Canada earnings: Top firms report, deliver mixed verdicts
Telus Corp (TSX:T): Revenue Growth Overshadowed by Earnings Miss
Telus Corp, one of Canada's leading telecom operators, reported a mixed Q2 2025 performance. While the company showed a modest 2% revenue growth year-over-year to C$5.03 billion—slightly beating analyst expectations—its adjusted earnings per share (EPS) of C$0.22 fell short of the projected C$0.23. This earnings miss and market competition led to a 2% drop in its stock Friday.
Customer acquisition also slowed, with 198,000 net additions, a drop of 134,000 from the year before, largely due to softer immigration patterns and heightened price competition. The company noted a 3.3% decline in mobile average revenue per user (ARPU), citing the proliferation of low-priced basic plans amid aggressive promotions. Despite this, Telus's free cash flow rose 11% to C$535 million.
In a strategic move to improve its balance sheet, Telus entered a C$1.26 billion deal with La Caisse to sell a 49.9% stake in Terrion, its new wireless tower subsidiary. Management reaffirmed full-year financial targets, maintaining optimism amid market volatility.
Enbridge Inc (TSX:ENB): Strong Earnings and Steady Outlook
In contrast, energy infrastructure giant Enbridge Inc delivered robust Q2 results. The Calgary-based company posted adjusted EPS of C$0.65, significantly above the analyst consensus of C$0.58, with adjusted EBITDA rising 7% year-over-year to C$4.64 billion, a quarterly record. Revenue and profitability were bolstered by growth in U.S. utilities, favorable rate cases in its Gas Transmission business, and increased customer demand in Ontario.
Enbridge also maintained its financial guidance for 2025 and reaffirmed its near-term growth outlook of 7-9% CAGR in adjusted EBITDA, 4-6% in adjusted EPS, and around 3% in distributable cash flow per share. New project developments, including the Clear Fork Solar initiative in partnership with Meta (NASDAQ:META) and the Line 31 transmission expansion, indicate strategic alignment with North America's shifting energy landscape. Following the results, the company's shares inched up 0.1% in Canadian trading.
Fortis Inc (TSX:FTS): Regulated Growth Drives Earnings Beat
Fortis Inc delivered a strong beat this quarter, with net earnings of C$384 million or C$0.76 per share, surpassing the C$0.70 analyst consensus and representing 16% growth year-over-year. Shares rose 2.7% following the announcement. The outperformance was driven by rate base growth, especially in Central Hudson (NYSE:HUD), and disciplined capital expenditure totaling C$2.9 billion in H1 2025.
Fortis's subsidiary, Tucson Electric Power (TEP), unveiled a 300 MW power supply agreement with a future data center and filed a general rate application aiming for a US$172 million increase in retail revenue. Sustainability efforts continue, with a reported 34% emissions reduction since 2019, though progress toward interim goals may lengthen. The utility reaffirmed its five-year C$26.0 billion capital plan, projecting a midyear rate base CAGR of 6.5% through 2029.
Imperial Oil Ltd (TSX:IMO): Profit Beat Offset by Revenue Miss
Imperial Oil Ltd (TSE: IMO) exceeded earnings expectations with adjusted EPS of C$1.86 (vs. C$1.57 consensus), yet fell short on revenue, which came in at C$11.23 billion compared to an expected C$12.12 billion. The revenue miss, combined with slightly lower year-over-year net income, led to a 1.7% dip in the stock.
Still, production momentum remained strong: Q2 upstream output rose to 427,000 barrels per day, the highest in over three decades. Kearl's record output and the commissioning of Canada's largest renewable diesel facility at Strathcona fueled optimism for the second half. Imperial also paid out C$367 million in dividends and pledged to complete its share buyback program (NCIB) ahead of schedule, signaling continued shareholder-friendly capital allocation.
Brookfield Business Corp (TSX:BBUC): Revenue and Earnings Lag
Brookfield Business Partners delivered a dour earnings picture, with Q2 adjusted EPS of $0.12 falling short of the $0.24 forecast and revenue of $6.7 billion, well below the $11.96 billion in Q2 2024. The stock has fallen 3.6% in Canadian trade following the announcement.
The Industrials division saw EBITDA jump to $307 million, helped by strong returns from its energy storage operations and a $71 million tax recovery. However, the Infrastructure Services division underperformed, with EBITDA declining to $109 million, attributed to the impact of divestitures such as January's sale of the company's shuttle tanker operation.
Brookfield continued its strategy of active capital recycling and strategic M&A, acquiring life sciences firm Antylia Scientific for $1.3 billion and divesting parts of its portfolio to an evergreen Brookfield-managed investment fund. The company kept its quarterly distribution unchanged and reported $2.3 billion in corporate liquidity.
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