Earnings

TELUS reports third quarter net loss on $800 million impairment

The Tip Desk · November 6, 2026 · 2 min read

The telecommunications provider reported a net loss of $660 million for the third quarter of 2026

TELUS Corporation (TU), the Canadian telecommunications provider, reported a net loss of $660 million for the third quarter ended September 30, 2026. The result was driven by a pre-tax, non-cash goodwill impairment of $800 million related to the TELUS Health cash-generating unit. The company said the impairment reflected updated growth expectations, valuation updates during an active divestiture process, and broader market conditions.

Consolidated service revenue declined 1% to $4.5 billion. The company attributed the result to strength in core telecom, specifically in fixed data and mobile network revenues, which was offset by results from TELUS Digital. Mobile network revenue grew 1%, supported by 84,000 net new mobile phone customers and a blended mobile phone churn rate of 1.01%, which the company described as a three-year low. Average revenue per user for mobile phones remained stable at $57.22.

Consolidated Adjusted EBITDA fell 5% to $1.8 billion. The company said the decline reflected lower results from TELUS Digital due to lower client service volumes from two hyperscale clients, as well as the lapping of other one-time items and prior-year real estate gains. When normalizing for those specific items, consolidated Adjusted EBITDA declined 2%. The company noted that the decrease in EBITDA was further influenced by lower operating revenues and increased restructuring and other costs, though these were partially offset by higher other income and cost savings from a reduced team member base, primarily in Europe.

As part of a Transformation Strategy to fund growth in AI infrastructure and core telecom while reducing debt, the company announced an efficiency program. The program targets annualized cash savings of approximately $900 million by the end of 2028 through capital expenditure efficiencies and operational cost and margin improvements. TELUS also stated it is prioritizing the monetization of non-core businesses, specifically TELUS Agriculture & Consumer Goods and TELUS Health, with proceeds intended for debt reduction.

Net debt to Adjusted EBITDA stood at 3.6-times at the end of the quarter. The company committed to reaching a ratio of 3.0-times or lower by the end of 2028 through disciplined capital allocation, asset monetization, and operational improvements.

TELUS reaffirmed its full-year 2026 guidance. The company expects consolidated service revenue growth to be flat to minus 2% and Consolidated Adjusted EBITDA growth to be between minus 2% and minus 4%. Capital expenditures are projected at approximately $2.6 billion, including $75 million for real estate development, while free cash flow is expected to be approximately $1.8 billion.

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