinary adjusted EBITDA growth of 1629%, with operating revenue also reflecting significant growth [10][19] - Fixed data services revenue grew by 3% year-over-year, marking the eighteenth consecutive quarter of positive growth [19] - Mobile network revenue experienced a slight decline due to lower mobile phone ARPU, which fell by 3.3% [18][19] Market Data and Key Metrics Changes - The competitive landscape in the mobile sector remains challenging, with ongoing pressures on ARPU due to market conditions [18][19] - TELUS is the only company in the industry to deliver positive net additions in the wireline sector, highlighting its competitive advantage [9] Company Strategy and Development Direction - TELUS announced a CAD 2 billion investment to expand broadband services in Ontario and Quebec, reflecting its commitment to enhancing connectivity [5][6] - The company is focusing on bundling wireless and wireline broadband services to differentiate itself from competitors [6][10] - TELUS is pursuing a strategy of monetizing its tower infrastructure through the establishment of Terion, which will build new towers and enhance financial flexibility [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Canadian market, emphasizing the importance of private investment and innovation [6][7] - The company anticipates continued improvements in its leverage ratio, aiming for a net debt to EBITDA ratio of three times by 2027 [24][26] - Management highlighted the importance of AI and digital solutions in driving operational efficiencies and enhancing customer experiences [82][83] Other Important Information - TELUS Friendly Future Foundation raised over CAD 2.6 million to support student bursaries, demonstrating the company's commitment to community engagement [16] - The company is actively pursuing partnerships to enhance its service offerings and expand its market reach [14][76] Q&A Session Summary Question: Strategic shift regarding the proposed privatization of TIAXT - Management clarified that the move is related to supporting deleveraging goals and does not indicate a change in monetization strategies for other tech ventures [31][32] Question: Financial details on the towers and EBITDA - Management did not disclose specific EBITDA figures but confirmed that all towers will operate at fair market value rent, ensuring transparency [34] Question: Long-term impact of tower deals and colocation opportunities - Management indicated that demand for data continues to rise, and the partnership with Terion will support cash flow positivity through tower construction and colocation [40] Question: Market pricing discipline and sustainability - Management expressed cautious optimism about the current pricing trends, noting that irrational pricing cannot be sustained in the long term [41][42] Question: Sustainability of fixed data growth - Management highlighted the diversity of contributions to fixed data growth and expressed confidence in the sustainability of this growth moving forward [68] Question: Update on deleveraging drivers, particularly real estate - Management discussed ongoing efforts to rationalize real estate and the potential for significant monetization opportunities in the future [72][73] Question: Role of traditional telcos in the AI ecosystem - Management identified three key areas for growth in the AI ecosystem, including leveraging existing infrastructure and enhancing internal operations through AI [81][82]

Financial Data and Key Metrics Changes - TELUS achieved total mobile and fixed customer growth of 198,000 in Q2 2025, driven by mobile phone and connected device additions of 167,000 and fixed customer additions of 31,000 [5][6] - TTEC EBITDA growth, including TELUS Health, was up 4%, consistent with Q1 results, while mobile phone net additions were 55,000 and connected device net additions were 112,000 [6][7] - Free cash flow increased by CAD 535 million, an 11% rise compared to the same period last year, driven by higher EBITDA and lower capital expenditures [21][23] Business Line Data and Key Metrics Changes - TELUS Health reported an extraordinary growth in operating revenue and adjusted EBITDA of 1629% respectively, with a significant increase in global lives covered to almost 160 million [8][19] - Fixed data services revenue grew by 3%, marking the eighteenth consecutive quarter of positive growth, supported by subscriber ARPU growth in Internet and security services [18][19] - Mobile network revenue saw a slight decline due to lower mobile phone ARPU, which decreased by 3.3% amid competitive pressures [17] Market Data and Key Metrics Changes - The Canadian market is showing signs of stabilization, with improvements in ARPU trends across new activations and customer renewals [17][39] - TELUS is committed to expanding broadband services in Ontario and Quebec with a CAD 2 billion investment, reflecting confidence in the Canadian market [4][5] Company Strategy and Development Direction - TELUS is focusing on bundling wireless and wireline broadband services, aiming to differentiate itself through innovative offerings such as AI-driven smart home solutions and next-generation healthcare [4][5] - The company is pursuing a strategy of monetizing its tower infrastructure through a partnership with Akeis, which will enhance financial flexibility and support balance sheet deleveraging [11][24] - TELUS is leveraging its existing assets for new opportunities, particularly in AI and data centers, to drive long-term value creation [79][99] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting that the market is transitioning from irrational pricing to more sustainable pricing models [39][41] - The company anticipates continued improvements in its leverage ratio, aiming for a net debt to EBITDA ratio of three times by 2027 [22][24] - Management emphasized the importance of customer experience and product differentiation as key drivers for future growth [44][46] Other Important Information - TELUS Friendly Future Foundation raised over CAD 2.6 million to support student bursaries, reflecting the company's commitment to community support [15] - The company is actively working on real estate rationalization and copper monetization, with significant opportunities identified in these areas [71][73] Q&A Session Summary Question: Strategic shift regarding the proposed privatization of TIAXT - Management clarified that the move is related to supporting deleveraging goals and should not be interpreted as a change in monetization strategy for other tech ventures [28][29] Question: Financial details on the tower entity - Management did not disclose specific EBITDA figures but confirmed that all towers will operate at fair market value rent, ensuring positive cash flow [30][31] Question: Long-term impact of tower deal and deployment of more towers - The demand for data is increasing, and the partnership with Terion will allow for continued tower construction and co-location opportunities, enhancing cash flow [36][38] Question: Sustainability of recent pricing improvements in wireless - Management noted that while certainty is not guaranteed, the current trend is encouraging, and the market must shift from irrational pricing to rational pricing for sustainability [39][41] Question: Update on fixed data growth sustainability - Management expressed confidence in the sustainability of fixed data growth, supported by diverse service offerings and strong customer experience [66][68] Question: Plans for new data center construction - TELUS has already invested in world-class data centers and is leveraging these assets for AI initiatives, minimizing the need for additional capital investment [97][99]

Financial Performance - TELUS reported consolidated operating revenues of $5 billion, a 3% year-over-year increase[35] - Adjusted EBITDA reached $1.8 billion, up 1% year-over-year[35] - Free cash flow increased by 11% year-over-year to $535 million[35] - Capital expenditures (excluding real estate) decreased by 2% year-over-year to $657 million[35] Customer Growth & Operations - Total customer additions were 198,000, with industry-leading postpaid mobile phone churn of 0.90%[8] - Mobile phone net additions were +55,000[10] - Connected device net additions were +112,000[10] - Internet net additions were +27,000[13] - TV net additions were +12,000[13] TELUS Health - TELUS Health external revenues grew by 16% year-over-year to $517 million[27] - TELUS Health Adjusted EBITDA increased by 29% year-over-year to $91 million[27] - TELUS Health covered 157.1 million lives, including 79.3 million added due to the Workplace Options acquisition and a change in definition[27] Strategic Initiatives - Strategic infrastructure expansion includes a $2 billion investment to expand PureFibre in Ontario and Quebec[8] - A definitive agreement was announced with La Caisse, who will acquire a 49.9% interest in Terrion for $1.26 billion[49] - Terrion is valued at over $2.5 billion and is expected to reduce TELUS' net debt by approximately $1.26 billion[49]

Company Performance - Telus reported quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.17 per share, and down from $0.18 per share a year ago, representing an earnings surprise of -5.88% [1] - The company posted revenues of $3.67 billion for the quarter ended June 2025, which was 0.17% below the Zacks Consensus Estimate and slightly up from $3.64 billion year-over-year [2] - Over the last four quarters, Telus has surpassed consensus EPS estimates three times and topped revenue estimates two times [2] Future Outlook - The immediate price movement of Telus shares will depend on management's commentary during the earnings call and the earnings outlook for the coming quarters [3][4] - The current consensus EPS estimate for the next quarter is $0.20 on revenues of $3.83 billion, and for the current fiscal year, it is $0.76 on revenues of $15.1 billion [7] - The estimate revisions trend for Telus was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Diversified Communication Services industry, to which Telus belongs, is currently in the top 17% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Exhibit 99.1 TELUS CORPORATION CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) JUNE 30, 2025 condensed interim consolidated statements of income and other comprehensive income (unaudited) | | | | | Three months | | | | Six months | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Periods ended June 30 (millions except per share amounts) | Note | | 2025 | | 2024 | | 2025 | | 2024 | | OPERATING REVENUES | | | | | | | | | | | Service | | | $ 4,491 | | $ 4,342 | | $ 8,934 | | $ ...

Core Insights - TELUS Corporation reported a total customer growth of 198,000 in the second quarter of 2025, driven by strong demand for bundled services and expansion of TELUS PureFibre connectivity [1][3] - The company achieved operating revenue growth of 2% to $5.1 billion and adjusted EBITDA growth of 4%, indicating a robust diversified business portfolio [2][12] - TELUS Health segment saw significant growth, with operating revenue and adjusted EBITDA increasing by 16% and 29% respectively, covering 157 million lives globally [3][8] Financial Performance - Consolidated free cash flow increased by 11% to $535 million, reflecting improved operational efficiency [1][9] - Operating revenues from TTech, including TELUS Health, rose by 2% while adjusted EBITDA grew by 4%, aligning with the company's financial targets for 2025 [2][6] - The company recognized a net loss of $245 million due to a $500 million impairment of goodwill related to TELUS Digital, but adjusted net income was $342 million, down 7% year-over-year [5][12] Customer Growth and Segments - TELUS added 198,000 net customers, with mobile phone and connected device additions contributing significantly [3][7] - The total TTech subscriber base reached 20.5 million, a 5% increase year-over-year, with notable growth in mobile phones and connected devices [7][12] - TELUS Health's healthcare lives covered increased by 82 million over the past year, primarily due to the acquisition of Workplace Options [8][24] Capital Expenditures and Investments - Consolidated capital expenditures were $678 million, a decrease of 2% from the previous year, with a focus on TTech operations and TELUS Health expansions [10][12] - The company announced a definitive agreement with La Caisse to acquire a 49.9% interest in a new wireless tower operator for $1.26 billion, aimed at monetizing its tower infrastructure [2][4] Strategic Outlook - TELUS reaffirmed its 2025 financial targets, including operating revenue growth of 2-4% and adjusted EBITDA growth of 3-5% [1][2] - The company aims to achieve a net debt to EBITDA ratio of 3 times by 2027, supported by ongoing asset monetization initiatives [4][6] - TELUS continues to focus on customer expansion, product innovation, and service enhancement to drive long-term value creation [4][6]

Core Insights - Investors are comparing Telefonica Brasil (VIV) and Telus (TU) for potential value opportunities in the Diversified Communication Services sector [1] Group 1: Zacks Rank and Earnings Outlook - Telefonica Brasil has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Telus has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank is based on recent positive revisions to earnings estimates, suggesting that VIV has an improving earnings outlook [3] Group 2: Valuation Metrics - VIV has a forward P/E ratio of 16.19, significantly lower than TU's forward P/E of 21.74 [5] - The PEG ratio for VIV is 0.74, indicating better value compared to TU's PEG ratio of 4.99, which factors in expected earnings growth [5] - VIV's P/B ratio is 1.57, while TU's P/B ratio is 2.13, further highlighting VIV's relative undervaluation [6] Group 3: Value Grades - Based on various valuation metrics, VIV holds a Value grade of A, whereas TU has a Value grade of C, suggesting that VIV is the more attractive option for value investors [6]

Core Insights - TELUS Agriculture & Consumer Goods and Welch's have established a transformative 10-year partnership aimed at enhancing regulatory compliance and supply chain transparency in the food industry [1][2] - The collaboration will leverage TELUS's agricultural technology solutions to create a data-driven compliance framework, improving operational efficiency and meeting international regulatory standards [3][4] Company Overview - TELUS Agriculture & Consumer Goods is a leading provider of digital solutions and data insights, serving customers in over 50 countries with integrated analytics and supply chain management solutions [6] - Welch's, owned by a cooperative of U.S. family farmers, is recognized for its fruit-based products, including Concord grape juices and jams, and has a commitment to quality and innovation [8][10] Partnership Details - The partnership will deploy a compliance platform in phases, supporting Welch's network of over 700 grape growers in the U.S. and enhancing traceability across its products sold in over 40 countries [5] - The innovative solution will automate compliance validation and real-time monitoring, addressing the complexities of modern food systems and regulatory requirements [3][4]

Core Viewpoint - The market anticipates a year-over-year decline in Telus's earnings despite an increase in revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Telus is expected to report quarterly earnings of $0.17 per share, reflecting a year-over-year decrease of 5.6%, while revenues are projected to be $3.68 billion, up 1.2% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. Earnings Surprise Prediction - The Most Accurate Estimate for Telus is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -6.63%, suggesting a bearish sentiment among analysts [12]. Historical Performance - In the last reported quarter, Telus exceeded expectations by posting earnings of $0.18 per share against an expected $0.15, achieving a surprise of +20.00% [13]. Over the last four quarters, the company has consistently beaten consensus EPS estimates [14]. Investment Considerations - Despite the potential for an earnings miss, other factors may influence stock performance, making it essential to consider the Earnings ESP and Zacks Rank before making investment decisions [15][16].