Elliott Statement on Texas Instruments' Capital Management Event

Rhea-AI Summary

Elliott Investment Management has released a statement praising Texas Instruments' (NASDAQ: TXN) capital-allocation update. The update reaffirms TI's commitment to long-term growth of free cash flow per share. TI presented a path to robust free cash flow generation, including a potential $12 per share of free cash flow in 2026. The company also committed to a flexible, modular capex plan starting in 2026.

Elliott supports TI's strategy to build the largest US-based, 300-mm analog semiconductor capacity. The investment firm views the update as aligned with their proposed approach and considers it a positive step towards long-term value creation for shareholders. Elliott appreciates the ongoing constructive dialogue with Texas Instruments.

Positive

• TI projects potential free cash flow of $12 per share in 2026
• Company commits to a flexible, modular capex plan starting 2026
• TI's strategy aligns with Elliott's proposed approach
• Ongoing constructive dialogue between Elliott and Texas Instruments

Negative

• None.

News Market Reaction

+0.94%

1 alert

+0.94% News Effect

On the day this news was published, TXN gained 0.94%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

WEST PALM BEACH, Fla., Aug. 20, 2024 /PRNewswire/ -- Elliott Investment Management L.P. (together with its affiliates "Elliott") today released the following statement attributed to Managing Partner Jesse Cohn and Partner Jason Genrich regarding Texas Instruments (NASDAQ: TXN) ("TI" or the "Company"):

We commend Texas Instruments on today's capital-allocation update, which re-affirms TI's long-standing commitment to shareholders that long-term growth of free cash flow per share is the Company's true north. During today's presentation, Texas Instruments presented a path to robust free cash flow generation across a range of revenue scenarios, including a path to $12 per share of free cash flow in 2026.

Additionally, TI committed to a modular capex plan, with significant flexibility to dynamically calibrate capex beginning in 2026. As detailed in our May 28 letter to the Board, we are supportive of TI's strategy to build the world's largest footprint of US-based, 300-mm analog semiconductor capacity, and we believe today's update is well aligned with Elliott's proposed approach. We appreciate our ongoing, constructive dialogue with Texas Instruments, and we believe today's off-cycle capital-management event is another positive step toward the goal of long-term value creation for all shareholders.

About Elliott

Elliott Investment Management L.P. (together with its affiliates, "Elliott") manages approximately $69.7 billion of assets as of June 30, 2024. Founded in 1977, it is one of the oldest funds under continuous management. The Elliott funds' investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm. 

Media Contact:

Casey Friedman
Elliott Investment Management L.P.
(212) 478-1780
cFriedman@elliottmgmt.com 

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SOURCE Elliott Investment Management L.P.

FAQ

What is Texas Instruments' (TXN) projected free cash flow per share for 2026?

Texas Instruments (TXN) presented a potential path to $12 per share of free cash flow in 2026.

How does Elliott Investment Management view TXN's capital-allocation update?

Elliott Investment Management commends Texas Instruments' capital-allocation update, viewing it as a positive step towards long-term value creation for shareholders.

What is Texas Instruments' (TXN) strategy for semiconductor capacity?

Texas Instruments (TXN) is pursuing a strategy to build the world's largest footprint of US-based, 300-mm analog semiconductor capacity.

When will Texas Instruments (TXN) implement its flexible capex plan?

Texas Instruments (TXN) committed to implementing a flexible, modular capex plan starting in 2026.