TELUS posts $660 million loss, sets $900 million savings plan

By Grace Kim

TELUS, the Canadian telecommunications company, reported a third-quarter 2026 net loss of $660 million and consolidated adjusted EBITDA of $1.8 billion, down 5%, as weaker TELUS Digital results offset a stable core telecommunications business.

What kept the core telecom business stable?

TELUS reported third-quarter 2026 consolidated service revenue of $4.5 billion, a 1% decline. The company said strength in its core telecommunications operation offset weaker results at TELUS Digital.

Mobile network revenue increased 1%, supported by 84,000 net new mobile phone customers. Average revenue per user remained stable at $57.22. Blended mobile phone churn improved to 1.01%, the company’s lowest level in three years.

TELUS also said fixed data revenue contributed to the relative stability of the core telecom business. Mobile growth and churn improvement did not translate into consolidated revenue growth because Digital weakness offset those gains.

Victor Dodig, President and Chief Executive Officer of TELUS, said: “Since our second quarter earnings call, our core telecom business has shown clear signs of stabilization and we have made important progress on the execution of our Transformation Strategy.”

Customer growth and a three-year low in churn cushioned weakness elsewhere, although consolidated service revenue still fell 1%.

Why did reported earnings fall?

TELUS recorded the $660 million net loss primarily because of an $800 million pre-tax noncash goodwill impairment tied to TELUS Health. TELUS classified the charge as noncash.

The $800 million charge reflected revised growth expectations for TELUS Health, broader market conditions and updated valuation assumptions. TELUS also cited the unit’s active divestiture process.

Consolidated adjusted EBITDA fell 5% to $1.8 billion. TELUS attributed the decline to lower TELUS Digital client volumes and comparisons with prior-year real estate gains and other one-time items. On a normalized basis, adjusted EBITDA declined 2%.

TELUS’s normalized figure put the decline at 2%, three percentage points less severe than the headline result. TELUS enters the efficiency phase with a stable core, but Digital weakness and 3.6 times net leverage still constrain the result.

What does the $900 million efficiency program do?

TELUS introduced a multi-year efficiency program targeting approximately $900 million in annualized cash savings exiting 2028. The company said the program would:

• Concentrate investment on Canadian telecommunications and artificial intelligence infrastructure.
• Simplify the wider portfolio.
• Strengthen earnings, cash flow and the balance sheet.

TELUS also reaffirmed the full-year targets it had updated with its second-quarter results. The company did not alter those targets after reporting third-quarter performance.

The program gives management a quantified way to pursue better free cash flow while narrowing its portfolio. It also creates a measurable execution test: approximately $900 million in annualized cash savings must be in place exiting 2028.

The strategy links operating discipline with portfolio simplification rather than relying on asset sales alone. TELUS can use the savings alongside proceeds from its planned disposals to lower debt.

How will asset sales lower leverage?

TELUS is prioritizing monetization of TELUS Health and TELUS Agriculture & Consumer Goods. It intends to use proceeds from those sales to reduce debt.

At quarter-end, net debt stood at 3.6 times adjusted EBITDA. Management remains committed to lowering leverage to 3 times or less by the end of 2028 through:

• Operational improvements.
• Asset sales.
• Disciplined capital allocation.

TELUS said core network stability, planned cost reductions and noncore asset monetization provide a path toward improved free cash flow, even as Digital pressure weighed on the reported quarter.

The planned sales complement the cost program: sale proceeds have a stated debt-reduction use, while the savings target offers an operating contribution to cash flow. That gives management two routes to the same leverage goal.

By the end of 2028, TELUS must show approximately $900 million in annualized cash savings, use asset-sale proceeds to reduce borrowings and bring net leverage from 3.6 times adjusted EBITDA to 3 times or less.