Navient strategy update: Phase 1 cost reductions of $119M, expects $1.5B increase in legacy cash flows

NAVIENT CORP

Phase 1 cost reductions of $119M in Shared and Corporate Expenses, increasing legacy loan cash flows by ~$1.5B.
Expects net income increase of ~$1 per share annually from Phase 1; break-even reduction equivalent to 50% increase in Consumer loans.
Consumer segment now >70% of total revenue ($509M in 2024); FFELP revenue <30% vs 60% in 2020.
P/TBV trades at 0.6x vs peer avg 2.2x (70% discount); re-rating opportunity cited.
Phase 2 strategy update with growth targets and further cost efficiencies expected in H2 2025.

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