T-Mobile sees adjusted free cash flow of $18B-$19B in 2027

At its Capital Markets Day event today, T-Mobile US discussed financial projections, including: Service revenue growth is anticipated to accelerate at a compound annual growth rate of approximately 5% at the midpoint from 2023 to 2027, as the company expects to deliver $75B-$76B in 2027. This is driven by continued wireless and broadband customer growth, continued growth in average revenue per account from deepening customer relationships and growth in new businesses; Core Adjusted EBITDA growth is anticipated to be “industry leading” as the company expects to deliver $38B-$39B in 2027, a compound annual growth rate of approximately 7% at the midpoint from 2023 to 2027, and an increase of approximately $10B compared to 2023 at the high-end of guidance. This is expected to be driven by the operating leverage from its profitable growth model and enhanced with further significant operating efficiencies through technology innovation, AI, and digital leadership; Adjusted Free Cash Flow is expected to be $18B-$19B in 2027, a compound annual growth rate of 8% at the midpoint from 2023 to 2027. T-Mobile expects to ramp to be a full cash taxpayer by 2027, the company added.