TELUS advances plan to step i’m sick Discounted DRIP in 2026
TELUS pauses dividend enlargement till proportion worth displays enlargement possibilities
VANCOUVER, BC, Dec. 3, 2025 /PRNewswire/ – TELUS Company (“TELUS” or the “Company”) nowadays supplied an up to date mid-term outlook and extra main points of its enhanced capital allocation framework, together with a unutilized multi-year isolated money current enlargement goal. As well as, TELUS will systematically step i’m sick its Discounted DRIP starting in early 2026 and recess its dividend enlargement life proceeding to pay its quarterly dividend at the latest degree of $0.4184 in step with proportion. Those movements increase TELUS’ plan to drop its internet debt to EBITDA leverage ratio1 to roughly 3-times by means of the top of 2027. As of September 30, 2025, the Corporate’s leverage ratio advanced to a few.5-times, supported by means of its a hit Terrion partnership, hybrid observe issuances, alternative strategic partnerships and non-core asset divestitures, and persevered get entry to to TELUS Virtual’s sturdy money current presen. We think additional development to roughly 3.3-times by means of the top of 2026, supported by means of substantial deleveraging tasks, possible hybrid observe choices and significant isolated money current presen.
“TELUS is advancing its capital allocation strategy, supported by strong business fundamentals and significant free cash flow generation,” stated Darren Entwistle, President and CEO of TELUS. “Our confidence in delivering free cash flow growth at a minimum 10 per cent compounded annual growth rate through 2028 reflects our strong financial momentum. Additionally, we are executing on our clearly defined plan to advance and systematically step down the Discounted DRIP beginning in Q1 2026. Importantly, it is our intention to continue paying the dividend at its current nominal level. We will, however, moderate our dividend growth model of 3 to 8 per cent according to our dividend yield, including pausing our dividend growth until such time as our share price and associated dividend yield better reflects the considerable growth prospects of TELUS. These actions will be augmented by a range of opportunities that we are actively pursuing, including a strategic partner for TELUS Health and accelerated monetization of considerable real estate and copper assets. Collectively, these undertakings reinforce our strong progress on deleveraging, with our leverage ratio expected to reach approximately 3.3-times by the end of 2026 as we advance toward our target of approximately 3-times by the end of 2027.”
3-year isolated money current enlargement goal
In step with our crowd goals, TELUS expects to generate roughly $2.15 billion in isolated money current1 in 2025. For the next 3 years, from 2026 via 2028, TELUS expects to develop its isolated money current at a minimal 10 in step with cent compounded annual enlargement price. Our initial goal for isolated money current for 2026 is $2.4 billion, with capital expenditure goal for 2026 at roughly $2.3 billion.
Similtaneously, TELUS’ isolated money current projections translate right into a money dividend protection ratio of roughly 75 in step with cent of isolated money current on a potential foundation, for every of those 3 years, in line with the Corporate’s long-term guiding principle.
Step-down of Discounted DRIP
TELUS plans a step i’m sick of its stream Discounted DRIP (“DDRIP”) of two in step with cent to a cut price of one.75 in step with cent for dividends declared in February and Would possibly 2026, transferring to at least one.5 in step with cent for dividends declared in August and November 2026, and to at least one in step with cent for dividends declared in 2027, with 0 cut price settingup in 2028. The Corporate’s DDRIP has served as a prudent capital control device because it navigated an important funding cycle similar to its PureFibre community manufacture, in addition to over $4 billion in spectrum purchases since 2019. Dividend choices will proceed to be matter to our Board’s review and the decision of our monetary place and outlook on a quarterly foundation.
1 Those are Non-GAAP and alternative specified monetary measures. See Category 11.1 of TELUS’ 3rd quarter 2025 MD&A.
Warning relating to forward-looking statements
This information loose comprises forward-looking statements about anticipated occasions and the monetary and running efficiency of TELUS Company. The phrases TELUS, the Corporate, we, us and our please see TELUS Company and, the place the context of the narrative lets in or calls for, its subsidiaries.
Ahead-looking statements come with any statements that don’t please see historic details. They come with, however don’t seem to be restricted to, statements in the case of our goals and our methods to reach the ones goals, together with the statements on this loose relating to our deleveraging plan and anticipated relief of our internet debt to EBITDA leverage ratio, our stream monetization and partnership tasks, the timing and quantity of the step i’m sick of our Discounted DRIP, our anticipated isolated money current in 2025, and our goals for isolated money current enlargement and ensuing dividend protection ratio projections. Those statements are made pursuant to the “safe harbour” provisions of appropriate securities rules in Canada and the USA Personal Securities Litigation Reform Employment of 1995. Disclosure relating to our monetary goals is gifted to effect helping our traders and others in working out positive key components of our anticipated monetary leads to 2025 and destiny years in addition to our goals, strategic priorities and industry outlook. Such data might not be suitable for alternative functions.
Readers are cautioned to not playground undue reliance on forward-looking statements as plenty of elements may purpose latest destiny efficiency and occasions to vary materially from the ones described within the forward-looking statements. Those statements are matter to dangers and uncertainties and are made in response to our stream suppositions, together with suppositions about destiny financial situations and lessons of motion. Accordingly, this information loose is matter to the disclaimer and the {qualifications} and must be learn at the side of the chance elements and suppositions move ahead in our 2024 annual control’s dialogue and research (“MD&A”), and up to date in our 3rd quarter 2025 MD&A, and in alternative TELUS crowd disclosure paperwork and filings with securities commissions in Canada (on SEDAR+ at sedarplus.ca) and in the USA (on EDGAR at sec.gov). Quarterly dividend choices are made by means of our Board of Administrators in response to our monetary place and outlook.
The forward-looking statements contained on this information loose describe our expectancies on the moment of this information loose and, accordingly, are matter to modify later such moment. Except for as required by means of legislation, TELUS disclaims any aim or legal responsibility to replace or revise forward-looking statements.
About TELUS
TELUS (TSX: T, NYSE: TU) is a world-leading communications generation corporate running in additional than 45 international locations and producing over $20 billion in annual earnings with greater than 20 million buyer connections via our complex suite of broadband products and services for customers, companies and the crowd sector. We’re dedicated to leveraging our generation to permit important human results. TELUS is captivated with striking our consumers and communities first, main the way in which globally in consumer provider excellence and social capitalism. TELUS Condition is bettering greater than 160 million lives throughout 200 international locations and territories via cutting edge preventive medication and well-being applied sciences. TELUS Agriculture & Client Items makes use of virtual applied sciences and information insights to optimize the relationship between manufacturers and customers. TELUS Virtual makes a speciality of virtual buyer reports and future-focused virtual transformations that ship worth for his or her international shoppers. Guided by means of our enduring ‘give the place we are living’ philosophy, TELUS, our staff individuals and retirees have contributed $1.8 billion in money, in-kind contributions, moment and systems together with 2.4 million days of provider since 2000, incomes us the honor of the arena’s maximum giving corporate.
For more info, discuss with telus.com or apply @TELUSNews on X and @Darren_Entwistle on Instagram.
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