Tomorrow, AT&T's chief executive officer will participate in a fireside chat where he will discuss the Company's multi-year strategic growth plan.

Key Takeaways:

John Stankey, chief executive officer, AT&T Inc. (NYSE:T), will speak tomorrow at the UBS Global Media & Communications Conference where he will provide an update to shareholders. Stankey is expected to cover key topics discussed below.

AT&T's multi-year strategic growth plan will substantially advance its progress on becoming the best connectivity provider in America

As a result of the investment-led strategy announced at its 2024 Analyst & Investor Day, the Company expects to be in a differentiated position within the connectivity industry by the end of the decade. 

In Mobility, the Company is building a more efficient, high-capacity, programmable and open network. By 2027, it expects to have largely completed the modernization of its 5G wireless network with open technology, with deep mid-band 5G spectrum covering 300 million+ people by the end of 2026.

In broadband, the Company already has the largest fiber broadband network in America. By the end of 2029, it expects to reach 50 million+ total locations with fiber1. This includes expectations to pass about 45 million locations through its organic fiber deployment and to serve 5 million+ fiber locations through Gigapower, its joint venture with Blackrock, as well as through agreements with commercial open-access providers. 

These collective efforts increase AT&T's opportunity to serve customers how they want to be served, by one provider in a converged manner. While building the network of the future, the Company is actively working to exit its legacy copper network operations across the large majority of its wireline footprint by the end of 2029.

AT&T remains on track to meet all of the financial and operational guidance shared during its 2024 Analyst & Investor Day

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.

AT&T expects its multi-year strategic plan to provide $50 billion+ of financial capacity over the next three years, largely through organic growth. Financial capacity represents anticipated free cash flow after distributions to noncontrolling interests, plus expected cash payments from the announced agreement to sell AT&T's stake in DIRECTV to TPG, as well as net borrowing capacity after the Company achieves its net leverage target.

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.

The plan also contemplates approximately $10 billion in incremental financial flexibility for items such as potential organic or inorganic strategic growth investments, debt repayment, redemptions of noncontrolling interests, or additional dividends or share repurchases.

Tune in for the fireside chat with John Stankey at the UBS Global Media & Communications Conference, scheduled to begin at 8:15 a.m. ET. The webcast will be available live and for replay at AT&T Investor Relations.

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1 "Total locations" includes consumer and business locations (i) passed with fiber and (ii) served with fiber through commercial open-access providers.

Cautionary Language Concerning Forward-Looking Statements

Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise. This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's website at investors.att.com.

About AT&T We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 140+ years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit�us at about.att.com. Investors can learn more at investors.att.com.

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SOURCE AT&T

SOURCE: AT&T

Brittany Siwald, AT&T Corporate Communications, Phone: (214) 202-6630, Email:
brittany.a.siwald@att.com

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