AT&T Aims to Double Fiber Reach to 60M Locations by 2030, Boosts Capital Returns

AT&T plans to double its fiber reach to 60M locations by 2030 and accelerate capital returns. CEO John Stankey stated that the company has delivered growth in service revenues, adjusted EBITDA, and free cash flow so far in 2025, and is on track to meet its full-year consolidated financial guidance.

AT&T Inc. (T) has outlined an ambitious plan to double its fiber reach to 60 million locations by 2030, according to a recent earnings call. CEO John Stankey highlighted the company's progress in 2025, noting significant growth in service revenues, adjusted EBITDA, and free cash flow. The company aims to accelerate fiber deployment to 4 million new locations per year by the end of 2026, with the goal of reaching 50 million customer locations and more than 60 million fiber locations by 2030 [1].

The plan includes investments in 5G and fiber technology, with a focus on mobility and broadband services. Stankey emphasized that AT&T added over 400,000 postpaid phone customers, 243,000 fiber subscribers, and 203,000 Internet Air net additions in the second quarter of 2025, almost tripling total broadband net adds year-over-year. The company expects to raise its financial and subscriber growth targets, supported by policy tailwinds and capital flexibility [1].

CFO Pascal Desroches reported that total revenues and adjusted EBITDA grew 3.5% year-over-year during the second quarter. Free cash flow was $4.4 billion, up from $4 billion the prior year, with capital investment of $5.1 billion. Desroches noted that the company repurchased approximately $1 billion of stock and bought back about $300 million so far this quarter [1].

AT&T has revised its financial outlook for 2025, projecting a 3% or greater increase in adjusted EBITDA and free cash flow in the low to mid-$16 billion range. Wall Street analysts have a mixed outlook, with an average target price of $29.01 and a consensus recommendation of "Outperform" [2].

The company's strategy focuses on owned, operated, and controlled fiber footprint expansion, with additional open access opportunities considered selectively. AT&T aims to use fixed wireless as a funneling mechanism for future fiber customers, complementing its fiber build strategy [1].

However, the company faces challenges such as elevated churn, competitive intensity, and cost pressures from growth-related spending and higher equipment costs. Management remains confident in its long-term value creation strategy, emphasizing strategic investments and disciplined cost management [1].

References:
[1] https://seekingalpha.com/news/4470878-at-and-t-outlines-plan-to-double-fiber-reach-to-60m-locations-by-2030-while-accelerating
[2] https://www.gurufocus.com/news/2996508/att-t-revises-financial-outlook-for-2025-t-stock-news