Message from our CFO

Polar bear cub next to the CFO message heading

Strengthening our foundations through focused execution and financial leadership

Reflecting on 2025, TELUS delivered another year of resilient financial performance amid a dynamic macroeconomic and competitive environment. Our progress was supported by a consistent focus on operational efficiency and effectiveness, thoughtful financial management and deliberate actions to strengthen our financial position. Consistent with our long-standing culture of excellence, these results reflect the grit, collaboration and unwavering customer focus of our teams, whose commitment continues to translate purpose-led investments into sustainable, long-term financial performance.

Doug French, EVP and Chief Financial Officer.

Delivering strong and resilient financial performance

In 2025, our financial results reflected a continued emphasis on profitable growth, margin improvement and cost efficiency. Within our TELUS Technology Solutions segment (TTech), including our health segment, service revenue growth increased 2.0 per cent. Notably, TTech Adjusted EBITDA, including our health segment, increased 3.1 per cent, within our guidance range. This outcome was supported by ongoing efficiency initiatives, continued progress in driving margin expansion, and incremental benefits from our strategic real estate and copper monetization programs.

Cash from operations of approximately $4.9 billion remained stable over the prior year, while free cash flow of $2.2 billion increased by 11 per cent year-over-year, surpassing our annual target. The strength and consistency of our free cash flow generation reflects structural improvements in our cost base and a prudent approach to capital deployment, supporting financial strength, strategic investments and reliable shareholder returns.

Advancing operational excellence and efficiency

Operational effectiveness remained a key focus in 2025 as we continued to realize the benefits of our generational investments in network leadership and digital transformation. Our emphasis on simplification, automation and productivity enhancements delivered sustainable cost savings while improving organizational agility and effectiveness, helping offset cost pressures and support margins in a challenging operating environment.

Innovating with grit, we accelerated the decommissioning of legacy copper infrastructure, real estate optimization and increased adoption of data-driven tools contributed to margin improvement and stronger capital efficiency. These efforts enhanced near-term financial performance while reinforcing the long-term sustainability of our operating model.

Strengthening our balance sheet and financial flexibility

We made meaningful progress strengthening our financial position in 2025, with our net debt to EBITDA leverage ratio declining to approximately 3.4-times at year-end from 3.9-times at the end of 2024, positioning us well as we advance towards a leverage ratio of approximately 3.3-times or lower by the end of 2026 and our target of approximately 3.0-times or better by the end of 2027.

During the year, we completed several proactive initiatives to support this objective. These included the issuance of approximately $7.3 billion of junior subordinated notes, as well as the successful execution of multiple debt tenders that retired approximately $2.9 billion of outstanding debt securities. Notably, the $400 million 5.375 per cent fixed-to-fixed rate junior subordinated notes, represented the lowest hybrid notes issued in Canadian telecom/cable hybrid debt capital markets history. At year-end, our long-term debt (as defined as senior and subordinated Notes) carried an average maturity of approximately 14.7 years and a weighted average cost of debt of 4.75 per cent.

Our progress toward deleveraging continues to be supported by EBITDA growth, expanding free cash flow, decreasing capital intensity and comprehensive asset optimization strategy that creates multiple levers to achieve our targets. Our Terrion partnership announced in August with La Caisse raised $1.26 billion, while our accelerating real estate and copper monetization programs continue to generate meaningful proceeds. Additionally, we have engaged financial advisors to explore strategic partnership opportunities for TELUS Health and are exploring all monetization and partnership opportunities for TELUS Agriculture & Consumer Goods. Our approach is focused on welcoming strategic partners that can add complementary skills, customer reach and economic capacity to drive growth and scale, enhancing financial flexibility while preserving operational strength and creating sustainable long-term shareholder value.

Capital allocation and disciplined financial management

Our approach to capital allocation in 2025 was guided by clear priorities: maintaining a strong financial position, supporting sustainable free cash flow growth, investing selectively in high-return opportunities and delivering dependable shareholder returns. These priorities were particularly important in 2025 as we balanced continued investment with disciplined responses to evolving market conditions and deliberate portfolio decisions.

In December, we provided an enhanced capital allocation framework, including a multi-year free cash flow growth target with a minimum compound annual growth rate of 10 per cent through 2028. In addition, in early 2026, we started to systematically reduce the dividend reinvestment plan (DRIP) discount with further reductions planned through 2026 and into 2027, with full elimination of the discount by 2028. Importantly, we continue to assess a more accelerated step down, facilitated by the execution of our asset monetization program.

As part of this announcement, we announced that we would maintain the dividend at its current level, while preserving flexibility to support long-term value creation. We continue to view dependable dividend stewardship as an important element of total shareholder returns, and expect to revisit dividend growth as our share price and dividend yield more appropriately reflect the company’s long-term growth opportunities.

This balanced approach reflects our commitment to long-term value creation while maintaining flexibility to navigate evolving market conditions. Our financial stewardship also supports the sustainability of TELUS’ social capitalism model by reinforcing stakeholder confidence and access to long-term capital.

Supporting growth through focused investment

In 2025, TELUS Health operating revenues increased by 15 per cent and Adjusted EBITDA grew by 22 per cent, reflecting continued margin improvement and the benefits of integration initiatives. At year-end, our healthcare programs covered approximately 161 million lives globally.

During the year, we continued to invest selectively in initiatives that enhance long-term value creation while meeting rigorous financial return thresholds. The privatization of TELUS Digital in October 2025 was a milestone in our ‘One TELUS’ strategy, unlocking the full potential of our data and AI capabilities while improving operational alignment across the organization. We expect this transaction to generate approximately $150 million to $200 million in annualized cash synergies to be realized in 2026, contributing meaningfully to free cash flow growth.

TELUS Agriculture & Consumer Goods continued to advance digital solutions that connect the global supply chain, supporting efficiency and sustainability across agriculture and consumer goods markets. In 2025, we streamlined the portfolio by divesting non-core assets and focusing investment on higher-growth areas.

Shaping the future with focus and confidence

Looking ahead to 2026, our financial priorities remain centred on steady execution, continued deleveraging and sustainable free cash flow expansion. For 2026, we have established industry-leading financial targets that include Consolidated service revenues growth of 2 to 4 per cent and Consolidated Adjusted EBITDA growth of 2 to 4 per cent. We are also targeting Consolidated free cash flow growth of 10 per cent or approximately $2.45 billion, supported by lower Consolidated capital expenditures of approximately $2.3 billion, a 10 per cent decrease. The actions taken in 2025 position us to enter 2026 with greater clarity, resilience and improved financial strength, reflecting disciplined execution throughout the year.

We are grateful for your continued support and look ahead with confidence to another year of shared success and meaningful outcomes, made possible by the commitment and collaboration of our exceptional team.

We enter 2026 with a robust financial foundation, enhanced flexibility and a clear focus on delivering sustainable financial performance and long-term value for all stakeholders, customers and communities.

Doug French
Executive Vice-president and Chief Financial Officer
April 2, 2026

This page contains forward-looking statements about expected events and the financial and operating performance of TELUS Corporation. The terms TELUS, the Company, we, us and our refer to TELUS Corporation and, where the context of the narrative permits or requires, its subsidiaries. Forward-looking statements include any statements that do not refer to historical facts. They include, but are not limited to, statements relating to our leverage ratio targets, our plans regarding DRIP discount reductions, our expectations regarding dividend growth, our expected cash synergies from the privatization of TELUS Digital, and our financial targets for 2026 Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, strategy, target and other similar expressions, or future or conditional verbs such as aim, anticipate, believe, could, expect, intend, may, plan, predict, seek, should, strive and will. These statements are made pursuant to the “safe harbour” provisions of applicable securities laws in Canada and the United States Private Securities Litigation Reform Act of 1995.

By their nature, forward-looking statements are subject to inherent risks and uncertainties and are based on assumptions, including assumptions about future economic conditions and courses of action. These assumptions may ultimately prove to have been inaccurate and, as a result, our actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements. Our general outlook and assumptions for 2026 are presented in Section 9 General trends, outlook and assumptions, and regulatory developments and proceedings in our 2025 annual Management’s discussion and analysis (MD&A). Our assumptions in support of our 2026 outlook are generally based on industry analysis, including our estimates regarding economic and telecom industry growth, as well as our 2025 results and trends discussed in Section 5 in our 2025 annual MD&A. They are subject to risks as described in Section 10 Risks and risk management of our 2025 annual MD&A. Those descriptions are incorporated by reference in this cautionary statement but are not intended to be a complete list of the risks that could affect the Company, or of our assumptions. Our 2026 financial targets are presented for the purpose of assisting our investors and others in understanding certain key elements of our expected 2026 financial results as well as our objectives, strategic priorities and business outlook. Such information may not be appropriate for other purposes.

Additional risks and uncertainties that are not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation. Except as otherwise indicated on this page, the forward-looking statements made herein do not reflect the potential impact of any non-recurring or special items or any mergers, acquisitions, dispositions or other business combinations or transactions that may be announced or that may occur after April 2, 2026. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements on this page describe our expectations and are based on our assumptions, as at April 2, 2026 and are subject to change after this date. We disclaim any intention or obligation to update or revise any forward-looking statements except as required by law.