AT&T confirms financial targets and debt reduction plan for 2025: Key Details
AT&T Inc. (NYSE:T) has reaffirmed its commitment to meeting its 2025 financial goals and executing its long-term strategic plan. The company has restated its adjusted earnings per share (EPS) guidance for FY25 at $1.97 to $2.07, with a first-quarter adjusted EPS expected to be around $0.48 or higher. This indicates that the first quarter of 2025 is on track to match or surpass the prior year’s performance, excluding DIRECTV. AT&T is maintaining its full-year free cash flow outlook of over $16 billion, with around $2.8 billion expected for the first quarter. Additionally, the company anticipates receiving cash payments of $1.4 to $1.5 billion from DIRECTV in the first quarter as part of the agreement to sell its 70% stake in DIRECTV to TPG. The transaction is targeted to close by mid-2025, generating total after-tax cash proceeds of $5.4 billion in 2025.
AT&T also secured over $850 million in cash proceeds from a structured real estate sale-leaseback with Reign Capital in the first quarter. The company remains focused on achieving its net leverage target by the first half of 2025 and aims to sustain this level through 2027. AT&T outlined a multi-year strategy to generate over $50 billion in financial capacity within the next three years, primarily driven by organic growth. In January, AT&T reported fourth-quarter 2024 operating revenues of $32.30 billion, surpassing analyst estimates, and adjusted EPS of $0.54 exceeded expectations.
Investors interested in AT&T can access the stock through iShares U.S. Telecommunications ETF (BATS:IYZ) and WBI Power Factor High Dividend ETF (NYSE:WBIY). AT&T’s shares are down 0.95% at $27.02 in premarket trading.
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