TELUS Reports Strong Fourth Quarter Results and Outlines Ambitious Financial Targets for 2026

TELUS Shines with Impressive Q4 Results and 2026 Guidance

TELUS Corporation, a leading telecommunication company in Canada, has recently released its financial results for the fourth quarter and the full year 2025, showcasing outstanding performance amidst a competitive landscape. The company achieved an impressive total mobile and fixed customer growth of 377,000, including substantial increases in mobile phone subscriptions, connected devices, and residential internet connections. This growth reflects the increasing demand for TELUS’s premium bundled services across the nation.

Strong Financial Performance

For the fourth quarter of 2025, TELUS reported a consolidated operating revenue of $5.3 billion, slightly decreased from the previous year's $5.4 billion. Despite this dip, the company recorded a 1% growth in consolidated service revenues, which was driven by the growth in health services, increasing mobile devices, and optimally managed external revenues from TELUS Digital. CEO Darren Entwistle expressed confidence in the company's financially robust position, stating that the firm is on track to meet its 2026 financial targets following a disciplined approach in capital management and operations.

The basic earnings per share saw a healthy growth of 9%, accompanied by a notable 12% increase in net income attributable to common shares, closing at $290 million for the quarter. Cash from operations remained stable at $4.9 billion, exhibiting TELUS's operational efficiency. The technology segment, TTech, reported a 4% growth in EBITDA, while adjusted EBITDA, including TELUS Health, increased by 3.1%. The company successfully exceeded its full-year consolidated free cash flow guidance, reaching a record high of $2.2 billion, marking an 11% increase over the previous year.

Commitment to Financial Objectives

As TELUS heads into 2026, it has laid out clear and compelling financial targets. The corporation aims for a 2% to 4% increase in consolidated service revenues and adjusted EBITDA, along with an ambitious goal of achieving approximately $2.45 billion in consolidated free cash flow, representing an expected growth of 10%. Additionally, they project capital expenditures to decrease by 10% to around $2.3 billion, emphasizing a strategic focus on cost efficiency while promoting customer satisfaction through excellent service delivery.

Entwistle highlighted TELUS's commitment to achieving sustainable and value-accretive growth in an ever-evolving market. With the firm's deleveraging strategy, they target a net debt to adjusted EBITDA ratio of 3.3 times by the end of 2026, striving for around 3.0 times by the end of 2027. This approach not only serves to strengthen the balance sheet but also ensures that TELUS remains a significant player in the telecommunications sector.

Growth in Connected Services

One of the remarkable aspects of TELUS's performance is its growth in connected services. The company has seen an influx of 287,000 additional connected devices and 50,000 new mobile phone customers in the fourth quarter alone, driven by the increasing reliance on digital connectivity across various sectors.

Moreover, TELUS Health has expanded its footprint, covering over 161 million healthcare lives globally, fueled by strategic acquisitions and robust revenue growth in employer solutions. The division reported an astounding 10% growth in adjusted EBITDA, showcasing the company’s commitment to enhancing its capabilities in digital health solutions. This reflects TELUS's positioning as a leader in the digital health landscape, with plans to expand further into high-growth markets.

Community Engagement and Sustainability Initiatives

In the backdrop of its financial success, TELUS has also remained committed to community engagement. Throughout the year, the company and its team members dedicated over 1.5 million hours to various community initiatives, standing as a testament to its mission of ‘giving where we live.’ The anniversary of the TELUS brand marked 25 years, showcasing the firm’s legacy of philanthropy and service.

Further, TELUS is actively pursuing its long-term sustainability goals, aiming for net-zero carbon emissions by 2040 and has committed to substantial environmental initiatives, including planting millions of trees to combat climate change.

Conclusion

As TELUS Corporation prepares for 2026, its strong operational and financial performance sets a solid foundation for the future. With a strategic focus on profitable growth, operational excellence, and unwavering commitment to its customers and communities, TELUS seeks to not only uphold but also strengthen its leadership position within the telecommunications industry. The ambitious targets laid out for 2026 reflect not only confidence in its technological prowess but also in its ability to navigate through competitive pressures while delivering unparalleled service and value to its stakeholders.