Highlights

  • TELUS’ adjusted net income declined 6.6% YoY to CAD 342 million in Q2, due to higher costs and lower margins
  • Free cash flow grew 11.2% YoY to CAD 535 million, supported by improved working capital and cost efficiencies
  • TELUS raised its quarterly dividend by 7% to CAD 0.4163 per share as part of its multi-year dividend growth plan.

TELUS Corporation (TSX:T) is among Canada’s Big Three wireless carriers, serving around 9 million mobile customers, which accounts for roughly 30% of the national market.

In the second quarter of 2025 (Q2 2025), TELUS reported a 2.2% year-over-year rise in operating revenues and other income to CAD 5,082 million, driven by higher service revenue across key segments. EBITDA remained steady at CAD 1,679 million, reflecting stable operational performance. Adjusted net income fell 6.6% YoY to CAD 342 million, primarily due to increased costs and lower margins. However, free cash flow increased 11.2% YoY to CAD 535 million in Q2, supported by improved working capital timing and cost efficiencies.

In addition, the company declared a higher dividend of CAD 0.41 in Q2, up from CAD 0.38 in the prior corresponding period (pcp), and achieved greater free cash flow, reaching CAD 535 million compared to CAD 481 million in pcp. However, TELUS faced notable challenges, with operating income dropping to CAD 175 million from CAD 682 million and reporting a net loss of CAD 245 million versus net income of CAD 221 million in pcp.

Recent Business Update

On August 1, 2025, TELUS announced a quarterly dividend of CAD 0.4163 per share, which was paid on October 1, 2025, reflecting a 7% year-over-year increase. This growth is part of its multi-year dividend strategy.

Company Outlook

TELUS anticipates continued EBITDA growth in 2025, benefiting from stable demand for data across both mobile and fixed services, ongoing cost-efficiency initiatives, and the expansion of PureFibre and 5G networks. The company expects economic conditions and regulatory factors to remain stable. While subscriber growth may slow due to reduced immigration, TELUS aims to counter this by focusing on product innovation, enhancing the customer experience, and maintaining steady ARPU performance.

Top 10 Shareholders

The top ten shareholders of Telus collectively own about 25.85% of the company’s total shares. RBC Dominion Securities Inc. and RBC Global Asset Management Inc. hold the largest stakes, at approximately 4.83% and 3.45%, respectively.

Stock Information

Over the past week, the stock has declined by approximately 1.08%, and over the last three months, it has decreased by roughly 6.23%. Additionally, the share price is currently trading below the average of its 52-week high of CAD 23.29 and its 52-week low of CAD 19.10.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 27 October 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.