Message from our CEO
Seems like yesterday that I was in the Montreal area doing installation and repair for many years… and loving it!
That was 48 years ago! It was an amazing introduction to the industry. What a learning curve it was: being hands on with the technology and the products; interacting with customers face-to-face and understanding the true meaning of client service. For a 16-year-old kid, the feeling of responsibility and sense of empowerment was palpable. I was handed the keys to my company truck, loaded with expensive telecom equipment, and issued my customer order each morning that I needed to get through by the end of the day. I was also given the autonomy to plan the work flow and logistics to the best of my ability in the pre-AI era, and the confidence placed in me was deeply motivating, leaving a lasting impression.
It was also great to have been on the ground floor of telecommunications all those years ago during the wake-up call for the industry, transitioning from a monopoly to a competitive environment. Frankly, this seismic shift made it all the more rewarding as the industry became more dynamic for someone like me, who was deeply motivated by the competitive spirit, opportunities to innovate courageously and extracting every ounce of tuition value from when things did not go as planned!
This marked the start of my career in the field of telecommunications and I have carried this passion for our industry with me every moment since then!
Reflecting on 26 years of innovation and performance leadership
Since 2000, your Company has grown from a copper-based, wireline telecommunications provider of voice services operating in two provinces in Western Canada with 25,000 employees, to a world-leading data technology organisation leveraging the power of wideband PureFibre and 5G mobility. TELUS now operates in more than 45 countries today, supported by over 133,000 team members, worldwide.
The transformation that TELUS has undergone is nothing short of remarkable; with our journey defined by industry-leading growth, best-in-class shareholder value creation and a deep commitment to social purpose. This extraordinary evolution has been driven by the unwavering commitment, ingenuity and passion of our exceptional TELUS team – individuals who have consistently embraced change, innovated courageously and grown together through spirited teamwork, all whilst passionately putting our customers and communities first. These are the values that will continue to propel our company and fuel our success in the years to come.
I am deeply grateful to our amazing TELUS team members, customers, community partners and shareholders for making the last two-and-a-half decades so incredibly meaningful and memorable. To be part of this extraordinary team has been the greatest honour of my life.
As my tenure as TELUS’ President and CEO draws to an end, I have been reflecting a great deal on the TELUS team’s unparalleled achievements over the last quarter century. In this regard, I would like to take a moment to recognise some of these accomplishments and showcase the tangible value they have created for all stakeholders we serve. This includes your Company’s leading financial performance and shareholder value; strategic transformation and operational excellence; and social capitalism, sustainability and culture – from 2025 and as well, over the past 26 years.
Delivering industry-leading customer loyalty, operational and financial results
TELUS led the Canadian telecom industry on almost every operational and financial parameter in 2025
Our TELUS team led our industry and global peers comprehensively in respect of key financial and operational metrics in 2025. These achievements, outlined in the charts below, illustrate TELUS' unparalleled track record of execution excellence, whilst reinforcing our continuous leadership across nearly every financial and operational performance parameter.
Leading on customer growth
TELUS’ purpose-driven culture fuels business performance, including our consistently robust customer growth and loyalty, which is a testament to our team members’ collective commitment to always put our customers first in everything we do. In 2025, we added 1,081,000 new customer connections, surpassing the one million mark for the fourth straight year.
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Leading in client loyalty
As a result of our team’s commitment to customer service excellence, TELUS consistently realises world-leading client loyalty, including a full-year 2025 postpaid churn rate of 0.97 per cent, representing our 12th consecutive year of churn under one per cent.
TELUS’ churn rate in 2025 was the best in the Canadian telecom industry by a considerable margin. TELUS has posted the best churn result in the Canadian industry every single year for the past 25 years and the best churn rate globally over this same period.
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Leading on profit and cash flow growth
Your Company’s excellence in operational execution, combined with our superior and differentiated asset mix, once again yielded industry-leading financial outcomes. We achieved our full-year public guidance with TTech Adjusted EBITDA delivering industry-leading growth of 3.1 per cent. We also delivered $4.9 billion in cash from operations, and notably, record consolidated free cash flow of $2.2 billion, an increase of 11 per cent over the prior year and exceeding our annual target. This builds upon the 12 per cent and 38 per cent free cash flow growth we delivered in 2024 and 2023, respectively.
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Leading on economic performance for 26 years
Throughout the past two and a half decades, TELUS has led our entire global peer group across a number of key growth parameters; notably, TELUS’ revenue growth has increased 242 per cent. By way of sample illustration, this compares favourably to the 72 per cent for BCE, 154 per cent for AT&T, 53 per cent for Telefonica and 27 per cent for Telstra. Over the same period, EBITDA growth has more than doubled at TELUS to $7.4 billion. Again, this contrasts positively with the 97 per cent increase for BCE, 130 per cent increase for AT&T, 12 per cent increase for Telefonica, and 4 per cent for Telstra. Moreover, enterprise value at TELUS has increased 407 per cent to $54.6 billion. This compares to 77 per cent for AT&T, negative 23 per cent for BCE and negative 36 per cent for Telstra.
Industry-leading financial targets for 2026
We will continue to build on this momentum throughout 2026, as evidenced by the industry-leading financial targets that we have set, including best-in-class consolidated service revenue and EBITDA growth of up to 4 per cent. Moreover, we expect to progress our record-low capital intensity as we advance towards our 10 per cent target, further cementing our industry-leading capital efficiency and supporting our free cash flow growth target of approximately $2.45 billion or 10 per cent for 2026. This financial strength underwrites the robustness of TELUS’ dividend.
Keeping people and communities connected
Investing in broadband leadership
Since 2000, your Company has invested $294 billion in our network infrastructure, operations and spectrum to ensure Canadian consumers and businesses have the connectivity they need to thrive. In 2025, we announced plans to invest $70 billion across Canada over the next five years.
Furthermore, we extended our broadband networks to 30 additional Indigenous lands, bringing the total number of Indigenous lands connected by TELUS PureFibre to 308 and by 5G to 1,172.
Furthermore, we extended our broadband networks to 30 additional Indigenous lands, bringing the total number of Indigenous lands connected by TELUS PureFibre to 308 and by 5G to 1,172.
Growing our pervasive PureFibre footprint
We also advanced our national broadband wireline strategy with the launch of TELUS PureFibre in Ontario and Quebec, leveraging fibre wholesale access alongside targeted investments with the building of fibre in select communities across these provinces. Backed by a $2 billion investment over the next five years, TELUS is entering these markets as a new entrant with a markedly different approach: deploying fibre into many underserved, significant-sized markets. This is further differentiated through our unique blend of industry-best customer service, an unmatched suite of innovative products and services within our home solutions and small business portfolio and our world-leading social capitalism… all backed by the strength of our engaging TELUS brand.
In addition to our efforts in Ontario and Quebec, we continued expanding our global-best TELUS PureFibre network across our ILEC regions, bringing the fastest and most reliable communications technology in the world to 3.7 million households and businesses and growing. In this regard, we added 25 new communities to our TELUS PureFibre footprint in British Columbia, Alberta and Quebec in 2025.
Goodbye to copper, thanks for 100 years of financial returns… looking for the same from PureFibre
What started as a unique, transformational programme in 2013 to build a fibre network in B.C., Alberta and Eastern Quebec to replace aging copper, has now resulted in 99 per cent of our legacy copper-network TV and internet customers having migrated to TELUS PureFibre, the fastest, most robust communications technology in the world. TELUS is also the best-performing fibre-to-the-home operator globally, delivering unsurpassed performance in respect of customer penetration, retention and revenue to cost economics. Given the value now being ascribed to fibre assets, your Company has significant latent value to be realised in our share price related to our fibre capabilities and leadership.
Going national with our wireless network, catalysed by the Clearnet acquisition
Over the past quarter of a century, your Company has also transformed its regional, analogue wireless network in B.C. and Alberta from basic first-generation voice services into one of the most advanced, high-quality 5G networks in the world, covering Canadians from coast to coast. Each network generation delivered step-change improvements in speed, reliability and coverage, culminating in today’s 5G network that facilitates critical, transformational change in respect of health, education, teleworking, the environment and the economy.
Award-winning broadband networks, consistently best-in-class globally
Critically, our world-leading networks are helping to bridge digital divides so that every member of our society has the opportunity to realise their full potential. TELUS customers benefit from the fastest speeds, lowest latency and most consistent real-world performance, spending more time connected to high-quality 5G than on any other network. These outcomes are the direct result of sustained investments in spectrum, customer experience and Canadian engineering excellence. Moreover, they position TELUS to continue leading as data demand, applications and customer expectations accelerate. Today, TELUS’ world-leading 5G network now reaches more than 90 per cent of Canada’s population and was recognised by U.K.-based Opensignal as Canada’s most awarded network in 2026 and historically, the most awarded network ever.
Phenomenal wireless and wireline customer growth and market share gains
Impressively, since 2000, TELUS has grown our customer connections by 383 per cent – from 4.3 million in 2000, to nearly 21 million today. Over the same timeframe, we have grown our wireless customer base by over 1,200 per cent, from one million clients in B.C. and Alberta in 2000, to nearly 15 million across the country today.
TELUS has also earned its way to becoming the market share leader in wireline services in Western Canada, as evidenced by our significant growth since 2000. By way of example, TELUS’ internet market share has expanded from eight per cent in 2000 (Shaw had 80 per cent market share at that time) to a market-leading 51 per cent today. Similarly, both TV and Security had zero per cent market share in 2000, and 26 years later, TELUS is the market leader in both of these product lines, with TV having a 48 per cent share of the market and Security earning 60 per cent market share.
The aforementioned growth would not have been realised fully without the critical contributions of TELUS Digital, from transformative cost efficiencies, excellence in customer service and catalysing digital and AI capabilities to drive growth and retention.
Advancing our capital allocation strategy
Driving our performance is a disciplined approach to financial management, supported by strong business fundamentals and significant free cash flow generation. As part of our proactive, forward looking public disclosure, we announced our three-year free cash flow growth target of a minimum 10 per cent compounded annual growth rate through 2028. Moreover, we are pausing our dividend growth until such time as our share price better reflects the considerable growth prospects of TELUS. We are also stepping down our discounted dividend reinvestment plan beginning in 2026, with the discount having been reduced from 2 per cent to 1.75 per cent in the first quarter of this year.
Strengthening our balance sheet through our deleveraging programme… that is ahead of plan
Notably, in 2025 we completed $7.3 billion in junior subordinated debt issuances, providing 50 per cent equity recognition to support balance sheet flexibility. Additionally, the partnership that we struck successfully with La Caisse in Terrion, our dedicated wireless tower infrastructure operator, reduced TELUS’ net debt by $1.26 billion, or approximately 0.17-times. The creation of Terrion also marked a significant step to further enhance connectivity. This entity not only supports wireless competition and consumer choice through wholesale access, but also unlocks significant shareholder value by supporting our aforementioned deleveraging efforts and strengthening our balance sheet.
These efforts reinforce our progress in respect of deleveraging, moving ahead of plan, with our leverage ratio improving to 3.4-times as of the end of 2025 (from 3.9-times at the beginning of 2025), and expected to reach circa 3.3-times or lower by the end of 2026, and 3-times or better by year-end 2027. Throughout the remainder of 2026, our team will pursue additional opportunities, including accelerated monetisation of real estate and copper assets, and exploring strategic investors for TELUS Health and TELUS Agriculture & Consumer Goods.
We have full confidence in our deleveraging plan and our ability to achieve our 2026 and 2027 goals, including the removal of the discount on our dividend reinvestment plan.
Importantly, with the execution of our monetisation programme, TELUS does not need to issue debt in the public markets until 2029! Moreover, the infrastructure of TELUS’ balance sheet is in a robust state, with the average term to maturity standing at 14.7 years and the weighted average cost of debt at 4.75 per cent. This is buttressed by a fixed versus floating rate split of 93 per cent and a liquidity balance of $5.1 billion as at December 31.
Accelerating our global growth in emerging markets, underpinned by our Customers First promise
Leveraging the power of AI at TELUS Digital
Beyond the establishment of Terrion in 2025, your Company also completed the privatisation of TELUS Digital – including access to TELUS Digital’s strong cash flow generation. This transaction will generate approximately $150 million to $200 million in annualised cash synergies through operational efficiencies, including accelerated AI-driven automation, business simplification and strategic cross-promotion of services with TTech and TELUS Health. These initiatives will further strengthen our financial performance and support high-impact opportunities to create significant shareholder value in the years to come.
The evolution of TELUS Digital over the past two decades has been extraordinary. Since 2005, we have grown TELUS Digital from a single contact centre in Manila, Philippines with fewer than 2,000 employees, to an integrated global provider of AI, digital and customer experience services spanning 36 countries.
Today, with over 80,000 team members serving circa 650 major clients, TELUS Digital is generating $2.9 billion of external revenue and $333 million of cash flow. Between the cash synergies and the annualised cash flow highlighted above, the discounted payback period on privatising TELUS Digital is 4.9 years. Although we were disappointed by the share price performance of TELUS Digital following the largest technology company IPO in the history of the TSX, we are recovering from the painful lessons learned owing to our concentrated exposure to the Hyperscaler customer segment, coincidental with the explosive onset of AI. Notwithstanding this, TELUS Digital has delivered a Multiple-of-Invested-Capital of 5.2 times for TELUS shareholders owing to cost arbitrage, digital efficiencies, strong free cash flow generation against a low capex intensity and the repatriation of value through the Baring Asia monetisation. Moreover, as highlighted below, the rich AI capability set of TELUS Digital positions the company well for the future with sustainable and profitable growth coming from TELUS as its anchor client, to exporting these technology services to external clients undertaking their own customer service (“CX”) transformations or leveraging enriched data provided by TELUS Digital within their own AI compute models (and as well, leveraging our AI Factories in this regard).
TELUS Digital is well-positioned to drive significant growth across three transformational areas of AI. First, TELUS Digital will further progress its global leadership in the fusion of customer experience and AI, leveraging our industry-leading Fuel iX platform to deliver next-generation solutions for our clients in the rapidly emerging CXAI space. Second, enriched data derived from advanced AI data science capabilities will enable TELUS Digital to unlock deeper insights and predictive intelligence for our enterprise clients, underpinned by the combination of our leading AI annotation capabilities with our global AI and data science engineering talent. Third, the monetisation of our Sovereign AI Factories (more details below) will create new revenue streams, positioning TELUS Digital as the trusted partner for Canadian and global enterprises seeking secure, sovereign AI computing infrastructure and capabilities. The tremendous opportunities inherent in these pillars reinforce our confidence in the transformative potential of this high-growth business segment.
Leading the world in the responsible use of AI; taking the lead by turning our legacy data centres into Sovereign AI Factories!
Building on over a decade of AI expertise and scaling adoption across our business, your Company has unlocked $350 million in cumulative financial impacts since 2023 – delivering significant revenue growth, cost efficiencies and productivity gains through data monetisation and AI enhancements.
We opened our first Sovereign AI Factory in Rimouski, Quebec – the first of its kind in Canada – with a second facility coming online shortly in Kamloops, British Columbia. These super-secure facilities provide businesses, governments and researchers with access to accelerated computing capabilities to innovate rapidly and develop smarter AI solutions tailored for the Canadian marketplace. Moreover, our AI facilities enable all aspects of the AI lifecycle and high-performance computing, including model training, model fine-tuning as well as inference on a single platform. This means we, and our customers, can train new AI models from scratch, fine-tune them for specific use cases, and deploy them via real-life applications. Our Sovereign AI Factories are also amongst the most environmentally friendly in the world, utilising 99 per cent renewable energy and reducing water consumption by more than 75 per cent. Notably, our Rimouski facility was named the fastest and most powerful supercomputer in Canada and 78th globally by TOP100.
Looking ahead, TELUS has established a concrete target for our AI-enabling capabilities revenue growth, from $800 million in 2025 to approximately $2 billion in 2028, anchored by TELUS Digital and TELUS Business Solutions, including meaningful growth potential of our Sovereign AI Factories.
Improving healthcare access and outcomes globally
Turning to TELUS Health, we completed our acquisition of Workplace Options in 2025, further expanding our global footprint to deliver exceptional healthcare outcomes for employers with their employees. This growth is reflected in our strong financial performance, with increases in revenue and Adjusted EBITDA of 15 per cent and 22 per cent, respectively, for the 2025 financial year. This builds upon TELUS Health’s EBITDA growth of 18 per cent in 2024 and 36 per cent in 2023.
Indeed, TELUS Health has experienced significant growth over the course of 18 years.
Since it launched in 2008 as a provider of health claims processing and pharmacy management systems in Canada, TELUS Health has evolved to become the global leader in digital-centric and data rich, employer-based health and well-being solutions, enhancing more than 160 million lives across 200 countries and territories. Moreover, TELUS Health has grown from $245 million in revenue, to a global organisation with more than $2 billion in revenue and targeting more than $400 million in EBITDA in 2026.
Leading the way in total shareholder returns
Since 2000, TELUS led all telcos globally, with a total shareholder return of 661 per cent. This is 228 percentage points ahead of the second place global telco, and outpaces the MSCI World Telecom Services Index by 601 percentage points. This result has been realised by the TELUS team despite a very challenging 36 months in the Canadian telecom industry from 2023 to 2025.
By way of further illustration, TELUS’ outperformance as compared to the MSCI and TSX was even more pronounced between 2000 and mid 2022, with TELUS surpassing the TSX and MSCI by 477 and 822 percentage points, respectively (see graph below). TELUS’ 833 per cent return outstripped the second placed peer by 227 percentage points, the North American average by 448 percentage points and the European average by 837 percentage points. Thereafter, significant regulatory intervention occurred due to the structural change in our industry when the Canadian government facilitated the emergence of Videotron as a fourth national player as a by-product of the Rogers acquisition of Shaw.
Since that time in 2022 and through 2025, despite the exogenous pressures on our Canadian telecom industry, TELUS has led our national and U.S. peers in key metrics including revenue growth, adjusted EBITDA, free cash flow, capital intensity improvement and postpaid churn (see table below). TELUS is delivering industry-leading results despite aggressive price-based competition, which has led to wireless prices declining 28 per cent since February 2023, regulatory intervention and incurring spectrum costs that are the highest globally, with Canadian national operators paying $3.25 per MHz-pop in the critical 3500 MHz auction, nearly 3x the U.S. Furthermore, at approximately $1.30 per MHz-pop, Canada's spectrum prices (2010-2020) are almost six times higher than the OECD average.
TELUS’ leading operational and financial performance from 2022 through 2025
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* TTech operating revenue and adjusted EBITDA for TELUS as compared to Bell CTS and Rogers (excluding Media) and to consolidated results for U.S. and European Total return for T-Mobile as of April 2007 reflecting the IPO date of MetroPCS and prior to the merger with T-Mobile USA in 2013. Note free cash flow definitional differences. European average reflects sample of Deutsche Telekom, Orange, KPN and Swisscom; European peers do not consistently report postpaid churn.
Returning value created to shareholders
Since 2000, TELUS has returned approximately $31 billion to shareholders, including TELUS team members, who collectively represent our third-largest shareholder group amongst actively managed funds. The $31 billion includes approximately $26 billion in dividends and more than $5 billion in share repurchases, representing circa $20 per share.
Celebrating TELUS’ sustainability milestones
In 2025, we achieved a significant milestone, becoming the first Canadian telecommunications company to source 100 per cent of our electricity from renewable and low-emitting sources across our global operations. This achievement, alongside surpassing 26 million trees planted with our partners, reflects our long-standing commitment to embedding sustainability into the core of our business.
This commitment includes restoring and strengthening the natural systems we depend on. Indeed, we are focused on mitigating the effects of devastating wildfires by investing in innovative technology to detect wildfires earlier, restore forests more effectively and keep people connected during times of crisis.
At the same time, we are enabling our customers to avoid emissions at nearly 7.5 times our own operational footprint by investing in nature-accretive solutions, including online customer support, virtual healthcare, teleconferencing and digital collaboration. From being the first Canadian company to issue sustainability-linked bonds to having the largest footprint of LEED Platinum-certified buildings in North America, TELUS continues to reduce our environmental footprint while supporting long-term growth.
As a result of these actions and more, TELUS continues to be recognised globally. Notably, TELUS has been named to the Dow Jones Sustainability North America Index for 24 consecutive years – a feat unequalled by any of our North American peers – and named to the World Index 14 times. Moreover, in 2026, TELUS ranked 21st on Corporate Knights’ Global 100 list of the world’s most sustainable corporations for the 14th time, making TELUS the most awarded telecommunications company on the Global 100 list. We were also recognised on TIME Magazine’s World’s Most Sustainable Companies 2025 list for the second consecutive year, and as the most sustainable telecommunications company in North America.
For 26 years, TELUS has demonstrated that connectivity is about more than technology; it is about making the future friendly by improving lives, strengthening communities and protecting our planet. Our nature-inspired brand reflects this commitment, and our actions continue to bring it to life in a way that is authentic, measurable and enduring.
Leading the world in social capitalism. Doing well in business and doing good in our communities are mutually inclusive
TELUS’ long-standing leadership in social capitalism inspires our team members, as reflected in our world-leading team member engagement of 85 per cent – amongst the top 10 per cent of employers globally. This supports the potent equation that makes our company unique: TELUS’ global leadership in social purpose drives higher employee engagement; this in turn, engenders a culture that produces superior business execution, including industry-leading customer service outcomes globally.
Celebrating the 25th anniversary of our iconic TELUS brand
The aforementioned factors have contributed to our beloved TELUS brand growing from a few hundred million dollars in 2000 to over $12 billion today, ranked as Canada’s most valuable and reputable telco brand and the 8th most valuable overall by Brand Finance. TELUS was also recognised as one of Canada’s Most Authentic Brands by the Gustavson School of Business and was Strategy Magazine’s 2021 Brand of the Year.
Thanking our supporters and partners … and looking ahead to a bright future
The highlights shared in this letter are merely a sampling of TELUS’ outstanding achievements throughout 2025 and over the past quarter of a century, thanks to the exceptional effort and dedication demonstrated by our team members. On behalf of our over 133,000 team members and retirees worldwide, I want to express my deepest gratitude to you – our shareholders, customers and community partners – for your continued support and patronage.
Welcoming Victor Dodig as our new CEO
Looking ahead, our Board of Directors have selected an outstanding successor, Victor Dodig, the former CEO of CIBC and an accomplished leader. Victor embodies TELUS’ core values, embraces a commitment to putting customers first, demonstrates exceptional character and business acumen and cares deeply about building stronger communities. His tremendous skills, CEO expertise and proven track record of value creation will effectively complement TELUS’ strong leadership team and position him well to lead TELUS into this next exciting chapter, building on our industry-leading 2025 operating and financial results.
Farewell and thank you!
In closing, I would like to extend my heartfelt appreciation to our TELUS team members worldwide. I will always be tremendously grateful for what we have built together. Moreover, I remain enormously proud of the manner in which we have realised our accomplishments, exemplifying our powerful culture that has made all the difference during this exciting journey!
Keep making the future friendly, TELUS team! I will always be cheering you on!
Darren Entwistle
Proud member of the TELUS team
Proud member of the TELUS team