Company Overview - Crown Castle Inc. owns, operates, and leases approximately 40,000 cell towers and around 90,000 route miles of fiber, supporting small cells and fiber solutions across every major U.S. market [2] - The company's nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology, and wireless service [2] Upcoming Event - Sunit Patel, Crown Castle's Executive Vice President and Chief Financial Officer, is scheduled to present at the KBCM Technology Leadership Forum on August 12, 2025, at 11:00 a.m. Eastern Time [1] - The presentation will be broadcast live over the Internet and is expected to last approximately 25 minutes [1] - The live audio webcast link and presentation will be available on Crown Castle's website and archived for replay [1]

Core Insights - Crown Castle Inc. has appointed Christian Hillabrant as the new President and CEO, effective September 15, 2025, marking a significant leadership transition for the company [1][2] - Hillabrant brings over three decades of experience in the telecommunications industry, having held senior positions at T-Mobile, Ericsson, Samsung, and Vantage Towers AG, where he managed over 86,000 communication sites [2][3] - The company is focused on becoming a pure-play U.S. tower company, with a strategy aimed at enhancing shareholder value and operational excellence [2][3] Leadership Transition - Dan Schlanger will continue as Interim President and CEO until Hillabrant's start date and will transition to the role of Executive Vice President and Chief Transformation Officer [3][4] - The Board expressed gratitude to Schlanger for his leadership during the transition period, highlighting strong financial results and progress in the sale of small cells and fiber solutions businesses [4] Company Overview - Crown Castle owns and operates approximately 40,000 cell towers and 90,000 route miles of fiber, providing essential communications infrastructure across major U.S. markets [7] - The company aims to connect communities and businesses to vital data and technology, enhancing wireless service and innovation [7]

HOUSTON, July 30, 2025 (GLOBE NEWSWIRE) -- Crown Castle Inc. (NYSE: CCI) ("Crown Castle" or the "Company") announced today the release of its 2024 Sustainability Report and updates to its sustainability website, which can be found at www.crowncastle.com/sustainability. "The primary driver behind our decision-making is creating long-term value for our stakeholders. A core tenet of our business model is to utilize our existing assets as many times as possible to generate the highest returns on our investments ...

Core Insights - Crown Castle Inc. (CCI) reported second-quarter 2025 adjusted funds from operations (AFFO) per share of $1.02, exceeding the Zacks Consensus Estimate of $1.00, but reflecting a nearly 1% decline year over year [1][8] - The company experienced a rise in services and other revenues year over year, while site rental revenues saw a decline [1][8] - CCI has raised its outlook for 2025, indicating positive adjustments in expectations for AFFO and site rental revenues [6][8] Financial Performance - CCI's net revenues for the quarter were $1.06 billion, surpassing the Zacks Consensus Estimate of $1.04 billion, but down 4.2% year over year [2] - Total site rental revenues decreased by 5.3% year over year to $1.00 billion, attributed to a $16 million decrease in amortization of prepaid rent and a $34 million decrease in straight-lined revenues [3] - Services and other revenues increased by 20.9% year over year to $52 million, exceeding the estimate of $51.5 million [4] - Adjusted EBITDA for the quarter was $705 million, down 3% year over year [4] Financial Position - As of June 30, 2025, CCI had cash and cash equivalents of $94 million, an increase from $60 million as of March 31, 2025 [5] - Total debt and long-term obligations amounted to $22.04 billion, reflecting a 3.7% decrease sequentially [5] 2025 Guidance - CCI raised its guidance for 2025 AFFO per share to a range of $4.14-$4.25, compared to the previous range of $4.06-$4.17 [6] - The site rental revenue range was increased to $3.997-$4.042 billion from the prior range of $3.987-$4.032 billion [6] - Adjusted EBITDA is now estimated to be between $2.780-$2.830 billion, up from the previous range of $2.755-$2.805 billion [6]

Core Insights - Crown Castle reported revenue of $1.06 billion for the quarter ended June 2025, reflecting a year-over-year decline of 34.8% [1] - The earnings per share (EPS) for the quarter was $1.02, an increase from $0.58 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.04 billion by 2.14%, while the EPS also surpassed the consensus estimate of $1.00 by 2% [1] Revenue Breakdown - Revenue from services and other was $52 million, exceeding the average estimate of $47.1 million by four analysts, representing a year-over-year increase of 13% [4] - Site rental revenue was reported at $1.01 billion, compared to the estimated $991.83 million, but this reflects a significant decline of 36.2% year-over-year [4] Earnings Performance - Net earnings per share (diluted) was $0.67, surpassing the average estimate of $0.52 from five analysts [4] - Gross margin for services and other was $25 million, exceeding the average estimate of $20.9 million from three analysts [4] - Gross margin for site rental was reported at $757 million, compared to the average estimate of $745.18 million from three analysts [4] Stock Performance - Crown Castle's shares have returned +6.8% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported a solid second quarter with a 4.7% organic growth, excluding the impact of Sprint cancellations, and a $6 million year-over-year increase in services activity contribution [14][15] - Adjusted EBITDA and AFFO are expected to increase by $25 million and $35 million respectively for the full year 2025 [15][16] - A $10 million reduction in SG&A was noted, primarily due to staffing reductions and the absence of prior advisory fees [14][15] Business Line Data and Key Metrics Changes - The tower business has shown improved operational efficiency, contributing to higher leasing expectations for the remainder of the year [10][12] - The company has focused on reducing operating costs, which has improved margins in the services business [10][12] Market Data and Key Metrics Changes - Higher demand for assets from wireless customers is driving increased leasing and services activity [9][21] - The company anticipates continued investment in wireless infrastructure as subscriber growth and churn increase [102] Company Strategy and Development Direction - The company is on track to close the sale of its small cells and fiber solutions businesses in the first half of 2026, which is expected to enhance its focus as a standalone tower operator [9][12] - A capital allocation framework has been implemented, including a reduced dividend to increase financial flexibility and plans for share repurchases post-transaction [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding financial and operational objectives for 2025, driven by higher demand and improved efficiency [9][12] - The company is focused on operational execution and maintaining an investment-grade balance sheet to maximize long-term shareholder value [12][17] Other Important Information - The company is actively engaged with the Department of Justice regarding the sale transaction and has begun receiving state-level approvals [9][10] - Management emphasized the importance of operational efficiencies and the potential for further improvements post-divestiture [29][35] Q&A Session Summary Question: What is driving the higher leasing activity? - Management indicated that higher leasing activity is across the board from all customers, driven by the need to augment network capacity due to subscriber growth and increased churn [21] Question: How does the five G deployment timeline compare to previous cycles? - Management noted that the five G cycle may be longer than previous cycles due to the increasing demand for data, which requires ongoing network enhancements [22] Question: What are the expectations for post-divestiture efficiencies? - Management expects to reach an annualized AFFO of around $2.3 billion to $2.4 billion post-transaction, with potential for further efficiencies identified through ongoing process updates [28] Question: How are overlapping costs being evaluated post-divestiture? - Management stated that while there are some dyssynergies in running multiple businesses, the simplification post-divestiture should help drive efficiencies over time [35] Question: What is the company's approach to capital allocation post-transaction? - Management plans to prioritize debt reduction, maintain a sustainable dividend, and consider share buybacks as part of their capital allocation strategy [37][39] Question: What is the current status of the CEO search? - The board is actively searching for a new CEO and is not waiting for the deal to close, aiming to reduce uncertainty within the company [51][52] Question: How is the company addressing potential increases in land purchases? - Management indicated a focus on identifying opportunities for land purchases that can generate good returns and reduce operating costs [72]

Financial Data and Key Metrics Changes - The company reported a solid second quarter with a 4.7% organic growth, excluding the impact of Sprint cancellations, and a $6 million year-over-year increase in services activity contribution [12][13] - Adjusted EBITDA and AFFO are expected to increase by $25 million and $35 million respectively in the updated outlook for full year 2025 [12][13] - A $10 million reduction in SG&A was noted, primarily due to staffing reductions and office closures [12][13] Business Line Data and Key Metrics Changes - The increase in site rental revenues by $10 million is attributed to higher organic contributions driven by increased activity levels [12][13] - The services gross margin improved due to higher activity levels, contributing to the overall positive performance [12][13] Market Data and Key Metrics Changes - The company is experiencing higher leasing activity across all customers, driven by subscriber growth and increased churn, indicating a need for network capacity augmentation [19][20] - The outlook for organic growth in site rental revenues has been adjusted to 4.7%, reflecting improved operational efficiency and demand [12][13] Company Strategy and Development Direction - The company is focused on maximizing shareholder value as a standalone tower operator following the sale of its small cell and fiber solutions businesses [6][8] - A capital allocation framework has been implemented, which includes a reduced dividend to increase financial flexibility and plans for share repurchases post-transaction [9][10] - The company aims to enhance operational efficiency and customer service through investments in technology and systems [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding financial and operational objectives for 2025, with expectations of closing the sale transaction in the first half of 2026 [7][10] - The company anticipates continued investment in wireless infrastructure to meet growing data demands, despite a focus on fiber investments by carriers [102] Other Important Information - The company is actively engaged with regulatory bodies to facilitate the sale transaction and has begun receiving state-level approvals [7][10] - The board is in the process of searching for a new CEO, aiming to finalize this before the deal closes to reduce uncertainty [50] Q&A Session Summary Question: What is driving the higher leasing activity? - Management indicated that the higher leasing activity is due to increased subscriber growth and churn, necessitating network capacity augmentation [19][20] Question: How does the five G deployment timeline compare to previous cycles? - Management noted that the five G cycle may be longer than previous cycles due to the growing demand for data, which requires ongoing network enhancements [20] Question: What are the expected efficiencies post-divestiture? - Management expects to reach an annualized AFFO of around $2.3 billion to $2.4 billion post-transaction, with ongoing efforts to identify further efficiencies [24][27] Question: How are overlapping costs being evaluated post-divestiture? - Management stated that while there are some shared costs, the simplification of operations will help drive efficiencies over time [32][34] Question: What is the impact of recent tax reforms on carrier investments? - Management noted that while carriers plan to invest tax savings into their networks, most of this is directed towards fiber rather than wireless [102]

Core Insights - Crown Castle (CCI) reported quarterly funds from operations (FFO) of $1.02 per share, exceeding the Zacks Consensus Estimate of $1 per share, but down from $1.62 per share a year ago, indicating a FFO surprise of +2.00% [1] - The company generated revenues of $1.06 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.14%, compared to $1.63 billion in the same quarter last year [2] - Crown Castle's shares have increased approximately 21.5% year-to-date, outperforming the S&P 500's gain of 7.3% [3] Financial Performance - Over the last four quarters, Crown Castle has exceeded consensus FFO estimates three times and topped consensus revenue estimates four times [2] - The current consensus FFO estimate for the upcoming quarter is $1.04 on revenues of $1.06 billion, while the estimate for the current fiscal year is $4.18 on revenues of $4.22 billion [7] Market Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call [3] - The estimate revisions trend for Crown Castle was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The REIT and Equity Trust - Other industry is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8]

Q2 2025 Results - Site Rental Revenues decreased to $1,008 million, a decrease of $56 million or 5% compared to Q2 2024's $1,064 million[9] - Adjusted EBITDA decreased to $705 million, a decrease of $22 million or 3% compared to Q2 2024's $727 million[9] - AFFO decreased to $444 million, a decrease of $5 million or 1% compared to Q2 2024's $449 million[9] - Organic Contribution to Site Rental Billings Excluding Impact of Sprint Cancellations was 47%[9] Updated 2025 Outlook - Site Rental Revenues are projected to be between $3,997 million and $4,042 million, an increase of $10 million from the previous outlook of $3,987 million to $4,032 million[12] - Adjusted EBITDA is projected to be between $2,780 million and $2,830 million, an increase of $25 million from the previous outlook of $2,755 million to $2,805 million[12] - AFFO is projected to be between $1,805 million and $1,855 million, an increase of $35 million from the previous outlook of $1,770 million to $1,820 million[12] Organic Contribution to Site Rental Billings - Previous FY 2025 Outlook for Organic Contribution to Site Rental Billings was $160-$190 million[15] - Previous FY 2025 Outlook for Sprint Cancellations was ($205) million[15] - Previous FY 2025 Outlook for Organic Contribution to Site Rental Billings Excluding Impact of Sprint Cancellations was ($45)-($15) million[15]

Company Overview [Company Profile](index=4&type=section&id=Company%20Profile) Crown Castle Inc. owns, operates, and leases shared communications infrastructure across the U.S., and is selling its Fiber Business for $8.5 billion, operating as a REIT - Crown Castle Inc. owns, operates, and leases shared communications infrastructure, including approximately **40,000 towers**, **105,000 small cells**, and **90,000 route miles of fiber**[15](index=15&type=chunk) - The company signed a definitive agreement on March 13, 2025, to sell its small cells and fiber solutions businesses (Fiber Business) for **$8.5 billion**, with results presented as discontinued operations[17](index=17&type=chunk)[18](index=18&type=chunk) - Crown Castle operates as a Real Estate Investment Trust (REIT) for U.S. federal income tax purposes[19](index=19&type=chunk) [Strategy](index=4&type=section&id=Strategy) The company's strategy focuses on growing cash flows from its tower portfolio, returning capital to stockholders, and efficient capital investment, driven by strong U.S. tower demand - The company's strategy aims to create long-term stockholder value by growing cash flows from existing towers, returning cash to stockholders via dividends and share repurchases, and investing capital efficiently[21](index=21&type=chunk)[23](index=23&type=chunk) - The strategy is based on the belief that the U.S. is the most attractive market for towers, driven by rapid and continuing growth in data demand[21](index=21&type=chunk)[22](index=22&type=chunk) [General Company Information](index=5&type=section&id=General%20Company%20Information) This section details Crown Castle Inc.'s corporate information, including executive offices, NYSE trading symbol (CCI), fiscal year end, and long-term credit ratings | Attribute | Detail | | :--------------------------------- | :----------------------------------- | | Principal executive offices | 8020 Katy Freeway, Houston, TX 77024 | | Common shares trading symbol | CCI | | Stock exchange listing | New York Stock Exchange | | Fiscal year ending date | December 31 | | Fitch - Long-term Issuer Default Rating | BBB+ | | Moody's - Long-term Corporate Family Rating | Baa3 | | Standard & Poor's - Long-term Local Issuer Credit Rating | BBB | [Tower Asset Portfolio Footprint](index=5&type=section&id=Tower%20Asset%20Portfolio%20Footprint) This section visually represents Crown Castle's tower asset portfolio footprint, illustrating the geographic dispersion of its U.S. communications infrastructure - The section includes a visual representation (map, not provided in text) of the company's tower asset portfolio footprint, indicating its geographic dispersion across the U.S.[25](index=25&type=chunk)[26](index=26&type=chunk) [Historical Common Stock Data](index=5&type=section&id=Historical%20Common%20Stock%20Data) Historical common stock data from Q2 2024 to Q2 2025 shows quarterly trends in stock prices, dividends, shares outstanding, and market capitalization Historical Common Stock Data (Q2 2024 - Q2 2025, in millions, except per share amounts) | (in millions, except per share amounts) | 6/30/24 | 9/30/24 | 12/31/24 | 3/31/25 | 6/30/25 | | :------------------------------------- | :------ | :------ | :------- | :------ | :------ | | High price (a) | $98.42 | $115.83 | $114.66 | $106.24 | $107.94 | | (a) Low price | $85.90 | $89.79 | $86.50 | $81.93 | $90.17 | | Period end closing price (b) | $92.34 | $113.61 | $88.32 | $103.12 | $102.73 | | Dividends paid per common share | $1.57 | $1.57 | $1.57 | $1.57 | $1.06 | | Volume weighted average price for the period (a) | $91.48 | $104.65 | $98.93 | $92.69 | $100.18 | | Common shares outstanding, at period end | 435 | 435 | 435 | 435 | 435 | | (c) Market value of outstanding common shares, at period end | $40,126 | $49,374 | $38,385 | $44,903 | $44,736 | - Dividends paid per common share decreased from **$1.57** in Q1 2025 to **$1.06** in Q2 2025[28](index=28&type=chunk) - Common shares outstanding remained stable at **435 million** across all reported quarters[28](index=28&type=chunk) [Executive Management Team](index=6&type=section&id=Executive%20Management%20Team) This section lists Crown Castle's executive management team, detailing their age, tenure, and current positions, including Interim President and CEO, and COOs Executive Management Team | Name | Age | Years with Company | Position | | :------------------ | :-- | :----------------- | :-------------------------------------------------- | | Daniel K. Schlanger | 51 | 9 | Interim President and Chief Executive Officer | | Sunit Patel | 63 | <1 | Executive Vice President and Chief Financial Officer | | Catherine Piche | 54 | 13 (a) | Executive Vice President and Chief Operating Officer - Towers | | Christopher D. Levendos | 57 | 7 | Executive Vice President and Chief Operating Officer - Fiber | | Edward B. Adams, Jr. | 56 | 8 | Executive Vice President and General Counsel | [Board of Directors](index=6&type=section&id=Board%20of%20Directors) The Board of Directors section lists company directors, their positions, committee assignments, age, and years of service - The Board of Directors includes P. Robert Bartolo as Chair, with various directors serving on committees such as Nominating and Governance, Finance, Fiber Review, CEO Search, Audit, and Compensation and Human Capital[34](index=34&type=chunk) [Research Coverage](index=6&type=section&id=Research%20Coverage) This section lists the equity research analysts and rating agencies providing coverage for Crown Castle Inc - The company is covered by numerous equity research firms including Bank of America, Barclays, BMO Capital Markets, Citigroup, Deutsche Bank, Goldman Sachs, Green Street, HSBC, Jefferies, JMP Securities, JPMorgan, KeyBanc, MoffettNathanson, Morgan Stanley, New Street Research, Raymond James, RBC Capital Markets, Scotiabank, TD Cowen, UBS, Wells Fargo, and Wolfe Research[34](index=34&type=chunk) - Rating agencies providing coverage include Fitch, Moody's, and Standard & Poor's[34](index=34&type=chunk) Outlook [Outlook](index=7&type=section&id=Outlook) Crown Castle's Full Year 2025 Outlook projects site rental revenues between **$3,997 million** and **$4,042 million**, Adjusted EBITDA between **$2,780 million** and **$2,830 million**, and AFFO per share between **$4.14** and **$4.25** Full Year 2025 Outlook (as of July 23, 2025, in millions, except per share amounts) | (in millions, except per share amounts) | Full Year 2025 Outlook | | :------------------------------------- | :--------------------- | | Site rental billings | $3,895 to $3,925 | | Site rental revenues | $3,997 to $4,042 | | Site rental costs of operations | $972 to $1,017 | | Services and other gross margin | $75 to $105 | | Net income (loss) | $100 to $380 | | Net income (loss) per share—diluted | $0.23 to $0.87 | | Adjusted EBITDA | $2,780 to $2,830 | | Depreciation, amortization and accretion | $678 to $773 | | Income (loss) from discontinued operations, net of tax | ($830) to ($590) | | FFO | $1,645 to $1,675 | | AFFO | $1,805 to $1,855 | | AFFO per share | $4.14 to $4.25 | | Interest expense and amortization of deferred financing costs, net | $972 to $1,017 | - The outlook for net income (loss) and net income (loss) per share-diluted includes contributions from the Fiber Business, which is presented as discontinued operations[39](index=39&type=chunk)[40](index=40&type=chunk) [Outlook for Components of Changes in Site Rental Revenues](index=8&type=section&id=Outlook%20for%20Components%20of%20Changes%20in%20Site%20Rental%20Revenues) The Full Year 2025 Outlook for site rental revenues projects **$3,997 million** to **$4,042 million**, with core leasing and escalators offset by Sprint Cancellations Full Year 2025 Outlook for Components of Changes in Site Rental Revenues (dollars in millions) | (dollars in millions) | Full Year 2025 Outlook | | :------------------------------------------------------------------------------------------------ | :--------------------- | | Prior year site rental billings | $3,931 | | Core leasing activity | $110 to $120 | | Escalators | $90 to $100 | | Non-renewals | $(35) to $(25) | | Other billings | $5 to $5 | | Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations | $170 to $200 | | Non-renewals associated with Sprint Cancellations | $(205) to $(205) | | Organic Contribution to Site Rental Billings | $(35) to $(5) | | Straight-lined revenues | $(15) to $15 | | Amortization of prepaid rent | $80 to $110 | | Other revenues | $15 to $15 | | Acquisitions | — to — | | Total site rental revenues | $3,997 to $4,042 | - Year-over-year site rental revenues are projected to decrease by **5.8%**[43](index=43&type=chunk) - Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations is projected at **4.7%** of prior year site rental billings, while the overall Organic Contribution to Site Rental Billings (including Sprint Cancellations) is projected at **(0.5)%**[43](index=43&type=chunk) [Outlook for Components of Interest Expense](index=8&type=section&id=Outlook%20for%20Components%20of%20Interest%20Expense) Crown Castle's Full Year 2025 Outlook projects net interest expense and amortization of deferred financing costs between **$972 million** and **$1,017 million** Full Year 2025 Outlook for Components of Interest Expense (in millions) | (in millions) | Full Year 2025 Outlook | | :------------------------------------------------------- | :--------------------- | | Interest expense on debt obligations | $960 to $1,000 | | Amortization of deferred financing costs and adjustments on long-term debt | $20 to $30 | | Capitalized interest | $(15) to $(5) | | Interest expense and amortization of deferred financing costs, net | $972 to $1,017 | - The outlook for interest expense relates to continuing operations only[45](index=45&type=chunk) Financial Highlights [Summary Financial Highlights](index=9&type=section&id=Summary%20Financial%20Highlights) Q2 2025 financial highlights show net revenues of **$1,060 million**, net income of **$291 million**, Adjusted EBITDA of **$705 million**, and AFFO per share of **$1.02** Summary Financial Highlights (Q1 2024 - Q2 2025, in millions, except per share amounts) | (in millions, except per share amounts) | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | | :------------------------------------- | :------ | :------ | :------ | :------ | :------ | :------ | | Net revenues | $1,114 | $1,107 | $1,117 | $1,119 | $1,061 | $1,060 | | Total costs of operations | $272 | $274 | $271 | $268 | $268 | $278 | | Selling, general and administrative | $114 | $136 | $93 | $92 | $93 | $99 | | Net income (loss) | $311 | $251 | $303 | $(4,768) | $(464) | $291 | | Adjusted EBITDA | $754 | $727 | $777 | $777 | $722 | $705 | | Depreciation, amortization and accretion | $191 | $180 | $181 | $183 | $177 | $175 | | Interest expense and amortization of deferred financing costs, net | $226 | $230 | $236 | $240 | $236 | $243 | | FFO | $478 | $436 | $466 | $483 | $451 | $429 | | AFFO | $484 | $449 | $525 | $523 | $479 | $444 | | Weighted-average common shares outstanding— diluted | 435 | 435 | 436 | 435 | 436 | 437 | | Net income (loss) per share—diluted | $0.71 | $0.58 | $0.70 | $(10.97) | $(1.07) | $0.67 | | AFFO per share | $1.11 | $1.03 | $1.20 | $1.20 | $1.10 | $1.02 | - Net income (loss) and net income (loss) per share-diluted include amounts from the Fiber Business, which is presented in discontinued operations[49](index=49&type=chunk) - Site rental billings decreased from **$967 million** in Q2 2024 to **$961 million** in Q2 2025[49](index=49&type=chunk) [Components of Changes in Site Rental Revenues](index=10&type=section&id=Components%20of%20Changes%20in%20Site%20Rental%20Revenues) Q2 2025 site rental revenues were **$1,008 million**, a **5.3%** year-over-year decrease, primarily due to negative organic contribution from Sprint Cancellations Components of Changes in Site Rental Revenues (Q1 2024 - Q2 2025, dollars in millions) | (dollars in millions) | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | | :------------------------------------------------------------------------------------------------ | :------ | :------ | :------ | :------ | :------ | :------ | | Prior year site rental billings | $923 | $922 | $952 | $966 | $966 | $966 | | Core leasing activity | $28 | $28 | $27 | $28 | $28 | $28 | | Escalators | $23 | $23 | $23 | $24 | $24 | $24 | | Non-renewals | $(8) | $(7) | $(8) | $(8) | $(7) | $(7) | | Other billings | — | $2 | — | $(4) | $3 | — | | Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations | $43 | $45 | $43 | $40 | $49 | $45 | | Non-renewals associated with Sprint Cancellations | — | — | — | — | $(51) | $(51) | | Organic Contribution to Site Rental Billings | $43 | $45 | $43 | $40 | $(2) | $(6) | | Straight-lined revenues | $57 | $54 | $28 | $20 | $19 | $20 | | Amortization of prepaid rent | $41 | $39 | $39 | $40 | $25 | $23 | | Other revenues | $4 | $4 | $4 | $4 | $4 | $4 | | Total site rental revenues | $1,068 | $1,064 | $1,066 | $1,070 | $1,011 | $1,008 | - Site rental revenues decreased by **5.3%** year-over-year in both Q1 and Q2 2025[55](index=55&type=chunk) - The Organic Contribution to Site Rental Billings was negative in Q1 2025 (**$(2) million**) and Q2 2025 (**$(6) million**), primarily due to non-renewals associated with Sprint Cancellations[55](index=55&type=chunk) [Summary of Capital Expenditures](index=11&type=section&id=Summary%20of%20Capital%20Expenditures) Total capital expenditures for Q2 2025 were **$40 million**, with discretionary capital expenditures, mainly for tower improvements and land interests, totaling **$33 million** Summary of Capital Expenditures (Q1 2024 - Q2 2025, dollars in millions) | (dollars in millions) | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | | :------------------------------------------ | :------ | :------ | :------ | :------ | :------ | :------ | | Discretionary capital expenditures: | | | | | | | | Towers improvements and other capital projects | $26 | $20 | $21 | $18 | $15 | $17 | | Purchases of land interests | $13 | $11 | $14 | $20 | $18 | $16 | | Total discretionary capital expenditures | $39 | $31 | $35 | $38 | $33 | $33 | | Sustaining capital expenditures | $8 | $9 | $6 | $12 | $7 | $7 | | Total capital expenditures | $47 | $40 | $41 | $50 | $40 | $40 | | Less: Prepaid rent additions | $12 | $8 | $13 | $12 | $10 | $11 | | Capital expenditures less prepaid rent additions | $35 | $32 | $28 | $38 | $30 | $29 | - Capital expenditures exclude amounts related to the Fiber Business, which are presented in discontinued operations[62](index=62&type=chunk) [Portfolio Highlights](index=11&type=section&id=Portfolio%20Highlights) As of June 30, 2025, Crown Castle's portfolio includes **40,000 towers** with **2.4 tenants per tower**, **$29 billion** in contracted receivables, and a **6-year** average contract term Portfolio Highlights (as of June 30, 2025) | (as of June 30, 2025) | Value | | :------------------------------------------ | :---- | | Number of towers (in thousands) | 40 | | Average number of tenants per tower | 2.4 | | Remaining contracted tenant receivables (in billions) | $29 | | Weighted average remaining tenant contract term (years) | 6 | | Percent of towers in the Top 50 / 100 Basic Trading Areas | 56% / 71% | | Percent of ground leased / owned | 57% / 43% | | Weighted average maturity of ground leases (years) | 36 | - The portfolio highlights relate to continuing operations only and exclude renewal terms at tenants' option for contracted receivables and contract term[63](index=63&type=chunk) [Consolidated Return on Invested Capital](index=12&type=section&id=Consolidated%20Return%20on%20Invested%20Capital) Consolidated Return on Invested Capital (ROIC) decreased to **10.4%** in Q2 2025 (LQA) from **10.9%** in Q2 2024 (LQA), due to slightly lower Adjusted EBITDA less cash taxes Consolidated Return on Invested Capital (as of June 30, 2025, dollars in millions) | (dollars in millions) | Q2 2025 LQA | Q2 2024 LQA | | :------------------------------------------ | :---------- | :---------- | | Adjusted EBITDA | $2,820 | $2,908 | | Cash taxes (paid) refunded | $(38) | $(23) | | Adjusted EBITDA less cash taxes paid | $2,782 | $2,885 | | Historical gross investment in property and equipment | $16,907 | $16,854 | | Historical gross investment in site rental contracts and tenant relationships | $4,590 | $4,589 | | Historical gross investment in goodwill | $5,127 | $5,127 | | Consolidated Invested Capital | $26,624 | $26,570 | | Consolidated Return on Invested Capital | 10.4 % | 10.9 % | - Amounts are exclusive of the Fiber Business, which is presented in discontinued operations[71](index=71&type=chunk) [Cash Yield on Invested Capital](index=12&type=section&id=Cash%20Yield%20on%20Invested%20Capital) Cash Yield on Invested Capital was **12.4%** in Q2 2025 (LQA), a slight decrease from **12.6%** in Q2 2024 (LQA), reflecting cash generated from net invested capital Cash Yield on Invested Capital (as of June 30, 2025, dollars in millions) | (dollars in millions) | Q2 2025 LQA | Q2 2024 LQA | | :------------------------------------------ | :---------- | :---------- | | Adjusted Site Rental Gross Margin | $3,048 | $3,276 | | Less: Amortization of prepaid rent | $(92) | $(156) | | Less: Straight-lined revenues | $(80) | $(216) | | Add: Straight-lined expenses | $44 | $48 | | Numerator | $2,920 | $2,952 | | Net investment in property and equipment | $13,590 | $13,501 | | Investment in site rental contracts and tenant relationships | $4,590 | $4,589 | | Investment in goodwill | $5,351 | $5,351 | | Net Invested Capital | $23,531 | $23,441 | | Cash Yield on Invested Capital | 12.4 % | 12.6 % | - Amounts are exclusive of the Fiber Business, which is presented in discontinued operations[71](index=71&type=chunk) [Tenant Overview](index=13&type=section&id=Tenant%20Overview) As of June 30, 2025, T-Mobile, AT&T, and Verizon collectively account for **88%** of Q2 2025 LQA Site Rental Revenues, with a **6-year** weighted average contract term Tenant Overview (as of June 30, 2025) | (as of June 30, 2025) | Percentage of Q2 2025 LQA Site Rental Revenues | Weighted Average Current Term Remaining | Long-Term Credit Rating (S&P / Moody's) | | :-------------------- | :--------------------------------------------- | :------------------------------------ | :------------------------------------ | | T-Mobile | 40% | 7 | BBB / Baa2 | | AT&T | 27% | 4 | BBB / Baa2 | | Verizon | 21% | 6 | BBB+ / Baa1 | | All Others Combined | 12% | 7 | N/A | | Total / Weighted Average | 100% | 6 | | - The tenant overview excludes the Fiber Business, which is presented in discontinued operations[78](index=78&type=chunk) [Annualized Rental Cash Payments at Time of Renewal](index=13&type=section&id=Annualized%20Rental%20Cash%20Payments%20at%20Time%20of%20Renewal) Projected annualized rental cash payments at renewal show a peak of **$859 million** in 2028, primarily from AT&T, with **$40 million** for remaining 2025 Annualized Rental Cash Payments at Time of Renewal (as of June 30, 2025, in millions) | (in millions) | Remaining Six Months 2025 | 2026 | 2027 | 2028 | 2029 | | :-------------- | :------------------------ | :--- | :--- | :--- | :--- | | T-Mobile | $3 | $27 | $32 | $26 | $24 | | AT&T | $6 | $23 | $13 | $774 | $240 | | Verizon | $3 | $6 | $7 | $31 | $48 | | All Others Combined | $28 | $42 | $37 | $28 | $45 | | Total | $40 | $98 | $89 | $859 | $357 | - The figures reflect lease renewals by year by tenant and represent annualized cash site rental revenues from assumed renewals or extensions[79](index=79&type=chunk) [Projected Revenues from Tenant Contracts Associated with Active Licenses](index=13&type=section&id=Projected%20Revenues%20from%20Tenant%20Contracts%20Associated%20with%20Active%20Licenses) Projected site rental revenues from active tenant licenses are **$2,015 million** for remaining 2025, growing to **$4,013 million** in 2026, assuming renewals and **3%** CPI escalation Projected Revenues from Tenant Contracts Associated with Active Licenses (as of June 30, 2025, in millions) | (in millions) | Remaining Six Months 2025 | 2026 | 2027 | 2028 | 2029 | | :-------------------------- | :------------------------ | :--- | :--- | :--- | :--- | | Site rental billings | $1,970 | $3,995 | $4,104 | $4,223 | $4,348 | | Amortization of prepaid rent | $44 | $77 | $65 | $43 | $28 | | Straight-lined revenues | $1 | $(59) | $(172) | $(235) | $(206) | | Site rental revenues | $2,015 | $4,013 | $3,997 | $4,031 | $4,170 | - Projections are based on tenant licenses active as of June 30, 2025, assuming renewals and a **3%** annual escalation for CPI-linked contracts[80](index=80&type=chunk) [Projected Expenses from Existing Ground Leases](index=14&type=section&id=Projected%20Expenses%20from%20Existing%20Ground%20Leases) Projected ground lease expenses are **$369 million** for remaining 2025, increasing to **$744 million** in 2026, assuming **3%** annual escalation for CPI-linked contracts Projected Expenses from Existing Ground Leases (as of June 30, 2025, in millions) | (in millions) | Remaining Six Months 2025 | 2026 | 2027 | 2028 | 2029 | | :---------------------------------------- | :------------------------ | :--- | :--- | :--- | :--- | | Ground lease expenses exclusive of straight-lined expenses | $343 | $701 | $721 | $741 | $761 | | Straight-lined expenses | $26 | $43 | $31 | $20 | $10 | | Ground lease expenses | $369 | $744 | $752 | $761 | $771 | - Projections are based on existing ground leases as of June 30, 2025, and assume CPI-linked contracts escalate at **3%** per annum[85](index=85&type=chunk) [Summary of Tower Portfolio by Vintage](index=14&type=section&id=Summary%20of%20Tower%20Portfolio%20by%20Vintage) Towers acquired prior to 2006 show a **20%** cash yield and **2.8** tenants per tower, outperforming newer towers (2007-present) with **10%** cash yield and **2.2** tenants Summary of Tower Portfolio by Vintage (as of June 30, 2025, dollars in thousands) | (dollars in thousands) | Acquired and Built 2006 and Prior | Acquired and Built 2007 to Present | | :---------------------------------------------------- | :-------------------------------- | :--------------------------------- | | Cash yield | 20 % | 10 % | | Number of tenants per tower | 2.8 | 2.2 | | Last quarter annualized average cash site rental revenue per tower | $135 | $81 | | Last quarter annualized average site rental gross cash margin per tower | $116 | $57 | | Net invested capital per tower | $566 | $592 | | Number of towers | 11,172 | 28,725 | - Cash yield is calculated as last quarter annualized site rental gross margin divided by net invested capital[86](index=86&type=chunk) [Ground Interest Overview](index=14&type=section&id=Ground%20Interest%20Overview) As of June 30, 2025, **70%** of towers are on leased ground, contributing **65%** of LQA Cash Site Rental Revenues, with a **36-year** weighted average lease term Ground Interest Overview (as of June 30, 2025, dollars in millions) | (dollars in millions) | LQA Cash Site Rental Revenues | Percentage of LQA Cash Site Rental Revenues | LQA Site Rental Gross Cash Margin | Percentage of LQA Site Rental Gross Cash Margin | Number of Towers | Percentage of Towers | Weighted Average Term Remaining (by years) | | :-------------------- | :---------------------------- | :------------------------------------------ | :-------------------------------- | :---------------------------------------------- | :--------------- | :------------------- | :--------------------------------------- | | Less than 10 years | $417 | 11 % | $225 | 7 % | 5,333 | 14 % | | | 10 to 20 years | $559 | 14 % | $349 | 12 % | 6,067 | 15 % | | | Greater than 20 years | $1,529 | 40 % | $1,099 | 38 % | 16,486 | 41 % | | | Total leased | $2,505 | 65 % | $1,673 | 57 % | 27,886 | 70 % | 36 | | Owned | $1,334 | 35 % | $1,256 | 43 % | 12,011 | 30 % | | | Total / Average | $3,839 | 100 % | $2,929 | 100 % | 39,897 | 100 % | | - The weighted average term remaining for leased ground interests is **36 years**, including all renewal terms at the Company's option[88](index=88&type=chunk) Capitalization Overview [Capitalization Overview](index=15&type=section&id=Capitalization%20Overview) As of June 30, 2025, Crown Castle reported **$260 million** in cash, **$1,042 million** secured debt, **$23,392 million** unsecured debt, and **$24,174 million** Net Debt Capitalization Overview (as of June 30, 2025, dollars in millions) | (dollars in millions) | Face Value | Fixed vs. Variable | Interest Rate | Maturity | | :------------------------------------------------------- | :--------- | :----------------- | :------------ | :------- | | Cash and cash equivalents and restricted cash and cash equivalents | $260 | | | | | Total secured debt | $1,042 | | 4.4% | | | 2016 Revolver | $400 | Variable | 5.5% | 2027 | | 2016 Term Loan A | $1,087 | Variable | 5.5% | 2027 | | Commercial Paper Notes | $1,905 | Variable | 5.1% | Various | | Total unsecured debt | $23,392 | | 3.9% | | | Net Debt | $24,174 | | 3.9% | | | Market Capitalization | $44,736 | | | | | Firm Value | $68,910 | | | | - Cash and cash equivalents exclude **$14 million** associated with discontinued operations relating to the Fiber Business[93](index=93&type=chunk) - The **1.350%** Senior Notes (**$500 million**) were repaid in full in July 2025[96](index=96&type=chunk) [Debt Maturity Overview](index=16&type=section&id=Debt%20Maturity%20Overview) This section visually presents Crown Castle's debt maturity schedule as of June 30, 2025, detailing principal payments across years, excluding Commercial Paper Notes - The debt maturity overview visually presents the company's debt obligations by year, excluding **$1.9 billion** in outstanding Commercial Paper Notes[99](index=99&type=chunk)[101](index=101&type=chunk) - The **1.350%** Senior Notes, which matured in July 2025, were repaid in full[101](index=101&type=chunk) [Liquidity Overview](index=17&type=section&id=Liquidity%20Overview) As of June 30, 2025, Crown Castle had **$260 million** in cash and **$6,560 million** in undrawn revolver availability, alongside a **$750 million** stock offering and **$2.0 billion** commercial paper program Liquidity Overview (June 30, 2025, in millions) | (in millions) | June 30, 2025 | | :------------------------------------------------------- | :------------ | | Cash and cash equivalents, and restricted cash and cash equivalents | $260 | | Undrawn 2016 Revolver availability | $6,560 | | Total debt and other obligations (current and non-current) | $24,290 | | Total equity (deficit) | $(1,382) | - The company has an at-the-market stock offering program for up to **$750 million**, with no shares sold to date[104](index=104&type=chunk) - As of June 30, 2025, **$1.9 billion** in Commercial Paper Notes were outstanding under a **$2.0 billion** program, with available commitments under the 2016 Revolver intended to cover outstanding CP Notes[104](index=104&type=chunk) [Summary of Maintenance and Financial Covenants](index=17&type=section&id=Summary%20of%20Maintenance%20and%20Financial%20Covenants) As of June 30, 2025, Crown Castle is compliant with covenants, with Total Net Leverage Ratio at **5.8x** (covenant ≤ **6.50x**) and Total Senior Secured Leverage Ratio at **0.2x** (covenant ≤ **3.50x**) Summary of Maintenance and Financial Covenants (as of June 30, 2025) | Debt Borrower / Issuer | Covenant | Covenant Level Requirement | As of June 30, 2025 | | :------------------------------------------------------- | :------------------------------------------------------- | :------------------------- | :------------------ | | **Maintenance Financial Covenants** | | | | | 2016 Credit Facility CCI | Total Net Leverage Ratio | ≤ 6.50x | 5.8x | | 2016 Credit Facility CCI | Total Senior Secured Leverage Ratio | ≤ 3.50x | 0.2x | | Tower Revenue Notes, Series 2018-2 Crown Castle Towers LLC and its Subsidiaries | Debt Service Coverage Ratio | > 1.75x | 30.6x | | 2009 Securitized Notes Pinnacle Towers Acquisition Holdings LLC and its Subsidiaries | Debt Service Coverage Ratio | > 1.30x | 37.1x | | **Financial covenants restricting ability of relevant issuer to issue additional notes under the applicable indenture** | | | | | Tower Revenue Notes, Series 2018-2 Crown Castle Towers LLC and its Subsidiaries | Debt Service Coverage Ratio | ≥ 2.00x | 30.6x | | 2009 Securitized Notes Pinnacle Towers Acquisition Holdings LLC and its Subsidiaries | Debt Service Coverage Ratio | ≥ 2.34x | 37.1x | - Failure to comply with financial maintenance covenants would result in an event of default under the 2016 Credit Facility[106](index=106&type=chunk) [Interest Rate Exposure](index=18&type=section&id=Interest%20Rate%20Exposure) As of June 30, 2025, **86%** of total debt is fixed-rate (**3.7%** W.A. interest rate), **14%** floating-rate (**5.3%** W.A. interest rate), with a **25 bps** increase costing **$8.5 million** annually Interest Rate Exposure (as of June 30, 2025) | Fixed Rate Debt | | Floating Rate Debt | | | :------------------------------------------------------- | :-------- | :------------------------------------------------------- | :-------- | | Face value of principal outstanding | $20,779 | Face value of principal outstanding | $3,392 | | % of total debt | 86% | % of total debt | 14% | | Weighted average interest rate | 3.7% | Weighted average interest rate | 5.3% | | Upcoming maturities: | 2025 | 2026 | Interest rate sensitivity of 25 bps increase in interest rates: | | | Face value of principal outstanding | $500 | $2,650 | Full year effect | $8.5 | | Weighted average interest rate | 1.4% | 3.0% | | | - The weighted average interest rate for floating-rate debt reflects a reduced spread due to the company meeting specified annual sustainability targets as of December 31, 2024[116](index=116&type=chunk) [Components of Interest Expense](index=18&type=section&id=Components%20of%20Interest%20Expense) Q2 2025 net interest expense and amortization of deferred financing costs was **$243 million**, an increase from **$230 million** in Q2 2024, with a quarterly breakdown provided Components of Interest Expense (Q1 2024 - Q2 2025, in millions) | (in millions) | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | | :------------------------------------------------------- | :------ | :------ | :------ | :------ | :------ | :------ | | Interest expense and amortization of deferred financing costs, net | $226 | $230 | $236 | $240 | $236 | $243 | | Interest expense on debt obligations | $223 | $227 | $234 | $236 | $233 | $239 | | Amortization of deferred financing costs and adjustments on long-term debt | $8 | $8 | $8 | $8 | $8 | $8 | | Capitalized interest | $(5) | $(5) | $(6) | $(4) | $(5) | $(4) | Appendix of Condensed Consolidated Financial Statements and Non-GAAP Reconciliations [Condensed Consolidated Balance Sheet (Unaudited)](index=19&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET%20(Unaudited)) As of June 30, 2025, total assets were **$31,636 million**, total liabilities **$33,018 million**, and total equity deficit widened to **$(1,382) million** from year-end 2024 Condensed Consolidated Balance Sheet (Unaudited, in millions) | (in millions) | June 30, 2025 | December 31, 2024 | | :------------------------------------------------------- | :------------ | :---------------- | | **ASSETS** | | | | Total current assets | $1,074 | $1,090 | | Deferred site rental receivables | $2,277 | $2,279 | | Property and equipment, net | $6,402 | $6,577 | | Operating lease right-of-use assets | $5,562 | $5,600 | | Goodwill | $5,127 | $5,127 | | Other intangible assets, net | $949 | $1,037 | | Other assets, net | $63 | $58 | | Non-current assets of discontinued operations | $10,182 | $10,968 | | Total assets | $31,636 | $32,736 | | **LIABILITIES AND EQUITY (DEFICIT)** | | | | Total current liabilities | $3,803 | $2,177 | | Debt and other long-term obligations | $22,039 | $23,451 | | Operating lease liabilities | $5,009 | $5,062 | | Other long-term liabilities | $628 | $645 | | Non-current liabilities of discontinued operations | $1,539 | $1,534 | | Total liabilities | $33,018 | $32,869 | | Total equity (deficit) | $(1,382) | $(133) | | Total liabilities and equity (deficit) | $31,636 | $32,736 | - Current maturities of debt and other obligations significantly increased from **$603 million** at December 31, 2024, to **$2,251 million** at June 30, 2025[122](index=122&type=chunk) - The total equity deficit widened substantially from **$(133) million** to **$(1,382) million**, primarily due to an increase in dividends/distributions in excess of earnings[122](index=122&type=chunk) [Condensed Consolidated Statement of Operations (Unaudited)](index=20&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20OPERATIONS%20(Unaudited)) Q2 2025 net revenues were **$1,060 million**, with net income of **$291 million**, despite a **$(252) million** loss from discontinued operations disposal, leading to a year-to-date net loss of **$(173) million** Condensed Consolidated Statement of Operations (Unaudited, in millions, except per share amounts) | (in millions, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net revenues | $1,060 | $1,107 | $2,121 | $2,221 | | Total operating expenses | $554 | $612 | $1,094 | $1,207 | | Operating income (loss) | $506 | $495 | $1,027 | $1,014 | | Interest expense and amortization of deferred financing costs, net | $(243) | $(230) | $(479) | $(455) | | Income (loss) from continuing operations | $265 | $265 | $549 | $559 | | Income (loss) from discontinued operations before gain (loss) from disposal, net of tax | $278 | $(14) | $360 | $3 | | Gain (loss) from disposal of discontinued operations | $(252) | — | $(1,082) | — | | Income (loss) from discontinued operations, net of tax | $26 | $(14) | $(722) | $3 | | Net income (loss) | $291 | $251 | $(173) | $562 | | Net income (loss)—diluted | $0.67 | $0.58 | $(0.40) | $1.29 | - Income from discontinued operations before gain/loss from disposal was **$278 million** in Q2 2025, a significant improvement from a loss of **$(14) million** in Q2 2024[127](index=127&type=chunk) - A substantial loss from disposal of discontinued operations of **$(1,082) million** was recorded for the six months ended June 30, 2025[127](index=127&type=chunk) [Condensed Consolidated Statement of Cash Flows (Unaudited)](index=21&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS%20(Unaudited)) For the six months ended June 30, 2025, net cash from operations increased to **$1,473 million**, investing activities used **$(523) million**, and financing activities used **$(971) million**, driven by debt and dividends Condensed Consolidated Statement of Cash Flows (Unaudited, in millions) | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | $(173) | $562 | | Income (loss) from continuing operations | $549 | $559 | | Net cash provided by (used for) operating activities from discontinued operations | $581 | $556 | | Net cash provided by (used for) operating activities | $1,473 | $1,367 | | Net cash provided by (used for) investing activities from discontinued operations | $(446) | $(563) | | Net cash provided by (used for) investing activities | $(523) | $(650) | | Principal payments on debt and other long-term obligations | $(59) | $(36) | | Purchases and redemptions of long-term debt | $(700) | — | | Borrowings under revolving credit facility | $400 | — | | Payments under revolving credit facility | — | $(670) | | Net issuances (repayments) under commercial paper program | $564 | $1,438 | | Purchases of common stock | $(23) | $(30) | | Dividends/distributions paid on common stock | $(1,153) | $(1,368) | | Net cash provided by (used for) financing activities | $(971) | $(666) | | Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | $(21) | $51 | | Cash and cash equivalents and restricted cash and cash equivalents at end of period | $274 | $331 | - Cash flows from operating activities from discontinued operations provided **$581 million** in 2025, up from **$556 million** in 2024[132](index=132&type=chunk) - Purchases and redemptions of long-term debt amounted to **$(700) million** in the first six months of 2025, compared to none in the prior year[132](index=132&type=chunk) [Non-GAAP Measures and Other Information](index=22&type=section&id=Non-GAAP%20Measures%20and%20Other%20Information) This section defines and explains Crown Castle's non-GAAP financial measures, including Adjusted EBITDA, AFFO, FFO, and other key operational terms - Non-GAAP measures are presented as additional information to evaluate financial performance, as they are useful indicators for management and investors[138](index=138&type=chunk) - Adjusted EBITDA helps evaluate economic productivity by removing the impact of capital structure and asset base[138](index=138&type=chunk) - AFFO is used to evaluate financial performance by including capital structure and sustaining capital expenditures, while excluding asset base and certain non-cash items[138](index=138&type=chunk) [Non-GAAP Financial Measures](index=23&type=section&id=Non-GAAP%20Financial%20Measures) This subsection defines key non-GAAP financial measures such as Adjusted EBITDA, AFFO, and FFO, used for evaluating financial performance - Adjusted EBITDA is defined as net income (loss) plus various adjustments including restructuring charges, asset write-down charges, depreciation, amortization, interest expense, and excluding income from discontinued operations[140](index=140&type=chunk) - AFFO is defined as FFO before straight-lined revenues and expenses, stock-based compensation, non-cash tax provision, non-real estate related depreciation, amortization of non-cash interest expense, and other adjustments, less sustaining capital expenditures[141](index=141&type=chunk) - FFO is defined as net income (loss) plus real estate related depreciation, amortization, asset write-down charges, goodwill impairment charges, and income/loss from discontinued operations, less noncontrolling interest and preferred stock dividends[143](index=143&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) This subsection defines operational terms including site rental billings, discretionary capital expenditures, and Sprint Cancellations - Site rental billings are defined as site rental revenues exclusive of straight-lined revenues, amortization of prepaid rent, contribution from recent acquisitions, and other revenues[155](index=155&type=chunk) - Discretionary capital expenditures are those made to enhance long-term stockholder value, primarily for expansion or development of communications infrastructure, purchases of land interests, and technology investments[159](index=159&type=chunk) - Sprint Cancellations refer to lease cancellations related to the T-Mobile US, Inc. and Sprint network consolidation[161](index=161&type=chunk) [Reconciliation of Historical Adjusted EBITDA](index=25&type=section&id=Reconciliation%20of%20Historical%20Adjusted%20EBITDA) Historical Adjusted EBITDA for Q2 2025 was **$705 million**, down from **$727 million** in Q2 2024, adjusted from net income for non-cash and discontinued operations items Reconciliation of Historical Adjusted EBITDA (Q1 2024 - Q2 2025, in millions) | (in millions) | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | | :------------------------------------------------------- | :------ | :------ | :------ | :------ | :------ | :------ | | Net income (loss) | $311 | $251 | $303 | $(4,768) | $(464) | $291 | | Asset write-down charges | $6 | $3 | $2 | $1 | $2 | $2 | | Depreciation, amortization and accretion | $191 | $180 | $181 | $183 | $177 | $175 | | Restructuring charges | $11 | $19 | $38 | $3 | — | — | | Amortization of prepaid lease purchase price adjustments | $4 | $4 | $4 | $4 | $4 | $4 | | Interest expense and amortization of deferred financing costs, net | $226 | $230 | $236 | $240 | $236 | $243 | | Interest income | $(4) | $(4) | $(6) | $(5) | $(3) | $(4) | | Other (income) expense | $(2) | $(1) | $5 | $23 | $(1) | $(2) | | (Benefit) provision for income taxes | $6 | $5 | $3 | $4 | $5 | $4 | | Stock-based compensation expense, net | $24 | $26 | $19 | $15 | $18 | $18 | | (Income) loss from discontinued operations, net of tax | $(17) | $14 | $(9) | $5,077 | $748 | $(26) | | Adjusted EBITDA | $754 | $727 | $777 | $777 | $722 | $705 | - Net income (loss) includes contributions from discontinued operations[167](index=167&type=chunk) - The Q4 2024 net income (loss) of **$(4,768) million** and corresponding large positive adjustment for discontinued operations reflects the impact of the Fiber Business reclassification[166](index=166&type=chunk)[169](index=169&type=chunk) [Reconciliation of Outlook for Adjusted EBITDA](index=25&type=section&id=Reconciliation%20of%20Outlook%20for%20Adjusted%20EBITDA) The Full Year 2025 Outlook projects Adjusted EBITDA between **$2,780 million** and **$2,830 million**, including estimated net income and significant adjustments for discontinued operations Reconciliation of Outlook for Adjusted EBITDA (Full Year 2025, in millions) | (in millions) | Full Year 2025 Outlook | | :------------------------------------------------------- | :--------------------- | | Net income (loss) | $100 to $380 | | Asset write-down charges | $5 to $15 | | Acquisition and integration costs | $0 to $6 | | Depreciation, amortization and accretion | $678 to $773 | | Amortization of prepaid lease purchase price adjustments | $14 to $16 | | Interest expense and amortization of deferred financing costs, net | $972 to $1,017 | | (Gains) losses on retirement of long-term obligations | — to — | | Interest income | $(15) to $(15) | | Other (income) expense | $6 to $15 | | (Benefit) provision for income taxes | $11 to $19 | | Stock-based compensation expense, net | $78 to $82 | | (Income) loss from discontinued operations, net of tax | $590 to $830 | | Adjusted EBITDA | $2,780 to $2,830 | - The outlook for net income (loss) includes contributions from discontinued operations[167](index=167&type=chunk) - The expected income (loss) from discontinued operations includes an estimated loss on disposal of the Fiber Business[170](index=170&type=chunk) [Reconciliation of Historical FFO and AFFO](index=26&type=section&id=Reconciliation%20of%20Historical%20FFO%20and%20AFFO) Historical FFO for Q2 2025 was **$429 million** (down from **$436 million** in Q2 2024) and AFFO was **$444 million** (down from **$449 million**), adjusted for real estate depreciation and discontinued operations Reconciliation of Historical FFO and AFFO (Q1 2024 - Q2 2025, in millions) | (in millions) | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | | :------------------------------------------------------- | :------ | :------ | :------ | :------ | :------ | :------ | | Net income (loss) | $311 | $251 | $303 | $(4,768) | $(464) | $291 | | Real estate related depreciation, amortization and accretion | $179 | $168 | $170 | $173 | $164 | $162 | | Asset write-down charges | $6 | $3 | $2 | $1 | $2 | $2 | | (Income) loss from discontinued operations, net of tax | $(17) | $14 | $(9) | $5,077 | $748 | $(26) | | FFO | $478 | $436 | $466 | $483 | $451 | $429 | | Straight-lined revenues | $(57) | $(54) | $(28) | $(20) | $(19) | $(20) | | Straight-lined expenses | $17 | $17 | $16 | $15 | $15 | $14 | | Stock-based compensation expense, net | $24 | $26 | $19 | $15 | $18 | $18 | | Non-cash portion of tax provision | $6 | — | — | $2 | $5 | $(5) | | Non-real estate related depreciation, amortization and accretion | $12 | $12 | $11 | $11 | $13 | $13 | | Amortization of non-cash interest expense | $3 | $3 | $2 | $3 | $3 | $4 | | Other (income) expense | $(2) | $(1) | $5 | $23 | $(1) | $(2) | | Restructuring charges | $11 | $19 | $38 | $3 | — | — | | Sustaining capital expenditures | $(8) | $(9) | $(6) | $(12) | $(7) | $(7) | | AFFO | $484 | $449 | $525 | $523 | $479 | $444 | - The significant (Income) loss from discontinued operations, net of tax, in Q4 2024 and Q1 2025 reflects the reclassification and loss on disposal of the Fiber Business[175](index=175&type=chunk) [Reconciliation of Historical FFO and AFFO per share](index=27&type=section&id=Reconciliation%20of%20Historical%20FFO%20and%20AFFO%20per%20share) Historical FFO per share for Q2 2025 was **$0.98** (down from **$1.00** in Q2 2024) and AFFO per share was **$1.02** (down from **$1.03**), reflecting per-share adjustments Reconciliation of Historical FFO and AFFO per share (Q1 2024 - Q2 2025, in millions, except per share amounts) | (in millions, except per share amounts) | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | | :-------------------------------------- | :------ | :------ | :------ | :------ | :------ | :------ | | Net income (loss) | $0.72 | $0.58 | $0.70 | $(10.97) | $(1.06) | $0.67 | | Real estate related depreciation, amortization and accretion | $0.41 | $0.39 | $0.39 | $0.40 | $0.38 | $0.37 | | Asset write-down charges | $0.01 | $0.01 | — | — | — | — | | (Income) loss from discontinued operations, net of tax | $(0.04) | $0.04 | $(0.02) | $11.67 | $1.72 | $(0.06) | | FFO | $1.10 | $1.00 | $1.07 | $1.11 | $1.03 | $0.98 | | Straight-lined revenues | $(0.13) | $(0.12) | $(0.06) | $(0.05) | $(0.04) | $(0.05) | | Straight-lined expenses | $0.04 | $0.04 | $0.04 | $0.03 | $0.03 | $0.03 | | Stock-based compensation expense, net | $0.06 | $0.06 | $0.04 | $0.03 | $0.04 | $0.04 | | Non-cash portion of tax provision | $0.01 | — | — | — | $0.01 | $(0.01) | | Non-real estate related depreciation, amortization and accretion | $0.03 | $0.03 | $0.03 | $0.03 | $0.03 | $0.03 | | Amortization of non-cash interest expense | $0.01 | $0.01 | — | $0.01 | $0.01 | $0.01 | | Other (income) expense | — | — | $0.01 | $0.05 | — | — | | Restructuring charges | $0.03 | $0.04 | $0.09 | $0.01 | — | — | | Sustaining capital expenditures | $(0.02) | $(0.02) | $(0.01) | $(0.03) | $(0.02) | $(0.02) | | AFFO | $1.11 | $1.03 | $1.20 | $1.20 | $1.10 | $1.02 | - The per-share impact of (Income) loss from discontinued operations was **$1.72** in Q1 2025 and **$(0.06)** in Q2 2025[180](index=180&type=chunk) [Reconciliation of Outlook for FFO and AFFO](index=28&type=section&id=Reconciliation%20of%20Outlook%20for%20FFO%20and%20AFFO) Full Year 2025 Outlook projects FFO between **$1,645 million** and **$1,675 million** (**$3.77** to **$3.84** per share), and AFFO between **$1,805 million** and **$1,855 million** (**$4.14** to **$4.25** per share) Reconciliation of Outlook for FFO and AFFO (Full Year 2025, in millions, except per share amounts) | (in millions, except per share amounts) | Full Year 2025 Outlook | Per Share | | :-------------------------------------- | :--------------------- | :-------- | | Net income (loss) | $100 to $380 | $0.23 to $0.87 | | Real estate related depreciation, amortization and accretion | $660 to $740 | $1.51 to $1.70 | | Asset write-down charges | $5 to $15 | $0.01 to $0.03 | | (Income) loss from discontinued operations, net of tax | $590 to $830 | $1.35 to $1.90 | | FFO | $1,645 to $1,675 | $3.77 to $3.84 | | Straight-lined revenues | $(15) to $15 | $(0.03) to $0.03 | | Straight-lined expenses | $55 to $75 | $0.13 to $0.17 | | Stock-based compensation expense, net | $78 to $82 | $0.18 to $0.19 | | Non-cash portion of tax provision | $(8) to $8 | $(0.02) to $0.02 | | Non-real estate related depreciation, amortization and accretion | $20 to $35 | $0.04 to $0.08 | | Amortization of non-cash interest expense | $7 to $17 | $0.02 to $0.04 | | Other (income) expense | $6 to $15 | $0.01 to $0.03 | | (Gains) losses on retirement of long-term obligations | — to — | — to — | | Acquisition and integration costs | $0 to $6 | $0.00 to $0.01 | | Sustaining capital expenditures | $(55) to $(35) | $(0.13) to $(0.08) | | AFFO | $1,805 to $1,855 | $4.14 to $4.25 | - The outlook for (Income) loss from discontinued operations, net of tax, includes the estimated loss on disposal of the Fiber Business[186](index=186&type=chunk) [Reconciliation of Net Debt](index=28&type=section&id=Reconciliation%20of%20Net%20Debt) As of June 30, 2025, Crown Castle's Net Debt was **$24,174 million**, calculated from total debt and other obligations, adjusted for unamortized items and cash Reconciliation of Net Debt (as of June 30, 2025, dollars in millions) | (dollars in millions) | June 30, 2025 | | :------------------------------------------------------- | :------------ | | Total debt and other obligations (current and non-current) | $24,290 | | Unamortized adjustments, net | $144 | | Total face value of debt | $24,434 | | Less: Ending cash and cash equivalents and restricted cash and cash equivalents | $260 | | Net Debt | $24,174 | - Total debt and other obligations exclude **$32 million** presented in discontinued operations relating to the Fiber Business[186](index=186&type=chunk) - Cash and cash equivalents and restricted cash exclude **$14 million** presented in discontinued operations relating to the Fiber Business[187](index=187&type=chunk) [Reconciliation of Adjusted Site Rental Gross Margin and Adjusted Services and Other Gross Margin](index=29&type=section&id=Reconciliation%20of%20Adjusted%20Site%20Rental%20Gross%20Margin%20and%20Adjusted%20Services%20and%20Other%20Gross%20Margin) Q2 2025 Adjusted Site Rental Gross Margin was **$762 million** (down from **$819 million** in Q2 2024), while Adjusted Services and Other Gross Margin was **$26 million** (up from **$20 million**) Reconciliation of Adjusted Site Rental Gross Margin (Q2 2025 vs. Q2 2024, In millions of dollars) | (In millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | $291 | $251 | | Adjustments to increase (decrease) income (loss): | | | | Services and other revenues | $(52) | $(43) | | Services and other costs of operations | $27 | $25 | | Selling, general and administrative expenses | $99 | $136 | | Asset write-down charges | $2 | $3 | | Depreciation, amortization and accretion | $175 | $180 | | Restructuring charges | — | $19 | | Amortization of prepaid lease purchase price adjustments | $4 | $4 | | Interest expense and amortization of deferred financing costs, net | $243 | $230 | | Interest income | $(4) | $(4) | | Other (income) expense | $(2) | $(1) | | (Benefit) provision for income taxes | $4 | $5 | | Stock-based compensation expense, net recorded in site rental costs of operations | $1 | $1 | | (Income) loss from discontinued operations, net of tax | $(26) | $14 | | Adjusted Site Rental Gross Margin | $762 | $819 | Reconciliation of Adjusted Services and Other Gross Margin (Q2 2025 vs. Q2 2024, In millions of dollars) | (In millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | $291 | $251 | | Adjustments to increase (decrease) net income (loss): | | | | Site rental revenues | $(1,008) | $(1,064) | | Site rental costs of operations | $251 | $249 | | Selling, general and administrative expenses | $99 | $136 | | Asset write-down charges | $2 | $3 | | Depreciation, amortization and accretion | $175 | $180 | | Restructuring charges | — | $19 | | Interest expense and amortization of deferred financing costs, net | $243 | $230 | | Interest income | $(4) | $(4) | | Other (income) expense | $(2) | $(1) | | (Benefit) provision for income taxes | $4 | $5 | | Stock-based compensation expense, net recorded in services and other costs of operations | $1 | $2 | | (Income) loss from discontinued operations, net of tax | $(26) | $14 | | Adjusted Services and Other Gross Margin | $26 | $20 | - Net income (loss) includes contributions from discontinued operations for both reconciliations[190](index=190&type=chunk) [Reconciliation of Historical Free Cash Flow from Discontinued Operations](index=30&type=section&id=Reconciliation%20of%20Historical%20Free%20Cash%20Flow%20from%20Discontinued%20Operations) For the six months ended June 30, 2025, Free Cash Flow from Discontinued Operations was **$135 million**, a significant improvement from **$(7) million** in the prior year Reconciliation of Historical Free Cash Flow from Discontinued Operations (Six Months Ended June 30, in millions of dollars) | (in millions of dollars) | 2025 | 2024 | | :------------------------------------------------------- | :--- | :--- | | Net cash provided by (used for) operating activities from discontinued operations | $581 | $556 | | Net cash provided by (used for) investing activities from discontinued operations | $(446) | $(563) | | Free Cash Flow from Discontinued Operations | $135 | $(7) | - Free Cash Flow from Discontinued Operations is defined as net cash provided by (used for) operating activities from discontinued operations plus net cash provided by (used for) investing activities from discontinued operations[194](index=194&type=chunk) [Reconciliation of Outlook for Free Cash Flow from Discontinued Operations](index=30&type=section&id=Reconciliation%20of%20Outlook%20for%20Free%20Cash%20Flow%20from%20Discontinued%20Operations) Full Year 2025 Outlook projects Free Cash Flow from Discontinued Operations between **$150 million** and **$350 million**, driven by operating activities offset by investing activities Reconciliation of Outlook for Free Cash Flow from Discontinued Operations (Full Year 2025, in millions of dollars) | (in millions of dollars) | Full Year 2025 Outlook | | :------------------------------------------------------- | :--------------------- | | Net cash provided by (used for) operating activities from discontinued operations | $1,220 to $1,320 | | Net cash provided by (used for) investing activities from discontinued operations | $(1,070) to $(970) | | Free Cash Flow from Discontinued Operations | $150 to $350 | - The outlook for Free Cash Flow from Discontinued Operations is based on expected results from the Fiber Business[194](index=194&type=chunk)