Canada's Telus posts Q2 loss on impairment charge; halves dividend, cuts FY outlook

Telus

31/07/2026 11:58

Overview
Canada telecom provider reported Q2 net loss of C$1.83 bln on C$2.1 bln non-cash impairment
Q2 consolidated service revenue fell 1% yr/yr; adjusted EBITDA declined 2%
Company reset quarterly dividend, cutting annualized payout by 55% to focus on debt reduction

Outlook
Telus sees 2026 service revenue flat to down 2% vs up 2-4% previously
Company expects 2026 Adjusted EBITDA to decline 2% to 4% vs up 2-4% previously
Telus anticipates 2026 free cash flow of about C$1.8 bln vs about 
C$2.5 bln previously

Result Drivers
TELUS DIGITAL WEAKNESS - Lower external revenues in TELUS Digital, including client ramp-downs and unfavorable currency impacts, weighed on service revenue and EBITDA
IMPAIRMENT CHARGE: Recorded $2.1 bln goodwill impairment charge, reflecting lower recoverable amount from TELUS Digital cash-generating unit
MOBILE ARPU PRESSURE - Mobile phone ARPU continued to decline, though at a slower rate, due to adoption of lower-priced rate plans, competitive promotions, and lower roaming revenues
COST REDUCTION EFFORTS - Workforce reductions and cost transformation programs, including synergies from TELUS Digital privatization, helped offset some margin pressure

Company press release: ID:nCNWdVWvba

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Loss
 
C$1.83 bln
 
Q2 Adjusted EBITDA
 
C$1.78 bln
 
Q2 EBITDA
 
C$1.59 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 8 "hold" and 3 "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 Corporation is C$19.00, about 26% above its July 30 closing price of C$15.08
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

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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.)