TELUS posts C$660 million loss, targets C$900 million in annual cash savings
Key Facts
TELUS posted a net loss of C$660 million in the third quarter of 2026, compared with net income of C$431 million in the same period of 2025, according to the company's results statement issued via Canada Newswire on November 6. The company attributed the swing to a loss mainly to a pre-tax, non-cash goodwill impairment of C$800 million at TELUS Health. It said the impairment was linked to updated growth expectations, market conditions and a portfolio assessment during an active divestiture process. In parallel, it announced an efficiency plan targeting annual cash savings of about C$900 million by the end of 2028. The company said the plan is part of efforts to reduce debt and strengthen sustainable profitability.
Operating and other revenue fell 2% to C$5.026 billion from C$5.106 billion a year earlier, while consolidated service revenue declined 1% to C$4.5 billion. Adjusted earnings before interest, taxes, depreciation and amortization fell 5% to C$1.8 billion. TELUS said the decline in that measure was 2% after excluding prior real estate gains and one-time items. Chief Executive Victor Dodig said the core telecom business had shown "clear signs of stabilization" since the second-quarter results call. He added that the company had made significant progress in executing its transformation plan, as revenue and operating earnings continued to face pressure.
On liquidity, free cash flow fell 35% to C$396 million in the third quarter. The company attributed the decline mainly to lower adjusted earnings before interest, taxes, depreciation and amortization and higher capital expenditures. This cash movement stands alongside the accounting loss, as the quarterly report was not limited to the non-cash goodwill impairment. In mobile communications, TELUS added a net 84,000 new subscribers during the period, while average monthly revenue per subscriber was stable at C$57.22. The mobile customer churn rate was 1.01%, its lowest in three years, pointing to improved retention despite weakness in some group metrics.
TELUS expects about 80% of the targeted cash savings to come from its core telecom business. It said the plan will include improvements to customer service, customer base growth and revenue per product, alongside better procurement, network efficiency and field teams. The company links the savings to debt reduction and sustainable profitability, while its net debt to adjusted earnings before interest, taxes, depreciation and amortization ratio stood at 3.6 times at the end of the third quarter. Its program aims to reduce the ratio to 3.0 times or less by the end of 2028. That puts the savings plan on a timeline aligned with its deleveraging target.
The company reaffirmed its 2026 guidance, expecting consolidated service revenue growth to range from flat to a 2% decline and adjusted earnings before interest, taxes, depreciation and amortization growth to range from a 2% decline to a 4% decline. It also maintained its capital expenditure forecast at about C$2.6 billion and free cash flow at about C$1.8 billion for the year. On distributions, TELUS declared a quarterly dividend of C$0.1875 per share, payable on January 4, 2027, to shareholders of record on December 11, 2026. TU shares closed at 9.42 on November 5, before results were published the following day, so that price does not reflect a known response to the announcement. No reliable verification of the stock's daily trading range in that session was available.