TELUS(US:TU)2025-11-07 12:10Financial Performance - EBITDA for the twelve-month period ended September 30, 2025, was $7,353 million, slightly up from $7,342 million in 2024[40]. - The earnings coverage ratio improved to 2.1 times for the twelve-month period ended September 30, 2025, compared to 1.9 times in the previous year[43]. - Free cash flow for TELUS Corporation was $2,168 million for the 12-month period ended September 30, 2025, up from $2,043 million in 2024, representing a growth of 6.1%[48]. - TELUS reported total operating revenues of $5,106 million for the three-month period ended September 30, 2025, compared to $5,099 million in the same period of 2024, reflecting a slight increase of 0.14%[107]. - TELUS reported an EBITDA of $5,176 million for the nine-month period ended September 30, 2025, compared to $5,070 million in 2024, which is an increase of 2.09%[108]. Debt and Capital Structure - As of September 30, 2025, net debt decreased to $25,663 million from $28,109 million in 2024, resulting in a net debt to EBITDA ratio of 3.5, down from 3.8[40][42]. - The company aims to achieve a net debt to EBITDA ratio of approximately 3.0 times by 2027, following recent spectrum auctions[46]. - As of September 30, 2025, total long-term debt amounts to $51,874 million, with $43,765 million in non-derivative long-term debt and $8,442 million in derivative liabilities[66]. - The company has a total of $12,721 million in long-term debt maturing between 2030 and 2034, with an additional $20,063 million maturing thereafter[66]. - The company issued new equity and adjusted dividends as part of its capital structure management strategy[37]. Dividends and Shareholder Returns - The TELUS Corporation Common Share dividend payout ratio for the twelve-month period ended September 30, 2025, was 75%, within the target range of 60%-75%[47]. - TELUS Corporation declared common share dividends of $2,488 million for the 12-month period ended September 30, 2025, compared to $2,259 million in 2024, reflecting an increase of 10.1%[48]. - For the nine-month period ended September 30, 2025, TELUS Corporation declared total dividends of $1.2349 per share, amounting to $1,883 million, compared to $1.1543 per share and $1,709 million for the same period in 2024, representing a 7.0% increase in total dividends[133]. - During the nine-month period ended September 30, 2025, eligible shareholders reinvested dividends totaling $614 million, up from $466 million in 2024, indicating a 31.7% increase in reinvested dividends[135]. Cash Flow and Liquidity - Cash and temporary investments, net, rose significantly to $1,827 million as of September 30, 2025, compared to $869 million at the end of 2024, an increase of 110.7%[50]. - For the three-month period ended September 30, 2025, TELUS Corporation reported a cash flow outflow of $47 million, a decrease of 5% compared to $60 million in the same period of 2024[138]. - For the nine-month period ended September 30, 2025, the total cash flow outflow was $144 million, down 23% from $148 million in 2024[138]. Operational Metrics - The company incurred restructuring and other costs of $339 million in the nine-month period of 2025, down from $425 million in 2024, reflecting a decrease of 20.24%[108]. - The company’s employee benefits expense for the nine-month period was $4,422 million, slightly down from $4,432 million in the previous year, indicating a decrease of 0.23%[108]. - The company reported a balance of $37 million in derivative financial instruments classified as Level 3 at the end of the period[86]. Risk Management and Sensitivity Analysis - A 10% appreciation of the Canadian dollar against the U.S. dollar could decrease net income by $5 million and comprehensive income by $98 million for the nine-month period ended September 30, 2025[76]. - A 25 basis point increase in Canadian interest rates could reduce net income by $4 million, while a similar increase in U.S. interest rates could decrease net income by $80 million[76]. - The company’s exposure to interest rate risk is assessed based on hypothetical changes at the beginning of the fiscal year, indicating potential impacts on net income[74]. Segment Performance - The TELUS technology solutions segment includes network revenues and equipment sales from mobile technologies, contributing significantly to overall revenue[101]. - The TELUS health segment, which includes healthcare services and technology solutions, has transitioned to a new segmented reporting structure effective from March 31, 2025[102]. - TELUS health experience segment generated $1,500 million in revenues for the nine-month period ended September 30, 2025, compared to $1,294 million in 2024, marking an increase of 15.93%[108]. Acquisitions and Investments - TELUS acquired 100% of Workplace Options on May 1, 2025, to enhance its employee and family assistance programs, consolidating it within the TELUS Health segment[176]. - The acquisition resulted in a total identifiable assets acquisition value of $450 million, with goodwill recognized at $380 million[179]. - The company added $705 million in intangible assets during the nine-month period ended September 30, 2025, including $369 million from business acquisitions[174]. Employee Compensation and Benefits - The company’s employee benefits expense for the three-month period ended September 30, 2025, included benefits earned for current service of US$0 million and benefits earned for past service of US$0 million[161]. - The company’s share-based compensation expense included in employee benefits for the nine-month period was detailed in the financial statements, reflecting ongoing investment in employee incentives[137]. Taxation and Compliance - Current income tax expense for the three months ended September 30, 2025, was $261 million, compared to $190 million in the same period of 2024, reflecting an increase of approximately 37.4%[124]. - For the nine-month period ended September 30, 2025, income tax expense was $311 million, reflecting a 39.0% effective tax rate, up from $172 million and 21.8% in 2024[126]. Derivative Financial Instruments - The fair value of derivatives used to manage interest rate risk associated with non-fixed rate credit facility amounts was $12 million as of September 30, 2025[84]. - The unrealized gains from derivatives designated as cash flow hedges for the nine-month period ended September 30, 2025, were $1 million, compared to unrealized losses of $120 million in the same period of 2024[129].