T-Mobile US (TMUS) Q4 2024 earnings summary

Executive summary

• Achieved record postpaid phone net additions of over 3 million for the third consecutive year, with the highest-ever postpaid phone gross additions and lowest churn, and led the industry in Q4 with 903,000 postpaid phone net adds.

• Delivered industry-leading service revenue and cash flow growth, with highest-ever diluted EPS and $14.4 billion in shareholder returns for 2024.

• Maintained best-in-class network performance, winning all major third-party network awards and securing a significant contract with the City of New York for public safety network services.

• Returned $31.4 billion to shareholders since 2022, with $14.4 billion in 2024 through buybacks and dividends.

• Recognized for innovation in digital platforms, customer experience, and 5G performance.

Financial highlights

• Q4 2024 service revenues were $16.9 billion, up 6% year-over-year; full-year service revenues reached $66.2 billion, up 5% year-over-year.

• Net income was $3.0 billion in Q4 2024, up 48% year-over-year; full-year net income was $11.3 billion, up 36% year-over-year.

• Diluted EPS reached $9.66 for 2024, a 39% increase year-over-year; Q4 EPS was $2.57, up 54% year-over-year.

• Core Adjusted EBITDA grew 10% in Q4 2024 to $7.9 billion and 9% for the full year to $31.8 billion.

• Adjusted Free Cash Flow increased 25% year-over-year to $17.0 billion in 2024, with Q4 at $4.1 billion.

Outlook and guidance

• 2025 postpaid net customer additions expected between 5.5 million and 6.0 million, the highest-ever starting outlook.

• Core Adjusted EBITDA guidance for 2025 is $33.1–$33.6 billion; net cash from operations $26.8–$27.5 billion; Adjusted Free Cash Flow $17.3–$18.0 billion.

• Service revenue growth expected at ~5% for 2025; postpaid ARPA growth guided at ~3%.

• Capital expenditures for 2025 projected at ~$9.5 billion.

• Guidance excludes pending acquisitions of UScellular, Metronet, Lumos, and Vistar Media.