Overview

* Telus Q2 2025 operating revenue rises 2% yr/yr to C$5.1 bln

* Adjusted EBITDA grows 1%, reflecting cost reduction and subscriber growth

* Co sells 49.9% stake in newly formed wireless tower infrastructure operator Terrion for C$1.26 bln to reduce leverage

Outlook

* Telus ( TU ) reaffirms 2025 revenue growth target of 2-4% for TTech

* Company expects 2025 adjusted EBITDA growth of 3-5% for TTech

* Telus ( TU ) projects $2.5 bln capital expenditures excluding real estate

* Telus ( TU ) projects free cash flow of about C$2.15 bln for 2025

* Company targets 3.55-times net debt to EBITDA ratio by end of 2025

Result Drivers

* CUSTOMER GROWTH - Telus ( TU ) added 198,000 mobile and fixed customers, driven by demand for bundled services and PureFibre expansion

* TELUS HEALTH - Segment achieved 16% revenue growth and 29% adjusted EBITDA growth, fueled by strategic investments and synergy optimization

* COST REDUCTION - Adjusted EBITDA increased by 1%, supported by cost reduction efforts and subscriber growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 C$342

Adjusted mln

Net

Income

Q2 Net -C$245

Income mln

Q2 C$1.81

Adjusted bln

EBITDA

Q2 C$1.68

EBITDA bln

Q2 Free C$535

Cash mln

Flow

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the integrated telecommunications services peer group is "buy."

* Wall Street's median 12-month price target for Telus Corp ( TU ) is C$23.00, about 3% above its July 31 closing price of C$22.32

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)