Financial Performance - EBITDA for the twelve-month period ended September 30, 2025, was $7,353 million, slightly up from $7,342 million in 2024[40]. - The earnings coverage ratio improved to 2.1 times for the twelve-month period ended September 30, 2025, compared to 1.9 times in the previous year[43]. - Free cash flow for TELUS Corporation was $2,168 million for the 12-month period ended September 30, 2025, up from $2,043 million in 2024, representing a growth of 6.1%[48]. - TELUS reported total operating revenues of $5,106 million for the three-month period ended September 30, 2025, compared to $5,099 million in the same period of 2024, reflecting a slight increase of 0.14%[107]. - TELUS reported an EBITDA of $5,176 million for the nine-month period ended September 30, 2025, compared to $5,070 million in 2024, which is an increase of 2.09%[108]. Debt and Capital Structure - As of September 30, 2025, net debt decreased to $25,663 million from $28,109 million in 2024, resulting in a net debt to EBITDA ratio of 3.5, down from 3.8[40][42]. - The company aims to achieve a net debt to EBITDA ratio of approximately 3.0 times by 2027, following recent spectrum auctions[46]. - As of September 30, 2025, total long-term debt amounts to $51,874 million, with $43,765 million in non-derivative long-term debt and $8,442 million in derivative liabilities[66]. - The company has a total of $12,721 million in long-term debt maturing between 2030 and 2034, with an additional $20,063 million maturing thereafter[66]. - The company issued new equity and adjusted dividends as part of its capital structure management strategy[37]. Dividends and Shareholder Returns - The TELUS Corporation Common Share dividend payout ratio for the twelve-month period ended September 30, 2025, was 75%, within the target range of 60%-75%[47]. - TELUS Corporation declared common share dividends of $2,488 million for the 12-month period ended September 30, 2025, compared to $2,259 million in 2024, reflecting an increase of 10.1%[48]. - For the nine-month period ended September 30, 2025, TELUS Corporation declared total dividends of $1.2349 per share, amounting to $1,883 million, compared to $1.1543 per share and $1,709 million for the same period in 2024, representing a 7.0% increase in total dividends[133]. - During the nine-month period ended September 30, 2025, eligible shareholders reinvested dividends totaling $614 million, up from $466 million in 2024, indicating a 31.7% increase in reinvested dividends[135]. Cash Flow and Liquidity - Cash and temporary investments, net, rose significantly to $1,827 million as of September 30, 2025, compared to $869 million at the end of 2024, an increase of 110.7%[50]. - For the three-month period ended September 30, 2025, TELUS Corporation reported a cash flow outflow of $47 million, a decrease of 5% compared to $60 million in the same period of 2024[138]. - For the nine-month period ended September 30, 2025, the total cash flow outflow was $144 million, down 23% from $148 million in 2024[138]. Operational Metrics - The company incurred restructuring and other costs of $339 million in the nine-month period of 2025, down from $425 million in 2024, reflecting a decrease of 20.24%[108]. - The company’s employee benefits expense for the nine-month period was $4,422 million, slightly down from $4,432 million in the previous year, indicating a decrease of 0.23%[108]. - The company reported a balance of $37 million in derivative financial instruments classified as Level 3 at the end of the period[86]. Risk Management and Sensitivity Analysis - A 10% appreciation of the Canadian dollar against the U.S. dollar could decrease net income by $5 million and comprehensive income by $98 million for the nine-month period ended September 30, 2025[76]. - A 25 basis point increase in Canadian interest rates could reduce net income by $4 million, while a similar increase in U.S. interest rates could decrease net income by $80 million[76]. - The company’s exposure to interest rate risk is assessed based on hypothetical changes at the beginning of the fiscal year, indicating potential impacts on net income[74]. Segment Performance - The TELUS technology solutions segment includes network revenues and equipment sales from mobile technologies, contributing significantly to overall revenue[101]. - The TELUS health segment, which includes healthcare services and technology solutions, has transitioned to a new segmented reporting structure effective from March 31, 2025[102]. - TELUS health experience segment generated $1,500 million in revenues for the nine-month period ended September 30, 2025, compared to $1,294 million in 2024, marking an increase of 15.93%[108]. Acquisitions and Investments - TELUS acquired 100% of Workplace Options on May 1, 2025, to enhance its employee and family assistance programs, consolidating it within the TELUS Health segment[176]. - The acquisition resulted in a total identifiable assets acquisition value of $450 million, with goodwill recognized at $380 million[179]. - The company added $705 million in intangible assets during the nine-month period ended September 30, 2025, including $369 million from business acquisitions[174]. Employee Compensation and Benefits - The company’s employee benefits expense for the three-month period ended September 30, 2025, included benefits earned for current service of US$0 million and benefits earned for past service of US$0 million[161]. - The company’s share-based compensation expense included in employee benefits for the nine-month period was detailed in the financial statements, reflecting ongoing investment in employee incentives[137]. Taxation and Compliance - Current income tax expense for the three months ended September 30, 2025, was $261 million, compared to $190 million in the same period of 2024, reflecting an increase of approximately 37.4%[124]. - For the nine-month period ended September 30, 2025, income tax expense was $311 million, reflecting a 39.0% effective tax rate, up from $172 million and 21.8% in 2024[126]. Derivative Financial Instruments - The fair value of derivatives used to manage interest rate risk associated with non-fixed rate credit facility amounts was $12 million as of September 30, 2025[84]. - The unrealized gains from derivatives designated as cash flow hedges for the nine-month period ended September 30, 2025, were $1 million, compared to unrealized losses of $120 million in the same period of 2024[129].

Core Insights - TELUS Corporation reported strong customer growth with a total of 288,000 net additions in the third quarter of 2025, driven by demand for core connectivity services and the expansion of TELUS PureFibre connectivity [1][2][7] - The company achieved a 3% growth in TTech Adjusted EBITDA, reflecting a focus on profitable customer growth and cost efficiency [1][4] - TELUS Health demonstrated significant growth with an 18% increase in operating revenue and a 24% increase in Adjusted EBITDA, indicating successful execution of its global growth strategy [1][2][24] - Net income rose by 68% to $431 million, with basic earnings per share increasing to $0.32 [5][14] - Free cash flow grew by 8% to $611 million, supporting a quarterly dividend increase of 4% to $0.4184 per share [1][10][30] Financial Performance - Consolidated operating revenues were flat at $5.1 billion compared to the previous year, with a 2% increase in service revenue offset by lower mobile equipment revenue [1][14] - Adjusted EBITDA increased by 1% to approximately $1.9 billion, with varied results across segments [6][15] - Cash provided by operating activities increased by 4% to $1.5 billion, driven by working capital changes [10][14] Customer Growth and Segmentation - The total TTech subscriber base grew by 5% to 20.8 million, with mobile phone subscribers increasing by 2% and connected devices by 18% [8][15] - TELUS Health expanded its coverage to 160.6 million lives, a significant increase attributed to recent acquisitions and changes in service definitions [9][24] - Mobile phone net additions were 82,000, reflecting a decrease due to competitive pressures and changing customer preferences [7][19] Capital Expenditures and Investments - Consolidated capital expenditures decreased by 2% to $652 million, with a planned slowdown in network builds [11][14] - TELUS Digital's acquisition and integration are expected to generate approximately $150 million in annual cash synergies [3][11] Strategic Initiatives - TELUS closed a transaction with La Caisse to establish Terrion as Canada's largest dedicated wireless tower operator, enhancing connectivity and shareholder value [3][4] - The company celebrated planting 25 million trees, contributing to sustainability efforts and environmental leadership [3][34] Future Outlook - TELUS expects TTech operating revenue growth to be at the lower end of the original target range for 2025, while targets for Adjusted EBITDA and free cash flow remain unchanged [1][26][29] - The company is focused on maintaining a strong financial foundation and delivering sustainable growth through disciplined capital deployment [3][4][26]

Core Insights - Railtown AI collaborates with TELUS to develop advanced agentic software solutions on TELUS' Sovereign AI Infrastructure, ensuring Canadian innovation remains within Canada [1][2][3] - The partnership aims to provide Canadian software companies with secure, domestic AI compute capacity, promoting the growth of Canada's AI ecosystem [2][5] - Railtown AI's technologies are designed for businesses to build, deploy, and manage AI-driven solutions, focusing on autonomous AI agents and integration into existing products [3][4] Company Overview - Railtown AI Technologies Inc. specializes in advanced AI Agentic Frameworks and Observability tools, enabling efficient AI solution development [7] - TELUS Corporation operates a Sovereign AI Factory, addressing the need for Canadian companies to access cutting-edge AI capabilities while maintaining data sovereignty [5][6] Strategic Importance - The collaboration supports Canadian software companies by providing world-class tools for code optimization and system monitoring, while ensuring control over intellectual property [4] - The initiative reflects a broader trend of Canadian companies seeking alternatives to foreign cloud platforms for AI development, enhancing technological independence [5]

Core Insights - TELUS Corporation has successfully completed the acquisition of TELUS Digital, enhancing its position as a global leader in AI-powered digital customer experience and SaaS transformation across various industries [1] - The integration is expected to drive growth in TELUS' telecommunications, health, agriculture, and consumer goods sectors, while also expanding growth opportunities for TELUS Digital within its external client base [1] - Operational efficiencies from this acquisition are projected to generate approximately $150 million annually [1] Financial Details - The acquisition involved purchasing all outstanding multiple voting shares and subordinate voting shares of TELUS Digital not already owned by TELUS, at a price of US$4.50 per share [1] - The total consideration for the acquisition amounts to approximately US$539 million [1] - Following the acquisition, TELUS now owns 100% of TELUS Digital [1]

Core Points - TELUS International (Cda) Inc. announced the results from its special meeting of shareholders held on October 27, 2025, to consider a specific plan [1] Company Summary - The meeting involved holders of Multiple Voting Shares (MVS) and Subordinate Voting Shares (SVS), collectively referred to as Shares [1]

Core Insights - The TELUS Digital survey indicates that AI assistants are becoming competitive with traditional apps as consumers increasingly prefer faster and smarter digital experiences [1] Group 1 - The survey highlights a significant shift in consumer behavior towards AI-driven solutions, suggesting a growing demand for enhanced digital interactions [1] - AI assistants are being recognized for their ability to streamline tasks and provide immediate responses, which aligns with consumer expectations for efficiency [1] - The findings suggest that companies may need to adapt their digital strategies to incorporate AI technologies to meet evolving consumer preferences [1]

Core Points - TELUS International (Cda) Inc. is urging shareholders to vote in favor of the proposed arrangement with TELUS Corporation [1] - The arrangement involves TELUS acquiring all outstanding multiple voting shares and subordinate voting shares of TELUS Digital not already owned by TELUS [1] - The acquisition price is set at US$4.50 per share, amounting to an aggregate consideration of US$539 million [1]

Core Viewpoint - TELUS Digital shareholders are encouraged to vote in favor of the proposed arrangement with TELUS Corporation, which has received strong endorsements from independent proxy advisory firms, indicating the transaction's attractiveness and fairness to minority shareholders [1][3][4]. Summary by Sections Transaction Details - The proposed arrangement offers a 51.8% premium to the unaffected share price, making it an attractive mixed-consideration offer for TELUS Digital shareholders [3]. - The arrangement requires approval from at least two-thirds (66%) of votes cast by holders of subordinate and multiple voting shares, as well as a simple majority from subordinate voting shareholders, excluding TELUS and its affiliates [8]. Proxy Advisory Support - Institutional Shareholder Services Inc. (ISS) has recommended that TELUS Digital shareholders vote in favor of the arrangement, highlighting the likelihood of no more compelling offers emerging in the near term [2][3]. - The special committee of independent directors unanimously supports the arrangement, asserting it is in the best interests of TELUS Digital and fair to minority shareholders [3][4]. Voting Information - The Special Meeting for shareholders is scheduled for October 27, 2025, and will be conducted virtually [5]. - Shareholders can vote online or via telephone, with detailed instructions provided in the management information circular [7]. Consideration Election - Shareholders can elect to receive either US$4.50 in cash, 0.273 of a common share of TELUS, or a combination of both, with a deadline for election set for October 22, 2025 [14][16]. - Those who do not make a valid election will be deemed to have chosen the combination consideration for their shares [16]. Company Overview - TELUS Digital focuses on creating digital transformations and enhancing customer experiences through a range of integrated capabilities, including AI solutions and customer experience management [17]. - The company emphasizes responsible technology development guided by its Humanity-in-the-Loop principles, aiming to address broader impacts of its work [18].

Core Points - TELUS Digital is facing potential delays in postal delivery of shareholder meeting materials due to a Canada Post labour strike, encouraging shareholders to access materials electronically [1][2] - The Special Meeting of shareholders is scheduled for October 27, 2025, to discuss a proposed arrangement with TELUS Corporation [1] - Shareholders must submit their election regarding preferred consideration by October 22, 2025, at 9:00 a.m. (Vancouver time) [7][9] Voting Process - Registered shareholders experiencing delays should contact Computershare Investor Services for individual control numbers to vote [3] - Beneficial shareholders should reach out to their brokers for assistance in obtaining control numbers and are encouraged to vote online or via telephone [4] - The proxy voting deadline is set for October 23, 2025, at 9:00 a.m. (Vancouver time) [3][4] Consideration Options - Shareholders can elect to receive either US$4.50 in cash, 0.273 of a common share of TELUS, or a combination of US$2.25 in cash and 0.136 of a TELUS share, subject to proration [8][11] - Those who do not make a valid election will be deemed to have chosen the Combination Consideration for all their shares [11] Company Overview - TELUS Digital focuses on creating digital transformations and enhancing customer experiences through various integrated capabilities, including AI and cloud solutions [18][19] - The company emphasizes responsible technology development, guided by principles that consider the broader impacts of its work [19]

Core Insights - TELUS Digital has launched Fuel iX Fortify, an application designed for automated AI red-teaming to assist enterprises in identifying vulnerabilities within Generative AI systems [1] Company Summary - TELUS Digital is focusing on enhancing cybersecurity measures for enterprises by introducing innovative solutions like Fuel iX Fortify [1] Industry Summary - The launch of Fuel iX Fortify highlights the growing importance of cybersecurity in the context of Generative AI, as companies seek to protect their systems from potential vulnerabilities [1]