TELUS cuts dividend 55%, posts $1.8 billion Q2 loss on $2.1 billion impairment

TELUS reset its quarterly dividend to C$0.1875 payable Oct. 1, 2026, removed its DRIP discount effective that date, and lowered 2026 guidance as it targets net debt to Adjusted EBITDA of about 3.0-times or lower by year-end 2028.

Summary

TELUS reported a net loss of $1.8 billion for the second quarter ended June 30, 2026, after recording a pre-tax, non-cash intangible asset and goodwill impairment of $2.1 billion tied to TELUS Digital. Alongside the results, the company reset its quarterly dividend to C$0.1875 per common share, down 55 per cent to an annualized C$0.75 from C$1.6736, with the dividend payable Oct. 1, 2026, to shareholders of record on Sept. 10, 2026. TELUS said the lower payout should generate about $2.7 billion in cumulative cash savings through 2028 for debt reduction, while the DRIP discount will be removed effective Oct. 1, 2026, to reduce dilution. TELUS said it is targeting net debt to Adjusted EBITDA of about 3.0-times or lower by year-end 2028, versus 3.5-times at quarter-end, extending the timeline from year-end 2027 because of competitive pricing pressure and reduced subscriber demand amid lower population growth. It also lowered full-year guidance, now expecting consolidated service revenue from flat to down 2 per cent, Adjusted EBITDA down 2 per cent to 4 per cent, capital expenditures of about $2.6 billion, and free cash flow of about $1.8 billion. Operating performance was mixed. Consolidated service revenue fell 1 per cent to $4.4 billion and Adjusted EBITDA slipped 2 per cent to $1.8 billion, while cash provided by operating activities rose 15 per cent to $1.3 billion and free cash flow increased 2 per cent to $545 million. TELUS added 17,000 mobile phone subscribers, 20,000 internet subscribers and 187,000 connected devices in the quarter.

Terms & Concepts
  • DRIP: Dividend reinvestment plan that lets shareholders automatically use dividends to buy shares.
  • Adjusted EBITDA: Earnings before interest, taxes, depreciation and amortization, adjusted for selected items.
  • shareholders of record: Investors officially registered on the record date to receive the dividend.