ADT Inc. exiting residential solar business

ADT Inc. will be exiting its residential solar business. The company will remain focused on cash flow generation and capital-efficient growth within its core security and smart home business. ADT is also advancing its capital allocation strategy, including a cash dividend increase and authorization of a new share repurchase program. Over the first nine months of 2023, the solar business faced challenges, including operational difficulties and macroeconomic headwinds causing deterioration of conditions industrywide. As a result of these challenges, the Solar segment generated an Adjusted EBITDA loss of $89M during this period. ADT’s Board of Directors has approved the exit of this segment, which may include the transfer of components of the business to other parties. The company expects to incur certain one-time exit charges and cash expenditures with potential offsets from asset sales or reduced tax expenses. At this time, the company is still analyzing the estimated net amount or range of amounts expected to be incurred in connection with this plan.