Telephone and Data Systems, Inc.

TDS Telecom said Q2 delivered approximately 66,000 marketable fiber service addresses, bringing first-half 2026 deliveries to approximately 106,000. Residential fiber net adds were approximately 15,100, up 47% year over year, and residential fiber revenue increased 13% or $11 million. Total operating revenues declined 6% in the quarter, or 4% excluding divestitures; cash expenses were flat; and capital expenditures totaled $179 million. For 2026, TDS Telecom now expects total revenues of $1.0 billion-$1.025 billion, adjusted EBITDA of $310 million-$330 million, fiber service address deliveries of 250,000-300,000, and CapEx of $625 million-$675 million. Array said cash site rental revenue increased 55% year over year from all customers and 65% when normalized for DISH; the company also said Q2 cash site rental revenue increased 65% versus Q2 last year in prepared remarks, reflecting the T-Mobile interim site contribution. Array closed a $168 million sale of 600 MHz, 700 MHz and AWS licenses to T-Mobile in May and a $1 billion transaction with Verizon in June. For 2026, Array raised adjusted OIBDA guidance to $60 million-$75 million from $50 million-$65 million and adjusted EBITDA guidance to $220 million-$235 million from $200 million-$250 million; it also increased total operating revenue guidance to a range with a $205 million low end from $200 million previously, while CapEx guidance was unchanged. Vicki Villacrez said TDS had $520 million remaining under its share repurchase authorization as of quarter-end.

Walter Carlson said the enterprise is making steady progress on its five priorities, with a focus on financial and operational discipline. He pointed to meaningful fiber address and customer growth at Telecom, higher tower tenancy at Array, and the completion of most spectrum monetization outside C-band. His tone was measured and constructive, emphasizing transformation, culture, and execution rather than near-term deal commentary.

Vicki Villacrez said recent transactions, including Array's June Verizon spectrum sale, strengthened the balance sheet and created meaningful capital flexibility. She highlighted that Telecom's stronger build cadence led management to raise fiber address guidance and CapEx, while also noting that slower copper and cable performance forced a lower revenue outlook and narrower EBITDA range. She also said TDS was not buying back stock in Q2 because of restrictions tied to the Array offer, but still had $520 million of repurchase authorization remaining and remains committed to it when conditions allow.

Analysts focused on satellite competition, fiber overbuild pressure, Telecom's EBITDA bridge, share repurchases, and the spectrum sale process. Management said satellite is not causing a material impact in TDS fiber markets and that terrestrial networks remain the bedrock of mobile data for Array, while also saying fiber overbuild activity is showing up in some cable markets but still leaves room for economical fiber upgrades. On capital allocation, Vicki said buybacks will resume only when the company is able to do so and conditions warrant, but she would not speculate on timing because of the pending TDS offer to Array. Anthony Carlson said Array is open to selling C-band to any buyer that can pay the highest value, including non-traditional parties, and is not a forced seller.