Cash generation efficiency has deteriorated, with the company reporting a negative FCF margin of -0.5% in 2026Q1 while maintaining a high capital expenditure intensity of 21.5% of revenue.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Cash from Operations | 4.42B | 4.87B | 4.85B | 4.5B | 4.81B | 4.39B | 4.57B | 3.93B | 4.06B | 3.95B | 3.22B | 3.54B | 3.41B | 3.25B | 3.22B | 2.55B | 2.55B | 3.04B | 3.43B | 3.17B | 2.8B | 2.91B | 2.54B | 2.14B | 1.74B | 1.4B | 1.64B | 1.65B | 1.5B |
| Operating CF Margin % | - | 23.73% | 24.07% | 22.49% | 26.3% | 26.06% | 29.82% | 26.92% | 28.79% | 29.9% | 25.3% | 28.5% | 28.57% | 28.63% | 29.66% | 24.53% | 26.04% | 30.23% | 29.2% | 34.95% | 32.3% | 35.79% | 33.48% | 30% | 24.86% | 19.42% | 25.42% | 28.55% | 30.9% |
| Operating CF Growth % | -38.47% | 0.39% | 7.74% | -6.49% | 9.64% | -4.07% | 16.48% | -3.23% | 2.81% | 22.62% | -9.12% | 3.96% | 4.96% | 0.84% | 26.24% | 0.16% | -16.27% | -11.37% | 8.17% | 13.13% | -3.81% | 14.83% | 18.38% | 23.08% | 24.55% | -14.46% | -0.61% | 9.94% | - |
| Net Income | 928.35M | 1.11B | 938M | 867M | 1.72B | 1.7B | 1.26B | 1.78B | 1.62B | 1.48B | 1.24B | 1.38B | 1.43B | 1.29B | 1.32B | 1.22B | 1.04B | 1.05B | 1.37B | 1.26B | 1.12B | 700.3M | 565.8M | 331.5M | -227.1M | -138.8M | 461M | 349.7M | 603M |
| Depreciation & Amortization | 3.79B | 4.06B | 4.04B | 4.07B | 3.45B | 3.22B | 3.01B | 2.58B | 2.27B | 2.17B | 2.05B | 1.91B | 1.83B | 1.8B | 1.86B | 1.81B | 1.74B | 1.81B | 2.09B | 1.61B | 1.58B | 1.62B | 1.64B | 1.65B | 1.57B | 1.67B | 1.21B | 1.06B | 1.02B |
| Stock-Based Compensation | -107M | 0 | 151M | 117M | 122M | 139M | 27M | -2M | 6M | 17M | -2M | -38M | 74M | 24M | 9M | -12M | -30M | -8.38M | 6.08M | 95.8M | 25.1M | 24.3M | 23.8M | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -175.96M | 0 | -167M | -140M | 31M | 47M | 76M | 115M | 74M | 430M | -42M | 68M | 188M | 21M | 163M | 205M | 213M | -86.91M | 161M | 376.9M | 409.2M | 340M | 380.9M | 398.6M | 9.2M | -167.1M | 152M | -10.1M | 81.5M |
| Other Non-Cash Items | 405.89M | -201M | -132M | -88M | -319M | -630M | -71M | -207M | -169M | -6M | 51M | 7M | -50M | -83M | -188M | -413M | -174M | -79.58M | 660.48M | -199M | -81M | -127.4M | -127.5M | -215.4M | 263.4M | 77.8M | -20.6M | 329.5M | -210M |
| Working Capital Changes | -25.92M | -105M | 21M | -326M | -193M | -82M | 270M | -332M | 256M | -142M | -71M | 214M | -64M | 187M | 52M | -255M | -236M | 354.97M | -857.99M | 25.1M | -247.7M | 353.7M | 52M | 23.3M | 213.2M | 31.9M | -169.5M | -90.4M | 0 |
| Change in Receivables | -27.81M | 62M | -89M | -184M | -312M | -298M | -231M | -329M | 74M | -70M | -45M | 55M | -20M | 81M | -113M | -79M | -223M | 284.81M | -217M | -31.6M | -95.6M | 262.7M | -139.7M | -83.4M | 331.7M | 0 | 0 | 0 | 0 |
| Change in Inventory | -47.4M | 147M | -145M | 53M | -89M | -41M | 30M | -61M | 4M | -60M | 42M | -40M | 3M | 24M | 3M | -69M | -13M | 149.74M | -90M | -19M | -57.6M | -5.5M | -9.8M | -27M | 21.8M | 33.1M | 0 | 0 | 0 |
| Change in Payables | 169.28M | 0 | 0 | -332M | 173M | 0 | 566M | 196M | -160M | 99M | 106M | -82M | 142M | 67M | 35M | -73M | 0 | -63.87M | -607.99M | 0 | 0 | 0 | 0 | 0 | -63.6M | 0 | 0 | 0 | 0 |
| Cash from Investing | -2.5B | -3.04B | -3.7B | -4.75B | -5.41B | -5.47B | -6.17B | -5.04B | -2.98B | -3.64B | -2.92B | -4.48B | -3.67B | -2.39B | -2.06B | -1.97B | -1.71B | -2.23B | -4.18B | -1.77B | -1.68B | -1.36B | -1.3B | -1.2B | -1.69B | -1.82B | -3.83B | -1.2B | -1.04B |
| Capital Expenditures | -2.88B | -2.52B | -2.75B | -3.18B | -3.65B | -3.1B | -6.17B | -3.89B | -2.88B | -3.08B | -2.9B | -4.57B | -3.54B | -2.1B | -1.95B | -1.85B | -1.72B | -2.2B | -3.34B | -1.77B | -1.62B | -1.32B | -1.32B | -1.25B | -1.69B | -2.25B | -3.83B | -1.2B | -1.1B |
| CapEx % of Revenue | 14.08% | 12.26% | 13.66% | 15.91% | 19.94% | 18.39% | 40.19% | 26.69% | 20.4% | 23.34% | 22.77% | 36.77% | 29.71% | 18.54% | 17.97% | 17.76% | 17.6% | 21.89% | 28.4% | 19.51% | 18.64% | 16.2% | 17.4% | 17.53% | 24.17% | 31.23% | 59.55% | 20.81% | 22.66% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -350.5M | 6M | -546M | -157M | -21M | -2.26B | -100M | -33M | 140M | -26M | 61M | 51M | -82M | -38M | -75M | -11M | 14M | 1.05M | -3.32B | 7.5M | -1.6B | -1.31B | 19.5M | 54.9M | 2.2M | 964.2M | 74.2M | 900K | 61.9M |
| Cash from Financing | -1.11B | -74M | -1.14B | 139M | 848M | 953M | 1.9B | 1.24B | -1.18B | -227M | -87M | 1.1B | -15M | -628M | -1.1B | -553M | -863M | -773.81M | 727.77M | -1.37B | -1.15B | -2.45B | -348.3M | -931M | -77M | 339.6M | 2.33B | -560.5M | -775.9M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -40M | -40M | 0 | 0 | 0 | 1.3B | 1.5B | 0 | -100M | 0 | -179M | -628M | -615M | -1B | 1M | 24M | 15M | 1M | -713M | -749M | -695.7M | -672.7M | -2M | 86.6M | 92.2M | 103.1M | 14.4M | 1.7M | -39.8M |
| Dividends Paid | -1.54B | -1.63B | -1.56B | -1.31B | -1.19B | -1.04B | -930M | -1.15B | -1.14B | -1.08B | -1.07B | -992M | -913M | -852M | -774M | -646M | -476M | -6.28M | -533.05M | -525.1M | -414.7M | -312.2M | -248.7M | -172M | -135.6M | -325.2M | -353M | -334.9M | -309.7M |
| Share Repurchases | -40M | -40M | 0 | 0 | 0 | 0 | 0 | 0 | -100M | 0 | -179M | -628M | -615M | -1B | 0 | 0 | 0 | -602M | -713M | -749.9M | -800.2M | -892.1M | -150.8M | 0 | 0 | 0 | 0 | -1.8M | -47.6M |
| Other Financing | -816.77M | 439M | -42M | -77M | -169M | 769M | 328M | -56M | 9M | -10M | 279M | -15M | -10M | -20M | -4M | -61M | -11M | -40.81M | 0 | -700K | -309.4M | -8.7M | 111.2M | -6.7M | 307.6M | 12M | 67.3M | 1.9M | 1.5M |
| Net Change in Cash | 713.03M | 1.75B | 5M | -110M | 251M | -125M | 313M | 121M | -95M | 77M | 209M | 163M | -276M | 229M | 61M | 29M | -24M | 38.74M | -19.47M | 31.4M | -20.1M | -887.9M | 890.3M | 15.2M | -26.1M | -83.1M | 132.5M | -113.7M | -315.3M |
| Free Cash Flow | 1.21B | 2.35B | 1.46B | 1.29B | 1.16B | -928M | -1.59B | 33M | 1.18B | 866M | 322M | -1.03B | -137M | 1.14B | 1.27B | 703M | 825M | 838.73M | 94.93M | 1.4B | 1.19B | 1.6B | 1.22B | 891.3M | 48.7M | -850.8M | -2.2B | 445.9M | 398.7M |
| FCF Margin % | 5.92% | 11.46% | 7.25% | 6.44% | 6.36% | -5.51% | -10.37% | 0.23% | 8.39% | 6.56% | 2.53% | -8.27% | -1.15% | 10.09% | 11.69% | 6.76% | 8.44% | 8.34% | 0.81% | 15.44% | 13.65% | 19.6% | 16.08% | 12.47% | 0.69% | -11.81% | -34.14% | 7.74% | 8.23% |
| FCF Growth % | -35.06% | 61.03% | 13.35% | 10.65% | 225.43% | 41.67% | -4921.21% | -97.21% | 36.61% | 168.94% | 131.32% | -650.37% | -111.98% | -9.85% | 80.51% | -14.79% | -1.64% | 783.56% | -93.23% | 18.23% | -25.71% | 30.88% | 36.78% | 1730.18% | 105.72% | 61.26% | -592.49% | 11.84% | - |
| FCF per Share | 0.78 | 1.53 | 0.98 | 0.88 | 0.83 | -0.69 | -1.24 | 0.03 | 0.99 | 0.73 | 0.27 | -0.85 | -0.11 | 0.89 | 0.97 | 0.54 | 0.64 | 0.66 | 0.07 | 1.05 | 0.85 | 1.10 | 0.85 | 0.63 | 0.04 | -0.72 | -2.21 | 0.47 | 0.42 |
| FCF Conversion (FCF/Net Income) | 1.31x | 4.37x | 4.88x | 5.35x | 2.98x | 2.65x | 3.79x | 2.25x | 2.54x | 2.70x | 2.63x | 2.56x | 2.39x | 2.51x | 2.44x | 2.09x | 2.46x | 2.91x | 2.50x | 2.52x | 2.50x | 4.16x | 4.49x | 6.47x | -7.61x | 3.08x | 3.55x | 4.70x | 20.67x |
| Interest Paid | 1.01B | 1.38B | 1.33B | 1.2B | 816M | 744M | 740M | 714M | 608M | 539M | 510M | 458M | 412M | 364M | 337M | 378M | 479M | 567M | 457M | 454M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 326M | 480M | 358M | 389M | 519M | 601M | 430M | 644M | 197M | 191M | 600M | 256M | 464M | 438M | 150M | 150M | 311M | 266M | 10M | 123M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Dividend sustainability and leverage
According to recent financial disclosures, the OCF/NI ratio reached an extreme 7.72x in 2026Q1, highlighting a persistent and widening disconnect between reported net income and actual cash generation that suggests earnings quality is significantly compromised by non-cash charges and accounting adjustments.
The massive disparity between net income and operating cash flow indicates that reported profits are heavily influenced by non-cash items, likely depreciation and amortization related to the company's extensive fiber footprint. Investors should be wary of this divergence, as it implies that the company's ability to fund operations from core earnings is far weaker than the headline net income figures suggest.
As reported in quarterly filings, TELUS saw its FCF margin collapse to -0.5% in 2026Q1, a stark reversal from the 14.9% peak observed in 2024Q3, signaling a deteriorating ability to generate surplus cash after accounting for the heavy capital requirements of its network infrastructure.
The volatility in free cash flow trajectory suggests that the company's capital-intensive business model is increasingly vulnerable to revenue stagnation and margin pressure. This trend may indicate that the current level of capital expenditure is no longer being adequately supported by internal cash generation, potentially forcing a reliance on external financing.
Based on the provided data, capital expenditures reached 21.5% of revenue in 2026Q1, reflecting a sustained high-intensity investment cycle that continues to consume the vast majority of operating cash flow and limits the company's financial flexibility in a competitive telecommunications landscape.
The persistent high ratio of CapEx to revenue suggests that TELUS is locked into a cycle of continuous infrastructure spending to maintain its fiber-to-the-premises advantage. This heavy reinvestment requirement appears to be a structural burden that leaves little room for error if revenue growth fails to materialize as expected.
As evidenced by financial statements, TELUS paid out $431.1 million in dividends during 2026Q1 despite generating negative free cash flow, a dynamic that warrants close monitoring as it suggests the dividend program is currently being funded by debt rather than operational surplus.
The decision to maintain dividend payments while free cash flow has turned negative indicates a potential conflict between shareholder return policies and the capital needs of the business. This strategy appears increasingly unsustainable if the current cash flow trajectory does not improve, potentially forcing a difficult choice between dividend cuts and further balance sheet degradation.
Quick answers to the most common questions about buying TU stock.
TELUS Corporation (TU) generated $4.87B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
TELUS Corporation (TU) generated $2.35B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
TELUS Corporation (TU) spent $2.52B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, TELUS Corporation (TU) returned $1.63B to shareholders via cash dividends and spent $40.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.