#Canada #Vancouver #TELUS Corporation #dividend reset #strategic priorities

TELUS Corporation Reports Second Quarter 2026 Results

TELUS Corporation has declared its second quarter financial results for the period ending June 30, 2026. The company has also introduced a series of strategic changes intended to enhance its operational efficiency and long-term growth.

In conjunction with the quarterly report, TELUS announced significant developments that include a reset of its quarterly dividend, impactful strategic priorities, and updated financial guidance. This comprehensive plan is framed around delivering long-term value, ensuring a robust balance sheet, and fostering sustainable growth.

Key Highlights from Q2 2026

1. Strategic Priorities: TELUS has laid out three fundamental strategic priorities aimed at solidifying its financial foundation, refining operational discipline, and directing resources towards profitable growth. These priorities are essential in navigating the evolving landscape of the telecommunications industry.

- Strengthening Financial Foundation: The company is focusing on enhancing its balance sheet resilience while setting a target to lower net debt relative to Adjusted EBITDA to approximately 3.0 times by the end of 2028. This will be facilitated through the recent dividend reset, strategic capital expenditures, and ongoing asset monetization efforts.
- Operational Excellence: TELUS will intensify efforts to invest capital more effectively, aligning investments with business areas that promise the highest returns, especially in wireless and fiber optic networks, as well as in AI and digital infrastructures.
- Focus on Sustainable Growth: Recognizing potential growth trajectories, TELUS aims to deploy resources where it holds the strongest competitive advantages, ensuring continued profitability.

2. Financial Performance Overview: In Q2, TELUS reported a net loss of $1.8 billion, underscored by a $2.1 billion non-cash impairment. Despite these challenges, the company recorded significant growth in its mobile network revenues, which totaled $1.7 billion, marking a year-on-year increase of 1% driven by an expanding subscriber base and improved average revenue per user (ARPU) at $56.36. However, the adjusted EBITDA saw a decline of 2%, reflecting varying growth across different business segments, alongside lower real estate gains.

3. Dividend Reset: The Board of Directors has adjusted the quarterly dividend from $0.4184 to $0.1875 per share, representing a substantial 55% reduction. This change is projected to generate roughly $2.7 billion in cumulative cash savings through 2028, aimed primarily towards debt reduction efforts. Additionally, the company intends to eliminate the dividend reinvestment plan discount from October 1, 2026, to mitigate shareholder dilution.

4. Customer Growth: Despite operational challenges, TELUS experienced growth with 17,000 new mobile phone subscribers and 20,000 new internet connections added in the quarter, showcasing the effectiveness of its customer acquisition strategies.

5. Updated Financial Guidance: The company revised its full-year financial outlook, projecting service revenue growth to be flat to negative 2%. The adjusted EBITDA is now expected to decline in the range of negative 2% to 4%, reflecting competitive pressures faced across different market segments.

Looking Ahead

Victor Dodig, TELUS's President and CEO, emphasized the firm’s commitment to strengthening its operational framework and capitalizing on its recognized industry leadership. He reassured stakeholders that the company’s focus is on disciplined execution of its strategies and maximizing returns from every dollar invested.

As TELUS embarks on these strategic transformative initiatives, the emphasis remains firmly planted on achieving sustainable growth, enhancing customer experiences, and generating long-term shareholder value. These changes highlight TELUS's proactive approach in responding to market dynamics and reinforcing its position as a major telecommunications provider in Canada and beyond. For additional details, TELUS shareholders are encouraged to review the comprehensive second quarter results available on the TELUS Investor Relations website.