Verizon (VZ) closed out 2024 with a strong operational and financial performance, marked by steady revenue growth, margin expansion, and robust free cash flow generation. Total operating revenues reached $134.8 billion, up 0.6% year-over-year, supported by higher service revenues of $111.6 billion, while wireless equipment sales declined to $23.2 billion. Operating income climbed to $28.7 billion, rebounding from a goodwill-impacted $22.9 billion in 2023. Net income surged to $17.5 billion, with diluted EPS rising to $4.14 from $2.75.

Free cash flow hit $19.8 billion for the year, bolstered by $5.4 billion in Q4, which included proceeds from a tower transaction. Verizon’s segment EBITDA grew 2.3% to $43.0 billion, with margins improving to 41.8%. The company ended the year with a net unsecured debt to adjusted EBITDA ratio of 2.3x, closing in on its 2.25x target.

The Consumer segment remained a growth driver, delivering $102.9 billion in operating revenues, up 1.3%. Notably, Verizon added 426,000 postpaid phone subscribers in Q4 and nearly 900,000 for the year—the best quarterly result in over a decade. Average revenue per account (ARPA) rose over 4% in Q4, supported by increasing adoption of myPlan, now used by more than half of the consumer base. Broadband growth remained strong, with 408,000 net adds in Q4—373,000 from fixed wireless access (FWA) and 51,000 from Fios—bringing total FWA subscribers to 4.6 million and FWA revenue above $2.1 billion.

In contrast, the Business segment faced headwinds, with revenues down 2.0% to $29.5 billion and EBITDA falling 2.9% to $6.4 billion, though the unit still posted 142,000 postpaid net adds in Q4. A bright spot was the launch of Verizon AI Connect, a new initiative targeting the AI infrastructure market. Already generating revenue and backed by partnerships with Google, Meta, and Vultr, AI Connect has a sales funnel exceeding $1 billion, with management estimating a $40 billion+ total addressable market.

Verizon made gains in broadband, adding nearly 1.6 million subscribers in 2024 and pushing its total broadband base above 12.3 million. On the operational front, the workforce declined to below 100,000, reflecting a ~20,000 reduction over three years, as part of ongoing cost transformation efforts. Meanwhile, the company increased its dividend for the 18th consecutive year and maintained capital discipline, with 2025 CapEx expected between $17.5–$18.5 billion.

Looking ahead, Verizon expects wireless service revenue growth of 2%–2.8%, with underlying growth closer to double that figure when excluding promotional amortization. Adjusted EBITDA is projected to grow 2%–3.5%, while free cash flow is forecasted between $17.5–$18.5 billion. The company also anticipates a rebound in device upgrades and continued ARPA gains through premium pricing and new monetization avenues like network slicing and satellite services. Fiber expansion remains on track, with plans to add 650,000 new Fios locations in 2025.

Overall, Verizon enters 2025 with momentum from a year of solid execution, highlighted by subscriber growth, rising profitability, and emerging opportunities in AI and broadband.