Verizon (VZ) Q4 2024 earnings summary

Executive summary

• Achieved strong financial and operational results in 2024, exceeding guidance midpoints for wireless service revenue and Adjusted EBITDA growth, and generating robust free cash flow despite higher taxes.

• Added nearly 2.5 million postpaid mobility and broadband subscribers in 2024, with nearly 1 million added in Q4, marking the best quarterly result in over a decade.

• Significant progress in broadband, adding 1.6 million subscribers and surpassing 12.3 million total broadband subscribers, including 4.6 million fixed wireless access (FWA) subscribers.

• Continued business transformation, reducing workforce by 20,000 over three years, investing in strategic initiatives, and raising the dividend for the 18th consecutive year.

• Launched Verizon AI Connect, targeting the $40 billion+ AI infrastructure market, with over $1 billion in sales funnel and partnerships with major tech firms.

Financial highlights

• Wireless service revenue grew 3.1% year-over-year in Q4 2024 to $20.0 billion; Adjusted EBITDA grew 2.1% to $11.9 billion, both above guidance midpoints.

• Free cash flow reached $5.4 billion in Q4 and $19.8 billion for the full year, including $2 billion from a tower transaction.

• Adjusted EPS for Q4 2024 was $1.10, up 1.9% year-over-year; full-year adjusted EPS was $4.59.

• Net unsecured debt to Adjusted EBITDA ratio improved to 2.3x, with unsecured debt at $113.7 billion at year-end.

• Total operating revenue for 2024 was $134.8 billion, up 0.6% year-over-year.

Outlook and guidance

• 2025 wireless service revenue expected to grow 2%-2.8%, with underlying growth nearly double when excluding promo amortization.

• Consolidated Adjusted EBITDA projected to grow 2%-3.5% year-over-year, implying over $1.3 billion increase at midpoint.

• Adjusted EPS expected to be flat to up 3% in 2025.

• Free cash flow and CapEx guidance for 2025 is $17.5-$18.5 billion; cash flow from operations expected between $35.0 billion and $37.0 billion.

• Guidance excludes impact from pending Frontier acquisition, expected to close by early 2026.