Sirius XM Holdings (SIRI) has unveiled an updated strategic plan designed to enhance its focus on the core subscription business, capitalize on its advertising strengths across its portfolio, drive organizational efficiency, and prioritize profitability, free cash flow, and shareholder returns. The company intends to reallocate marketing and resources from high-cost, high-churn streaming audiences to concentrate on key revenue-generating segments, thereby optimizing efficiencies across critical business areas. SiriusXM aims to achieve an initial additional annualized savings of $200 million by the end of 2025.
In financial strategy, SiriusXM plans to reduce its debt by approximately $700 million by 2025 and target a leverage ratio of 3.6x by the end of the same year. The SiriusXM Board remains committed to maintaining the current quarterly dividend of $0.27 per share, equating to $1.08 per share annually. The authorized $1.166 billion common stock repurchase program will continue as planned.
For 2025, SiriusXM has projected total revenue to reach $8.5 billion, with an adjusted EBITDA of $2.6 billion and free cash flow of $1.15 billion. This follows the reaffirmation of 2024 guidance, predicting revenue around $8.675 billion, adjusted EBITDA approximately $2.7 billion, and free cash flow roughly $1 billion.
Additionally, Sirius XM has appointed Wayne Thorsen, formerly Executive Vice President and Chief Business Officer at ADT Inc., as the new Executive Vice President and Chief Operating Officer, effective December 16, 2024. Concurrently, Joseph Inzerillo has resigned from his position as Chief Product and Technology Officer, effective immediately.
