...November 19, 2024 While Telus Corp.'s leverage should improve modestly over the next year, we expect it will remain close to our downside trigger. Telus exited third-quarter 2024 with 4.2x adjusted debt to EBITDA, continuing its elevated level since 2023 following the WillowTree acquisition and also reflecting large restructuring costs (about C$700 million in 2023 and C$425 million year-to-date 2024), a challenging operating environment leading to lower earnings growth at Ttech operations, and cyclical weakness in the non-telecom segment. However, we expect EBITDA to improve in 2025 as restructuring costs subside, upcoming synergies are crystalized, and cost saving programs bear results. Immigration-related headwinds and competitive intensity in the Canadian telecom landscape, along with weakness in the non-telecom segments and Telus Digital, are pressuring Telus' topline and could slow deleveraging. Nonetheless, we believe Telus' leverage should improve to 3.8x in 2025, which is close...
