Bell launches HGTV, Food Network and Discovery on Bell TV; signs deal with Rogers for specialty channel distribution across platforms Français
Rogers Xfinity maintains the distribution of Bell Media's full channel line-up, including USA Network, Oxygen True Crime, and CTV specialty channels
TORONTO, July 29, 2025 /CNW/ - Bell and Rogers today announced an agreement to distribute each other's specialty channels across platforms.
As part of the agreement, Bell Fibe TV and Satellite TV subscribers will now have access to popular Rogers Sports & Media channels HGTV, Food Network, Discovery, Magnolia Network and Investigation Discovery, along with continued access to Bravo. These channels will be available to all customers in free preview beginning today.
In addition, Rogers Xfinity customers will continue to have full access to Bell Media's Specialty portfolio, which includes channels such as USA Network, Oxygen True Crime, and CTV specialty channels, including CTV Comedy Channel, CTV Drama Channel and CTV Sci-Fi Channel. Rogers Xfinity customers continue to have access to HGTV, Food Network, Discovery, Magnolia Network and Investigation Discovery.
Today's announcement reflects a strong commitment to deliver greater value and choice to Canadian consumers. With a diverse program offering including new titles, international hits and great Canadian productions, customers can look forward to a rich and diverse viewing experience.
"Delivering the most compelling content to Canadians is our focus, and this agreement furthers that goal. We are providing customers more choice and ensuring Rogers customers will continue to have access to Bell Media favourites like Highway Thru Hell, Heavy Rescue 401 and Fear Thy Neighbor on our specialty channels. By making these channels more widely available, we're giving viewers more of what they love while strengthening the Canadian broadcasting ecosystem."
- Kevin Cluett, SVP, Distribution and Product Platforms, Bell Media
"It's great that more Canadians will now have access to North America's most recognized and beloved specialty TV brands like HGTV, Food Network and Discovery, and can access new titles and the latest seasons of top shows from Rogers Sports & Media. The premium content we've invested in is unmatched in Canada, offering Canadians the programming they want most, including hits like My Lottery Dream Home, Beat Bobby Flay and Expedition Unknown, along with new series Chasing The West with Drew and Jonathan Scott."
- Hayden Mindell, SVP Television, Rogers Sports & Media
About Bell
Bell is Canada's largest communications company [i], providing advanced broadband Internet, wireless, TV, media and business communication services. Founded in Montréal in 1880, Bell is wholly owned by BCE Inc. To learn more, please visit Bell.ca or BCE.ca.
Through Bell for Better, we are investing to create a better today and a better tomorrow by supporting the social and economic prosperity of our communities. This includes the Bell Let's Talk initiative, which promotes Canadian mental health with national awareness and anti-stigma campaigns like Bell Let's Talk Day and significant Bell funding of community care and access, research and workplace leadership initiatives throughout the country. To learn more, please visit Bell.ca/LetsTalk.
About Rogers
Rogers is Canada's leading communications and entertainment company and its shares are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI). For more information, please visit rogers.com or investors.rogers.com.
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Cision Canada
21 minutes ago
- Cision Canada
TELUS announces partnership with La Caisse who will acquire a 49.9% interest in newly formed Canadian wireless tower infrastructure operator Terrion for $1.26 billion Français
Transaction establishes Terrion as Canada's largest dedicated wireless tower operator enabling wholesale access and co-location in support of national wireless competition in Canada TELUS will retain majority ownership of Terrion as proceeds used to accelerate deleveraging La Caisse brings a combination of international telecom expertise, long-term capital and an active asset management approach to support Terrion's growth strategy VANCOUVER, BC and MONTREAL, Aug. 1, 2025 /CNW/ - TELUS Corporation ("TELUS") today announced that it has entered into a definitive agreement with La Caisse, a global investment group and Canada's second-largest pension fund, who will acquire a 49.9% equity interest in each of Terrion LP ("Terrion") and its general partner, Terrion GP Inc., for approximately $1.26 billion. Terrion, a newly created tower operator headquartered in Montreal, will hold passive macro wireless infrastructure assets, commonly known as cell towers, that TELUS is carving out of its business. TELUS will retain full ownership and control of all active network components and security systems, ensuring continued leadership in mobile network coverage, reliability and superiority. This transaction underscores the company's progress toward robust and long-term sustainable growth, as the proceeds will be used to accelerate deleveraging. The transaction values Terrion at over $2.5 billion and is expected to reduce TELUS' net debt by approximately $1.26 billion, or by approximately 0.17x of TELUS' current net debt-to-EBITDA ratio. The partnership establishes Terrion as Canada's largest dedicated wireless tower operator and enables wholesale access and third party co-location in support of national wireless competition in Canada as part of TELUS' ongoing commitment to bring world leading connectivity to more Canadians. "This transformative partnership unlocks significant value for TELUS shareholders and enhanced connectivity for our customers. Notably, it accelerates our path toward our target net debt-to-EBITDA ratio of 3.0x by 2027, while supporting Canada's global leadership in wireless connectivity," said Darren Entwistle, President and CEO, TELUS. "The establishment of Terrion allows TELUS to focus on our innovative service offerings and next-generation connectivity for the benefit of our customers, while enabling Terrion to specialize in infrastructure development, site management and third-party co-location. Importantly, just as we enable our telecom peers with wholesale access to our mobility network to serve their customers, Terrion will provide an avenue for other wireless carriers to leverage TELUS' infrastructure on a wholesale basis for the betterment of their mobility businesses. Additionally, this transaction is in line with the federal government's objectives of enhancing national connectivity and digital infrastructure, exemplifying the type of large-scale development Canada needs to maintain its competitive advantage in the global digital economy. Importantly, I am thrilled to welcome my long-time colleague, Eros "Woody" Spadotto, back to our TELUS family, as he assumes the exciting and important role of CEO of Terrion. Moreover, I extend my sincere appreciation to the dedicated teams at TELUS and La Caisse who worked diligently, innovatively and collaboratively to bring this important initiative to fruition." Under the terms of a pre-closing reorganization to be completed by TELUS, Terrion will emerge as Canada's largest dedicated tower operator, with roughly 3,000 sites across British Columbia, Alberta, Ontario and Quebec. Having a single company focused on tower expansion and developing new industry-wide partnerships will positively impact all wireless providers' abilities to enhance coverage, capacity and service improvements for Canadians. Terrion will enter into an agreement to lease capacity on the towers to TELUS for an initial period of 8 years, with renewal options thereafter, ensuring seamless access to existing and new towers. TELUS will hold a 50.1% equity interest in Terrion, with La Caisse holding the remaining 49.9%. Aside from existing leases, Terrion will be unlevered at closing. TELUS will consolidate Terrion's results into its financial statements. "With this investment, we are partnering with TELUS to establish Canada's largest dedicated wireless tower operator, an important step in strengthening the country's digital connectivity and mobile network resilience," said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at La Caisse. "La Caisse brings a combination of telecom sector expertise, long-term capital and an active asset management approach to help establish Terrion as a full-fledged player and position it for long-term growth. This landmark transaction complements our existing portfolio of tower companies across the United States, Europe and New Zealand." "We are privileged to partner with La Caisse, a preeminent Canadian pension fund with meaningful tower experience and a strong record of execution that shares our commitment to stewardship and to advancing connectivity and prosperity across Canada," said Eros Woody Spadotto, Chief Executive Officer of Terrion. "With nearly 3,000 sites — including coverage in six of the country's top seven metropolitan areas — we are proud to become Canada's leading dedicated tower company. Together, we're building the digital foundation for a stronger, more connected future — one that's built for excellence, inspired by partnership and driven by innovation." Terrion will deliver high-performance wireless towers and rooftop installations, purpose-built for scalable, multi-tenant use and next-generation technologies that will forge the backbone of Canada's digital future. Terrion will seamlessly blend cutting-edge tower technology, relentless innovation and sleek design to meet the unique challenges of modern connectivity in urban landscapes and rural environments alike. The transaction is subject to regulatory approvals and other customary closing conditions, which are expected to be received before the end of Q3, 2025. Advisors TELUS has retained TD Securities Inc. as its exclusive financial advisor and Osler, Hoskin & Harcourt LLP and Allen Overy Shearman Sterling LLP as its legal advisors. La Caisse has retained Stikeman Elliott as its legal advisor. National Bank Financial Markets has assisted La Caisse on financing matters. Forward-Looking Statements This news release contains forward-looking statements relating to, among other things, future events pertaining to the proposed transaction, including the expected use of proceeds from the proposed transaction, TELUS' relationship with and control over Terrion, the closing of the proposed transaction on the terms described in this news release, the expected timing of closing of the proposed transaction and the realization of expected benefits to TELUS, its shareholders and Canadian consumers. The terms TELUS, 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, including statements relating to the proposed transaction. Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, strategy, target and other similar expressions, or future or conditional verbs such as aim, anticipate, believe, could, expect, intend, may, plan, predict, seek, should, strive and will. 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. By their nature, forward-looking statements are subject to inherent risks and uncertainties and are based on assumptions, including assumptions about future economic conditions and courses of action. These assumptions may ultimately prove to have been inaccurate and, as a result, our actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements or could cause our current objectives, strategies and intentions to change. There is significant risk that the forward-looking statements will not prove to be accurate. 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. Among the factors that could cause actual results to differ materially include, but are not limited to whether the proposed acquisition or any other transaction will be consummated, the possibility for the proposed transaction not to be completed on the terms and conditions set forth in the definitive agreement, or on the timing, contemplated thereby, and that it may not be completed at all, due to a failure to satisfy, in a timely manner or otherwise, conditions to the closing of the proposed transaction or for other reasons, the possibility that TELUS may not realize any or all of the anticipated benefits from the proposed transaction, as well as the other risk factors as set out in our 2024 annual management's discussion and analysis and in other TELUS public disclosure documents and filings with securities commissions in Canada (on SEDAR+ at and in the United States (on EDGAR at Additional risks and uncertainties that are not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation. 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 applicable law, TELUS disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Forward-looking statements are set forth herein for the purpose of giving information about the proposed transaction and its expected impact. Readers are cautioned that such information may not be appropriate for other purposes. The completion of the proposed transaction is subject to closing conditions, termination rights and other risks and uncertainties. Accordingly, there can be no assurance that the proposed transaction will occur, or that it will occur on the terms and conditions contemplated in this news release. The proposed transaction could be modified, restructured or terminated. There can also be no assurance that the benefits expected to result from the proposed transaction will be fully realized. This cautionary statement qualifies all of the forward-looking statements in this document. 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. Our TELUS Health business is enhancing more than 157 million lives across 200 countries and territories through innovative preventive medicine and well-being technologies. Our TELUS Agriculture & Consumer Goods business utilizes digital technologies and data insights to optimize the connection between producers and consumers. Guided by our enduring 'give where we live' philosophy, 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 since 2000, earning us the distinction of the world's most giving company. We're always building Canada. For more information, visit or follow @TELUSNews on X and @Darren_Entwistle on Instagram. About La Caisse At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long-term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec's economic development. As a global investment group, we are active in the major financial markets, private equity, infrastructure, real estate and private credit. As at December 31, 2024, La Caisse's net assets totalled CAD $473 billion. For more information, visit or consult our LinkedIn or Instagram pages. For more information, please contact: TELUS Investor Relations Robert Mitchell TELUS Media Relations Steve Beisswanger [email protected] La Caisse Media Relations + 1 514 847-5493 [email protected] SOURCE TELUS Corporation
Cision Canada
21 minutes ago
- Cision Canada
TELUS reports operational and financial results for second quarter 2025 Français
Delivered industry-leading total Mobile and Fixed customer growth of 198,000, driven by strong demand for our superior bundled services and strategic expansion of TELUS PureFibre connectivity Achieved strong TTech, including TELUS health segment, Operating Revenue and Adjusted EBITDA growth of 2 and 4 per cent, respectively, demonstrating the strength of our diversified portfolio of businesses Consolidated free cash flow higher by 11 per cent Reaffirmed our 2025 Financial Targets: TTech, including TELUS health segment, Operating Revenues and Adjusted EBITDA growth of 2 to 4 per cent and 3 to 5 per cent, respectively; Consolidated Capital Expenditures, excluding real estate, of approximately $2.5 billion; and Free Cash Flow of approximately $2.15 billion Announced definitive agreement with La Caisse who will acquire a 49.9 per cent interest in newly formed wireless tower infrastructure operator Terrion for $1.26 billion, monetizing our world class portfolio of tower infrastructure; Targeting circa 3.55-times net debt to EBITDA outcome exiting 2025 VANCOUVER, BC, Aug. 1, 2025 /CNW/ - TELUS Corporation today released its unaudited results for the second quarter of 2025. Consolidated operating revenues and other income increased by 2 per cent over the same period a year ago to $5.1 billion. This growth was driven by higher service revenues in our TTech and TELUS Health reportable segments, as well as higher external revenues in our TELUS Digital reportable segment. See ' Second Quarter 2025 Operating Highlights' within this news release for a discussion on TTech, TELUS Health and TELUS Digital results. "In the second quarter of 2025, our team's commitment to operational excellence has empowered TELUS to deliver another quarter of industry-leading customer growth and strong financial performance," said Darren Entwistle, President and CEO. "These results demonstrate the strength of our leading portfolio of bundled offerings across Mobile and Home, and the strategic expansion of TELUS PureFibre connectivity to Canadian homes and businesses, including in Ontario and Quebec, where we are delivering much more than just affordable internet—providing Canadians with differentiated and unique competitive services. This includes new and advanced digital services such as AI-fuelled smart home energy management, next-generation healthcare, affordable security and exciting entertainment solutions that are driving innovation across all sectors of the economy and our societies, propelling our productivity and quality of life as a nation. Notably, we achieved total mobile and fixed customer growth of 198,000, driven by mobile phone and connected device additions of 167,000, alongside fixed customer additions of 31,000. The dedication of our team in delivering customer service excellence contributed to continued strong loyalty results once again this quarter. Notably, postpaid mobile phone churn was 0.90 per cent, as we realize our twelfth consecutive year below the one per cent level." "Our TELUS Health business continues to demonstrate strong operating momentum globally, achieving operating revenue and Adjusted EBITDA growth of 16 and 29 per cent, respectively, while global lives covered now stand at 157 million, inclusive of Workplace Options. This growth was fueled by strategic investments, product enhancements, expanding sales channels including cross selling, and effective cost management through technology and synergy optimization - underpinned by a deeply rooted dedication to putting customers first. Since acquiring LifeWorks, we have realized $400 million in combined annualized synergies - $322 million from cost efficiencies and $78 million from successful cross-selling strategies. We remain on track to meet our goal of $427 million by the end of 2025. We are excited to accelerate this momentum through 2025 and beyond." Darren further commented, "The consistency of our results reflects our dedicated team's passion for delivering superior customer experiences over our world-leading wireless and PureFibre broadband networks. Our significant broadband network investments drive extensive socio-economic benefits for Canadians in communities from coast-to-coast while enabling continued advancement in our operational, financial and customer experience performance. Looking ahead, our financial position and operational outlook remains strong, supported by continued EBITDA growth and stable capital expenditures, resulting in meaningful free cash flow expansion. This will be enhanced by significant value creation in our growth businesses and asset monetization opportunities. Indeed, today, we announced a definitive agreement with La Caisse, subject to closing conditions and regulatory approvals, who will acquire a 49.9 per cent interest in newly formed Canadian wireless tower infrastructure operator Terrion for $1.26 billion. This initiative will monetize our world class portfolio of tower infrastructure while accelerating balance sheet deleveraging, including achieving a leverage target ratio of 3-times net debt to EBITDA by 2027, while gradually turning off our discounted dividend reinvestment program over the same time period." "In June, we held our second annual gala benefiting the TELUS Friendly Future Foundation", continued Darren. "Thanks to the generosity of the 860 guests in attendance, we raised more than $2.625 million in sponsorships, cash donations and in-kind contributions to support the Foundation's TELUS Student Bursary fund. Moreover, in June, we launched a transformative $2 million partnership with the CIBC Foundation, which will equip even more future leaders with the essential tools to realize their dream of post-secondary education, while also effecting meaningful change within their communities. Since its launch in 2023, the Foundation has provided over $4 million in TELUS Student Bursaries, helping 1,025 students from underserved communities reach their full potential." Doug French, Executive Vice-president and CFO said, "Our second quarter 2025 results reflect our strategic operational excellence. Within TTech, including our TELUS health segment, Operating Revenues increased by 2 per cent and Adjusted EBITDA grew by 4 per cent, in line with our full year targets that we are reiterating today. These results reflect the benefits from our ongoing focus on cost efficiency and effectiveness, improving health margins, as well as gains from our real estate and copper monetization programs. Additionally, we generated free cash flow of $535 million, up 11 per cent. This underscores our solid financial foundation to support sustainable growth and our transparent capital allocation priorities." "Additionally, our financial position remains robust with our leverage ratio declining to 3.7-times, down 20 basis points sequentially from the first quarter of 2025. As we progress through 2025 and beyond, we expect continued improvements to our leverage ratio, targeting a net debt to EBITDA ratio of 3-times by 2027, alongside removing the discount associated with our dividend reinvestment program. In June, we successfully raised $2.85 billion in hybrid debt securities across multiple offerings in Canada and the United States, building upon the $1.6 billion raised in April. These financings support deleveraging, with 50 per cent of the proceeds receiving equity credit treatment by credit rating agencies. In July, we completed our debt tender to retire approximately $1.8 billion of debt securities in Canada and the United States for a cash purchase amount of under $1.6 billion, capturing approximately $230 million of reduced future cash debt obligations. Our continued organic operational growth, including EBITDA expansion, declining capital intensity and free cash flow growth, combined with ongoing asset monetization initiatives, will further strengthen our balance sheet. Notably, the monetization of our wireless towers will reduce our leverage ratio by 0.17-times on a pro-forma basis, accelerating our path toward our 2027 target. Including this transaction, we expect to achieve a leverage ratio of circa 3.55-times exiting 2025, as we progress towards our 2027 target of 3-times." "Looking ahead through 2025, we are well-positioned to drive strong, sustainable performance as we maintain our focus on profitable growth. Our strategic initiatives in customer expansion, product innovation, and service enhancement will further strengthen our market position and drive long-term value creation. We continue leveraging our formidable strengths to deliver unparalleled value for our stakeholders, firmly positioning TELUS as an industry leader in operational excellence and financial resilience," concluded Doug. In the quarter, TELUS recognized an impairment of goodwill of $500 million as it relates to TELUS Digital. TELUS recognized a net loss of $245 million, however, as this impairment was in respect of TELUS Digital, net income for TELUS shareholders was largely offset by the impairment (after deducting the non-controlling interest share) and basic EPS was zero. These decreases were partially offset by the after-tax impacts of a decrease in Financing costs, largely driven by the reclassification of unrealized changes in the forward element of virtual power purchase agreements from Financing costs to Other comprehensive income. When excluding certain costs and other adjustments (see ' Reconciliation of adjusted Net income ' in this news release), adjusted net income of $342 million decreased by 7 per cent over the same period last year, while adjusted basic EPS of $0.22 was down 12 per cent over the same period last year. Adjusted net income is a non-GAAP financial measure and adjusted basic EPS is a non-GAAP ratio. For further explanation of these measures, see ' Non-GAAP and other specified financial measures ' in this news release. Compared to the same period last year, consolidated EBITDA increased by $3 million to approximately $1.7 billion. In addition to the growth drivers discussed within Adjusted EBITDA below, EBITDA was also partially offset by higher restructuring and other costs of $12 million in the quarter, primarily related to TELUS Digital's restructuring program in one of its European delivery locations. Adjusted EBITDA increased by 1 per cent to more than $1.8 billion reflecting varied results across our reportable segments. TTech saw Adjusted EBITDA growth of 3 per cent in the second quarter of 2025. This growth was driven by: (i) cost reduction efforts, including workforce reductions and increased utilization of TELUS Digital resulting in competitive benefits given the lower cost structure in TELUS Digital, as well as savings in administrative and marketing costs; (ii) mobile, residential internet, security and automation, and TV subscriber growth; and (iii) higher Other income. These factors were partially offset by: (i) lower mobile ARPU; (ii) lower mobile equipment margins; (iii) an increase in bad debt expense; (iv) declining fixed legacy voice and TV margins; (v) lower agriculture and consumer goods margins due to the divestiture of non-core assets; and (vi) increased costs of subscription-based licenses and cloud usage. TELUS Health experienced a 29 per cent increase in Adjusted EBITDA in the second quarter of 2025, driven by revenue growth and cost reduction efforts, as well as continued realization of acquisition integration synergies. TELUS Digital Adjusted EBITDA decreased by 26 per cent in the second quarter of 2025, primarily due to non-recurring net reversals of provisions related to business combinations. In the second quarter of 2025, we added 198,000 net customer additions, down 134,000 over the same period last year due to decelerating growth in the Canadian population from slowing immigration, in addition to a greater emphasis on premium and profitable loading, competitive pressures and changing customer preferences. Please see ' Second Quarter 2025 Operating Highlights ' within this news release for additional information with regards to mobility and fixed net additions. Our total TTech subscriber base of 20.5 million is up 5 per cent over the last twelve months, reflecting a 2 per cent increase in our mobile phones subscriber base to 10.2 million and an 18 per cent increase in our connected devices subscriber base to 4.0 million. Additionally, our internet connections grew by 2 per cent over the last twelve months to over 2.7 million customer connections, our TV connections grew by 6 per cent over the last twelve months to over 1.4 million customer connections, and our security and automation subscriber base increased by 4 per cent to more than 1.1 million customer connections. Our residential voice subscriber base declined by 5 per cent to 1.0 million. In TELUS Health, as of the end of the second quarter of 2025, healthcare lives covered were 157.1 million, an increase of 82 million over the past 12 months, primarily due to the addition of 79.3 million healthcare lives covered from our second quarter acquisition of Workplace Options and the prospective change to the definition of healthcare lives covered to include clients who utilize TELUS Health services indirectly. Organically, healthcare lives covered increased mainly reflecting robust growth in our employee and family assistance programs (EFAP) across all of our operating regions, in addition to continued demand for virtual solutions. Cash provided by operating activities of $1.2 billion decreased by 16 per cent in the second quarter of 2025, primarily driven by other working capital changes and increased income taxes paid. Free cash flow of $535 million increased by 11 per cent compared to the same period a year ago primarily reflecting the timing related to device subsidy repayments and associated revenue recognition and our TELUS Easy Payment ® device financing program. Consolidated capital expenditures of $678 million decreased by $13 million or 2 per cent in the second quarter of 2025. Capital expenditures in support of TTech operations of $570 million decreased by $20 million in the second quarter of 2025 and primarily resulted from the completion of certain projects for wireless and fibre network builds and the planned transition of fibre builds to a partner-build model for brownfield and new growth markets. Capital expenditures in support of TTech real estate development of $21 million decreased by $2 million in the second quarter of 2025, driven by the substantial completion of an investment property at the end of 2024. TELUS Health capital expenditures of $59 million increased by $9 million in the second quarter of 2025, driven by increased investments to support clinic expansions and business acquisitions. Our TELUS Health capital expenditures continue to invest in the expansion of our digital health product offerings and capabilities, as well as support for business integration. TELUS Digital capital expenditures of $43 million increased by $3 million in the second quarter of 2025, primarily driven by increased investments in site builds in the Asia-Pacific and Europe regions, as well as increased investments in our digital solutions service line. As at June 30, 2025, our 5G network covered more than 32.6 million Canadians, representing over 88 per cent of the population. Consolidated Financial Highlights Notations used in the tables above: n/m – not meaningful. (1) These are non-GAAP and other specified financial measures, which do not have standardized meanings under IFRS Accounting Standards and might not be comparable to those used by other issuers. For further definitions and explanations of these measures, see ' Non-GAAP and other specified financial measures ' in this news release. (2) Capital expenditures include assets purchased, excluding right-of-use lease assets, but not yet paid for, and consequently differ from cash payments for capital assets, excluding spectrum licences, as reported in the interim consolidated financial statements. Refer to Note 31 of the condensed interim consolidated financial statements for further information. (3) The sum of active mobile phone subscribers, connected device subscribers, internet subscribers, residential voice subscribers, TV subscribers, and security and automation subscribers, measured at the end of the respective periods based on information in billing and other source systems. Effective January 1, 2025, we adjusted our mobile phone subscriber base to remove 30,000 subscribers on a prospective basis, following an in-depth review of customer accounts. Effective January 1, 2025, we adjusted our internet subscriber base to remove 66,000 subscribers on a prospective basis, due to a review of our subscriber base. (4) During the second quarter of 2025, we added 79.3 million healthcare lives covered as a result of the Workplace Options acquisition and a prospective change to the definition of healthcare lives covered to include clients who utilize TELUS Health services indirectly. Second Quarter 2025 Operating Highlights TELUS technology solutions (TTech) TTech operating revenues (arising from contracts with customers) increased by $4 million in the second quarter of 2025, primarily reflecting an increase in fixed data services revenues, partially offset by decreases in mobile network revenue, mobile equipment and other service revenues, fixed voice services revenues, fixed equipment and other service revenues, and agriculture and consumer goods services, as described below. TTech EBITDA increased by $76 million or 5 per cent in the second quarter of 2025, while TTech Adjusted EBITDA increased by $43 million or 3 per cent, reflecting: (i) cost reduction efforts, including workforce reductions, and increased adoption of TELUS Digital's solutions across TTech operations, resulting in competitive benefits given the lower cost structure in TELUS Digital, as well as reductions in marketing and administrative costs; (ii) mobile, residential internet, security and automation, and TV subscriber growth; and (iii) higher Other income. These factors were partially offset by: (i) lower mobile phone ARPU; (ii) lower mobile equipment margins; (iii) an increase in bad debt expense; (iv) declining fixed legacy voice and TV margins; (v) lower agriculture and consumer goods margins due to the divestiture of non-core assets; and (vi) increased costs of subscription-based licences and cloud usage. Mobile products and services Mobile network revenue decreased by $11 million or 1 per cent in the second quarter of 2025, largely due to lower mobile phone ARPU, partially offset by growth in our mobile phone subscriber base and an increase in IoT connections. Mobile equipment and other service revenues decreased by $5 million or 1 per cent in the second quarter of 2025 due to a reduction in contracted volumes, partly offset by the impact of higher-value smartphones in the sales mix. TTech mobile products and services direct contribution decreased by $46 million or 3 per cent in the second quarter of 2025, largely reflecting the impact of lower mobile phone ARPU and lower mobile equipment margin from lower contracted volumes and intense competitive price discounting. These factors were partially offset by mobile phone subscriber growth. Mobile phone ARPU was $56.58 in the second quarter of 2025, reflecting a decrease of $1.91 or 3.3 per cent attributable to the adoption of base rate plans with lower prices in response to more intense marketing and promotional price competition targeting both new and existing customers, and a decline in overage and roaming revenues, partially offset by higher IoT revenue. We are seeing a continuing increase in the adoption of unlimited data and Canada-U.S.-Mexico plans, which provide higher and more stable ARPU on a monthly basis while also giving customers cost certainty in lower roaming fees to the U.S. and Mexico, and lower data overage fees, respectively. Mobile phone gross additions were 376,000 in the second quarter of 2025, reflecting a decrease of 39,000, driven by decelerating growth in the Canadian population from slowing immigration, in addition to a greater emphasis on premium and profitable loading. Mobile phone net additions were 55,000 in the second quarter of 2025, reflecting a decrease of 46,000, driven by lower mobile phone gross additions. Our mobile phone churn rate was 1.06 per cent in the second quarter of 2025, compared to 1.07 per cent in the second quarter of 2024, largely as a result of our ongoing focus on customer retention and network quality, along with successful promotions and bundled offerings. These factors were partially offset by customer switching decisions in response to more intense marketing and promotional price competition. Connected device net additions were 112,000 in the second quarter of 2025 a decrease of 49,000, attributable to higher deactivations in IoT connections from customers in the transportation and connectivity industries, partially offset by higher gross additions. Fixed products and services Fixed data services revenues increased by $35 million or 3 per cent in the second quarter of 2025, driven by growth in our internet and security and automation subscriber bases, which also saw higher revenue per customer, and growth in our managed services business. These factors were partially offset by lower TV revenues, reflecting an increase in the mix of customers selecting smaller TV combination packages and technological substitution. Fixed voice services revenues decreased by $8 million or 4 per cent in the second quarter of 2025, reflecting the ongoing decline in legacy voice revenues as a result of technological substitution and shifts in consumer purchasing decisions. This decline was partially mitigated by the success of our bundled product offerings and our retention efforts. Fixed equipment and other service revenues were relatively unchanged in the second quarter of 2025. TTech fixed products and services direct contribution decreased by $19 million or 2 per cent in the second quarter of 2025, primarily driven by legacy voice and TV margins attributable to technological substitution as well as lower agriculture and consumer goods margins primarily from the divestiture of non-core assets. This was partially offset by continued internet and security and automation subscriber growth and higher revenue per customer. Internet net additions were 27,000 in the second quarter of 2025, a decrease of 6,000, reflecting higher churn and heightened competitive pressures, partially offset by higher gross loading with strength in our fibre optic offerings. TV net additions were 12,000 in the second quarter of 2025, a decrease of 13,000, largely reflecting higher churn and changing customer preferences, partly offset by higher gross loading in our diverse offerings, including Stream+. Security and automation net additions were 9,000 in the second quarter of 2025, a decrease of 11,000, reflecting higher churn related to shifts in consumer purchasing decisions and lower activations. Residential voice net losses were 17,000 in the second quarter of 2025, an increased loss of 9,000, attributable to lower gross additions. These were moderated by our commitment to customer retention, with low churn reflecting successful loss mitigation. Agriculture and consumer goods services Agriculture and consumer goods services revenues decreased by $6 million or 7 per cent in the second quarter of 2025, primarily attributable to the divestiture of non-core assets, partially offset by improved organic growth across multiple revenue streams. TELUS Health Health services revenues increased by $72 million or 16 per cent in the second quarter of 2025, driven by: (i) global business acquisitions in employer solutions, including the acquisition of Workplace Options in May 2025; (ii) growth in payvider, with strong performance in health benefits management services, collaborative health records and virtual pharmacy solutions; and (iii) organic growth in employer solutions. This was offset by a decline in retirement and benefits solutions. Health equipment revenues decreased by $1 million in the second quarter of 2025, due to lower revenue from a pharmacy hardware upgrade program in our payvider vertical. TELUS Health direct contribution increased by $33 million or 14 per cent in the second quarter of 2025, reflecting: (i) revenue growth as described above; and (ii) cost reduction efforts, driven by digital transformation programs which have lowered our cost to serve. TELUS Health EBITDA increased by $35 million or 72 per cent in the second quarter of 2025 while Adjusted EBITDA increased by $21 million or 29 per cent in the second quarter of 2025, reflecting revenue growth and cost reduction efforts as described above, as well as continued realization of acquisition integration synergies. These factors were partially offset by higher indirect costs related to: (i) global business acquisitions; and (ii) the scaling of our digital capabilities, inclusive of increased subscription-based licences, contractor and cloud usage costs. The difference in growth rates between EBITDA and Adjusted EBITDA in the second quarter of 2025 is attributable to lower restructuring and other costs. Healthcare lives covered were 157.1 million as of the end of the second quarter of 2025, an increase of 82.0 million over the past 12 months, primarily due to the addition of 79.3 million lives covered from our second quarter acquisition of Workplace Options and the prospective change to the definition of healthcare lives covered to include clients who utilize TELUS Health services indirectly. Organically, healthcare lives covered increased mainly reflecting robust growth in our EFAP across all of our operating regions, in addition to continued demand for virtual solutions. TELUS Digital TELUS Digital operating revenues (arising from contracts with customers) increased by $56 million or 8 per cent in the second quarter of 2025, primarily attributable to: (i) the strengthening of both the U.S. dollar and the European euro against the Canadian dollar, which resulted in a favourable foreign currency impact on our TELUS Digital operating results; (ii) growth in services provided to existing clients, including certain social media clients; and (iii) new clients added since the same period in the prior year. These increases were partially offset by lower revenues earned from certain technology and eCommerce clients. Revenue from our tech and games industry vertical increased by $44 million or 12 per cent in the second quarter of 2025, primarily due to higher revenue from certain social media clients and certain other technology clients, partially offset by a decrease in revenue from other clients within this industry vertical. Revenue from our communications and media industry vertical increased by $26 million or 12 per cent in the second quarter of 2025, driven primarily by more services provided to the TTech segment, partially offset by lower service revenue from certain other telecommunication clients. Revenue from our eCommerce and fintech industry vertical decreased by $11 million or 12 per cent in the second quarter of 2025, due to a decline in service volumes. Revenue from our healthcare industry vertical increased by $6 million or 9 per cent in the second quarter of 2025, primarily due to additional services provided to the TELUS health segment and certain other healthcare clients. Revenue from our banking, financial services and insurance industry vertical increased by $5 million or 9 per cent in the second quarter of 2025, primarily due to growth from a variety of North American and global financial services clients. All other verticals increased by $3 million or 3 per cent in the second quarter of 2025, due to higher revenue across various client accounts. TELUS Digital EBITDA decreased by $105 million or 63 per cent in the second quarter of 2025 while Adjusted EBITDA decreased by $46 million or 26 per cent. The decrease in Adjusted EBITDA in the second quarter was due to Other income generated in the prior year's comparative periods associated with a reduction of our provisions for written put options, as well as an increase in salaries and benefits and goods and services purchased outpacing revenue growth. Dividend Declaration The TELUS Board of Directors declared a quarterly dividend of $0.4163 per share on the issued and outstanding Common Shares of the Company payable on October 1, 2025 to holders of record at the close of business on September 10, 2025. This quarterly dividend reflects an increase of 7 per cent from the $0.3891 per share dividend declared one year earlier and consistent with our multi-year dividend growth program. When a dividend payment date falls on a weekend or holiday, the payment shall be made on the next succeeding day that is a business day. Corporate Highlights TELUS makes significant contributions and investments in the communities where team members live, work and serve and to the Canadian economy on behalf of customers, shareholders and team members. These include: Paying, collecting and remitting more than $1.3 billion in the first half of 2025 to federal, provincial and municipal governments in Canada consisting of corporate income taxes, sales taxes, property taxes, employer portion of payroll taxes and various regulatory fees. Since 2000, we have remitted approximately $39 billion in these taxes. Investing approximately $1.3 billion in capital expenditures primarily in communities across Canada in the first half of 2025 and over $57 billion since 2000. Disbursing spectrum renewal fees of approximately $59 million to Innovation, Science and Economic Development Canada in the first half of 2025. Since 2000, our total tax and spectrum remittances to federal, provincial and municipal governments in Canada have totalled more than $46 billion. Spending $4.8 billion in total operating expenses in the first half of 2025, including goods and services purchased of approximately $3.2 billion. Since 2000, we have spent $174 billion and $118 billion, respectively, in these areas. Generating a total team member payroll of $1.7 billion in the first half of 2025, including wages and other employee benefits, and payroll taxes of more than $122 million. Since 2000, total team member payroll totals $66 billion. Returning approximately $1.2 billion in dividends declared through July 2025 to individual shareholders, mutual fund owners, pensioners and institutional investors. Since 2004, we have returned more than $28 billion to shareholders through our dividend and share purchase programs, including over $23 billion in dividends and $5.2 billion in share repurchases, representing approximately $19 per share. Community Highlights Giving Back to Our Communities In May 2025, we celebrated the 20th anniversary of our annual TELUS Days of Giving inspiring 90,000 TELUS team members, retirees, family and friends to volunteer across 33 countries in support of our local communities. Over the past two decades, our TELUS family has performed more than one million acts of giving worldwide. Our Community Boards entrust local leaders to make recommendations on the allocation of grants in their communities. These grants support registered charities that offer health, education or technology programs to help youth. With the launch of our newest TELUS India Community Board in March, we currently have 20 TELUS Community Boards, 13 operating in Canada and seven internationally. During the second quarter, our India Community Board awarded its inaugural grants, totalling US$200,000 in cash donations supporting 11 projects delivered by non-government and grassroots organizations. Since 2005, our 20 TELUS Community Boards and the TELUS Friendly Future Foundation ® (the Foundation) have supported 35.2 million youth in need across Canada and around the world, by granting more than $140 million in cash donations to 11,000 charitable initiatives. Working in close partnership with the TELUS Community Boards in Canada, the Foundation distributes grants to charities that promote education, health and well-being for youth across the country. In addition, through the TELUS Student Bursary program, the Foundation provides bursaries for post-secondary students who face financial barriers and are committed to making a difference in their communities. During the first six months of 2025, the Foundation provided support to over 756,600 youth by granting $4.8 million in cash donations and bursaries to more than 350 Canadian registered charities, community partners and projects. Since its inception in 2018, the Foundation has directed $62.4 million in cash donations to our communities and in bursary grants, helping 17.2 million youth reach their full potential. For more information about the TELUS Student Bursary program, please visit In June 2025, the Foundation hosted its second annual fundraising gala, with 860 guests in attendance, raising more than $2.625 million in sponsorships, cash donations and in-kind contributions to support the Foundation's TELUS Student Bursary program. The TELUS Indigenous Communities Fund offers grants for Indigenous-led social, health and community programs. In the first half of 2025, the Fund allocated $100,000 in cash donations to Indigenous-led organizations. Since its inception in 2021, the Fund has distributed more than $1 million in cash donations to more than 45 community programs supporting food security, education, cultural and linguistic revitalization, wildfire relief efforts, and the health, mental health and well-being of Indigenous Peoples across Canada. During the second quarter of 2025, we continued to support our communities in times of crises, including the Vancouver Filipino community impacted by the Lapu Lapu tragedy and those communities impacted by wildfires across several provinces. In total, TELUS, our team members and customers, as well as TELUS Friendly Future Foundation, have enabled $50,000 in cash and in-kind donations. Empowering Canadians with Connectivity Throughout the first half of 2025, we continued to leverage our TELUS Connecting for Good ® programs to support marginalized individuals by enhancing their access to both technology and healthcare, as well as our TELUS Wise ® program to improve digital literacy and online safety knowledge. Since the launch of these programs, they have provided support for over 1.45 million Canadians. During the first six months of 2025, we welcomed 5,600 new households to our Internet for Good ® program. Since we launched the program in 2016, we have connected 69,000 households, making low-cost high-speed internet available to 216,800 low-income seniors and members of low-income families, persons with disabilities, government-assisted refugees and youth leaving foster care. Our Mobility for Good ® program offers free or low-cost smartphones and mobility plans to youth aging out of foster care, low-income seniors and families across Canada, as well as government-assisted refugees and Indigenous women at risk of, or experiencing violence. During the first half of 2025, we added 5,000 marginalized individuals to the program. Since we launched Mobility for Good in 2017, the program has provided support for 66,800 people. Through TELUS Health for Good ®, we are removing healthcare barriers for low-income and marginalized Canadians, facilitating over 41,000 patient visits and counselling sessions over the first six months. Since the program launched in 2014, our mobile health clinics have delivered over 300,000 primary care and outreach visits across 27 Canadian communities. We have also provided more than 2,600 free counselling sessions through TELUS Health MyCare TM and connected nearly 1,400 low-income seniors with discounted access to TELUS Health Medical Alert personal security devices. Throughout the first half of 2025, our Tech for Good program provided access to personalized assessments, recommendations and training on mobile devices, computers, laptops and related assistive technology and/or access to discounted mobile plans for 2,400 Canadians living with disabilities, enabling them to make improvements in their quality of life and independence. Since its inception in 2017, we have provided support for 15,000 individuals in Canada who are living with disabilities, through the program and/or the TELUS Wireless Accessibility Discount. During the first six months of 2025, over 71,000 individuals in Canada and around the world participated in virtual TELUS Wise workshops and events to improve their digital literacy and online safety knowledge, bringing the total cumulative number of participants to more than 871,000 since the program launched in 2013. Leading in ESG and Sustainability Throughout the first six months of 2025, we maintained our global leadership in environmental stewardship and sustainability. Key milestones over the past quarter included: Holding our third annual Buy One Plant One promotion with Android, planting 50,000 trees tied to our mobility sales. Expanding our Tree Tote program in over 200 corporate stores nationwide. Each reusable tote bag is made from recycled materials and a tree is planted with purchase. Partnering with Piikani Nation to restore the Náápi Otsíthaatan (Oldman River) watershed, with over one million seeds collected this spring with representatives of the community in preparation for future planting seasons. Producing 115 Gigawatt hours (GWh) of clean electricity in the second quarter of 2025 through our renewable energy virtual power purchase agreements, exceeding forecasted quarterly production. Publishing our 2025 Modern slavery report in May 2025. Global Social Capitalism Awards and Recognition In April 2025, we were recognized as one of the top 10 most valuable brands in Canada for the fourth consecutive year. Additionally, we were the most valuable Canadian telecom brand for the second consecutive year. In its Canada 100 2025 Ranking report, Brand Finance valued our 2025 brand at $12.1 billion (US$9.0 billion), up 3 per cent year-over-year, representing our highest third-party brand valuation ever. In June 2025, we were ranked as the most sustainable North American telecommunications company by TIME Magazine and Statista on the World's Most Sustainable Companies list. In June 2025, we were named to the Corporate Knights Best 50 Corporate Citizens in Canada for the 19th time. In June 2025, we were recognized by Schneider Electric as one of five recipients of their 2024 Sustainability Impact Awards. Access to quarterly results information Interested investors, the media and others may review this quarterly earnings news release, management's discussion and analysis, quarterly results slides, audio and transcript of the investor webcast call, supplementary financial information at TELUS' second quarter 2025 conference call is scheduled for Friday, August 1, 2025 at 12:30 pm ET (9:30 am PT) and will feature a presentation followed by a question and answer period with investment analysts. Interested parties can access the webcast at An audio recording will be available approximately 60 minutes after the call until November 1 2025 at 1-855-201-2300. Please quote conference access code 32359# and playback access code 32359#. An archive of the webcast will also be available at and a transcript will be posted on the website within a few business days. Caution regarding 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, our expectations regarding trends in the telecommunications industry (including demand for data and ongoing subscriber base growth), and our financing plans (including our planned leverage ratio in 2027, our multi-year dividend growth program and our approach to reducing the discount offered under our dividend re-investment plan). Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, strategy, target and other similar expressions, or future or conditional verbs such as aim, anticipate, believe, could, expect, intend, may, plan, predict, seek, should, strive and will. 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. By their nature, forward-looking statements are subject to inherent risks and uncertainties and are based on assumptions, including assumptions about future economic conditions and courses of action. These assumptions may ultimately prove to have been inaccurate and, as a result, our actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements. The assumptions for our 2025 outlook, as described in Section 9 in our 2024 annual MD&A, remain the same, except for the following: Our revised estimates for 2025 economic growth in Canada, B.C., Alberta, Ontario and Quebec are 1.3%, 1.4%, 2.1%, 0.9% and 0.9%, respectively (compared to 1.9%, 1.8%, 2.4%, 1.7% and 1.5%, respectively, as reported in our 2024 annual MD&A). Our revised estimates for 2025 annual inflation rates in Canada, B.C., Alberta, Ontario and Quebec are 2.1%, 2.1%, 2.1%, 2.0%, and 2.0%, respectively (compared to 2.0%, 1.8%, 2.0%, 1.9% and 1.8%, respectively, as reported in our 2024 annual MD&A). Our revised estimates for 2025 annual unemployment rates in Canada, B.C., Alberta, Ontario and Quebec are 7.0%, 6.3%, 7.3%, 8.0%, and 6.1%, respectively (compared to 6.6%, 6.0%, 7.0%, 7.1% and 5.8%, respectively, as reported in our 2024 annual MD&A). Our revised estimates for 2025 annual rates of housing starts on an unadjusted basis in Canada, B.C., Alberta, Ontario and Quebec are 243,000 units, 40,000 units, 54,000 units, 61,000 units and 55,000 units, respectively (compared to 245,000 units, 47,000 units, 45,000 units, 81,000 units and 48,000 units, respectively, as reported in our 2024 annual MD&A). The extent to which the economic growth estimates affect us and the timing of their impact will depend upon the actual experience of specific sectors of the Canadian economy. Risks and uncertainties that could cause actual performance or events to differ materially from the forward-looking statements made herein and in other TELUS filings include, but are not limited to, the following: Regulatory matters. We operate in a number of highly regulated industries and are therefore subject to a wide variety of laws and regulations domestically and internationally. Policies and approaches advanced by elected officials and regulatory decisions, reviews and other government activity may have strategic, operational and/or financial impacts (including on revenue and free cash flow). Risks and uncertainties include: potential changes to our regulatory regime or the outcomes of proceedings, cases or inquiries relating to its application, including, but not limited to, those set out in Section 9.1 Communications industry regulatory developments and proceedings in our second quarter 2025 MD&A our ability to comply with complex and changing regulation of the healthcare, virtual care and medical devices industries in the jurisdictions in which we operate, including as an operator of health clinics; and our ability to comply with, or facilitate our clients' compliance with, numerous, complex and sometimes conflicting legal regimes, both domestically and internationally. Competitive environment. Competitor expansion, activity and intensity (pricing, including discounting, bundling), as well as non-traditional competition, disruptive technology and disintermediation, may alter the nature of the markets in which we compete and impact our market share and financial results (including revenue and free cash flow). TELUS Health, TELUS Digital and TELUS Agriculture & Consumer Goods also face intense competition in their respective different markets. Technology. Consumer adoption of alternative technologies and changing customer expectations have the potential to impact our revenue streams and customer churn rates. Risks and uncertainties include: disruptive technologies, including software-defined networks in the business market, that may displace or cause us to reprice our existing data services, and self-installed technology solutions; any failure to innovate, maintain technological advantages or respond effectively and in a timely manner to changes in technology; the roll-out, anticipated benefits and efficiencies, and ongoing evolution of wireless broadband technologies and systems; our reliance on wireless network access agreements, which have facilitated our deployment of mobile technologies; our expected long-term need to acquire additional spectrum through future spectrum auctions and from third parties to meet growing demand for data, and our ability to utilize spectrum we acquire; deployment and operation of new fixed broadband network technologies at a reasonable cost and the availability and success of new products and services to be rolled out using such network technologies; and our deployment of self-learning tools and automation, which may change the way we interact with customers. Security and data protection. Our ability to detect and identify potential threats and vulnerabilities depends on the effectiveness of our security controls in protecting our infrastructure and operating environment, and our timeliness in responding to attacks and restoring business operations. A successful attack may impede the operations of our network or lead to the unauthorized access to, interception, destruction, use or dissemination of, customer, team member or business information. Generative AI (GenAI). GenAI exposes us to numerous risks, including risks related to the operational reliability, responsible AI usage, data privacy and cybersecurity, and the possibility that our use of AI may generate inaccurate or inappropriate content or create negative perceptions among customers, and regulation could also affect future implementation that could affect demand for our services. Climate and the environment. Natural disasters, pandemics, disruptive events and climate change may impact our operations, customer satisfaction and team member experience. Our goals to achieve carbon neutrality and reduce our greenhouse gas (GHG) emissions in our operations are subject to our ability to identify, procure and implement solutions that reduce energy consumption and adopt cleaner sources of energy, our ability to identify and make suitable investments in renewable energy, including in the form of virtual power purchase agreements, and our ability to continue to realize significant absolute reductions in energy use and the resulting GHG emissions from our operations. Operational performance and business combination. Investments and acquisitions present opportunities to expand our operational scope, but may expose us to new risks. We may be unsuccessful in gaining market traction/share and realizing benefits, and integration efforts may divert resources from other priorities. There is no assurance that a definitive agreement relating to our proposed acquisition of the shares of TELUS International (Cda) Inc. that we do not already hold will be entered into, that the transaction will be completed or that we will realize any or all of the anticipated benefits of the transaction. Risks include: our reliance on third-party cloud-based computing services to deliver our IT services; and economic, political and other risks associated with doing business globally (including war and other geopolitical developments). Our systems and processes. Systems and technology innovation, maintenance and management may impact our IT systems and network reliability, as well as our operating costs. Risks and uncertainties include: our ability to maintain customer service and operate our network in the event of human error or human-caused threats, such as cyberattacks and equipment failures that could cause network outages; technical disruptions and infrastructure breakdowns; delays and rising costs, including as a result of government restrictions or trade actions; and the completeness and effectiveness of business continuity and disaster recovery plans and responses. Our team. The rapidly evolving and highly competitive nature of our markets and operating environment, along with the globalization and evolving demographic profile of our workforce, and the effectiveness of our internal training, development, succession and health and well-being programs, may impact our ability to attract, develop and retain team members with the skills required to meet the changing needs of our customers and our business. Team members may face greater mental health challenges associated with the significant change initiatives at the organization, which may result in the loss of key team members through short-term and long-term disability. Integration of international business acquisitions and concurrent integration activities may impact operational efficiency, organizational culture and engagement. Suppliers. We may be impacted by supply chain disruptions and lack of resiliency in relation to global or local events. Dependence on a single supplier for products, components, service delivery or support may impact our ability to efficiently meet constantly changing and rising customer expectations while maintaining quality of service. Our suppliers' ability to maintain and service their product lines could affect the success of upgrades to, and evolution of, technology that we offer. Real estate matters. Real estate investments are exposed to possible financing risks and uncertainty related to future demand, occupancy and rental rates, especially following the pandemic. Future real estate developments may not be completed on budget or on time and may not obtain lease commitments as planned. Financing, debt and dividends. Our ability to access funding at optimal pricing may be impacted by general market conditions and changing assessments in the fixed-income and equity capital markets regarding our ability to generate sufficient future cash flow to service our debt. Failure to complete planned deleveraging initiatives or to achieve the anticipated benefits of those initiatives could increase our cost of capital. Our current intention to pay dividends to shareholders could constrain our ability to invest in our operations to support future growth. Risks and uncertainties include: our ability to use equity as a form of consideration in business acquisitions is impacted by stock market valuations of TELUS Common Shares and TELUS International (Cda) Inc. subordinate voting shares; our capital expenditure levels and potential outlays for spectrum licences in auctions or purchases from third parties affect and are affected by: our broadband initiatives; our ongoing deployment of newer mobile technologies; investments in network technology required to comply with laws and regulations relating to the security of cyber systems, including bans on the products and services of certain vendors; investments in network resiliency and reliability; the allocation of resources to acquisitions and future spectrum auctions held by Innovation, Science and Economic Development Canada (ISED). Our capital expenditure levels could be impacted if we do not achieve our targeted operational and financial results or if there are changes to our regulatory environment; and lower than planned free cash flow could constrain our ability to invest in operations, reduce leverage or return capital to shareholders. Quarterly dividend decisions are made by our Board of Directors based on our financial position and outlook. There can be no assurance that our dividend growth program will be maintained through 2028 or renewed. TELUS Digital's ability to achieve targets or other guidance regarding its business, which if not achieved could affect TELUS' ability to achieve targets for the organization as a whole and could result in a decline in the trading price of the TELUS International (Cda) Inc. subordinate voting shares or the TELUS Common Shares or both. Factors that may affect TELUS Digital's financial performance are described in TELUS International (Cda) Inc. public filings available on SEDAR+ and EDGAR. Tax matters. Complexity of domestic and foreign tax laws, regulations and reporting requirements that apply to TELUS and our international operating subsidiaries may impact financial results. International acquisitions and expansion of operations heighten our exposure to multiple forms of taxation. The economy. Changing global economic conditions, including a potential recession and alternating expectations about inflation, as well as our effectiveness in monitoring and revising growth assumptions and contingency plans, may impact the achievement of our corporate objectives, our financial results (including free cash flow), and our defined benefit pension plans. Geopolitical uncertainties and potential tariffs or non-tariff trade actions present a risk of recession and may cause customers to reduce or delay discretionary spending, impacting new service purchases or volumes of use, and consider substitution by lower-priced alternatives. Litigation and legal matters. Complexity of, and compliance with, laws, regulations, commitments and expectations may have a financial and reputational impact. Risks include: our ability to defend against existing and potential claims or our ability to negotiate and exercise indemnity rights or other protections in respect of such claims; and the complexity of legal compliance in domestic and foreign jurisdictions, including compliance with competition, anti-bribery and foreign corrupt practices laws. The assumptions underlying our forward-looking statements are described in additional detail in Section 9 General trends, outlook and assumptions, and regulatory developments and proceedings and Section 10 Risks and risk management in our 2024 annual MD&A. Those descriptions are incorporated by reference in this cautionary statement. Updates to the assumptions on which our 2025 outlook is based are presented in Section 9 Update to general trends, outlook and assumptions, and regulatory developments and proceedings in our second quarter 2025 MD&A. Additional risks and uncertainties that are not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation. Except as otherwise indicated in this document, the forward-looking statements made herein do not reflect the potential impact of any non-recurring or special items or any mergers, acquisitions, dispositions or other business combinations or transactions that may be announced or that may occur after the date of this document. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements in this document describe our expectations, and are based on our assumptions, as at the date of this document and are subject to change after this date. We disclaim any intention or obligation to update or revise any forward-looking statements except as required by law. This cautionary statement qualifies all of the forward-looking statements in this document. Non-GAAP and other specified financial measures We have issued guidance on and report certain non-GAAP measures that are used to evaluate the performance of TELUS, as well as to determine compliance with debt covenants and to manage our capital structure. As non-GAAP measures generally do not have a standardized meaning, they may not be comparable to similar measures presented by other issuers. For certain financial metrics, there are definitional differences between TELUS and TELUS Digital Experience reporting. These differences largely arise from TELUS Digital adopting definitions consistent with practice in its industry. Securities regulations require such measures to be clearly defined, qualified and reconciled with their nearest GAAP measure. Certain of the metrics do not have generally accepted industry definitions. Adjusted Net income and adjusted basic earnings per share (EPS): These are non-GAAP measures that do not have any standardized meaning prescribed by IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other issuers. Adjusted Net income excludes the effects of restructuring and other costs, income tax-related adjustments, long-term debt prepayment premium and other adjustments (identified in the following tables). Adjusted basic EPS is calculated as adjusted net income divided by basic weighted-average common shares outstanding. These measures are used to evaluate performance at a consolidated level and exclude items that, in management's view, may obscure underlying trends in business performance or items of an unusual nature that do not reflect our ongoing operations. They should not be considered alternatives to Net income and basic EPS in measuring TELUS' performance. (1) Effective for the first quarter of 2025, arising from a prospective change in accounting policy which applies hedge accounting (see Note 2(a) of the condensed interim consolidated financial statements), unrealized fair value adjustments which were previously included within Financing costs are now included within Other comprehensive income. Three months ended June 30 C$ 2025 2024 Basic EPS — 0.15 Add (deduct) amounts net of amount attributable to non-controlling interests: Restructuring and other costs, per share 0.07 0.08 Tax effect of restructuring and other costs, per share (0.02) (0.02) Real estate rationalization-related restructuring impairments, per share — 0.03 Tax effect of real estate rationalization-related restructuring impairments, per share — (0.01) Income tax-related adjustments, per share (0.01) — Impairment of goodwill, per share 0.19 — Tax effect of impairment of goodwill, per share (0.01) — Unrealized changes in virtual power purchase agreements forward element, per share 1 — 0.03 Tax effect of unrealized changes in virtual power purchase agreements forward element, per share 1 — (0.01) Adjusted basic EPS 0.22 0.25 (1) Effective for the first quarter of 2025, arising from a prospective change in accounting policy which applies hedge accounting (see Note 2(a) of the condensed interim consolidated financial statements), unrealized fair value adjustments which were previously included within Financing costs are now included within Other comprehensive income. EBITDA (earnings before interest, income taxes, depreciation and amortization): We have issued guidance on and report EBITDA because it is a key measure used to evaluate performance at a consolidated level. EBITDA is commonly reported and widely used by investors and lending institutions as an indicator of a company's operating performance and ability to incur and service debt, and as a valuation metric. EBITDA should not be considered an alternative to Net income in measuring TELUS' performance, nor should it be used as a measure of cash flow. EBITDA as calculated by TELUS is equivalent to Operating revenues and other income less the total of Goods and services purchased expense and Employee benefits expense. We also calculate Adjusted EBITDA to exclude items of an unusual nature that do not reflect our ongoing operations and should not, in our opinion, be considered in a long-term valuation metric or should not be included in an assessment of our ability to service or incur debt. (1) TTech results for 2024 have been restated to conform with our new segmented reporting structure. Adjusted EBITDA less capital expenditures is calculated for our reportable segments, as it represents a performance measure that may be more comparable to similar measures presented by other issuers. Free cash flow: We report this measure as a supplementary indicator of our operating performance, and there is no generally accepted industry definition of free cash flow. It should not be considered as an alternative to the measures in the condensed interim consolidated statements of cash flows. Free cash flow excludes certain working capital changes (such as trade receivables and trade payables), proceeds from divested assets and other sources and uses of cash, as reported in the condensed interim consolidated statements of cash flows. It provides an indication of how much cash generated by operations is available after capital expenditures that may be used to, among other things, pay dividends, repay debt, purchase shares or make other investments. We exclude impacts of accounting standards that do not impact cash, such as IFRS 15 and IFRS 16. Free cash flow may be supplemented from time to time by proceeds from divested assets or financing activities. Reconciliation of free cash flow with Cash provided by operating activities Three months ended June 30 C$ millions 2025 2024 Free cash flow 535 481 Add (deduct): Capital expenditures 1 678 691 Effects of lease principal 176 154 Net change in non-cash operating working capital not included in preceding line items and other individually immaterial items included in Net income neither providing nor using cash (233) 62 Cash provided by operating activities 1,166 1,388 (1) Refer to Note 31 of the condensed interim consolidated financial statements for further information. Mobile phone average revenue per subscriber per month (ARPU) is calculated as network revenue derived from monthly service plan, roaming and usage charges; divided by the average number of mobile phone subscribers on the network during the period, and is expressed as a rate per month. Appendix Operating revenues and other income – TTech segment C$ millions Three months ended June 30 Per cent (unaudited) 2025 2024 (restated) change Mobile network revenue 1,723 1,734 (1) Mobile equipment and other service revenues 498 503 (1) Fixed data services (1) 1,193 1,158 3 Fixed voice services 170 178 (4) Fixed equipment and other service revenues 124 125 (1) Agriculture and consumer goods services 85 91 (7) Operating revenues (arising from contracts with customers) 3,793 3,789 — Other income 50 30 67 External Operating revenues and other income 3,843 3,819 1 Intersegment revenues 5 5 — TTech Operating revenues and other income 3,848 3,824 1 (1) Excludes agriculture and consumer goods services. Operating revenues and other income – TELUS health segment C$ millions Three months ended June 30 (unaudited) 2025 2024 Per cent change Health services 514 442 16 Health equipment 2 3 (33) Operating revenues (arising from contracts with customers) 516 445 16 Other income 1 1 — External Operating revenues and other income 517 446 16 Intersegment revenues 2 2 — TELUS Health Operating revenues and other income 519 448 16 Operating revenues and other income – TELUS digital experience segment C$ millions Three months ended June 30 (unaudited) 2025 2024 Per cent change Operating revenues (arising from contracts with customers) 722 666 8 Other income — 43 (100) External Operating revenues and other income 722 709 2 Intersegment revenues 244 227 7 TELUS Digital Operating revenues and other income 966 936 3 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. Our TELUS Health business is enhancing 157 million lives across 200 countries and territories through innovative preventive medicine and well-being technologies. Our TELUS Agriculture & Consumer Goods business utilizes digital technologies and data insights to optimize the connection between producers and consumers. Guided by our enduring 'give where we live' philosophy, 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 since 2000, earning us the distinction of the world's most giving company. We're always building Canada. Investor Relations Robert Mitchell Media Relations Steve Beisswanger [email protected]
Cision Canada
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- Cision Canada
ALTAGAS REPORTS STRONG SECOND QUARTER 2025 RESULTS
Robust Performance Across Platform Led by Midstream CALGARY, AB, Aug. 1, 2025 /CNW/ - AltaGas Ltd. ("AltaGas" or the "Company") (TSX: ALA) reported second quarter 2025 financial results and provided an update on its operations, projects and other corporate developments. SECOND QUARTER HIGHLIGHTS View PDF (all financial figures are unaudited and in Canadian dollars unless otherwise noted) FINANCIAL RESULTS Normalized EPS 1 was $0.27 in the second quarter of 2025 compared to $0.14 in the second quarter of 2024, while GAAP EPS 2 was $0.59 in the second quarter of 2025 compared to a loss of $0.14 in the second quarter of 2024. Normalized EBITDA 1 was $342 million in the second quarter of 2025 compared to $295 million in the second quarter of 2024, while income before income taxes was $226 million in the second quarter of 2025 compared to a loss of $46 million in the second quarter of 2024. The 16 percent year-over-year increase in normalized EBITDA was driven by strong performance across AltaGas' Midstream assets and Utilities growth from continued modernization investments. The Midstream segment reported normalized EBITDA of $215 million in the second quarter of 2025 compared to $175 million in the second quarter of 2024, while income before taxes was $263 million in the second quarter of 2025 compared to $46 million in the second quarter of 2024. The 23 percent year-over-year increase in normalized Midstream EBITDA was driven by strong global exports performance, higher gas processing volumes – particularly from AltaGas' Montney facilities, and improved earnings from the Mountain Valley Pipeline ("MVP"). The Utilities segment reported normalized EBITDA of $134 million in the second quarter of 2025 compared to $122 million in the second quarter of 2024, while income before taxes was $95 million in the second quarter of 2025 compared to $31 million in the second quarter of 2024. The 10 percent year-over-year increase in normalized Utilities EBITDA was driven by modernization investments, improved asset optimization, and colder weather in Michigan, partially offset by lower retail contributions. AltaGas' adjusted net debt to normalized EBITDA 1 exited the second quarter of 2025 at 4.6x on a trailing twelve-month basis, including 50 percent debt treatment for its subordinated hybrid notes and preferred shares. This is below the Company's long-term leverage target of 4.65x and compares to 5.1x at 2024 year-end. _______________________________________________________ (1) Non-GAAP measure; see discussion and reconciliation to US GAAP financial measures in the advisories of this news release or in AltaGas' Management's Discussion and Analysis (MD&A) as at and for the period ended June 30, 2025, which is available on (2) GAAP EPS is equivalent to Net income applicable to common shares divided by shares outstanding. OPERATIONAL AND BUSINESS HIGHLIGHTS AltaGas delivered record second quarter LPG export volumes of 127,814 Bbl/d to Asia, up four percent year-over-year despite a nine-day turnaround at the Ridley Island Propane Export Terminal ("RIPET"). This included 12 Very Large Gas Carriers ("VLGCs") shipped from RIPET and eight from the Ferndale Terminal ("Ferndale"). Midstream throughput was strong, with gas processing volumes up eight percent year-over-year, driven by a 12 percent increase from Montney assets, led by Townsend, Pipestone I, and Blair Creek. AltaGas' global exports business continues to benefit from robust demand for open-access terminal capacity under long-term tolling agreements with upstream and downstream customers. Recent agreements include: Keyera Corp ("Keyera") committing to an additional 12,500 Bbl/d of LPG tolling capacity over 15 years starting in 2028, doubling its total contracted capacity with AltaGas to 25,000 Bbl/d. Pembina Pipeline Corporation ("Pembina") signing a long-term tolling agreement to export an additional 10,000 Bbl/d of LPGs starting in April of 2026 and an additional 10,000 Bbl/d of LPGs starting in April of 2027 at AltaGas' global exports facilities. The agreement builds on Pembina's previous 10,000 Bbl/d of tolling capacity at RIPET. BASF Intertrade AG ("BASF") signing a long-term butane export capacity agreement at the Ridley Island Energy Export Facility ("REEF"). The agreement will provide BASF with reliable Western Canadian supply and diversify its cracker feedstock portfolio, and strengthen Canada-Asia trade ties. MVP delivered strong second quarter results, with higher year-over-year contributions as the comparative period only included a partial contribution when the pipeline was being brought into service. The 2.0 Bcf/d pipeline is backed by 20-year investment grade contracts and is expandable through additional compression and extendable into North Carolina through the Southgate project, both of which are progressing towards near-term final investment decisions ("FIDs"). AltaGas continues to advance a potential monetization of its interest in MVP with proceeds to be used for leverage reduction. On July 31, 2025, Washington Gas filed a rate case application to the Virginia State Corporation Commission ("SCC of VA") seeking a US$65 million increase to base rates, net of the transfer of US$39 million of charges currently being recovered under the modernization rider. Interim rates are expected by early 2026. PROJECT UPDATES REEF construction remains on budget and on track for a year-end 2026 in-service date ("ISD"). Site prep is effectively complete while LPG accumulators are 85 percent fabricated and expected on-site in the fourth quarter of 2025. Jetty progress includes nearly 60 percent of piles placed and 30 percent of trestle fabrication complete. Approximately 70 percent of project costs are incurred or committed, with nearly 60 percent of the total capital cost under fixed-price engineering, procurement and construction ("EPC") contracts. AltaGas is advancing engineering and other work to progress near-term optimization projects at REEF that will allow the Company to move incremental volumes through Phase I, which is currently under construction. This includes evaluating options to increase throughput by 15,000–20,000 Bbl/d within the first year following REEF's 2026 year-end ISD as well as advancing engineering, permitting and stakeholder work to move up to another 60,000 Bbls/d of exports by the end of the decade, when there is sufficient demand for additional export capacity. Pipestone II construction continues to be on budget and on track for a late 2025 ISD, with the facility construction now over 85 percent complete and the remaining work under fixed price contracting. The gas gathering system is currently in operation and being utilized to optimize throughput at AltaGas' Pipestone I deep cut facility. Pipestone II is fully contracted under long term take-or-pay agreements and will provide critical gas processing and liquids handling capacity in one of the most active liquids-rich natural gas producing regions in Canada. AltaGas continues to advance growth projects across its Utilities and has received regulatory approval for the Keweenaw Connector Pipeline in Michigan's Keweenaw Peninsula. The 30-mile pipeline is expected to have an approximate capital cost of US$120 million with a 2027 ISD. SEMCO has also been awarded a contract to construct a natural gas interconnect for DTE Energy's Belle River coal-to-natural gas power plant conversion project in Michigan, which is expected to be completed in the fourth quarter of 2025. AltaGas' Utilities continue to work with a number of data center developers and are actively advancing projects with front-end engineering and design ("FEED") studies across Virginia, Michigan and Maryland. The Company is focused on pursuing these ventures on a de-risked basis by building pipeline interconnects to onsite power generation through rate regulated investments. 2025 GUIDANCE Following AltaGas' strong second quarter of 2025, the Company is reiterating its 2025 full-year guidance, including normalized EBITDA of $1,775 million to $1,875 million and normalized EPS of $2.10 to $2.30. CEO MESSAGE "We're pleased with our strong second-quarter performance, which reflects continued execution of our strategic priorities and positions us well to meet our 2025 guidance," said Vern Yu, President and CEO of AltaGas. "As demonstrated this quarter, we continue to make meaningful progress on our strategic priorities. We've optimized our asset base to maximize returns by increasing Midstream throughput and reducing operating costs in our Utilities segment. We continue to actively de-risk our portfolio through long-term tolling agreements and by pursuing weather normalization in the District of Columbia. Our balance sheet is stronger, with trailing leverage now below our target. We're maintaining disciplined capital allocation while executing on our growth through network modernization and expansion in the Utilities and construction of our Pipestone II and REEF projects. "Customer demand for our open-access export terminals is robust, as reflected in the agreements we've announced with Keyera, BASF, and Pembina. We're advancing optimization projects at REEF that will enable us to move incremental volumes through Phase I. This includes finalizing detailed engineering and costing to increase near-term throughput by 15,000 to 20,000 Bbl/d within the first year of the terminal's year-end 2026 in-service date, as well as progressing engineering, permitting, and pre-engagement stakeholder work to support up to an additional 60,000 Bbl/d of export capacity by the end of the decade, when there is sufficient demand for export capacity. "We're excited about the long-term outlook for our Utilities, which continue to deliver the most reliable and cost-effective energy for space heating across our jurisdictions. The delivered cost of electricity is almost four times that of natural gas, and we're operating in a period of growing energy insecurity, particularly in the PJM market, where concerns about power capacity shortfalls are rising. In response, we're making significant investments to connect new customers and modernize our network to enhance long-term safety, reliability, and energy security. This includes securing regulatory approval for projects like the Keweenaw Connector Pipeline and advancing infrastructure to serve emerging opportunities such as data centers. We will continue to advocate on behalf of our customers against public policies that undermine reliability, affordability, and consumer choice – as the economic future of these regions depends on it. "We're excited about AltaGas' future and the value we can unlock through disciplined execution of our long-term strategy. We remain confident in the strong macro-outlook for natural gas, NGLs, and the enterprise." (1) Non‑GAAP financial measure; see discussion in Non‑GAAP Financial Measures section of this news release. BUSINESS PERFORMANCE Midstream The Midstream segment reported normalized EBITDA of $215 million in the second quarter of 2025 compared to $175 million in the second quarter of 2024, while income before income taxes was $263 million in the second quarter of 2025 compared to $46 million in the second quarter of 2024. The 23 percent year-over-year increase in normalized Midstream EBITDA was driven by strong global exports, higher gas processing volumes – particularly from AltaGas' Montney facilities, and stronger earnings from MVP. The quarter was also aided by lower processing operating expenses and stronger realized frac spreads. AltaGas exported 127,814 Bbl/d of LPGs to Asia through its open access terminals in the second quarter of 2025 across a total of 20 VLGCs, which included 12 ships at RIPET and eight at Ferndale. This represented a second quarter record with volumes up four percent year-over-year as the Company continues to focus on operational execution and logistics and expects to deliver year-over-year volume growth over the balance of 2025. AltaGas is positioned to benefit from the long-term fundamentals of growing Canadian natural gas and NGL production, strong Asian LPG demand, and the Company's structural shipping advantage from the west coast of North America to Asia. Performance across the balance of the Midstream platform was strong with gas processing volumes up eight percent year-over-year, driven by the Company's Montney exposed infrastructure, which saw 12 percent year-over-year volume growth. Extraction volumes increased by eight percent year-over-year with AltaGas benefiting from exposure to some of North America's leading gas resource plays, which continue to grow, despite soft Canadian natural gas prices. AltaGas continues to advance regulatory, engineering and commercial work for the Company's backlog of Midstream growth projects. This includes Pipestone III, North Pine, and the Dimsdale natural gas storage expansion project. The Company is advancing engineering and capital cost work for two optimization initiatives that will increase REEF's phase I throughput capacity. REEF is a multi-phased project that is positioned to meet Canada's long-term LPG export needs through low-cost capacity additions that will ensure Canada's excess LPGs are delivered to the strongest markets globally, which will benefit all stakeholders. Consistent with the Company's de-risking focus, AltaGas' Midstream operations are well-hedged for 2025 with approximately 98 percent of the remaining 2025 expected global export volumes tolled or financially hedged. Merchant volumes are hedged at an average Far East Index ("FEI") to North American financial hedge price of US$18.00/Bbl while tolling volumes are in line with historical rates. Approximately 84 percent of the Company's 2025 expected frac exposed volumes are hedged at US$26.48/Bbl, prior to transportation costs. AltaGas continues to actively manage risk across the Midstream platform through commercial contracting and a systematic hedging program to manage its commodity price exposure. For the remainder of 2025, AltaGas has materially hedged all of its expected Baltic freight exposure through time charters, financial hedges, and tolled volumes. (1) Approximate expected volumes hedged based on AltaGas' internally assumed export volumes. Hedged amounts include contracted tolling volumes and financial hedges. (2) Does not include physical differential to FSK for C3 volumes. Butane is hedged as a percentage of WTI. (3) Approximate average for the period. Utilities Utilities reported normalized EBITDA of $134 million in the second quarter of 2025 compared to $122 million in the second quarter of 2024, while income before income taxes was $95 million in the second quarter of 2025 compared to $31 million in the second quarter of 2024. The 10 percent year-over-year increase in normalized Utilities EBITDA was driven by modernization investments, stronger asset optimization, and colder weather in Michigan, partially offset by lower retail contributions. Washington Gas recently filed a new rate case in Virginia with the SCC where requested rates are designed to collect an incremental US$65 million in annual revenue, net of US$39 million in ARP surcharge related to Washington Gas' SAVE rate rider. The filing uses a December 2024 test year with select forward looking adjustments. Interim rates are expected to come into effect by early 2026. The Company also continues to work with the PSC of D.C. on the August 2024 rate case and anticipates resolution by year-end 2025. Washington Gas continues to work with the PSC of D.C. on the US$215 million asset modernization extension application under review in D.C. through its Strategic Accelerated Facilities Enhancement ("District SAFE") plan. The Company is continuing ARP work in the PROJECTpipes 2 modernization program with the program extended to December 31, 2025 with the additional US$34 million of modernization capital added from May 1, 2025. The extension of PROJECTpipes 2 ensures uninterrupted pipeline modernization work continues while District SAFE is being reviewed. AltaGas' Utilities continue to see progress on key growth initiatives and received regulatory approval for the Keweenaw Connector Pipeline in Michigan. The 30-mile transmission line is expected to be in service in early 2027 with the majority of the US$120 million capital spend expected to take place through 2026. AltaGas' Utilities continue to work with a number of data center developers and are actively advancing projects with front-end engineering and design ("FEED") studies across Virginia, Michigan and Maryland. The Company is focused on pursuing these ventures on a de-risked basis by building pipeline interconnects to onsite power generation through rate regulated investments. AltaGas continued to actively invest in its Utilities business during the second quarter of 2025 with $160 million of capital deployed across the Company's Utilities network. This included investing approximately $96 million in the quarter toward the Company's asset modernization programs. These investments improve the safety and reliability of the system while connecting customers to the critical energy they continue to rely on. AltaGas remains committed to making these investments, while balancing the need for ongoing customer affordability. The Corporate/Other segment reported normalized EBITDA for the second quarter of 2025 of a loss of $7 million, compared to a loss of $2 million in the same quarter of 2024. Loss before income taxes in the Corporate/Other segment was $132 million in the second quarter of 2025, compared to $123 million in the same quarter of 2024. The year-over-year decrease in normalized EBITDA was primarily driven by higher expenses related to employee incentive plans. (1) Non‑GAAP financial measure; see discussion in Non-GAAP Financial Measures section at the end of this news release. (2) "Other" includes accretion expense, net income applicable to non-controlling interests, foreign exchange gains (losses), and unrealized foreign exchange losses (gains) on intercompany balances. (3) Weighted average. Normalized EBITDA for the second quarter of 2025 was $342 million compared to $295 million for the same quarter in 2024. The largest factors contributing to the year-over-year increase are described in the Business Performance sections above. Income before income taxes was $226 million for the second quarter of 2025 compared to a loss of $46 million for the same quarter in 2024. The increase was mainly due to higher unrealized gains on risk management contracts, the same previously referenced factors impacting normalized EBITDA, and lower transition and restructuring costs, partially offset by higher depreciation and amortization expense and higher interest expense. Please refer to the "Three Months Ended June 30" s ection of the Q2 2025 Management's Discussion and Analysis ("MD&A") for further details on the variance in income before income taxes and net income applicable to common shareholders. Normalized net income was $81 million or $0.27 per share for the second quarter of 2025, compared to $41 million or $0.14 per share reported for the same quarter of 2024. Normalized FFO was $228 million or $0.76 per share for the second quarter of 2025, compared to $180 million or $0.61 per share for the same quarter in 2024. The increase was mainly due to the same previously referenced factors impacting normalized EBITDA, higher distributions from equity investments, and lower normalized current income tax expense, partially offset by higher non-cash items included in normalized EBITDA and higher interest expense. Cash from operations in the second quarter of 2025 was $365 million ($1.22 per share), compared to $452 million ($1.52 per share) for the same quarter of 2024. The decrease was mainly due to unfavourable variances in the net change in operating assets and liabilities, primarily as a result of fluctuations in commodity prices and sales volumes, partially offset by higher net income after taxes (after adjusting for non-cash items) and higher distributions from equity investments. Please refer to the Liquidity section of the MD&A for further details on the variance in cash from operations. Interest expense for the second quarter of 2025 was $114 million, compared to $111 million for the same quarter in 2024. The increase was mainly due to the issuance of additional subordinated hybrid notes in the third quarter of 2024 as well as a higher average Canadian/U.S. dollar exchange rate, partially offset by a decrease in average debt balances, higher capitalized interest, and lower average interest rates. Interest expense recorded on the subordinated hybrid notes in the second quarter of 2025 was $34 million, compared to $13 million in the second quarter of 2024. Income tax expense was $44 million for the second quarter of 2025, compared to an income tax recovery of $12 million for the same quarter of 2024. The increase in income tax expense was mainly due to higher income before income taxes. FORWARD FOCUS, GUIDANCE AND FUNDING AltaGas continues to focus on executing its corporate strategy of building a diversified platform that operates long-life energy infrastructure assets that connect customers and markets and are positioned to provide resilient and growing value for the Company's stakeholders. Following a strong second quarter of 2025, AltaGas is reiterating its previously disclosed 2025 guidance, including: 2025 Normalized EPS guidance of $2.10–$2.30, compared to normalized EPS of $2.18 and GAAP EPS of $1.95 in 2024; and 2025 Normalized EBITDA guidance of $1,775 million–$1,875 million, compared to actual normalized EBITDA of $1,769 million and income before taxes of $746 million in 2024. AltaGas is focused on delivering resilient and growing normalized EPS and normalized FFO per share while targeting lower financial leverage ratios. This strategy is designed to support steady dividend growth and provide the opportunity for continued capital appreciation for long-term shareholders. AltaGas is maintaining a disciplined, self-funded 2025 capital program of approximately $1.4 billion, excluding ARO. The Company is allocating approximately 51 percent of its consolidated 2025 capital to its Utilities business, approximately 45 percent to the Midstream business and the balance to the Corporate/Other segment. OPTION PLAN Shareholders approved the conversion of the rolling option plan to a fixed option plan at the last meeting of shareholders. The Board has not issued options since 2021 and currently has no intention of issuing options under the plan. Therefore, AltaGas has deferred listing the common shares issuable under the fixed plan with the TSX until such time as the Board resolves to resume issuing options. Shareholders will be advised, by way of future press release, if and when option grants under the plan will resume. The Board of Directors approved the following schedule of Dividends: (1) Dividends on common shares and preferred shares are eligible dividends for Canadian income tax purposes. CONFERENCE CALL AND WEBCAST AltaGas will hold a conference call today, August 1, 2025, at 9:00 a.m. MT (11:00 a.m. ET) to discuss second quarter of 2025 results and other corporate developments. Date: Friday, August 1, 2025 Time: 9:00 a.m. MT (11:00 a.m. ET) Webcast: Dial-in (Audio only): +1 437 900 0527 or toll free at +1 888 510 2154 Shortly after the conclusion of the call a replay will be available on the Company's website or by dialing +1 289 819 1450 or toll free +1 888 660 6345. Passcode 73282 #. AltaGas' Consolidated Financial Statements and accompanying notes for the second quarter of 2025, as well as its related MD&A, are now available online at All documents will be filed with the Canadian securities regulatory authorities and will be posted under AltaGas' SEDAR+ profile at NON-GAAP MEASURES This news release contains references to certain financial measures that do not have a standardized meaning prescribed by U.S. GAAP and may not be comparable to similar measures presented by other entities. The non-GAAP measures and their reconciliation to U.S. GAAP financial measures are shown below and within AltaGas' Management's Discussion and Analysis (MD&A) as at and for the period ended June 30, 2025. These non-GAAP measures provide additional information that Management believes is meaningful regarding AltaGas' operational performance, liquidity and capacity to fund dividends, capital expenditures, and other investing activities. Readers are cautioned that these non-GAAP measures should not be construed as alternatives to other measures of financial performance calculated in accordance with U.S. GAAP. Normalized EBITDA (1) Comprised of transaction costs related to acquisitions and dispositions of assets and/or equity investments in the period. These costs are included in the "operating and administrative" line item on the Consolidated Statements of Income (Loss). Transaction costs include expenses, such as legal fees, that are directly attributable to the acquisition or disposition. (2) Included in the "revenue", "cost of sales", and "foreign exchange gains (losses)" line items on the Consolidated Statements of Income (Loss). Please refer to Note 12 of the unaudited condensed interim Consolidated Financial Statements as at and for the three and six months ended June 30, 2025 for further details regarding AltaGas' risk management activities. (3) Included in the "other income" line item on the Consolidated Statements of Income (Loss). (4) Comprised of transition and restructuring costs (including CEO transition). These costs are included in the "operating and administrative" line item on the Consolidated Statements of Income (Loss). (5) Excludes unrealized losses (gains) on foreign exchange forward contracts that have been entered into for the purpose of cash management. These losses (gains) are included above in the line "unrealized gains (losses) on risk management contracts". EBITDA is a measure of AltaGas' operating profitability prior to how business activities are financed, assets are amortized, or earnings are taxed. EBITDA is calculated from the Consolidated Statements of Income (Loss) using income (loss) before income taxes adjusted for pre-tax depreciation and amortization and interest expense. AltaGas presents normalized EBITDA as a supplemental measure. Normalized EBITDA is used by Management to enhance the understanding of AltaGas' earnings over periods, as well as for budgeting and compensation related purposes. The metric is frequently used by analysts and investors in the evaluation of entities within the industry as it excludes items that can vary substantially between entities depending on the accounting policies chosen, the book value of assets, and the capital structure. (1) Comprised of transaction costs related to acquisitions and dispositions of assets and/or equity investments in the period. The pre-tax costs are included in the "operating and administrative" line item on the Consolidated Statements of Income (Loss). Transaction costs include expenses, such as legal fees, which are directly attributable to the acquisition or disposition. (2) The pre-tax amounts are included in the "revenue", "cost of sales", and "foreign exchange gains (losses)" line items on the Consolidated Statements of Income (Loss). Please refer to Note 12 of the unaudited condensed interim Consolidated Financial Statements as at and for the three and six months ended June 30, 2025 for further details regarding AltaGas' risk management activities. (3) The pre-tax amounts are included in the "other income" line item on the Consolidated Statements of Income (Loss). (4) Comprised of transition and restructuring costs (including CEO transition). These pre-tax costs are included in the "operating and administrative" line item on the Consolidated Statements of Income (Loss). (5) Relates to unrealized foreign exchange losses (gains) on intercompany accounts receivable and accounts payable balances between a U.S. subsidiary and Canadian entity, where the impact to the U.S. subsidiary is recorded through accumulated other comprehensive income as a gain (loss) on foreign currency translation, and the impact to the Canadian entity is recorded through the "foreign exchange gains (losses)" line item on the Consolidated Statements of Income (Loss). Normalized net income and normalized net income per share are used by Management to enhance the comparability of AltaGas' earnings, as these metrics reflect the underlying performance of AltaGas' business activities. Normalized Funds from Operations (1) Comprised of transaction costs related to acquisitions and dispositions of assets and/or equity investments in the period. These costs exclude non-cash amounts and are included in the "operating and administrative" line item on the Consolidated Statements of Income (Loss). Transaction costs include expenses, such as legal fees, which are directly attributable to the acquisition or disposition. (2) Comprised of transition and restructuring costs (including CEO transition). These pre-tax costs are included in the "operating and administrative" line item on the Consolidated Statements of Income (Loss). (3) Included in the "current income tax expense" line item on the Consolidated Statements of Income (Loss). Normalized funds from operations and funds from operations are used to assist Management and investors in analyzing the liquidity of the Corporation. Management uses these measures to understand the ability to generate funds for capital investments, debt repayment, dividend payments, and other investing activities. Funds from operations and normalized funds from operations as presented should not be viewed as an alternative to cash from operations or other cash flow measures calculated in accordance with GAAP. Invested Capital and Net Invested Capital (1) Comprised of non-cash capital expenditures included in the "accounts payable and accrued liabilities" line item on the Consolidated Balance Sheets. Please refer to Note 18 of the unaudited condensed interim Consolidated Financial Statements as at and for the three and six months ended June 30, 2025 for further details. (2) AFUDC is the amount that a rate-regulated enterprise is allowed to recover for its cost of financing assets under construction, and excludes any AFUDC within investments accounted for by the equity method. AFUDC is included in the "property, plant and equipment" line item on the Consolidated Balance Sheets. (3) Excludes cash received from advance cash calls related to forecasted capital spend. Invested capital is a measure of AltaGas' use of funds for capital expenditure activities. It includes expenditures relating to property, plant, and equipment and intangible assets, capital contributed to long term investments, and contributions from non-controlling interests. Net invested capital is invested capital presented net of cash paid for business acquisitions and proceeds from disposals of assets and equity investments in the period. Net invested capital is calculated based on the investing activities section in the Consolidated Statements of Cash Flows, adjusted for items such as non-cash capital expenditures, AFUDC, and contributions from non-controlling interests. Invested capital and net invested capital are used by Management, investors, and analysts to enhance the understanding of AltaGas' capital expenditures from period to period and provide additional detail on the Company's use of capital. Net Debt, Adjusted Net Debt, and Adjusted Net Debt to Normalized EBITDA ($ millions, except adjusted net debt to normalized EBITDA) June 30, 2025 December 31, 2024 Short-term debt $ — $ 10 Current portion of long-term debt (1) 452 858 Current portion of finance lease liabilities 24 23 Long-term debt (2) 7,189 6,992 Finance lease liabilities 126 126 Subordinated hybrid notes (3) 1,955 2,022 Total debt 9,746 10,031 Less: cash and cash equivalents (320) (85) Net debt $ 9,426 $ 9,946 Add (deduct): Current portion of finance lease liabilities (24) (23) Finance lease liabilities (126) (126) 50 percent debt treatment of subordinated hybrid notes (978) (1,011) 50 percent debt treatment of preferred shares 196 196 Adjusted net debt (4) $ 8,494 $ 8,982 Adjusted net debt to normalized EBITDA (4) (5) 4.6 5.1 (1) Net of debt issuance costs, unamortized premiums, and unamortized discounts of less than $1 million as at June 30, 2025 (December 31, 2024 - less than $1 million). (2) Net of debt issuance costs, unamortized premiums, and unamortized discounts of $28 million as at June 30, 2025 (December 31, 2024 - $29 million). (3) Net of debt issuance costs of $23 million as at June 30, 2025 (December 31, 2024 - $23 million (4) As noted on page 17 of the MD&A, in the second quarter of 2025, AltaGas changed its non-GAAP policy regarding the calculation of adjusted net debt to include 50 percent of subordinated hybrid notes and 50 percent of preferred shares. The amounts presented in this table reflect the restated figures to align with the revised policy. (5) Calculated as adjusted net debt at the balance sheet date, divided by normalized EBITDA for the preceding twelve month period. Net debt, adjusted net debt, and adjusted net debt to normalized EBITDA are used by the Corporation to monitor its capital structure and assess its capital structure relative to earnings. It is also used as a measure of the Corporation's overall financial strength and is presented to provide this perspective to analysts and investors. Net debt is defined as short-term debt, plus current and long-term portions of long-term debt, current and long-term portions of finance lease liabilities, and subordinated hybrid notes, less cash and cash equivalents. Adjusted net debt is defined as net debt adjusted for current and long-term portions of finance lease liabilities, 50 percent of subordinated hybrid notes, and 50 percent of preferred shares. Adjusted net debt to normalized EBITDA is calculated by dividing adjusted net debt as defined above by normalized EBITDA for the preceding twelve month period. (1) Non‑GAAP financial measure or non-GAAP financial ratio; see discussion in Non-GAAP Financial Measures section of the MD&A. (2) Dividends declared per common share per quarter: $0.2975 per share beginning March 2024, increased to $0.315 per share effective March 2025. (3) Weighted average. ABOUT ALTAGAS AltaGas is a leading North American infrastructure company that connects customers and markets to affordable and reliable sources of energy. The Company operates a diversified, lower-risk, high-growth Utilities and Midstream business that is focused on delivering resilient and durable value for its stakeholders. For more information visit or reach out to one of the following: Jon Morrison Senior Vice President, Corporate Development and Investor Relations [email protected] Aaron Swanson Vice President, Investor Relations [email protected] Investor Inquiries 1-877-691-7199 [email protected] Media Inquiries 1-403-206-2841 [email protected] FORWARD-LOOKING INFORMATION This news release contains forward-looking information (forward-looking statements). Words such as "may", "can", "would", "could", "should", "likely", "will", "intend", "plan", "anticipate", "believe", "aim", "seek", "future", "commit", "propose", "contemplate", "estimate", "focus", "strive", "forecast", "expect", "project", "potential", "target", "guarantee", "potential", "objective", "continue", "outlook", "guidance", "growth", "long-term", "vision", "opportunity" and similar expressions suggesting future events or future performance, as they relate to the Company or any affiliate of the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Specifically, such forward-looking statements included in this document include, but are not limited to, statements with respect to the following: export tolling agreements, including the expected timing for commencement of volumes thereunder and the anticipated benefits thereof; the belief that the MVP expansion and Southgate expansion are advancing towards near-term FID; the potential monetization of AltaGas' interest in MVP and the use of proceeds therefrom; the potential District SAFE modernization program and the anticipated benefits therefrom; the expectation that REEF will remain on budget and on schedule to achieve its 2026 year-end in-service-date; the expectation that construction of Pipestone II will remain on schedule for a late 2025 in-service-date; anticipated benefits of Pipestone II; AltaGas' commitment to advancing growth projects across the Utilities segment including new customer growth and execution of existing asset monetization programs; progress on the Keweenaw Pipeline Connector project, projected capital cost of the project, the anticipated benefits therefrom and the estimated 2027 in-service date; SEMCO's construction of a natural gas interconnect for DTE Energy's Belle River coal-to-natural gas power plant conversion project and the anticipated timing for completion thereof; advancement of preliminary work with data center developers and AltaGas' plans with respect to such projects; AltaGas' commitment to advancing Midstream growth projects including Pipestone III, North Pine, the Dimsdale natural gas storage expansion project and their effect on the Midstream growth outlook; the Company's 2025 guidance including normalized EBITDA of $1,775 million to $1,875 million and normalized EPS of $2.10 to $2.30; the importance of building energy infrastructure that connects Canadian energy to global markets; optimization projects at REEF and the anticipated timing and benefits thereof; the belief that there will be sufficient demand for export capacity at REEF by the end of the decade to support future optimization projects; the belief that significant investments in Utilities to connect new customers and modernize our network will enhance long-term safety, reliability, and energy security; AltaGas' commitment to advocate for customers against public policies that undermine reliability, affordability and consumer choice; the anticipated benefits of REEF, including its ability to meet Canada's long-term LPG export needs and ensure Canada's excess LPGs are delivered to the strongest markets globally; the Company's focus on operational execution and its ability to deliver continued year-over-year export volume growth through 2025; the belief that AltaGas is positioned to benefit from the long-term fundamentals of growing Canadian natural gas and NGL production, strong Asian demand and the Company's structural shipping advantage from the west coast; the Company's hedging program and AltaGas' 2025 Midstream Hedge Program quarterly estimates; AltaGas' commitment to investing in its Utilities business to improve safety and reliability and connect customers to critical energy while balancing the need for customer affordability; expected filing, procedure and decision dates for rate cases in the Utilities business; timing of material regulatory filings, proceedings and decisions in the Utilities business; AltaGas' ability to execute its corporate strategy, including building a diversified platform that operates long-life energy infrastructure assets that are positioned to provide resilient and growing value for stakeholders and the Company's focus on growing normalized EPS and normalized FFO per share while targeting lower leverage ratios to support steady dividend growth and provide ongoing capital appreciation for long-term shareholders; AltaGas' commitment to maintaining a disciplined, self-funded 2025 capital program of approximately $1.4 billion, excluding ARO; the allocation of consolidated 2025 capital to the Company's Utilities, Midstream and Corporate/Other segments; the listing of common shares issuable under the fixed option plan on the TSX, and AltaGas' intention to issue a future press release in respect of any such listing; and AltaGas' dividend policy. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events, and achievements to differ materially from those expressed or implied by such statements. Such statements reflect AltaGas' current expectations, estimates, and projections based on certain material factors and assumptions at the time the statement was made. Material assumptions include: effective tax rates; U.S./Canadian dollar exchange rates; inflation; interest rates, credit ratings, regulatory approvals and policies; expected commodity supply, demand and pricing; volumes and rates; propane and butane price differentials; degree day variance from normal; pension discount rate; financing initiatives; the performance of the businesses underlying each sector; impacts of the hedging program; weather; frac spread; access to capital; future operating and capital costs; timing and receipt of regulatory approvals; seasonality; planned and unplanned plant outages; timing of in-service dates of new projects and acquisition and divestiture activities; taxes; operational expenses; returns on investments; dividend levels; and transaction costs. AltaGas' forward-looking statements are subject to certain risks and uncertainties which could cause results or events to differ from current expectations, including, without limitation: health and safety risks; operating risks; infrastructure; natural gas supply risks; volume throughput; service interruptions; transportation of petroleum products; market risk; inflation; general economic conditions; cybersecurity, information, and control systems; climate-related risks; environmental regulation risks; regulatory risks; litigation; changes in law; Indigenous and treaty rights; dependence on certain partners; political uncertainty and civil unrest; risks related to conflict, including the conflicts in Eastern Europe and the Middle East; decommissioning, abandonment and reclamation costs; reputation risk; weather data; capital market and liquidity risks; interest rates; internal credit risk; foreign exchange risk; debt financing, refinancing, and debt service risk; counterparty and supplier risk; technical systems and processes incidents; growth strategy risk; construction and development; underinsured and uninsured losses; impact of competition in AltaGas' businesses; counterparty credit risk; composition risk; collateral; rep agreements; market value of the common shares and other securities; variability of dividends; potential sales of additional shares; labor relations; key personnel; risk management costs and limitations; commitments associated with regulatory approvals for the acquisition of WGL; cost of providing retirement plan benefits; failure of service providers; risks related to pandemics, epidemics or disease outbreaks; and the other factors discussed under the heading "Risk Factors" in the Corporation's Annual Information Form for the year ended December 31, 2024 ("AIF") and set out in AltaGas' other continuous disclosure documents. Many factors could cause AltaGas' or any particular business segment's actual results, performance or achievements to vary from those described in this press release, including, without limitation, those listed above and the assumptions upon which they are based proving incorrect. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, sought, proposed, estimated, forecasted, expected, projected or targeted and such forward-looking statements included in this news release, should not be unduly relied upon. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and AltaGas' future decisions and actions will depend on management's assessment of all information at the relevant time. Such statements speak only as of the date of this news release. AltaGas does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. The forward-looking statements contained in this news release are expressly qualified by these cautionary statements. Financial outlook information contained in this news release about prospective financial performance, financial position, or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on AltaGas management's assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this news release should not be used for purposes other than for which it is disclosed herein.
