AT&T Q1 2025 slides: Fiber and mobility drive growth, EPS rises 6.3%

Introduction & Market Context

AT&T Inc (NYSE:T) released its first quarter 2025 earnings presentation on April 23, 2025, showcasing solid performance across its core business segments. The telecommunications giant reported revenue of $30.6 billion, up 2% from $30.0 billion in the same period last year. The stock responded positively to the results, rising 2.39% at the previous close and showing a 4.27% gain in premarket trading, reflecting investor confidence in the company’s strategic direction and financial performance.

Quarterly Performance Highlights

AT&T’s Q1 2025 results demonstrated continued momentum in its strategic focus areas of 5G wireless and fiber broadband services. The company reported adjusted earnings per share of $0.51, a 6.3% increase from $0.48 in Q1 2024, while adjusted EBITDA grew 4.4% year-over-year to $11.5 billion.

As shown in the following quarterly highlights, AT&T achieved significant subscriber growth in its key business segments:

The company’s postpaid phone subscriber base reached 73 million, with 324,000 net additions during the quarter. AT&T Fiber continued its strong performance with 261,000 net additions, bringing total fiber subscribers to 9.6 million. Notably, fiber revenue grew an impressive 19.0% compared to the same period last year, underscoring the success of AT&T’s fiber expansion strategy.

The consolidated financial results further illustrate AT&T’s performance trajectory over the past five quarters:

Detailed Financial Analysis

AT&T’s Mobility segment, which represents the company’s largest business unit, delivered solid results with service revenue growth of 4.1% year-over-year. Total (EPA:TTEF) mobility revenue reached $16.7 billion in Q1 2025, compared to $16.0 billion in Q1 2024. The segment’s EBITDA increased by 3.5% to $9.3 billion, demonstrating AT&T’s ability to grow both its subscriber base and profitability.

The following chart details the Mobility segment’s performance metrics:

In the Consumer Wireline segment, AT&T’s fiber-focused strategy continued to pay dividends with 19.0% year-over-year revenue growth. The company added 261,000 fiber subscribers and 181,000 AT&T Internet Air customers during the quarter. Total Consumer Wireline revenue was $3.5 billion, with fiber revenue accounting for $2.1 billion. The segment generated $1.3 billion in EBITDA.

AT&T’s fiber business benefits from increasing convergence with mobility services, with 3.9 million customers subscribing to both AT&T Fiber and AT&T Mobility:

The Business Wireline segment remains a challenge for AT&T, with revenue declining 9.1% year-over-year to $4.5 billion. EBITDA in this segment decreased by 1.8% to $1.4 billion. However, the company is managing this transition by focusing on growth in fiber and advanced connectivity services while supporting the expansion of FirstNet, which added 341,000 connections during the quarter:

Strategic Initiatives

AT&T outlined three key business priorities for 2025, focusing on sustainable growth, operational efficiency, and disciplined capital allocation:

The company continues to make progress on its capital allocation strategy, reducing net debt by $9.6 billion year-over-year and achieving a net debt-to-adjusted EBITDA ratio of 2.63x. AT&T invested $4.5 billion in capital expenditures during the quarter while returning $4.1 billion to shareholders through $2.1 billion in dividends and $2.0 billion in share repurchases:

Forward-Looking Statements

AT&T maintained its financial guidance for 2025, projecting continued growth across its key business segments. The company expects consolidated service revenue to grow in the low-single-digit range, with mobility service revenue at the higher end of the 2% to 3% range and consumer fiber broadband revenue growing in the mid-teens percentage range.

Adjusted EBITDA is projected to grow by 3% or better, with capital investment in the $22 billion range and free cash flow of $16 billion or more. AT&T forecasts adjusted EPS between $1.97 and $2.07 for the full year:

Conclusion

AT&T’s Q1 2025 results demonstrate the company’s continued progress in executing its focused strategy on wireless and fiber growth while managing the decline in legacy business services. The strong performance in mobility and fiber segments, combined with disciplined cost management and capital allocation, positions AT&T to deliver on its 2025 financial targets.

The company’s ability to grow its subscriber base while improving profitability metrics suggests that its investment strategy is yielding positive results. With a clear focus on its core competencies and a balanced approach to shareholder returns and debt reduction, AT&T appears well-positioned to navigate the competitive telecommunications landscape in 2025 and beyond.

Full presentation:

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