AT&T sees 2024 capital investment in $21B-$22B range

COO Jeff McElfresh will update shareholders at the 2024 Morgan Stanley Technology, Media and Telecom Conference. Key takeaways: AT&T is executing well on its sustainable, long-term growth strategy. The company remains on track to meet all of its financial guidance. The company continues to see healthy demand for world-class connectivity through 5G and fiber. As one of the largest investors in the United States, the company remains focused on building vital, high-performance network infrastructure for both mobile and fiber networks. To support these efforts, the company continues to expect 2024 capital investment in the $21B-$22B range. AT&T is making critical investments in its wireless and fiber future. This includes accelerating the transition to Open Radio Access Networks, which will enable a more robust supplier ecosystem, and drive efficiencies and longer-term cost savings. Additionally, based on fiber returns better than initial assumptions, AT&T sees an opportunity to potentially pass an incremental 10 to 15 million consumer and business fiber locations within its existing footprint – assuming similar build parameters and a regulatory environment that incentivizes investing in America’s robust connectivity needs. The company remains on track to hit its target of 30 million+ fiber locations passed by the end of 2025. The company remains confident in its ability to deliver on all of the financial guidance provided with its earnings report in January 2024. AT&T also remains focused on driving incremental efficiencies with an additional $2B+ in run-rate cost savings by mid-2026. The company is on track to reduce net debt and to achieve net-debt to adjusted EBITDA in the 2.5x range in the first half of 2025. It also plans to continue addressing short-term financing obligations as it shapes an even more sustainable and ratable free cash flow cadence.