Q4 2024 Earnings for the “Big 3” – AT&T, Verizon, T-Mobile

AT&T, Verizon, and T-Mobile each reported solid, if not strong Q4 2024 earnings. Looking ahead to 2025, AT&T plans the largest capital expenditure, followed by Verizon with a slightly smaller investment, and T-Mobile with significantly less spending. All three carriers are focused on cost reduction, including leveraging AI for increased efficiency, a process often referred to as “digital transformation.” As these organizations continue to streamline operations, strategic vendor partnerships in areas like RF planning, site acquisition, construction, and related services will become increasingly crucial.

Verizon

• 80,000 postpaid phone adds in 2024

• Total debt down ~$7B in 2024 ($150.7B -> $144.0B)

• 2024 – Free Cash Flow of $19.8B (inclusive of ~$2B tower deal with Vertical Bridge)

• 2025 – Free Cash Flow forecast of: $17.5B-$18.5B

• 2024 CapEx: $17.1B

• 2025 CapEx forecast of ~$17.5B-$18.5B

• 2024: ~1.6M Broadband adds (~1.46M of that, fixed wireless)

• Frontier fiber transaction is in process and has not closed yet

• Ended year 2024 with 99,600 employees

  • 2023 – 105,400

  • 2022 -117,100

  • 2021 – 118,400

  • 2020 – 132,200

AT&T

• 1.7M postpaid phone adds in 2024

• Total debt down ~$14B in 2024 ($137.3B -> $123.5B)

• 2024 – Free Cash Flow of $17.6B (excluding DIRECTV)

• 2025 – Free Cash Flow forecast of: $16B (excluding DIRECTV)

• 2024 CapEx: $20.3B

• 2025 CapEx forecast of $22.0B

• 307,000 AT&T fiber net adds in Q4 , (1M or more adds, for 7 straight years)

• Sale of DIRECTV forecast to close mid-2025

• Goal of 50 million fiber locations by end of 2029 (45M organic, 5M from JV Gigapower)

• AT&T is selling a portfolio of Central Offices in an $850 million sale-leaseback deal involving more than 70 properties across the US

• Ended year 2024 with 141,000 employees

  • 2023 – 149,900

  • 2022 – 160,700

  • 2021 – 203.000

  • 2020 – 230,000

T-Mobile

• 3.1M postpaid phone adds in 2024

• Total debt increased by ~$3 billion in 2024 ($77.5 -> $80.6B)

• “T-Mobile beat its earnings per share (EPS) by 12.61% at $2.57 quarterly, handily beating analyst expectations of $2.29 for the quarter.”

• New COO, Srinivasan “Srini” Gopalan will be joining the T-Mobile US team

• 2024 CapEx: $8.8B

• 2025 CapEx forecast of ~ $9.5B

• 2024 Free Cash Flow of ~ $17B in 2024

• 2025 Free Cash Flow forecast of $17.3B-$18.0B

• Ended year 2024 with 67,000 employees

  • 2023 – 67,000

  • 2022 – 71,000

  • 2021 – 75,000

  • 2020 – 75,000