Core Insights - TELUS aims to achieve $2 billion in AI revenue by 2028, up from $800 million, with Q4 2025 AI revenue increasing 44% to $229 million [1] - Outgoing CEO Darren Entwistle emphasized the importance of AI infrastructure and TELUS Health as key growth drivers beyond traditional telecom services [1] AI Revenue Growth - TELUS's AI-enabling capabilities revenue is projected to grow significantly, with a target of approximately $2 billion by 2028 [1] - In Q4 2025, AI revenue increased by 44%, contributing to a 35% growth for the full year [1] - The company has converted legacy data centers into sovereign AI infrastructure with minimal capital investment, enhancing its competitive position [1] TELUS Health Performance - TELUS Health reported a 13% revenue growth and a 10% increase in Adjusted EBITDA in Q4 2025, covering 161.2 million healthcare lives globally [1] - The integration of LifeWorks has resulted in $431 million in annualized synergies, significantly exceeding the initial target of $150 million [1] - TELUS is exploring strategic partnerships for TELUS Health, indicating a focus on monetization opportunities [1] Financial Overview - TELUS reported Q4 revenue of $5.261 billion, which was below estimates due to a deliberate reduction in promotional device offers [1] - The adjusted EBITDA margin expanded by 2.4 percentage points to 40.9%, with full-year free cash flow reaching $2.2 billion, an 11% increase [1] - For 2026, TELUS anticipates free cash flow of approximately $2.45 billion and capital expenditures of about $2.3 billion, reflecting a deleveraging trend [1]

TELUS (NYSE:TU) FY Conference Summary Company Overview - **Company**: TELUS Corporation - **Industry**: Telecommunications Key Points CEO Transition - The transition to the new CEO, Victor, is planned for May and July 2026, respectively, with a focus on continuity in strategic execution and culture alignment [3][4][5] - The management aims to maintain operational execution and continue deleveraging ahead of plan during the transition period [4][5] Wireless Business Performance - Subscriber growth is expected to mirror last year's performance due to a slowdown in immigration [7] - Average Revenue Per User (ARPU) is projected to continue improving, with the company leading in network revenue and churn reduction [7][10] - The competitive landscape is challenging, with aggressive pricing strategies from competitors impacting overall market dynamics [9][10] Market Dynamics - The Canadian telecommunications market is characterized by four well-capitalized operators, leading to competitive pricing pressures [12][13] - TELUS emphasizes value creation over subscriber loading, focusing on customer service and product bundling to maintain profitability [12][13][14] Fixed-Line Business Strategy - TELUS is expanding its market share in the eastern regions of Canada, focusing on providing value and relevant products to customers [19][20] - The company aims to avoid loss-making strategies in the east, similar to its approach in the west, by bundling services and ensuring profitability [20][21] Financial Performance and Deleveraging - The company has been transparent about its deleveraging plan, targeting a reduction in leverage from 3.4 to 3.0 by 2027 [27][49] - The fiber network is expected to yield returns over a long-term horizon, with a break-even period exceeding ten years in some communities [25][26] Capital Allocation and Investments - TELUS is focusing on reducing capital intensity to 10% or less, reallocating investments towards AI and digitization for improved customer service [28][30] - The company is exploring monetization opportunities for TELUS Health, with over 75 quality inbound interests [36][40] Future Outlook - TELUS aims to integrate digital and AI solutions into its core operations, enhancing customer service and maintaining relevance in a competitive market [45][48] - The company is committed to executing its operational plans and achieving its financial targets, with expectations of positive outcomes by the end of 2026 and 2027 [27][49] Additional Insights - The company has removed loading metrics from its performance scorecard, focusing instead on free cash flow and economic value [14][17] - TELUS Digital will remain part of the organization for now, with plans to enhance its AI capabilities and customer service offerings [41][42][43] This summary encapsulates the key discussions and strategic directions outlined during the TELUS FY Conference, highlighting the company's focus on operational execution, market competitiveness, and long-term financial health.

Core Viewpoint - TELUS Corporation is set to amend its Dividend Reinvestment and Share Purchase Plan (DRISP) by reducing the discount on shares issued from treasury to 1.75% effective April 1, 2026, impacting dividends payable on that date to shareholders of record on March 11, 2026 [1]. Summary by Relevant Sections Dividend Reinvestment Program Changes - Effective April 1, 2026, TELUS will reduce the discount on shares issued from treasury to 1.75% from the average market price for shares acquired through the reinvestment of dividends [1]. - The changes will apply to dividends payable on April 1, 2026, to shareholders of record on March 11, 2026 [1]. - Shares acquired with optional cash payments will be issued from treasury at 100% of the average market price [1]. Participation Details - Shareholders in Canada and the United States can elect to reinvest dividends in TELUS shares through the DRISP [1]. - Non-registered beneficial holders should consult their intermediaries for participation procedures [1]. - Enrollment forms must be received by Computershare Trust Company of Canada by the close of business on March 11, 2026, to participate in the April 1, 2026 dividend payment [1]. Company Overview - TELUS operates in over 45 countries, generating more than $20 billion in annual revenue with over 21 million customer connections [1]. - The company is committed to leveraging technology for positive human outcomes and has initiatives in health, agriculture, and digital customer experiences [1]. - TELUS has contributed $1.85 billion in cash and in-kind contributions since 2000, earning recognition as the world's most giving company [1].

Q4 2025 Investor Conference Call February 12, 2026 Caution regarding forward-looking statements Today's discussion may contain forward-looking statements, including statements relating to our objectives and our strategies to achieve those objectives, our 2026 targets, our expectations regarding trends in the telecommunications industry (including demand for data and ongoing subscriber base growth), regarding AI-enabling revenue, regarding growth in different areas of our business and regarding the nature, t ...

Core Insights - TELUS Corporation is engaging TD Securities Inc. and Jefferies Securities, Inc. as financial advisors to strategize the monetization of its TELUS Health business, which serves over 160 million lives globally and has generated $1.5 billion in operating revenue year-to-date as of Q3 2025 [1][2] Group 1: TELUS Health Business Overview - TELUS Health operates in over 200 countries and territories, generating an EBITDA of $258 million and cash flow of $99 million as of Q3 2025 [1] - The company views TELUS Health as a world-class digital asset with significant growth potential, particularly in AI products and international expansion [2] Group 2: Strategic Partnerships and Monetization - The monetization strategy aims to identify a strategic partner to enhance value creation by adding complementary skills and customer reach [2] - TELUS Health is considered a key near-term monetization opportunity that aligns with TELUS' deleveraging targets, aiming for a net debt to adjusted EBITDA ratio of approximately 3.4 times in 2025, reducing to around 3.3 times by the end of 2026 [2] Group 3: Financial Performance and Future Outlook - TELUS is targeting a minimum 10% compounded annual growth rate in free cash flow through 2028, supported by a strong operational and financial performance [2] - The engagement of financial advisors is part of a disciplined capital allocation framework that has consistently defined TELUS' approach to value creation [2]

Core Insights - TELUS Corporation is recognized among the 15 Extreme Dividend Stocks to Buy According to Hedge Funds [1] - Barclays has lowered its price target for TELUS to $14 from $15 while maintaining an Equal Weight rating following the company's Q3 results [2] Financial Performance - In Q3 2025, TELUS reported revenue of C$5.11 billion, a modest increase of 0.2% year-over-year, but fell short of analysts' expectations by C$90 million [3] - The company added 288,000 Mobile and Fixed customers, driven by strong demand for high-value connectivity services and the expansion of TELUS PureFibre [3] - TELUS achieved an 8% growth in consolidated free cash flow, which supported a quarterly dividend increase to C$0.4184, marking the 22nd consecutive year of dividend growth [4] Business Expansion - TELUS Health experienced 18% growth in operating revenue and 24% growth in adjusted EBITDA, extending coverage to over 160 million lives globally [5] - The integration of LifeWorks contributed $417 million in combined annualized synergies, including $329 million from cost efficiencies and $88 million from cross-selling, keeping the company on track to meet its $427 million synergy target by the end of 2025 [5]

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]

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]