TELUS Slashes Dividend 55%, Takes $2.1B Impairment, Guides Lower
TU is trading near its 52-week low of $9.95 (8.1% above the low) on elevated volume (1.9× avg).
Summary
TELUS reported a brutal Q2: a $1.8B net loss driven by a $2.1B non-cash impairment at TELUS Digital, alongside a 55% dividend cut to $0.1875/quarter. The reset is aimed at deleveraging — targeting 3.0x net debt/EBITDA by end-2028 from 3.5x currently — and is expected to save $2.7B cumulatively through 2028. The DRIP discount ends October 1, reducing dilution. Full-year guidance was slashed: service revenue now seen flat to -2%, Adjusted EBITDA -2% to -4%, with free cash flow of ~$1.8B. This follows the Q1 dividend growth pause and a 52% net income drop reported in May. The impairment and guidance cut signal deeper operational challenges, particularly in the digital segment. The dividend reset, while painful, is a clear deleveraging move — but the magnitude of the cut and the impairment will rattle income-focused investors. Watch for asset monetization updates and progress on the leverage target.
At the time of this announcement, TU was trading at $10.76 on NYSE in the Trade & Services sector, with a market capitalization of approximately $17B. The 52-week trading range was $9.95 to $16.72. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: PR Newswire.