TELUS Corporation (TSX: T) came under pressure in afternoon trading, sliding roughly 3% to C$18.34 as investors weighed leadership changes and fresh financial guidance from its fourth-quarter earnings update. The move erased the previous session’s stability and left shares hovering near the lower end of the day’s C$18.07 to C$18.90 range.
Selling accelerated after an early attempt to stabilize above C$18.50 faded, with volume climbing to more than 13 million shares by late afternoon. The stock now sits noticeably below its prior close of C$18.96, extending a softer tone that has developed over the past month.
Over a one-month stretch, TELUS has slipped about 1.7%, retreating from levels closer to C$19 earlier in the period. The broader 52-week corridor of C$17.26 to C$23.29 frames the current price as nearer the bottom of its yearly trading band than the top, a positioning that naturally sharpens the debate around dividend sustainability and growth prospects.
At current levels, TELUS carries an intraday market capitalization near C$28.5 billion and trades on a trailing price-to-earnings multiple of roughly 25.5. The income story remains central: the indicated forward dividend of C$1.67 per share translates to a yield approaching 8.8%, placing TELUS among the higher-yielding large-cap telecom names in North America.
The company’s fourth-quarter earnings call provided the strategic backdrop for that price action. Chief executive Darren Entwistle confirmed he will retire on June 30, 2026, with former CIBC chief Victor Dodig set to assume the role the following day. Entwistle will remain as an advisor through May 2027, a structure designed to preserve continuity as TELUS moves into its next phase.
Operationally, TELUS emphasized customer growth and retention. The company reported 1.1 million combined mobile and fixed net additions for 2025, including a record 716,000 connected device additions. Postpaid mobile phone churn came in at 0.97% for the full year, marking the twelfth consecutive year below the 1% threshold.
In the fourth quarter alone, TELUS posted 377,000 total telecom net additions. Wireless accounted for 337,000, including 287,000 connected devices and 50,000 mobile phones. Wireline net additions reached 40,000, supported by 35,000 internet subscriber gains driven by its PureFibre rollout.
Cash generation remains a central pillar of the investment case. TELUS produced record free cash flow of approximately C$2.2 billion in 2025, up 11% from the prior year. For 2026, management guided to consolidated service revenue growth of 2% to 4%, adjusted EBITDA growth in the same range, capital expenditures of roughly C$2.3 billion, and free cash flow of about C$2.45 billion.
Balance sheet discipline also featured prominently. Net debt to EBITDA ended 2025 around 3.4x, with a target of approximately 3.3x or lower by the end of 2026 and closer to 3x by 2027. The company highlighted multiple debt tenders and hybrid financing actions during the year, aimed at strengthening flexibility while extending average maturities.
Beyond the core telecom business, TELUS pointed to momentum in its health and digital divisions. TELUS Health delivered double-digit revenue and EBITDA growth in the quarter, and management outlined ambitions to expand AI-enabled capabilities across the enterprise, targeting substantial multi-year revenue expansion in that segment.
The dividend remains intact, with management signaling it will maintain the current level while gradually reducing the dividend reinvestment plan discount. The payout ratio is positioned around 70% on a forward basis, and future dividend growth will hinge on sustained free cash flow expansion and continued deleveraging progress.
For investors seeking deeper detail on financial releases and strategic updates, TELUS publishes its official materials through its investor relations portal. With shares now trading closer to the lower end of their annual range, the interplay between high yield, cash flow execution, competitive wireless dynamics and leadership transition will likely define the next phase of market sentiment.
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