TELUS (T) Q4 2025 earnings summary

Executive summary

• Achieved industry-leading customer growth in 2025, surpassing 1,081,000 total additions for the fourth consecutive year, with best-in-class postpaid mobile phone churn at 0.97%.

• Record free cash flow of CAD 2.2 billion for 2025, up 11% year-over-year, exceeding guidance.

• Health segment revenue grew 15% and adjusted EBITDA rose 22%, covering 161.2 million lives globally, with successful LifeWorks integration and global expansion.

• AI-enabling revenue reached $800 million in 2025, growing 35% year-over-year, with digital segment Q4 revenue up 3% and AI capabilities revenue up 44%.

• CEO transition announced: Darren Entwistle to retire June 30, 2026, with Victor Dodig appointed effective July 1, 2026, ensuring leadership continuity.

Financial highlights

• Fiscal 2025 consolidated operating revenues were $20.3 billion, up 1% year-over-year; adjusted EBITDA was $7.4 billion, flat year-over-year.

• Q4 2025 operating revenues were $5.2–$5.3 billion, down 2% year-over-year; Q4 free cash flow was $574 million, up 7%.

• TTech adjusted EBITDA, including health, increased 3.1% for 2025, with margin expansion to 40.9% in Q4.

• Capital expenditures totaled $2.5 billion in 2025, up 1% year-over-year; capital intensity at 12%, trending toward 10% by 2028.

• Q4 delivered 377,000 total telecom customer net additions, including 337,000 in wireless and 40,000 in wireline.

Outlook and guidance

• 2026 guidance targets 2–4% growth in consolidated service revenues and adjusted EBITDA, free cash flow of approximately CAD 2.45 billion (10% growth), and capital expenditures of approximately CAD 2.3 billion (10% decrease).

• Free cash flow CAGR of at least 10% expected from 2026–2028, supporting deleveraging and dividend sustainability.

• Double-digit EBITDA growth expected for both digital and health segments in 2026.

• Net debt to EBITDA targeted at 3.3x or lower by end of 2026 and 3.0x or better by end of 2027.