TELUS at cIBC eastern investor conference: sharper focus, lower payout

On September 24th, 2026, TELUS attended the 25th Annual CIBC Eastern Institutional Investor Conference to reveal a more concentrated strategy. The telecom company aimed to stabilize operations and reallocate capital effectively. TELUS narrowed its focus to core wireless and wireline operations, as well as AI data infrastructure.

The company reduced its dividend by 55%, reallocating CAD 2.7 billion for debt reduction over the next five years. Management set a leverage target of 3.0x or lower by 2028 and may consider future dividend increases or share buybacks after reaching this target. All M&A activity was paused as TELUS reviewed its non-core assets. The company described telecom and AI data infrastructure as its core business, and it is examining TELUS Digital and TELUS Health, with one Digital business already in the market for sale.

Wireless revenue showed steadier growth with higher third-quarter ARPU, lower churn, and no significant market-share loss to Quebecor. Gopi Chande, recently appointed CFO, stated that TELUS is streamlining its structure and focusing on returns. The telecom business, which makes up about 90% of EBITDA, was stable and performing well.

TELUS raised its capital spending guidance in Q2 due to inflation, chipset costs, the completion of the Kamloops data center, and customer experience digitization projects. Capital spending for 2027 is expected to be lower than 2026. Management emphasized that the company's balance sheet remains stronger than many industry peers, and the dividend cut is a one-time reset to create flexibility, not a sign of distress.