AT&T (T) closed fiscal year 2024 with solid execution on its strategic roadmap, delivering strength in its Mobility and Consumer Wireline segments, while continuing to navigate pressures in Business Wireline. The company met or exceeded all major financial guidance for the year and enters 2025 with a stable outlook anchored in continued investment and disciplined cost management.

For the full year, total operating revenues held steady at $122.3 billion, down just 0.1% year-over-year. Within this, service revenues edged up 0.5% to $100.1 billion, while equipment revenues declined 2.5% to $22.2 billion. However, operating income fell sharply by 18.8% to $19.0 billion, impacted by asset impairments and restructuring charges, pulling the operating margin down to 15.6% from 19.2% in 2023. Net income from continuing operations also dropped 21.6% to $12.3 billion.

Despite these bottom-line pressures, AT&T maintained healthy cash generation, reporting free cash flow of $17.6 billion (or $15.3 billion excluding DIRECTV), and reduced net debt by $8.8 billion, bringing leverage below 2.7x adjusted EBITDA. Capital investment came in at the high end of guidance, at approximately $22 billion, underscoring its commitment to network modernization and fiber expansion.

In the fourth quarter, AT&T saw nearly 1% revenue growth year-over-year, with adjusted EBITDA up 2.2%, supported by continued gains in wireless and fiber broadband. Free cash flow totaled $4.8 billion, aided by $1.1 billion in DIRECTV distributions, while cash from operations rose by $500 million to $11.9 billion. Adjusted EPS was $0.54, flat year-over-year despite notable below-the-line headwinds.

Mobility remained AT&T’s growth engine, generating $85.3 billion in full-year revenue, up 1.5%, with operating income of $26.3 billion and a strong EBITDA margin of 30.9%. The segment posted 1.7 million postpaid phone net additions for the year, including 482,000 in Q4. Postpaid phone ARPU rose nearly 1% to $56.72, and churn was an industry-best 0.85%. Mobility service revenues grew 3.5% year-over-year.

Consumer Wireline delivered another year of growth, with revenues rising 3.1% to $13.6 billion. Operating income surged 33.5% to $869 million, and EBITDA improved 10% to $4.5 billion. AT&T Fiber added 1.02 million net subscribers in 2024, including a record 307,000 in Q4. Fiber ARPU climbed 4.7% to $71.71, and total broadband revenues advanced over 7%, with fiber revenue growth nearing 18%.

In contrast, Business Wireline continued to contract, with revenue falling 9.9% to $18.8 billion. The segment swung to an $88 million operating loss, with EBITDA down 18% to $5.5 billion and an operating margin of -0.5%. While fiber and connectivity products are growing, they have not yet offset declines in legacy services.

In Latin America, AT&T’s Mexico operations showed marked improvement, with revenue up 7.6% to $4.2 billion, and a return to profitability with $40 million in operating income. The segment achieved a 16.5% EBITDA margin, reflecting improved scale and cost efficiency.

On the capital front, AT&T ended the year with $3.3 billion in cash, reduced total debt to $123.5 billion, and repurchased over 554,000 shares in Q4 at an average price of $22.22. A new $10 billion buyback program was authorized in December. Dividends remain a key priority, as part of a broader $40+ billion shareholder return plan through 2027.

Looking ahead to 2025, the company expects adjusted EPS (ex-DIRECTV) in the range of $1.97 to $2.07, and free cash flow (ex-DIRECTV) to exceed $16 billion, with capital investment again targeted at approximately $22 billion. Share repurchases are expected to resume in the second half of the year.

Management reiterated confidence in its strategy, highlighting profitable subscriber growth, expanding fiber and 5G coverage, and achieving more than $3 billion in run-rate cost savings by 2027, aided by AI-driven efficiencies and the ongoing exit from legacy copper infrastructure. The anticipated sale of AT&T’s 70% stake in DIRECTV, expected to close mid-2025, will further streamline operations and unlock $5.9 billion in after-tax proceeds over the next few years.

AT&T’s performance in 2024 underscores a balanced approach—navigating near-term profitability challenges while advancing long-term growth through disciplined investment, operational efficiency, and customer-centric innovation.