At&t Inc ((T)) has held its Q2 earnings call. Read on for the main highlights of the call.
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AT&T’s recent earnings call conveyed an overall positive sentiment, underscored by robust growth in its Mobility and Fiber segments, improved financial metrics, and a supportive policy landscape for investments. Despite facing challenges such as increased churn in postpaid phones and declining Business Wireline revenues, the company remains optimistic about its strategic positioning and future growth prospects.
Strong Mobility and Fiber Subscriber Growth
AT&T reported a significant increase in its subscriber base, adding over 400,000 postpaid phone customers and 243,000 fiber subscribers in the second quarter of 2025. This growth in advanced broadband services nearly tripled the company’s quarterly broadband net additions compared to the previous year, highlighting the strength of its Mobility and Fiber segments.
Increased Mobility Service Revenue Guidance
The strong performance in the Mobility segment has led AT&T to raise its full-year guidance for Mobility service revenue growth to 3% or better, up from the previous range of 2% to 3%. This adjustment reflects the company’s confidence in sustaining its revenue momentum.
Improved Financial Performance
AT&T’s consolidated revenues and adjusted EBITDA each saw a year-over-year increase of 3.5%. Additionally, adjusted earnings per share rose by approximately 6% to $0.54, and free cash flow increased to $4.4 billion, up from $4 billion the prior year. These improvements underscore the company’s enhanced financial health.
Expansion of Fiber Network
Looking ahead, AT&T plans to significantly expand its fiber network, aiming to reach more than 60 million fiber locations by the end of 2030. This ambitious goal involves acquisitions and joint ventures, doubling its current fiber reach and reinforcing its commitment to network expansion.
Pro-Investment Policy Environment
The earnings call highlighted a favorable investment and policy environment, including tax savings and legislative support for infrastructure investment. These factors are pivotal in supporting AT&T’s growth and network expansion strategies, providing a conducive backdrop for future developments.
Strong Consumer Wireline Performance
Consumer Wireline revenue experienced a 5.8% year-over-year growth, driven by a remarkable 19% increase in fiber revenue. The Consumer Wireline segment’s EBITDA also grew by 17.8%, reflecting the segment’s robust performance.
Increased Postpaid Phone Churn
Despite the positive trends, AT&T faced a rise in postpaid phone churn, which increased to 0.87%, up 17 basis points from the previous year. This was attributed to customers reaching the end of device financing periods and heightened market activity.
Business Wireline Revenue Decline
The Business Wireline segment saw a 9.3% decline in revenues year-over-year, with EBITDA declining by 11.3%. This downturn occurred despite the company’s cost-saving initiatives, indicating ongoing challenges in this area.
Higher Mobility Equipment Costs
AT&T experienced higher mobility equipment costs due to increased volumes and the launch of the AT&T Guarantee, impacting cash operating expenses. This rise in costs presents a challenge that the company needs to address.
Forward-Looking Guidance
AT&T’s forward-looking guidance remains optimistic, with a 3.5% year-over-year increase in total revenues and adjusted EBITDA. The company anticipates capital investments between $5 billion and $5.5 billion in the third quarter and expects free cash flow to range from $4.5 billion to $5 billion. With plans to accelerate fiber deployment to reach approximately 50 million customer locations by 2030, AT&T is leveraging policy tailwinds to enhance network investments and job creation.
In summary, AT&T’s earnings call reflected a positive outlook, driven by substantial growth in its Mobility and Fiber segments, improved financial performance, and a supportive policy environment. While challenges such as increased churn and declining Business Wireline revenues persist, the company’s strategic initiatives and forward-looking guidance suggest a promising trajectory for future growth.