Canada's Telus Q3 revenue flat, adjusted EPS misses estimates

Telus

07/11/2025 11:53

Overview

Telus Q3 revenue flat yr/yr at C$5.1 bln, with service revenue growth offset by declines in mobile equipment revenue

Adjusted EPS for Q3 missed analyst expectations

Net income for Q3 rises 68% yr/yr, driven by gain on debt purchase

Free cash flow grows 8%, supporting dividend increase

Outlook

Telus expects 2025 TTech revenue growth at lower end of original range

Company maintains 2025 targets for TTech Adjusted EBITDA and capital expenditures

Telus foresees sustained EBITDA expansion and robust free cash flow growth

Result Drivers

CUSTOMER GROWTH - Achieved 288,000 net customer additions, driven by demand for core connectivity services and TELUS PureFibre expansion

TELUS HEALTH GROWTH - Operating revenue and adjusted EBITDA grew by 18% and 24%, driven by global business acquisitions and growth in payor and provider solutions

FLAT REVENUE - Overall revenue remained flat due to declines in mobile equipment revenue and other income, despite a 2% increase in service revenue

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Miss
C$0.24
C$0.27 (11 Analysts)
Q3 Adjusted Net Income
C$370 mln
Q3 Net Income
C$431 mln
Q3 Adjusted EBITDA
C$1.86 bln
Q3 Basic EPS
C$0.32
Q3 EBITDA
C$1.75 bln
Q3 Free Cash Flow
C$611 mln


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 is C$23.00, about 10.2% above its November 6 closing price of C$20.66

Press Release: ID:nPn4NSFbpa

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(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.)