Skydance said Monday it is targeting at least $6 billion in annual run-rate savings, net of reinvestment, within three years, in its first quarterly report since completing the acquisition of Warner Bros. Discovery on Oct. 6.
The company said it expects to realize 30% of those savings in the first year and 70% by the end of the second. It described the effort as a plan to reduce management layers, combine back-office and corporate functions, trim its office footprint and resize the organization, without giving a job-cut figure.
Third-quarter revenue rose 5% to $7.03 billion, slightly below the $7.04 billion expected by analysts polled by StreetAccount, CNBC reported. Net earnings were $73 million and adjusted EBITDA was $1.0 billion. Those results do not include Warner Bros. Discovery.
The deal leaves the company with $87 billion of gross debt. Skydance said it expects to bring net leverage down to 3.0 times by the end of 2029 and to lift annual free cash flow above $10 billion in 2030. It will give its 2027 outlook with fourth-quarter results.
The shares closed up 8.6% at $8.70 in the regular session and slipped about 2% in after-hours trading, according to CNBC. Investors will watch how quickly the savings arrive and how fast debt comes down.
