TELUS Corporation announced that it will redeem C$500 million of its outstanding 2.75% Notes, Series CZ on a pro‑rata basis, with the redemption scheduled for May 8 2026. The proceeds will come from the company’s Fixed‑to‑Fixed Rate Junior Subordinated Notes issued in December 2025, allowing TELUS to refinance short‑term debt with a longer‑dated instrument.
The notes currently carry a C$800 million principal balance, so the partial redemption cuts the company’s debt exposure by 62.5 percent of the outstanding principal. This reduction lowers interest expense and improves the debt‑to‑EBITDA ratio, helping TELUS move toward its target of a 3× leverage ratio by 2027.
The redemption is part of TELUS’s broader debt‑management strategy, which has focused on refinancing high‑interest debt while preserving liquidity for AI and infrastructure initiatives. By replacing short‑term debt with a longer‑dated subordinated note, TELUS maintains financial flexibility for capital allocation without drawing on operating cash flows.
In Q4 2025, TELUS reported operating revenues of C$5.3 billion, down from C$5.4 billion a year earlier, and net income of C$292 million versus C$358 million in the prior year. Full‑year 2025 revenue was C$20,506 million, up from C$20,386 million, indicating steady top‑line growth despite a slight quarterly decline.
Segment performance shows TELUS Health continuing to grow, while TELUS Digital experienced a modest EBITDA decline in Q4 2025. The mix shift toward higher‑margin health and digital services supports the company’s margin expansion strategy, even as legacy telecom segments face pricing pressure.
"In the fourth quarter of 2025, TELUS delivered strong, quality customer growth and robust financial performance, powered by our team's relentless focus on operational excellence," said President and CEO Darren Entwistle in the Q4 2025 earnings release. "Our successful cross‑currency hybrid note offerings reinforce our proactive approach to capital management and commitment to deleveraging, while maintaining the financial flexibility to support our capital allocation priorities," added Executive Vice‑President and Chief Financial Officer Doug French.
Analysts remain divided on the impact of the redemption, with a mix of hold, buy, and sell views reflecting uncertainty about how the debt‑reduction will affect future earnings and capital allocation decisions.
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