Shenandoah Telecommunications Company (SHEN) Q4 2024 earnings summary

Executive summary

• 2024 marked a pivotal year with the successful and early integration of Horizon, raising synergy savings estimate to $13.8M by Q2 2025, with $4.5M realized in 2024 and $8.5M expected in 2025.

• Glo Fiber expansion drove significant growth in passings, RGUs, and revenue, with 2024 including nine months of Horizon results.

• Glo Fiber Expansion Markets data customers grew 56% year-over-year to over 65,000, with passings up 48% to 346,000 and revenue up 65% to $57.9M.

• 2024 revenue increased 21.9% to $328.1M, driven by Horizon acquisition and Glo Fiber growth.

• Adjusted EBITDA for 2024 rose 19.7% to $94.6M; Horizon contributed $10.7M.

Financial highlights

• Consolidated revenue reached $328.1M in 2024, up from $269.1M in 2023, reflecting a 22% year-over-year increase; Horizon contributed $47.7M in nine months.

• Adjusted EBITDA was $94.6M in 2024 (28.8%–29% margin), up from $79.0M in 2023; Horizon contributed $10.7M.

• Net loss from continuing operations was $(28.4)M in 2024, compared to $1.0M net income in 2023, mainly due to higher depreciation, amortization, and interest expense.

• Glo Fiber revenue grew to $57.9M in 2024, a 135% CAGR since 2020.

• Capital expenditures were $319.1M in 2024, up from $255.1M in 2023.

Outlook and guidance

• Long-term revenue and adjusted EBITDA CAGR expected to return to post-Glo Fiber launch levels.

• Adjusted EBITDA margins projected to improve as Glo Fiber customer base grows and synergy savings materialize.

• Capital spending for 2025 projected at $250–$280M, with $80–$90M for government grant projects.

• Capital intensity expected to decline to 15–25% of revenues post-2026/2027.

• Annual run-rate synergy savings from Horizon integration expected to reach $13.8M by Q2 2025.