Tomorrow, March 10, 2025, AT&T’s Chief Financial Officer will participate in a discussion on the company’s multi-year strategic growth plan.
- AT&T is embarking on a multi-year strategic growth plan focused on putting customers first and continuing to invest in its network.
- AT&T continues to be the largest communications provider in the United States and is on track to achieve all financial and operating plans and capital allocations shared during the 2024 fourth quarter earnings call and the 2024 analyst and investor day.
- AT&T is expected to report strong free cash flow in the first quarter as well as more than $2 billion in previously announced cash and transaction-related charges.
Pascal Desroches, treasurer;AT&T Corporate Events (NYSE: T ) will provide an update to shareholders during Deutsche Bank’s Media, Internet and Telecommunications conference call tomorrow.
AT&T continues to meet its 2025 consolidated financial guidance and achieve its multi-year vision.
AT&T continues to release the results of its fourth quarter 2024 conference call as well as full multi-year financial and operating guidance and 2025 capital allocation plan. 2024 Analysts and Investors Day.
As noted, beginning in 2025, AT&T’s adjusted earnings per share will not include DIRECTV. The company reiterated historical results for both financial parametersForm 8-K 3 December 2024.
The company still expects full-year adjusted earnings per share to be in the range of $1.97 to $2.07 and first quarter adjusted earnings per share to be approximately $0.48 or higher. It provides adjusted earnings per share for the first quarter of 2025. Better than Q1 2024 if DIRECTV doesn’t include previous years.
The company still expects full-year free cash flow of $16 billion and free cash flow of $2.8 billion or more in the first quarter. This results in cash flow for the first quarter of 2025, excluding DIRECTV, equal to or better than the first quarter of 2024.
Additionally, in the first quarter of 2025, AT&T expects to receive approximately $1.4 billion to $1.5 billion in cash from DIRECTV related to the agreement to sell 70% of DIRECTV to TPG. The company, which closes the sale in mid-2025, expects to receive total after-tax cash payments related to the transaction of $5.4 billion in 2025 and $500 million in after-tax cash payments in 2029.
The company received more than $850 million in cash in the first quarterIt was announced earlier Provide Rig Capital real estate sale-leaseback structure. Cash related to the DIRECTV transaction with Reign Capital is not included in AT&T’s free cash flow.
The company still expects to achieve a net debt target in the range of 2.5x adjusted EBITDA for the first half of 2025 and maintain that debt through 2027.
For conference details and more information, please visit AT&T
For complete information about the conference, please visitAT&T Investor Relations The website has online streaming.
Reconciliation of Non-GAAP to GAAP Measures and Free Cash Flow Projection for 2025
Reconciliation of non-GAAP measures to GAAP measures Adjusted diluted earnings per share Includes operating income, operating expenses, other income (expense) and income tax expense, certain significant recurring or non-recurring items, disposal and integration and transaction costs, operating profits and losses, significant omissions and impairments, significant gains and losses related to benefits, employee terminations and other losses. The tax impact of an adjustment item is calculated using the effective tax rate for the quarter, and depending on its size, the effective tax rate may change. In this case, we use actual tax expense or a gross margin of approximately 25%. The company expects to adjust the earnings per share reported in 2025 to include DIRECTV net income, non-market benefit plan gains and losses and other items. The adjustment to exclude equity from DIRECTV’s net income is based on the completion of DIRECTV’s investment, which is expected to be completed in mid-2025, as the company expects market correction based on irrational interest rates and investment returns. Our projected adjusted earnings per share for the first quarter and full year 2025 depend on future revenue and expense levels, many of which cannot be reasonably estimated at this time. Therefore, we are unable to provide reconciliations between the proposed non-GAAP measures and the most comparable GAAP measures without reasonable efforts.
Free cash flow Cash from operations is defined as DIRECTV’s equity method investments (cash distributions less cash paid to DIRECTV), capital expenditures, and cash financing through vendor financing of activities. Season 1, 2025. Free cash flow of $2.8 billion or more, including $8.4 billion to $8.6 billion in cash flow, $1.4 billion to $1.5 billion in DIRECTV-related cash flow, $1.138 billion in special distributions and $3.9 billion to $4.2 billion in capital and expenses. Due to high volatility and difficult-to-predict factors affecting operating cash flow, capital expenditures and supplier financing, the Company is unable to provide a reasonable reconciliation of free cash flow for the full year 2025 to the most comparable GAAP measure.
Cautionary Statement Regarding Forward-Looking Statements
The information contained in this press release contains financial projections and other forward-looking statements that are subject to risks and uncertainties and actual results may differ materially. Factors that could affect future performance are discussed in AT&T’s filings with the Securities and Exchange Commission. AT&T undertakes no obligation to update or revise any statements contained herein, whether based on new information or other information. This press release may contain certain non-GAAP financial measures. The Company is unable to provide reconciliations to the most similar GAAP measure of estimated net debt EBITDA and related ratios without reasonable efforts.
Read More on Internet Today.
