Crown Castle Inc. (CCI) just reported another lights-out quarter, beating both top- and bottom-line expectations and raising full-year guidance. The next big catalyst will be the announcement of a new CEO (second time’s a charm), notes Tom Hayes, editor of HedgeFundTips.
In the meantime, the business continues to hum along with organic growth rates accelerating to 4.7%, the Sprint churn overhang largely gone by the end of 2025, and secular trends in mobile data consumption and 5G driving annual wireless data demand growth of 20% to 30%.
Here are a few more key points:
1) Management raised full-year 2025 guidance, increasing site rental revenues by $10 million, adjusted EBITDA by $25 million, and AFFO by $35 million in the updated outlook.
2) Higher leasing activity drove organic revenue growth to 4.7%, adjusted for the $51 million impact from Sprint cancellations. Management continues to expect even stronger leasing activity in the second half of the year.
3) The $8.5 billion sale of the capital-intensive small cells and fiber solutions business remains on track to close in the first half of 2026, with CCI already securing state-level approvals. Once completed, Crown Castle will become the only publicly traded, pure-play tower company focused exclusively on the US.
4) The board is actively searching for a new CEO, with a decision expected before the Fiber business deal closes.
5) Management remains committed to maintaining an investment grade balance sheet, with approximately 86% of debt at fixed rates, a weighted average debt maturity of over six years, and $4.7 billion of availability under a revolving credit facility.
