TELUS engages TD Securities and Jefferies as financial advisors to support TELUS Health partnership and monetisation strategy

Rhea-AI Summary

TELUS (NYSE: TU) has engaged TD Securities and Jefferies to advise on a monetisation and partnership strategy for TELUS Health.

TELUS Health serves over 160 million lives across 200+ countries and reported year-to-date operating revenue of $1.5 billion, EBITDA of $258 million, and cash flow of $99 million as of Q3 2025. TELUS said the monetisation may include strategic partnerships and is intended to support deleveraging: net debt to adjusted EBITDA is projected at ~3.4x for 2025, with targets of ~3.3x by year-end 2026 and 3.0x by end-2027. TELUS also targets a minimum 10% compounded annual free cash flow growth through 2028.

Positive

• TELUS Health serves over 160 million lives globally
• Year-to-date operating revenue of $1.5 billion as of Q3 2025
• Year-to-date EBITDA of $258 million as of Q3 2025
• Targeting minimum 10% compounded annual free cash flow growth through 2028
• Advisors engaged to pursue strategic partners and monetisation options

Negative

• Year-to-date cash flow of only $99 million as of Q3 2025
• Projected 3.4x net debt to adjusted EBITDA for 2025 indicates leverage
• Monetisation is needed to meet deleveraging targets within the next 18 months

News Market Reaction

+1.52%

1 alert

+1.52% News Effect

On the day this news was published, TU gained 1.52%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Lives served: more than 160 million Countries and territories: over 200 Operating revenue: $1.5 billion +5 more

8 metrics

Lives served more than 160 million Global TELUS Health footprint

Countries and territories over 200 TELUS Health global presence

Operating revenue $1.5 billion TELUS Health YTD as of Q3 2025

EBITDA $258 million TELUS Health YTD as of Q3 2025

Cash flow $99 million TELUS Health YTD as of Q3 2025

Net debt / adjusted EBITDA approximately 3.4-times TELUS projected for 2025

Target leverage 2026 circa 3.3-times or lower TELUS year-end 2026 aim

FCF growth target minimum 10 per cent CAGR Free cash flow through 2028

Market Reality Check

Price: $13.87 Vol: Volume 4,229,934 is 0.7x ...

normal vol

$13.87 Last Close

Volume Volume 4,229,934 is 0.7x the 20-day average of 6,017,348, indicating subdued trading ahead of this news. normal

Technical Shares at $13.15 are trading below the 200-day MA of $15.19, sitting 21.42% under the 52-week high and 4.83% above the 52-week low.

Peers on Argus

TU was down 0.38% ahead of this announcement, while close peers like BCE (-0.26%...

TU was down 0.38% ahead of this announcement, while close peers like BCE (-0.26%), RCI (-1.46%), CHTR (-2.45%), SATS (-3.42%) and VIV (-0.33%) also traded lower. However, the momentum scanner did not flag a coordinated sector move, suggesting the setup was more stock-specific than a broad telecom rotation.

Historical Context

5 past events · Latest: Jan 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 05	Insider buying / NCIB	Positive	-0.2%	Board and executives bought shares and reiterated FCF and leverage targets.
Dec 16	Debt redemption	Positive	-0.5%	Announced full redemption of C$600M 3.75% Notes due March 2026.
Dec 12	Debt tender offers	Positive	+0.3%	Upsized cash tender offers for seven note series with financing condition met.
Dec 09	Analyst recognition	Positive	-0.5%	TELUS Digital named a Leader in NelsonHall 2025 CX Services Transformation.
Dec 04	Debt offerings	Neutral	+1.1%	Priced US$1.5B and CAD$800M junior subordinated notes for tenders and redemption.

Pattern Detected

Recent news has often been constructive (debt management, recognition, insider buying) yet short-term price reactions have frequently been negative or muted, indicating a tendency toward divergence on positive headlines.

Recent Company History

Over the last several weeks, TELUS reported a series of balance sheet and strategic updates. These included junior subordinated notes offerings and upsized cash tender offers to manage debt, plus planned redemption of 3.75% Notes due March 10, 2026. TELUS Digital was named a Leader in a NelsonHall 2025 CX evaluation, and insiders, including the CEO, bought additional shares under a $500 million NCIB. Today’s TELUS Health monetisation strategy and partnership focus aligns with this broader deleveraging and value-creation narrative.

Market Pulse Summary

This announcement outlines TELUS’s plan to monetise TELUS Health, a global platform serving more tha...

Analysis

This announcement outlines TELUS’s plan to monetise TELUS Health, a global platform serving more than 160 million lives with YTD operating revenue of $1.5 billion. Management ties the strategy directly to deleveraging goals, targeting net debt to adjusted EBITDA of about 3.4x in 2025, 3.3x by 2026, and 3.0x by 2027, plus at least 10% free cash flow CAGR through 2028. Investors may watch for partnership structure, valuation, and progress versus these leverage and FCF targets.

Key Terms

ebitda

1 terms

ebitda financial

"operating revenue, EBITDA and cash flow of $1.5 billion, $258 million and $99 million"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

AI-generated analysis. Not financial advice.

TELUS Health's global scale and accelerating commercial momentum present compelling partnership opportunity

VANCOUVER, BC, Jan. 8, 2026 /PRNewswire/ - TELUS Corporation ("TELUS") (TSX: T) (NYSE: TU) today announced it has engaged TD Securities Inc. and Jefferies Securities, Inc. as financial advisors to assist with strategy and timeline for the monetisation of its TELUS Health business, which may include the identification and evaluation of potential strategic partnerships, including evaluation of all partnership structures. TELUS Health has reached a pivotal inflection point – it is an asset of consequence, serving more than 160 million lives across its global footprint of over 200 countries and territories, while generating year-to-date operating revenue, EBITDA and cash flow of $1.5 billion, $258 million and $99 million, respectively, as of the third quarter of 2025.

"Our engagement of TD Securities and Jefferies demonstrates progress toward executing on the commitments we have made to the investment community. We are confident that these advisors will provide the strategic expertise, business network connectivity and business acumen necessary to accelerate still further TELUS Health's considerable development momentum," said Darren Entwistle, President and CEO of TELUS. "TELUS Health is a world-class digital asset with roots in Canada but rapidly expanding its international presence and AI product set, capturing meaningful industry, technology and societal tailwinds to drive a compelling future growth profile for this business. Our monetisation strategy is focused on welcoming a strategic partner that will help us maximise further value creation at TELUS Health by adding complementary skills, customer reach and economic capacity to drive growth and scale."

Darren concluded: "TELUS Health is a key near-term monetisation opportunity and but one of the levers that will support TELUS realising its deleveraging targets in the next 18 months. Indeed, TELUS is progressing ahead of plan, with 2025 net debt to adjusted EBITDA currently projected at approximately 3.4-times, as we aim to reach circa 3.3-times or lower by year-end 2026, and 3.0-times by the end of 2027. The TELUS Health monetisation strategy is part of our disciplined capital allocation framework and long-term orientation that has consistently defined TELUS' approach to value creation for the benefit of the many stakeholders we serve."

The engagement of financial advisors for TELUS Health is fully aligned with TELUS' previously communicated deleveraging strategy, including systematic removal of the discounted DRIP, and strong free cash flow outlook, targeting a minimum 10 per cent compounded annual growth rate through 2028, with TELUS' strong operational and financial performance further supported in the near term by a portfolio of monetisation opportunities.

Forward-Looking Statements

This news release contains forward-looking statements about expected events and the financial and operating performance of TELUS Corporation. The terms TELUS, the Company, we, us and our refer to TELUS Corporation and, where the context of the narrative permits or requires, its subsidiaries.

Forward-looking statements include any statements that do not refer to historical facts. They include, but are not limited to, statements relating to our objectives and our strategies to achieve those objectives, including the statements in this release regarding our TELUS Health monetisation strategy and potential partnerships involving TELUS Health, our deleveraging plan and expected reduction of our net debt to EBITDA leverage ratio, the planned step down of the discount from our dividend reinvestment plan, and our targets for free cash flow growth. These statements are made pursuant to the "safe harbour" provisions of applicable securities laws in Canada and the United States Private Securities Litigation Reform Act of 1995. Disclosure regarding our financial targets is presented for the purpose of assisting our investors and others in understanding certain key elements of our expected financial results in future years as well as our objectives, strategic priorities and business outlook. Such information may not be appropriate for other purposes.

Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future performance and events to differ materially from those described in the forward-looking statements. These statements are subject to risks and uncertainties and are made based on our current assumptions, including assumptions about future economic conditions and courses of action. There can be no assurance that any process initiated by TELUS regarding TELUS Health will result in a transaction, that any transaction will be consummated, or that TELUS will realize any or all of the expected benefits from such transaction. Any transaction will be subject to approval by our board of directors. Accordingly, this news release is subject to the disclaimer and the qualifications and should be read together with the risk factors and assumptions set out in our 2024 annual management's discussion and analysis ("MD&A"), and updated in our third quarter 2025 MD&A, and in other TELUS public disclosure documents and filings with securities commissions in Canada (on SEDAR+ at sedarplus.ca) and in the United States (on EDGAR at sec.gov). Quarterly dividend decisions are made by our Board of Directors based on our financial position and outlook.

The forward-looking statements contained in this news release describe our expectations at the date of this news release and, accordingly, are subject to change after such date. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements.

About TELUS

TELUS (TSX: T, NYSE: TU) is a world-leading communications technology company operating in more than 45 countries and generating over $20 billion in annual revenue with more than 20 million customer connections through our advanced suite of broadband services for consumers, businesses and the public sector. We are committed to leveraging our technology to enable remarkable human outcomes. TELUS is passionate about putting our customers and communities first, leading the way globally in client service excellence and social capitalism. TELUS Health is enhancing more than 160 million lives across 200 countries and territories through innovative preventive medicine and well-being technologies. TELUS Agriculture & Consumer Goods utilizes digital technologies and data insights to optimize the connection between producers and consumers. TELUS Digital specializes in digital customer experiences and future-focused digital transformations that deliver value for their global clients. Guided by our enduring 'give where we live' philosophy, TELUS continues to invest in initiatives that support education, health and community well-being. In 2023, we launched the TELUS Student Bursary, which strives to ensure that every young person in Canada who wants a postsecondary education has the opportunity to pursue one. To date, the program has distributed over $6 million in bursaries to more than 1,600 students and counting. Since 2000, TELUS, our team members and retirees have contributed $1.8 billion in cash, in-kind contributions, time and programs, including 2.4 million days of service—earning TELUS the distinction of the world's most giving company.

For more information, visit telus.com or follow @TELUSNews on X and @Darren_Entwistle on Instagram.

Contact Information:

TELUS Investor Relations
Ian McMillan
ir@telus.com

TELUS Media Relations
Steve Beisswanger
steve.beisswanger@telus.com

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SOURCE TELUS Corporation

FAQ

What advisers did TELUS appoint for the TELUS Health monetisation (TU) announced Jan 8, 2026?

TELUS engaged TD Securities and Jefferies as financial advisors.

How large is TELUS Health in users and revenue according to the Jan 8, 2026 announcement?

TELUS Health serves >160 million lives and reported YTD operating revenue of $1.5 billion as of Q3 2025.

What financial metrics did TELUS disclose for TELUS Health as of Q3 2025?

TELUS disclosed YTD operating revenue $1.5B, EBITDA $258M, and cash flow $99M.

How will the TELUS Health monetisation affect TELUS' leverage targets (TU)?

TELUS said monetisation is a lever to reach deleveraging goals: ~3.4x net debt/adj EBITDA in 2025, targeting ~3.3x by end-2026 and 3.0x by end-2027.

What types of outcomes is TELUS considering for TELUS Health monetisation?

TELUS said it may evaluate potential strategic partnerships and all partnership structures to monetise TELUS Health.

What free cash flow growth is TELUS targeting after monetisation moves?

TELUS is targeting a minimum 10% compounded annual free cash flow growth through 2028.