Telus offers a leveraged turnaround at a discounted 6.0x–6.5x EV/EBITDA, but value creation depends on dividend-funded deleveraging and recovery in Digital and Health.
Overview
Telus Corporation combines a defensive Canadian telecom franchise with global digital, healthcare and agricultural technology platforms. Telus Communications provides recurring wireless, PureFibre broadband, television, security and enterprise connectivity revenue, while Telus Digital and Telus Health target global enterprise and public-sector markets. Its moat rests on national wireless scale, Western Canada’s proprietary fiber footprint, low postpaid churn, bundling and a recognized Canadian brand valued at approximately US$9.5 billion. However, Q2 2026 exposed a difficult transition: revenue fell 3% year over year to C$4.929 billion, adjusted net income declined 26% to C$254 million, and a C$2.1 billion non-cash Telus Digital impairment produced a C$1.830 billion net loss. **Management reset 2026 service-revenue guidance to flat-to-negative 2%, EBITDA guidance to negative 2% to negative 4%, and free cash flow to approximately C$1.8 billion.** The 55% dividend cut to C$0.75 annualized should save C$2.7 billion through 2028 and support deleveraging. At US$9.72, the stock trades below its 200-day average and offers a probability-weighted five-year target of US$12.83, but execution risk warrants a cautious, turnaround-oriented view.