TELUS Corp announced a 55% reduction in its quarterly dividend to $0.75 per share annually as part of a strategic reset to strengthen its balance sheet. The dividend cut is expected to generate approximately $2.7 billion in cumulative cash savings for debt reduction. The company also revised its 2026 guidance downward, with consolidated service revenue now expected to be flat to down 2% and adjusted EBITDA expected to decline 2% to 4%, compared to prior growth forecasts. Free cash flow for 2026 is now expected to be approximately $1.8 billion, down from the previous outlook of $2.45 billion, due to lower EBITDA, higher CapEx, and restructuring costs. TELUS reported a significant $2.1 billion pre-tax non-cash impairment at TELUS Digital due to accelerated automation of legacy services by hyperscale clients and slower-than-expected AI adoption. The company is advancing its asset monetization program, with active processes for TELUS Health and real estate assets, and a successful precedent set by the $1.26 billion Terion transaction. TELUS is committed to a transformation strategy focused on operational discipline, cost control, and investing in core telecom and digital infrastructure, with a target of 10% minimum compounded annual free cash flow growth off the lower 2026 base.
Telus CorpTELUS slashed its dividend 55% and cut 2026 guidance, with lower EBITDA and free cash flow forecasts.