TELUS Reports Q2 2025 Earnings: Strong Customer Growth and Strategic Investments

TELUS Corp reported Q2 2025 earnings with 198,000 total mobile and fixed customer additions, 0.9% postpaid mobile phone churn, and 4% TTech EBITDA growth. The company announced a $2 billion investment in broadband services and successfully monetized its wireless tower infrastructure. TELUS Health demonstrated strong operating momentum with 16% revenue growth and 29% adjusted EBITDA growth. However, mobile network revenue declined due to lower mobile phone ARPU and competitive pressures.

TELUS Corp (NYSE:TU) reported its Q2 2025 earnings, showcasing robust customer growth and strategic investments, but also highlighted challenges in maintaining revenue growth. The company added 198,000 total mobile and fixed customers, with 55,000 mobile phone net additions and 112,000 connected device net additions [1].

Key highlights include:

- Customer Growth: TELUS Corp achieved significant customer growth, adding 198,000 customers in Q2 2025. This includes 55,000 mobile phone net additions and 112,000 connected device net additions.
- Postpaid Mobile Churn: The company maintained a low postpaid mobile phone churn rate of 0.9%, consistent with Q2 of last year.
- EBITDA Growth: Total TTech EBITDA grew by 4%, including TELUS Health, which saw a 16% revenue growth and a 29% adjusted EBITDA growth.
- Investment in Broadband: TELUS Corp announced a $2 billion investment to expand broadband services in Ontario and Quebec, aiming to enhance national scale and product innovation.
- Wireless Tower Monetization: The company successfully monetized its wireless tower infrastructure, which will aid in balance sheet deleveraging and financial flexibility.
- Financial Performance: Adjusted net income was $342 million, with an adjusted EPS of $0.22. Free cash flow increased by 11% year-over-year to $535 million.
- Debt Management: TELUS Corp raised $2.85 billion in hybrid securities in June 2025 and retired $1.8 billion of securities, recapturing approximately $230 million of reduced future cash flow obligations.

However, the company faced challenges such as:

- Mobile Network Revenue: Mobile network revenue declined slightly due to lower mobile phone ARPU and ongoing competitive pressures.
- Churn: An uptick in churn was attributed to affordability constraints and competitive intensity.
- Copper Decommissioning: TELUS Corp is still in the early stages of its copper decommissioning program, with significant progress yet to be made.

TELUS Corp also announced the sale of a 49.9% stake in its wireless tower operator, Terrion, to La Caisse for $1.26 billion. This move is part of the company's efforts to strengthen its balance sheet and focus on innovative service offerings [2].

References

[1] https://finance.yahoo.com/news/telus-corp-tu-q2-2025-150029265.html
[2] https://ca.finance.yahoo.com/news/telus-selling-49-9-stake-114820492.html