AT&T outlines multi-year strategic growth and capital return plans

Published 04/03/2025, 22:26
AT&T outlines multi-year strategic growth and capital return plans

DALLAS - AT&T Inc. (NYSE:T) has reaffirmed its commitment to a multi-year strategic growth plan and capital return program, as discussed by Chairman and CEO John Stankey during today’s fireside chat at the Morgan Stanley (NYSE:MS) Technology, Media & Telecom (BCBA:TECO2m) Conference.

The telecommunications giant is on track to meet the financial and operational guidance issued for 2025, as previously outlined in its fourth-quarter 2024 earnings call and 2024 Analyst & Investor Day. The company’s plan aims to prioritize customer satisfaction and continued network investment, with a focus on enhancing connectivity services across the United States.

AT&T’s strategic plan is expected to generate over $50 billion in financial capacity over the next three years, driven largely by organic growth. This includes anticipated free cash flow, proceeds from the sale of its stake in DIRECTV to TPG, and net borrowing capacity after reaching its net leverage target.

The company plans to allocate more than $40 billion of this financial capacity to shareholders through dividends and share repurchases. AT&T intends to maintain its annualized dividend of $1.11 per share, translating to over $20 billion in dividend payments from 2025 to 2027. Additionally, there is a provision for approximately $20 billion in share repurchases within the same period. An initial tranche of $10 billion in stock buybacks has been authorized by the Board, with repurchases set to begin upon achieving the net leverage target range and expected to conclude by the end of 2026. Another $10 billion in share repurchases is anticipated for 2027, subject to Board approval.

The company also plans to maintain financial flexibility for potential strategic investments, debt repayment, or further capital returns to shareholders. AT&T projects to reach its net leverage target of net-debt-to-adjusted EBITDA in the 2.5x range in the first half of 2025 and to sustain this level through 2027.

In terms of service growth, AT&T expects wireless service growth at the higher end of the 2% to 3% range and Mobility EBITDA growth at the higher end of the 3% to 4% range for the full year. The company also anticipates mid-teens revenue growth in consumer fiber broadband and high-single to low-double-digit EBITDA growth in Consumer Wireline. Business Wireline EBITDA is expected to decline in the mid-teens range due to industry-wide declines in legacy services.

This news is based on a press release statement and is intended to provide shareholders with an update on AT&T’s financial health and strategic direction. For more detailed information, including a replay of the webcast, interested parties can visit the AT&T Investor Relations website.

In other recent news, AT&T has announced a series of live webcast fireside chats with key executives, aiming to provide updates and insights to analysts and investors. The company confirmed it is on track to meet its financial and operational goals for 2025. This comes after AT&T’s CEO discussed revenue improvement and customer growth strategies at a recent conference. Despite these positive projections, the market reacted negatively to the CEO’s comments, leading to a decline in the company’s stock price. Meanwhile, TELUS (NYSE:TU) reported strong fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share of $0.54 against a forecast of $0.49. TELUS also slightly exceeded revenue forecasts, reporting $32.3 billion for the quarter. The earnings surprise resulted in a notable pre-market stock increase. TELUS continues to project growth, with operating revenue expected to rise by 2-4% and adjusted EBITDA by 3-5% in 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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