Corporate ActionJul 31, 2026, 07:17 AM
TELUS Resets Quarterly Dividend by 55% to $0.1875; Reports Q2 Net Loss $1.8B
AI Summary
TELUS Corporation announced its second quarter 2026 financial results, reporting a net loss of $1.8 billion, primarily due to a $2.1 billion non-cash impairment related to TELUS Digital. Concurrent with the results, the company reset its quarterly dividend by 55% to $0.1875 per share, aiming to generate $2.7 billion in cash savings through 2028 for debt reduction. TELUS also removed the dividend reinvestment plan discount and revised its full-year 2026 financial guidance downwards, while outlining new strategic priorities to strengthen its financial foundation and achieve a leverage target of 3.0-times or lower by year-end 2028.
Key Highlights
- Quarterly dividend reset by 55% to $0.1875 per common share, annualized $0.75.
- Reported Q2 2026 net loss of $1.8 billion due to $2.1 billion non-cash impairment in TELUS Digital.
- Adjusted Net income decreased 26% to $254 million; Adjusted basic EPS decreased 27% to $0.16.
- Consolidated service revenue declined 1% to $4.4 billion; Adjusted EBITDA declined 2% to $1.8 billion.
- Full-year 2026 guidance revised: service revenue flat to -2%, Adjusted EBITDA -2% to -4%.
- Full-year 2026 capital expenditures updated to approximately $2.6 billion, free cash flow to $1.8 billion.
- Dividend reinvestment plan (DRIP) discount to be removed effective October 1, 2026.
- Targeting 3.0-times or lower net debt to Adjusted EBITDA by year-end 2028 (previously 2027).
Price Impact
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