Skip to content
AnalystLens

T-Mobile US, Inc. 8-K Report, Regulation FD Disclosure (Sep 18, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed September 18, 2024
Period End
September 18, 2024
In the record · 2016–202610-K1110-Q338-K226

TMUS filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 226 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’18May ’18
  2. Material agreement8-K · Oct ’20Oct ’20
  3. Leadership change8-K · Nov ’22Nov ’22
  4. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed September 18, 2024. Cited figures are marked; the original filing is the authoritative source.

On September 18, 2024, T-Mobile US, Inc. (TMUS) held a Capital Markets Day and furnished under Item 7.01 (Regulation FD) a press release outlining a three-year plan to extend its network leadership and drive profitable growth through 2027.

The company set 2027 guidance of $75a–76 billion in service revenue (about 5% CAGR from 2023), $38–39 billion in Core Adjusted EBITDA (about 7% CAGR, roughly $10 billion above 2023 at the high end), and $18–19 billion in Adjusted Free Cash Flow (about 8% CAGR). This guidance excludes pending acquisitions of UScellular, Metronet, and Lumos. The capital allocation framework is the centerpiece for investors.

Management cites roughly $80 billionb of capacity through 2027, including about $10 billion for announced acquisitions, up to $50 billion for stockholder returns (on top of $25 billion already returned), and about $20 billion retained for flexibility. It maintains a 2.5x leverage target and $9–10 billion in annual capex. The board also declared a quarterly dividend of $0.88 per share, a 35% increase over the prior quarter, payable December 12, 2024.

Growth drivers include a raised 5G broadband target of 12 million customers by 2028 (versus the prior 7–8 million by 2025 goal), fiber joint ventures targeting 12–15 million households passed by 2030 with an all-in IRR of around 20%, double-digit service revenue CAGR for T-Mobile for Business from 2023 to 2027, and new businesses such as an advertising solutions unit exceeding $1 billionc in annual revenue. Management also highlighted AI-driven customer experience initiatives, including a goal of reducing inbound Care contacts by 75%. These are forward-looking targets and are subject to the risks listed in the filing, including competition, regulatory outcomes, and leverage.

02—Key points

Key Highlights

  1. 2027 guidance: Service revenue of $75–76 billion (~5% CAGR 2023–2027), Core Adjusted EBITDA of $38–39 billion (~7% CAGR), and Adjusted Free Cash Flow of $18–19 billion (~8% CAGR at midpoint).
  2. Capital allocation capacity of approximately $80 billion through 2027: ~$10 billion for announced acquisitions, up to $50 billion in stockholder returns, and ~$20 billion retained for flexibility.
  3. Quarterly dividend raised to $0.88 per share, a 35% increase from the prior quarter, payable December 12, 2024 to holders of record on November 27, 2024.
  4. Maintains a 2.5x leverage target and $9–10 billion in annual capital expenditures; company expects to become a full cash taxpayer by 2027.
  5. Broadband ambition raised to 12 million 5G broadband customers by 2028, versus the prior 7–8 million by 2025 target; fiber JVs target 12–15 million households passed by 2030 at ~20% all-in IRR.
  6. New businesses include an advertising solutions offering generating over $1 billion in annual revenue and T-Priority for first responders; T-Mobile for Business targets double-digit service revenue CAGR 2023–2027.
  7. AI-enabled customer experience initiatives (including an OpenAI-built IntentCX platform) target a 75% reduction in inbound Care contacts and 100% digital upgrades.

03—Questions

Frequently Asked Questions

  1. What financial targets did T-Mobile set for 2027?

    T-Mobile guided to $75–76 billion in service revenue, $38–39 billion in Core Adjusted EBITDA, and $18–19 billion in Adjusted Free Cash Flow for 2027. These represent approximately 5%, 7%, and 8% CAGRs from 2023 at the midpoints. The guidance excludes pending acquisitions of UScellular, Metronet, and Lumos.

  2. How much capital does T-Mobile plan to return to shareholders?

    The company cites approximately $80 billion of capacity through 2027, including up to $50 billion in dividends and share repurchases on top of the $25 billion already returned. About $10 billion is earmarked for announced acquisitions and about $20 billion is retained for flexibility, including organic or inorganic investments, deleveraging, or additional returns.

  3. Why did T-Mobile raise its dividend, and what is the new amount?

    The Board declared a cash dividend of $0.88 per share, up $0.23 (35%) from the prior quarter, payable December 12, 2024 to stockholders of record at the close of business on November 27, 2024. The filing does not explicitly state a rationale beyond the company's stated balanced approach to stockholder returns.

  4. What are the main risks to these targets?

    The filing's forward-looking statements flag competition, regulatory and government commitments tied to the Sprint merger, adverse economic conditions including inflation and interest rates, cybersecurity incidents, spectrum availability and costs, reliance on third-party suppliers, substantial indebtedness and credit market access, and integration risk from acquisitions such as UScellular, Metronet, and Lumos. The filing also notes that the 2023–2024 buyback program may not be fully used.

04—Continue

← View all 8-K filings