TELUS Q2 Earnings Down Y/Y, Revenues Up on Solid Health Unit

TELUS Corporation TU reported second-quarter 2025 adjusted earnings per share (EPS) of C$0.22, down from C$0.25 in the same period last year.

Quarterly total operating revenues increased 2% from a year ago to C$5,082 million, owing to strong revenue growth across all segments.

The company’s operating revenues (from contracts with customers) were C$5,031 million, up 3% year over year.

TELUS delivered total mobile and fixed customer growth of 198,000 during the second quarter, driven by 167,000 additions in mobile phones and connected devices, and 31,000 fixed customer additions.

TELUS’ board declared a quarterly dividend of C$0.4163 per share, payable on Oct. 1, 2025, to shareholders of record as of Sept. 10, 2025. This represents a 7% increase from the C$0.3891 per share dividend declared in the same quarter last year, in line with TELUS’ multi-year dividend growth program.

Just before the earnings release, TELUS announced that it has signed a definitive agreement with La Caisse, a global investment firm and Canada’s second-largest pension fund. La Caisse will acquire a 49.9% stake in Terrion, a newly created tower operator, for approximately $1.26 billion, valuing the newly formed operator at more than $2.5 billion. TELUS will retain a 50.1% majority interest, using the proceeds to accelerate debt reduction efforts and support its long-term target of a 3.0 net debt-to-EBITDA ratio by 2027. The deal is expected to close by the end of the third quarter of 2025, pending regulatory approvals.

Shares of the company are marginally up in the pre-market trading session today. TELUS has gained 6.6% in the past six months compared with the  Zacks Diversified Communication Services industry’s growth of 12%.

Quarterly Segmental Results

In the second quarter, TTech revenues and other income rose 1% year over year to C$3,848 million. TTech operating revenues (arising from contracts with customers) increased C$4 million year over year to $3,793 million, primarily driven by higher fixed data services revenues. This growth was partially offset by declines in mobile network revenue, mobile equipment and other service revenues, fixed voice services revenues, fixed equipment and other service revenues, as well as agriculture and consumer goods services.

Mobile network revenues decreased 1% year over year to C$1,723 million due to a decline in mobile phone ARPU, partially offset by higher mobile phone subscriber count and strength in IoT connections.

Mobile equipment and other service revenues decreased 1% to C$498 million due to a decline in contracted volumes, partially offset by the inclusion of higher-value smartphones in the sales mix.

Fixed data service revenues increased 3% to C$1,193 million, driven by an expanding Internet and security and automation subscriber base, along with higher revenue per customer and continued growth in their managed services business. This was partially offset by a decline in TV revenues, due to a higher proportion of customers opting for smaller TV package bundles and the effects of technological substitution.

Fixed voice services revenues declined 4% year over year to C$170 million as a result of the ongoing fall in legacy voice revenues due to technological substitution and evolving consumer preferences. The decrease was partly offset by the success of bundled product offerings and the company’s retention efforts.

Fixed equipment and other service revenues decreased around 1% to C$124 million, remaining relatively stable in the second quarter.

Agriculture and consumer goods services revenues decreased 7% year over year to C$85 million due to the divestiture of non-core assets, partially balanced by stronger organic growth across various revenue streams.

The segment’s adjusted EBITDA of C$1,604 million increased 2.8% year over year, owing to cost-reduction efforts, subscriber growth and higher other income. This was partially offset by lower mobile ARPU and equipment margins, increased bad debt, declining legacy voice and TV margins, lower agriculture and consumer goods margins due to asset divestitures and higher costs for subscription-based licenses and cloud usage.

TELUS Corporation Price, Consensus and EPS Surprise

TELUS Corporation price-consensus-eps-surprise-chart | TELUS Corporation Quote

TELUS Health’s operating revenues and other income revenues increased 16% year over year to C$519 million.

Health services revenues increased 16% year over year to C$514 million, driven by global business acquisitions in employer solutions, including the acquisition of Workplace Options in May 2025. It was further supported by growth in the payvider segment, with strong performance in health benefits management services, collaborative health records and virtual pharmacy solutions. Additionally, there was solid organic growth in employer solutions. These gains were partially offset by a decline in retirement and benefits solutions.

Health equipment revenues fell 33% to C$2 million, mainly due to lower revenue from a pharmacy hardware upgrade in the payvider segment.

TELUS Health’s adjusted EBITDA grew 30% to C$91 million, driven by revenue growth, cost-reduction initiatives and ongoing acquisition integration synergies. This was partly offset by higher indirect costs from global acquisitions and scaling digital capabilities.

TELUS Digital's operating revenues (arising from contracts with customers) increased 8% to C$722 million, driven by a stronger U.S. dollar and euro against the Canadian dollar, boosting TELUS Digital’s results. Growth in services to existing clients and the addition of new clients also aided it. These were partly offset by lower revenues from some technology and e-commerce clients.

TELUS Digital's operating revenues and other income grew 3% to C$966 million. The segment’s adjusted EBITDA of C$132 million decreased 25.8% from the year-ago quarter.

Other Details

Adjusted EBITDA increased a modest 0.8% year over year to C$1,812 million.

Cash Flow & Liquidity

In the second quarter, TELUS generated C$1,166 million of cash from operating activities compared with C$1,388 million in the year-ago quarter. The free cash flow increased 11% to C$535 million.

Capital expenditures (excluding spectrum licenses) decreased 2% year over year to C$678 million.
2025 Guidance

TELUS reaffirmed its financial targets for 2025, backed by long-term financial objectives, policies and guidelines. The company anticipates 2-4% growth in TTech operating revenues, which excludes other income.

TTech adjusted EBITDA is expected to grow 3-5%, while free cash flow is projected to reach nearly C$2.15 billion. Capital expenditures are estimated at C$2.5 billion, excluding C$100 million allocated for real estate development initiatives.

TU’s Zacks Rank

TELUS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Other Companies in the Utilities Space

Lumen Technologies, Inc. LUMN reported a second-quarter 2025 adjusted loss (excluding special items) of 3 cents per share, which was significantly narrower than the Zacks Consensus Estimate of a loss of 24 cents. The company reported adjusted loss per share of 13 cents in the prior-year quarter. Quarterly total revenues were $3.092 billion, down 5% year over year and missed the Zacks Consensus Estimate by 1.1%.

Share of LUMN surged 43.2% in the past year.

Exelon Corporation’s EXC second-quarter 2025 earnings of 39 cents per share surpassed the Zacks Consensus Estimate of 37 cents by 5.4%. The bottom line decreased 17% from the year-ago level of 47 cents. Lower utility earnings, primarily due to the timing of distribution earnings at ComEd and higher costs at Exelon holding company due to the Customer Relief Fund contribution and higher interest expense, adversely impacted earnings in the reported quarter. On a GAAP basis, earnings were 39 cents per share, which decreased 13.3% from the year-ago quarter’s 45 cents.

Exelon reported revenues of $5.42 billion, which lagged the Zacks Consensus Estimate of $5.53 billion by 1.9%. The top line was 1.2% up from the year-ago figure of $5.36 billion.

Share of EXC increased 19% in the past year.

Rogers Communications Inc RCI reported second-quarter 2025 adjusted earnings of 82 cents per share, which beat the Zacks Consensus Estimate by 2.5% but decreased 3.5% year over year. RCI’s revenues of $3.77 billion missed the consensus mark by 0.39% but increased 1.3% year over year. In domestic currency (Canadian dollar), adjusted earnings declined 1.7% year over year to C$1.14 per share. Total revenues increased 2.4% year over year, reaching C$5.22 billion, driven by service revenue growth in Wireless, Cable and Media businesses.

Share of RCI declined 11.6% in the past year.

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