AT&T expects this plan to provide $50B+ 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 $40B+ 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 $20B+ in total dividend payments, with capacity for about $20B in share repurchases, from 2025-2027. Under this plan, the company also expects approximately $10B 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. Of the $20B share repurchase capacity, AT&T’s board has authorized an initial tranche of approximately $10B in common stock repurchases. Management expects share repurchases under this authorization to commence when the company reaches its net leverage target range and expects to conclude by the end of 2026. Additionally, the company expects approximately $10B of share repurchases in 2027, pending board authorization.
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