TELUS reports second quarter 2026 financial and operational results and resets quarterly dividend to support deleveraging and fuel long-term growth

TELUS Corporation (TSX: T) (NYSE: TU) today released its unaudited results for the second quarter ended June 30, 2026. Concurrent with its quarterly results, TELUS is announcing three near-term strategic priorities, a reset of its quarterly dividend, planned removal of the dividend reinvestment plan (DRIP) discount and revised full-year financial guidance that reflects the company's financial priorities and its commitment to long-term value creation and balance sheet strength.

Highlights Introduced three near-term strategic financial and operational priorities to guide TELUS' performance and capital allocation going forward including: Strengthen the financial foundation; Hone operational discipline and reinvest in the core business; and Deploy resources to drive profitable, sustainable growth and returns.

Delivered mobile phone and internet net additions of 17,000 and 20,000, respectively, reflect a disciplined strategy prioritizing value-accretive customer growth; connected device net additions of 187,000. Mobile network revenue of $1.7 billion is up 1 per cent year-over-year, supported by subscriber base growth and ARPU of $56.36, declining at a decelerating rate of 0.4 per cent through a focus on premium brand customer loading. Achieved blended mobile phone churn of 1.08 per cent, up from 1.06 per cent in the same period last year.

Net loss of $1.8 billion due to a pre-tax, non-cash intangible asset and goodwill impairment of $2.1 billion in the second quarter, reflecting a reduction in the recoverable amount of the TELUS Digital cash-generating unit.

Consolidated service revenue of $4.4 billion declined 1 per cent reflecting lower TELUS Digital growth, partially offset by continued mobile network revenue growth and higher TELUS Health revenues. Adjusted EBITDA of $1.8 billion declined 2 per cent, which reflects varied results across our reportable segments and lower real estate gains.

Capital expenditures of $678 million were recorded in the second quarter; full-year capital expenditures have been updated to approximately $2.6 billion, reflecting inflation and supply chain dynamics impacting customer premises equipment, strategic investment directed towards our sovereign AI data centres, including network infrastructure upgrades and site enablement, and additional investments directed towards customer base management; TELUS remains committed to its 10 per cent capital intensity target.

Cash provided by operating activities of $1.3 billion increased 15 per cent and free cash flow of $545 million is higher by 2 per cent, driven by decreased net income taxes paid and lower lease payments, partially offset by increased interest paid and lower Adjusted EBITDA.

TELUS' Board of Directors declared a quarterly dividend of $0.1875 per common share, representing a reset of 55 per cent to an annualized amount of $0.75 per share, which is expected to generate approximately $2.7 billion in cumulative cash savings through 2028 directed toward debt reduction; the DRIP discount will be removed effective October 1, 2026.

Net debt to Adjusted EBITDA of 3.5-times at quarter-end; TELUS is targeting approximately 3.0-times or lower by year-end 2028, supported by organic free cash flow growth, the dividend reset, disciplined capital expenditures and proceeds from asset monetization processes currently underway.