AT&T Expects Its Multi-year Strategic Plan To Provide $50B+ Of Financial Capacity Over Next Three Years, Largely Through Organic Growth

Benzinga · Dec 10 05:43

As discussed during the Company's 2024 Analyst & Investor Day, it expects 2025 Free Cash Flow of $16 billion+, when excluding DIRECTV.

The expected drivers of next year's free cash flow growth include Adjusted EBITDA growth, lower cash interest from lower debt balances, the absence of network termination fee payments in 2025 and lower working capital impacts in 2025 compared to 2024. These items are expected to more than offset an expected increase in cash taxes.

The Company continues to expect to achieve its net leverage target of net-debt-to-adjusted EBITDA in the 2.5x range in the first half of 2025 and maintain leverage within this range through 2027.

The Company expects to return $40 billion+ of this financial capacity to shareholders through dividends and share repurchases. Under this capital return plan, the Company expects to maintain its current annualized common stock dividend of $1.11 per share. This plan would result in $20 billion+ in total dividend payments, with capacity for about $20 billion in share repurchases, from 2025-2027.

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AT&T Expects Its Multi-year Strategic Plan To Provide $50B+ Of Financial Capacity Over Next Three Years, Largely Through Organic Growth

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