T-Mobile US (NASDAQ:TMUS) Authorizes $14 Billion Shareholder Return Program

On December 13, 2024, T-Mobile US, Inc. announced through an 8-K SEC Filing that its Board of Directors has given the green light for a new shareholder return program. This program, labeled the “2025 Shareholder Return Program,” is set to have an initial allocation of up to $14.0 billion and will run until December 31, 2025.

The 2025 Shareholder Return Program is expected to involve additional repurchases of the company’s common stock and cash dividends. Any dividends paid will reduce the amount available for stock repurchases under the program. Importantly, this new program is supplementary to the shareholder return program that was unveiled back in September 2023, set to conclude by December 31, 2024.

Aligned with its capital allocation framework discussed at Capital Markets Day, T-Mobile aims to support investments and capital returns totaling up to $80.0 billion between September 18, 2024, and the end of 2027. The breakdown of these funds includes up to $50.0 billion for share repurchases and dividends, $20.0 billion for discretionary activities, and $10.0 billion for pending transactions.

The authorized amount for the 2025 Shareholder Return Program reflects T-Mobile’s commitment to a balanced capital allocation strategy to maintain a leverage ratio of around 2.5x. Anticipating the closure of pending transactions, including deals with UScellular, Metronet, and Lumos in 2025, the company may consider allocating more capital to the shareholder return program.

T-Mobile plans to fund share repurchases and dividend payments using available cash or proceeds from debt issuances based on market evaluations. The company can utilize various methods for share repurchases under the program, like open market purchases or accelerated share repurchases.

Additionally, T-Mobile issued a cautionary statement on forward-looking statements, emphasizing that actual results may differ due to multiple factors, including market conditions, access to capital, and company performance.

The filing also included the designation of Peter Osvaldik, the Executive Vice President and Chief Financial Officer, as the authorized individual to sign this report on behalf of T-Mobile US, Inc.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read T-Mobile US’s 8K filing here.

T-Mobile US Company Profile

T-Mobile US, Inc, together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to customers in the postpaid, prepaid, and wholesale and other services. It also provides wireless devices, including smartphones, wearables, tablets, home broadband routers, and other mobile communication devices, as well as wireless devices and accessories; financing through equipment installment plans; reinsurance for device insurance policies and extended warranty contracts; leasing through JUMP! On Demand; and High Speed Internet services.