TEGNA Inc. Reports Second Quarter 2025 Results and Provides Third Quarter Guidance

Core Insights - TEGNA Inc. reported a 5% decrease in total revenue to $675 million for the second quarter of 2025, primarily due to lower political advertising revenue and advertising and marketing services revenue [3][15][18] - The company reaffirmed its two-year adjusted free cash flow guidance for 2024/2025, estimating it to be between $900 million and $1.1 billion [5][25] - TEGNA's CEO highlighted the company's commitment to enhancing local journalism and expanding digital experiences, alongside a significant increase in local news coverage by 100 hours a day [2][9] Financial Performance - Total company revenue decreased by 5% year-over-year, with distribution revenue remaining flat at $370 million and advertising and marketing services revenue down 4% to $288 million [3][15][18] - GAAP net income attributable to TEGNA Inc. was $68 million, a 17% decline from the previous year, with diluted earnings per share at $0.42 [3][16][34] - Adjusted EBITDA fell 14% to $151 million, primarily due to lower political advertising and AMS revenue, although cost-cutting initiatives provided some offset [3][34] Operational Highlights - The company achieved a net cash flow from operations of $100 million and adjusted free cash flow of $96 million, returning $20 million to shareholders through dividends [3][36] - TEGNA's net leverage ratio stood at 2.8x at the end of the second quarter, with cash and cash equivalents totaling $757 million [3][36] - The company redeemed $250 million of senior notes due in 2026, reflecting proactive debt management [3][36] Strategic Initiatives - TEGNA announced the addition of over 100 hours of new daily local programming across more than 50 markets, aiming to enhance content and distribution channels [9] - The company appointed vice presidents of content to focus on localized storytelling and cross-platform news delivery [9] - A multi-year deal was reached with FOX Corporation to renew station affiliation agreements for six TEGNA markets, covering approximately 7% of TEGNA households [9]