Telus Corp
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.98%.
Did TU Beat Earnings? Q4 2025 Results
TELUS delivered a mixed fourth quarter for fiscal 2025, posting an earnings beat against softer-than-expected revenue as the Canadian telecom navigated a competitive market and modest top-line pressure. Adjusted basic EPS came in at $0.20, edging past the $0.18 consensus estimate by 11.11%, while revenue of $5.26 billion fell short of the $5.54 billion analysts had projected, slipping 1.3% year over year. The shortfall was driven largely by continued mobile phone ARPU pressure, with average revenue per user declining 1.6% to $57.10, though management noted the rate of decline is decelerating. On the brighter side, TTech Adjusted EBITDA margin expanded 240 basis points to 40.9%, and record quarterly free cash flow of $574 million, up 7%, underscored improving capital efficiency as the company pivots from heavy infrastructure spending toward harvesting returns. For 2026, TELUS targets 2-4% service revenue and EBITDA growth alongside free cash flow of roughly $2.45 billion, a roughly 10% increase, with <a href="https://247wallst.com/investing/2026/02/11/t-mobiles-10-ebitda-explosion-could-make-savvy-investors-filthy-rich/">peers in North American telecom</a> similarly chasing EBITDA expansion in an increasingly AI-driven landscape.
- Industry-leading total customer net additions of 377,000 in Q4 including 287,000 connected device record
- TELUS Health revenue growth of 13% driven by Workplace Options acquisition and payor/provider solutions
- TTech Adjusted EBITDA margin expanded 240 basis points to 40.9%
- LifeWorks annualized synergies of C$431 million exceeded original target by nearly 3x
- Mobile phone ARPU decline decelerating to 1.6%
- Postpaid mobile phone churn below 1% for 12th consecutive year at 0.97%
- Cost reduction efforts including workforce reductions and digital enablement through TELUS Digital
“In the fourth quarter of 2025, TELUS delivered strong, quality customer growth and robust financial performance, powered by our team's relentless focus on operational excellence. Our commitment to profitable customer growth, powered by our world-leading TELUS PureFibre and 5G+ broadband networks, drove industry-leading mobile and fixed customer net additions of 377,000 in the fourth quarter.”
Telus CEO, on the earnings call
Forward Guidance & Outlook
TELUS established 2026 financial targets including consolidated service revenue growth of 2-4%, consolidated Adjusted EBITDA growth of 2-4%, consolidated free cash flow of approximately C$2.45 billion (10% growth), and consolidated capital expenditures of approximately C$2.3 billion (10% decrease). The company targets net debt-to-Adjusted EBITDA of 3.3x or lower by year-end 2026 and approximately 3.0x by year-end 2027. TELUS Digital privatization is expected to unlock annual cash synergies of C$150-200 million, with approximately C$150 million realized in 2026. AI-enabling capabilities are targeted to reach approximately C$2 billion in revenue by 2028. The dividend is maintained at current levels with the DRIP discount being reduced. Restructuring and other costs are expected at approximately C$500 million in 2026. Management flagged U.S. trade tariffs as a potential risk to the macroeconomic environment and operations.
TU YoY Financials
TU Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.