Message from our CFO
Strengthening our foundations for sustainable growth
Reflecting on 2024, we have achieved substantial progress in fostering sustainable growth, driven by our unwavering focus on innovation, operational excellence and our commitment to social capitalism. Our ability to navigate a dynamic landscape while delivering value to all stakeholders underscores our dedication to social purpose and our impactful contributions to communities worldwide. This journey of delivering remarkable outcomes is a testament to the resilience and ingenuity of our world-leading team.
Driving innovation with passion and purpose
Our focus on ensuring that TELUS remains a leader in technological innovation has been central to our strategy. In 2024, we made significant advances in expanding our PureFibre and 5G networks and product offerings by integrating additional spectrum to improve speed and coverage, leveraging wholesale access to launch PureFibre in Ontario and Quebec, bringing more choice to Canadians and delivering an unmatched experience to our customers nationwide.
In 2024, our unwavering commitment to operational excellence remained a top priority. These efforts were enabled by our generational investments in leading networks and digital transformation. Our strategic focus on network capabilities and digital innovation has not only delivered substantial cost efficiencies but also enhanced team member effectiveness. Initiatives such as the decommissioning of legacy copper infrastructure and real estate optimization have further strengthened the financial position of our organization, making it more agile and resilient for the future.
In 2025, we will continue prioritizing cost efficiency and effectiveness, building on the $1.2 billion invested over the past two years to drive EBITDA growth, improve margins and expand cash flow — all while enhancing our superior customer experience and reinforcing our commitment to operational excellence.
Achieving robust financial performance
In 2024, we delivered strong financial performance in a highly competitive and dynamic macroeconomic environment, driven by our strategic focus on profitable growth and disciplined cost management. On a consolidated basis, net income increased by 8.2 per cent to $938 million and basic earnings per share was higher by 16 per cent to $0.67. Furthermore, cash from operations increased 7.7 per cent to $4.8 billion, while free cash flow of approximately $2.0 billion increased by 12 per cent.
Within our TELUS Technology solutions segment (TTech), Operating revenues increased by 1.8 per cent, totaling $17.4 billion, Adjusted EBITDA increased by 5.5 per cent to $6.7 billion, achieving the low end of our full year target and margins expanded 110 basis points to 38.2 per cent. These results reflect our ability to capitalize on growth opportunities while effectively managing expenses.
Our balance sheet remains strong, bolstered by a series of debt issuances in 2024 amounting to $2.5 billion and demonstrating our robust access to capital markets. The offerings were successful, receiving significant investor demand and included our sixth sustainability-linked bond (SLB). This continues to position TELUS as the leading SLB issuer in Canada and showcases our dedication to sustainable business practices.
+1.8%
TTech Operating revenues
+5.5%
TTech Adjusted EBITDA
Our debt maturity schedule highlights our proficient financial planning. With an average maturity of over 10 years for our long-term debt and 88 per cent being fixed-rate, we are strategically positioned to manage future financial conditions with agility and prudence. TELUS is well-positioned to benefit from future interest rate declines, complementing its cost-effective long-term debt average of 4.37% at the end of 2024.
Our net debt to EBITDA leverage ratio at the end 2024 was 3.9-times and we remain committed to de-levering our balance sheet, with an execution plan in place to achieve a net debt to EBITDA leverage ratio of approximately 3-times by 2027. This plan includes continued EBITDA growth and cash flow expansion, alongside reducing capital intensity, as well as the monetization of assets, including our active real estate and copper initiatives; partnership opportunities for our growth businesses; divestiture of non-core assets; and surfacing value of infrastructure. We also expect to achieve this targeted leverage ratio alongside our plans to reduce the discount associated with our dividend re-investment plan in 2026, with the intention of removing it in 2027.
We announced two dividend increases during the year, aligning with our mulit-year dividend growth program, targeting annual growth of seven to ten per cent through the end of 2025. At our annual meeting in May 2025, we look forward to providing an update to our dividend growth program.
Differentiated by our data-focused verticals
Through TELUS Health, we are leveraging technology to deliver connected health and well-being solutions and services, enhancing access to care and improving collaboration within the healthcare ecosystem. At the end of 2024, our healthcare programs covered over 76 million lives around the world, with significant growth in virtual care services and employee assistance programs. TELUS Health reported positive top-line growth of 4.3 per cent in 2024, driven by strategic investments in products, sales and distribution channels.
TELUS Agriculture & Consumer Goods continues to deliver digital solutions and data insights that connect the global food supply chain, improving efficiency and sustainability. Our agriculture and consumer goods services saw revenue growth of 12 per cent in 2024, driven by business acquisitions and increased demand for our valuable data-driven insights and solutions.
In the second half of 2024, TELUS Digital delivered stabilization in financial performance. Looking ahead, we remain committed to driving gradual, sustained improvements in this area of the business.
Focus on social capitalism and community impact
Our dedication to social capitalism continues to drive our purpose-driven initiatives. In 2024, we expanded our Health for Good program, increasing access to healthcare for vulnerable populations through our mobile health clinics. Our Pollinator for Good investment portfolio grew to 31 companies, with over $7 million deployed in purpose-driven startups, bringing the total to over $50 million. Among these, Applied Carbon, earned recognition for its groundbreaking mobile device, named one of the 50 greatest innovations of 2024 in Popular Science's Best of What's New!. The device converts agricultural waste into biochar, a substance that sequesters carbon on farms, advancing sustainability in agriculture. Additionally, we rebranded our strategic investment team to TELUS Global Ventures, reflecting our investments in more than 160 market-transforming global companies since 2001.
"This journey of delivering remarkable outcomes is a testament to the resilience and ingenuity of our world-leading team."
Shaping the future with purpose and determination
As we enter 2025, our focus is steadfast on enhancing our network and digital capabilities, improving operational efficiencies and effectiveness, and sustaining growth with passion and purpose. We are confident that our disciplined approach, combined with the expertise of our incredible team, will continue to deliver sustainable value for all our stakeholders.
For 2025, we have established robust financial targets. These include growth in our TTech segment, with operating revenues expected to increase by 2 to 4 per cent and Adjusted EBITDA anticipated to grow by 3 to 5 per cent. Additionally, we are targeting consolidated free cash flow of approximately $2.15 billion and stable consolidated capital expenditures (excluding real estate development initiatives) of approximately $2.5 billion. These targets for 2025 underscore our financial resilience and commitment to prudent capital management.
Our heartfelt gratitude extends to our shareholders, customers and partners for their ongoing support and trust. The achievements of 2024 are a testament to the power of collaboration, purpose and passion. Our team's relentless drive and ingenuity have been pivotal in driving our success. Together, we look forward to another year of shared success and meaningful impact.
Best regards,
Doug French
Executive Vice-president and Chief Financial Officer
April 4, 2025
