Telus Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.54%.
Did TU Beat Earnings? Q2 2025 Results
TELUS delivered a mixed second quarter for 2025, missing on both the top and bottom lines as a $368.55 million goodwill impairment tied to TELUS Digital cast a shadow over otherwise steady operational progress. Adjusted EPS came in at $0.16, falling short of the $0.17 consensus by 6.03%, while revenue of $3.75 billion trailed estimates by 25.52%, though it still grew 3.7% year over year. The impairment drove a consolidated net loss of $180.59 million, though on an adjusted basis net income reached $252.09 million. Bright spots were not hard to find, particularly in TELUS Health, where operating revenue surged 16% and adjusted EBITDA climbed 29%, fueled by the Workplace Options acquisition and cross-selling momentum. The company also announced a deal to sell a 49.9% stake in its Terrion tower unit for $928.75 million, a move expected to trim leverage by 0.17x as TELUS targets a roughly 3.55x ratio by year-end. Full-year guidance was reaffirmed, with free cash flow projected at approximately $2.15 billion, even as <a href="https://247wallst.com/investing/2025/07/23/live-coverage-will-att-nyse-t-stock-beat-q2-earnings-projections/">broader telecom sector pressure</a> continues to weigh on investor sentiment.
- Industry-leading total mobile and fixed customer growth of 198,000
- Postpaid mobile phone churn of 0.90%, twelfth consecutive year below 1%
- TELUS Health operating revenue and Adjusted EBITDA growth of 16% and 29% respectively
- Cost reduction efforts including workforce reductions and increased TELUS Digital utilization
- $400 million in combined annualized synergies realized since LifeWorks acquisition
- Internet and security subscriber growth with higher revenue per customer
- Strategic expansion of PureFibre connectivity in Ontario and Quebec
“In the second quarter of 2025, our team's commitment to operational excellence has empowered TELUS to deliver another quarter of industry-leading customer growth and strong financial performance. These results demonstrate the strength of our leading portfolio of bundled offerings across Mobile and Home, and the strategic expansion of TELUS PureFibre connectivity to Canadian homes and businesses, including in Ontario and Quebec, where we are delivering much more than just affordable internet—providing Canadians with differentiated and unique competitive services.”
Telus CEO, on the earnings call
Forward Guidance & Outlook
TELUS reaffirmed its 2025 financial targets: TTech including TELUS Health operating revenue growth of 2 to 4 per cent, Adjusted EBITDA growth of 3 to 5 per cent, consolidated capital expenditures (excluding real estate) of approximately $2.5 billion, and free cash flow of approximately $2.15 billion. The company expects to achieve a leverage ratio of circa 3.55x exiting 2025 (including the Terrion tower monetization transaction), progressing toward a target of 3.0x net debt to EBITDA by 2027. TELUS plans to gradually turn off its discounted dividend reinvestment program over the same timeframe. The company revised Canadian economic growth estimates downward to 1.3% for 2025 (from 1.9%) and raised unemployment rate estimates to 7.0% (from 6.6%). TELUS Health remains on track to achieve $427 million in combined annualized synergies by end of 2025.
TU YoY Financials
TU Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.