Crown Castle Inc.

Crown Castle reported second-quarter organic growth of 3.9% excluding Sprint cancellations and DISH terminations, or 4.2% excluding DISH revenues from prior-year site rental billings. Excluding the increase in other billings, organic growth was 3.6%. Those gains were more than offset by $5 million of Sprint cancellations, $49 million of DISH terminations, and a $25 million decline in noncash straight-line revenues and amortization of prepayment. AFFO benefited from a year-over-year $35 million decrease in interest expense and a $14 million increase in interest income tied to the $8.4 billion of net proceeds from the May 1 sale transaction. For 2026, management raised site rental revenue guidance by $5 million at the midpoint, kept adjusted EBITDA guidance unchanged, and raised AFFO guidance by $5 million; it also now expects 3.4% full-year organic growth excluding Sprint and DISH, and 3.6% excluding DISH from prior-year billings. Full-year straight-line revenues remain guided to negative $60 million at the midpoint, discretionary CapEx remains $200 million, and second-half 2026 plus first-half 2027 AFFO remains targeted at $2.1 billion at the midpoint. Net debt to EBITDA was 6.3x at quarter end, within the 6.0x to 6.5x target range.

Chris Hillabrant framed the quarter as a successful transition quarter, emphasizing that Crown Castle is now the only publicly traded pure-play U.S. tower operator after the May 1 sale of the small cell and fiber businesses. His tone was constructive and confident: he pointed to tower-focused execution, more land ownership, better systems, faster cycle times, and lower costs as the core of the next phase. He also highlighted multiple demand drivers ahead, including mobile data growth, additional spectrum coming to market, and early trials in edge compute infrastructure.

Sunit Patel focused on the financial bridge and the balance sheet. He said Q2 organic growth was 3.9% excluding Sprint and DISH impacts, that SG&A included a one-time $7 million stock-based compensation increase, and that AFFO benefited from lower interest expense and higher interest income after the sale close. On guidance, he said the company is adding $5 million of site rental revenue at the midpoint, offsetting higher revenue and $15 million of cost savings against a $20 million decline in services contribution, while also trimming interest expense by $5 million, which lifts AFFO guidance by $5 million. He noted leverage ended at 6.3x net debt to EBITDA, $8.4 billion of net proceeds were used to repurchase $1 billion of stock and repay more than $7 billion of debt, and the company reduced revolver capacity from $7 billion to $4.5 billion.

Analysts pressed management on the softer services outlook, the meaning of 2026 being the low point for organic growth, the timing and economics of the DISH escrow and bankruptcy claims, and whether new spectrum and satellite developments change tower demand. Management said services weakness reflects industrywide decision delays and customer leadership changes, not a direct signal of leasing softness, while leasing guidance stayed unchanged at $60 million to $70 million. On DISH, management said the $2.4 billion escrow is tied to the AT&T/EchoStar closing and that Crown Castle is pursuing its $3.5 billion contractual claim in bankruptcy, but recovery timing and split remain uncertain. On spectrum, they said new and higher bands should drive densification over time, while satellite is viewed as complementary rather than a substitute for terrestrial networks.