AT&T backs FY25 adjusted EPS view $1.97-$2.07, consensus $2.05

Backs FY25 adjusted EBITDA view up 3% or better. Backs FY25 free cash flow view low-to-mid $16B range. Backs FY25 capital investment $22B-$22.5B. AT&T intends to finance the spectrum purchase transaction with cash on hand and incremental borrowings. Following the closing of the transaction, AT&T expects its net debt-to-adjusted EBITDA ratio to increase to the 3x range and to return to a level consistent with its leverage target in the 2.5x range within approximately three years. AT&T maintains the capital returns plan outlined at its 2024 Analyst & Investor Day and updated with its second quarter 2025 earnings release, including $20B of capacity for share repurchases during 2025-2027. The company expects to maintain a consistent approach to capital returns during 2028-2029 while reducing its net debt-to-adjusted EBITDA ratio, supported by improved long-term growth in service revenue and adjusted EBITDA from this transaction and strong free cash flow. AT&T reiterates all full-year 2025 financial guidance and the long-term financial outlook provided with its second quarter 2025 earnings report, which includes expectations for growth in consolidated service revenue, adjusted EBITDA and adjusted EPS as well as its outlook for free cash flow and capital investment. The company does not expect a material impact to adjusted EPS and free cash flow from this transaction during the first 24 months following deal close, with accretion to both metrics expected in the third year.