AT&T presented its long-term financial outlook at its 2024 Analyst & Investor Day, projecting free cash flow to exceed $18 billion in 2027. The company detailed a comprehensive plan to return over $40 billion to shareholders between 2025 and 2027, comprising $20 billion in dividends and $20 billion in share repurchases. This robust capital allocation strategy underscores confidence in future performance.
A significant catalyst for these projections is the "One Big Beautiful Bill Act," expected to generate $6.5 billion to $8 billion in cash tax savings from 2025 through 2027. AT&T plans to reinvest a portion of these savings, allocating an additional $0.5 billion in capital investment in 2025 and $3 billion across 2026-2027 to accelerate its fiber buildout to a run rate of 4 million new locations per year by the end of 2026. The company also intends to contribute $1.5 billion to its employee pension plan by the end of 2026, with over half in 2025.
The company raised its full-year 2025 free cash flow guidance to the "low to mid-$16 billion range," an improvement from its prior "$16 billion plus" guidance. For 2026 and 2027, AT&T anticipates approximately $1 billion of upside to its annual free cash flow guidance. Segment-specific guidance was also updated, with Mobility service revenue growth projected at "3% or better" and Consumer fiber broadband revenues expected to grow in the "mid- to high-teens" for the full year.
AT&T reaffirmed its consolidated adjusted EBITDA growth at "3% or better." The company plans to buy back $4 billion of stock by year-end 2025 under its $10 billion authorization. This strategic roadmap emphasizes AT&T's commitment to its converged 5G and fiber connectivity leadership, aiming for sustained growth and enhanced shareholder returns.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.