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Sep 30, 2025
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TELUS Q3 2025 Earnings Report
TELUS reported strong operational and financial performance in Q3 2025, with net income up 68% and free cash flow growing 8% year-over-year.
Key Takeaways
TELUS delivered solid results in Q3 2025, including growth in net income, EPS, and free cash flow. Strong performance in TELUS Health and stable TTech adjusted EBITDA contributed to the results. Total revenue remained flat due to lower equipment sales, but service revenue grew. The company raised its quarterly dividend and reaffirmed its annual guidance.
Net income rose 68% to $431 million, driven by a gain on debt repurchase.
Adjusted EPS decreased to $0.24, while reported EPS increased to $0.32.
Free cash flow grew 8% to $611 million, supporting a quarterly dividend increase.
TELUS Health revenue rose 18%, contributing to overall EBITDA growth.
Revenue by Segment
Forward Guidance
TELUS reaffirmed its 2025 targets for Adjusted EBITDA, capital expenditures, and free cash flow, but expects TTech revenue to land at the lower end of its original guidance.
Positive Outlook
- Confirmed annual free cash flow target of approximately $2.15 billion
- TTech Adjusted EBITDA guidance remains unchanged at 3–5% growth
- Capital expenditures target unchanged at approximately $2.5 billion
- Synergies from TELUS Health integration progressing toward full-year goal
- Improved leverage ratio of 3.5x with target of ~3x by 2027 still intact
Challenges Ahead
- TTech revenue growth expected at lower end of original 2–4% target
- Pressure from lower mobile equipment sales affecting segment revenue
- Continued decline in legacy voice and TV services
- Competitive pricing environment impacting ARPU
Historical Earnings Impact
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Avg. Return Before/After Earnings
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