TELUS Corporation (T) is one of Canada’s largest telecommunications and technology companies, serving over 20 million customer connections across mobile, internet, TV, and digital solutions. Headquartered in Vancouver, TELUS operates in more than 45 countries and has transformed from a traditional telecom carrier into a diversified technology and health services leader with annual revenue of over $20 billion.
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In the second quarter of 2025, TELUS delivered another period of industry-leading customer growth and steady financial performance. Total operating revenues increased 2% year over year to $5.1 billion, driven by its Ttech and TELUS Health segments. The company added 198,000 new mobile and fixed customers, supported by strong demand for bundled services and expanding PureFibre broadband coverage in Ontario and Quebec. Adjusted EBITDA rose 4%, and free cash flow climbed 11% to $535 million, underscoring management’s disciplined capital execution.
CEO Darren Entwistle highlighted TELUS’s “strong momentum across growth businesses,” noting particularly the performance of TELUS Health, which saw 16% revenue growth and 29% adjusted EBITDA growth. The company reaffirmed its 2025 guidance, targeting 2–4% operating revenue growth, 3–5% adjusted EBITDA growth, and $2.15 billion in annual free cash flow, while progressing toward a lower net debt-to-EBITDA ratio of 3.55x by year-end through asset monetization initiatives like the $1.26 billion sale of a 49.9% stake in its new tower operator, Terrion.
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Financial Story
TELUS’s Q2 2025 performance reinforced the resilience of its diversified business model. While telecom revenue growth remains modest, the company continues to leverage its integrated structure to drive stable cash flow and expand into high-margin digital verticals. TTech, which includes mobility, broadband, and enterprise services, generated solid results despite ongoing pricing pressure, driven by 27,000 new internet subscribers, 55,000 postpaid mobile additions, and churn below 1%.
| Metric | Result | YoY Change | Commentary |
|---|---|---|---|
| Revenue | $5.1B CAD | +2% | TTech and TELUS Health drove service growth |
| Adjusted EBITDA | $1.81B | +1% | TTech +3%; TELUS Health +29% |
| Adjusted Net Income | $342M | -7% | Impacted by goodwill impairment at TELUS Digital |
| Adjusted EPS | $0.22 | -12% | Reflects dilution and non-cash adjustments |
| Free Cash Flow | $535M | +11% | Strong execution and capital discipline |
| Capital Expenditures | $678M | -2% | Stable network investment levels |
| Total Customers | 20.5M | +5% | Includes 10.2M mobile and 2.7M internet subs |
| Healthcare Lives Covered | 157M | +109% | Driven by acquisition of Workplace Options |
| Dividend | $0.4163/share | +7% | Ongoing multi-year dividend growth plan |
The standout performer was TELUS Health, which is rapidly emerging as the company’s next major growth engine. Revenue climbed 16% year-over-year, and adjusted EBITDA surged 29%, driven by new enterprise contracts, global expansion, and the successful integration of Workplace Options. The unit now covers 157 million lives globally, illustrating how TELUS has evolved from a national telecom into a global health technology provider.
Free cash flow growth of 11% despite ongoing network investments underscored effective cost management. With capital expenditures holding near $2.5 billion annually, TELUS continues to balance deleveraging and shareholder returns. The upcoming Terrion tower sale adds further flexibility, reducing leverage by 0.17x and accelerating the path toward a 3x debt-to-EBITDA ratio by 2027.
Broader Market Context
Canada’s telecom sector faces a dual challenge: high capital intensity and regulatory scrutiny. Carriers like TELUS, Rogers, and Bell are navigating slower subscriber growth amid population stabilization and fierce pricing competition. However, TELUS’s diversified model, anchored by its health, digital, and IoT businesses, offers a structural hedge against domestic saturation.
As broadband connectivity reaches maturity, TELUS’s non-telecom adjacencies are increasingly central to its value proposition. TELUS Health, TELUS Agriculture, and TELUS Digital now contribute meaningfully to EBITDA, expanding the company’s global footprint and resilience.
With more than 88% of Canadians covered by its 5G network, the company’s infrastructure advantage remains intact, but future upside depends on its ability to monetize these digital platforms profitably.
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1. Health Tech as a Growth Catalyst
TELUS Health has evolved from a side initiative into a core revenue driver. Its ecosystem now spans digital health records, benefits management, telemedicine, and employee assistance programs, serving clients in over 200 countries. The Workplace Options acquisition added nearly 80 million new lives covered, accelerating international scale.
TELUS is on track to realize $427 million in annualized synergies from its LifeWorks acquisition by the end of 2025. With growing demand for hybrid healthcare and AI-enabled wellness platforms, TELUS Health provides an avenue for double-digit growth independent of telecom cycles, a key differentiator among global carriers.
2. Monetizing Assets for Balance Sheet Strength
The Terrion tower transaction marks a major step in TELUS’s ongoing deleveraging strategy. By selling a 49.9% stake to Caisse de dépôt et placement du Québec for $1.26 billion, TELUS unlocks value from its infrastructure portfolio while maintaining control and future cash flow participation.
Combined with $2.85 billion in hybrid debt issuance and $1.8 billion in debt retirement, TELUS has meaningfully improved its funding flexibility. Management’s focus on achieving a 3x leverage ratio by 2027 provides confidence that dividend growth can continue without compromising investment capacity.
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3. Stabilizing Core Telecom Performance
While TELUS continues to deliver customer growth, its core wireless segment remains challenged by declining ARPU, which fell 3.3% year over year to $56.58. Competitive pricing and the adoption of unlimited data plans are pressuring top-line performance. However, lower churn (1.06%) and strong PureFibre growth offset much of the weakness.
TELUS’s emphasis on bundling mobile, internet, and security services helps sustain profitability. The company’s strategy of prioritizing “profitable loading” over raw subscriber growth signals a deliberate shift toward quality of earnings, aiming for sustainable margins rather than headline expansion.
The TIKR Takeaway
TELUS’s second quarter showed that while traditional telecom growth may be slowing, its evolution into a diversified digital enterprise is well underway. The health and digital segments are increasingly driving EBITDA, providing a counterbalance to pressure on wireless ARPU. Free cash flow expansion and disciplined capital allocation give the company room to deleverage while maintaining its multi-year dividend growth program.
For long-term investors, TELUS offers a unique blend of defensive stability and strategic reinvention. The combination of steady cash generation, expanding digital health scale, and asset monetization should support resilient shareholder returns. Yet, with growth now relying on execution in new verticals rather than telecom tailwinds, expectations should remain measured heading into 2026.
Should You Buy, Sell, or Hold Telus Stock in 2025?
TELUS remains one of Canada’s most reliable income-generating stocks, backed by consistent free cash flow and a 7% dividend increase. However, with limited near-term earnings growth and ongoing telecom competition, the stock offers more income stability than capital appreciation. Investors seeking steady yield with optionality in digital health innovation may find TELUS a worthy long-term hold.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
