TELUS advances plan to step indisposed Discounted DRIP in 2026
TELUS pauses dividend enlargement till proportion value displays enlargement possibilities
VANCOUVER, BC, Dec. 3, 2025 /PRNewswire/ – TELUS Company (“TELUS” or the “Company”) lately supplied an up to date mid-term outlook and additional main points of its enhanced capital allocation framework, together with a unused multi-year isolated money stream enlargement goal. As well as, TELUS will systematically step indisposed its Discounted DRIP starting in early 2026 and recess its dividend enlargement age proceeding to pay its quarterly dividend at the latest stage of $0.4184 in step with proportion. Those movements increase TELUS’ plan to leave its internet debt to EBITDA leverage ratio1 to roughly 3-times via the top of 2027. As of September 30, 2025, the Corporate’s leverage ratio advanced to a few.5-times, supported via its a hit Terrion partnership, hybrid be aware issuances, alternative strategic partnerships and non-core asset divestitures, and endured get admission to to TELUS Virtual’s sturdy money stream month. We predict additional development to roughly 3.3-times via the top of 2026, supported via substantial deleveraging tasks, attainable hybrid be aware choices and significant isolated money stream month.
“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 stream enlargement goal
In step with our nation objectives, TELUS expects to generate roughly $2.15 billion in isolated money stream1 in 2025. For the following 3 years, from 2026 thru 2028, TELUS expects to develop its isolated money stream at a minimal 10 in step with cent compounded annual enlargement price. Our initial goal for isolated money stream for 2026 is $2.4 billion, with capital expenditure goal for 2026 at roughly $2.3 billion.
At the same time as, TELUS’ isolated money stream projections translate right into a money dividend protection ratio of roughly 75 in step with cent of isolated money stream on a potential foundation, for each and every of those 3 years, in line with the Corporate’s long-term tenet.
Step-down of Discounted DRIP
TELUS plans a step indisposed of its stream Discounted DRIP (“DDRIP”) of two in step with cent to a bargain 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 bargain creation in 2028. The Corporate’s DDRIP has served as a prudent capital control instrument because it navigated a vital funding cycle homogeneous to its PureFibre community assemble, in addition to over $4 billion in spectrum purchases since 2019. Dividend choices will proceed to be topic to our Board’s evaluation and the choice of our monetary place and outlook on a quarterly foundation.
1 Those are Non-GAAP and alternative specified monetary measures. See Division 11.1 of TELUS’ 3rd quarter 2025 MD&A.
Warning referring to forward-looking statements
This information shed comprises forward-looking statements about anticipated occasions and the monetary and working efficiency of TELUS Company. The phrases TELUS, the Corporate, we, us and our the following TELUS Company and, the place the context of the narrative allows or calls for, its subsidiaries.
Ahead-looking statements come with any statements that don’t the following ancient info. They come with, however don’t seem to be restricted to, statements with regards to our goals and our methods to reach the ones goals, together with the statements on this shed referring to our deleveraging plan and anticipated aid of our internet debt to EBITDA leverage ratio, our stream monetization and partnership tasks, the timing and quantity of the step indisposed of our Discounted DRIP, our anticipated isolated money stream in 2025, and our objectives for isolated money stream enlargement and ensuing dividend protection ratio projections. Those statements are made pursuant to the “safe harbour” provisions of appropriate securities regulations in Canada and america Non-public Securities Litigation Reform Function of 1995. Disclosure referring to our monetary objectives is gifted to bring about helping our traders and others in working out sure key parts of our anticipated monetary leads to 2025 and destiny years in addition to our goals, strategic priorities and trade outlook. Such knowledge might not be suitable for alternative functions.
Readers are cautioned to not playground undue reliance on forward-looking statements as quite a few elements may just motive original destiny efficiency and occasions to range materially from the ones described within the forward-looking statements. Those statements are topic to dangers and uncertainties and are made in keeping with our stream suppositions, together with suppositions about destiny financial situations and classes of motion. Accordingly, this information shed is topic to the disclaimer and the {qualifications} and will have to be learn in conjunction with the danger 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 nation disclosure paperwork and filings with securities commissions in Canada (on SEDAR+ at sedarplus.ca) and in america (on EDGAR at sec.gov). Quarterly dividend choices are made via our Board of Administrators in keeping with our monetary place and outlook.
The forward-looking statements contained on this information shed describe our expectancies on the moment of this information shed and, accordingly, are topic to switch next such moment. Apart from as required via legislation, TELUS disclaims any purpose or legal responsibility to replace or revise forward-looking statements.
About TELUS
TELUS (TSX: T, NYSE: TU) is a world-leading communications era corporate working in additional than 45 nations and producing over $20 billion in annual earnings with greater than 20 million buyer connections thru our complicated suite of broadband products and services for shoppers, companies and the nation sector. We’re dedicated to leveraging our era to allow impressive human results. TELUS is placing our consumers and communities first, main the best way globally in shopper provider excellence and social capitalism. TELUS Condition is improving greater than 160 million lives throughout 200 nations and territories thru leading edge preventive medication and well-being applied sciences. TELUS Agriculture & Shopper Items makes use of virtual applied sciences and information insights to optimize the relationship between manufacturers and shoppers. TELUS Virtual makes a speciality of virtual buyer stories and future-focused virtual transformations that ship worth for his or her world purchasers. Guided via our enduring ‘give the place we are living’ philosophy, TELUS, our crew individuals and retirees have contributed $1.8 billion in money, in-kind contributions, future and techniques together with 2.4 million days of provider since 2000, incomes us the honour of the arena’s maximum giving corporate.
For more info, consult with telus.com or apply @TELUSNews on X and @Darren_Entwistle on Instagram.
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