Crown Castle(US:CCI)2025-11-06 22:24Revenue Performance - Site rental revenues for Q3 2025 were $1.012 billion, a decrease of $54 million or 5% compared to Q3 2024[117]. - Site rental revenues for Q3 2025 were $1.0 billion, a decrease of $54 million (5%) from $1.1 billion in Q3 2024, primarily due to higher towers non-renewals related to Sprint Cancellations[122]. - For the nine months ended September 30, 2025, site rental revenues totaled $3.0 billion, down $167 million (5%) from $3.2 billion in the same period in 2024[133]. - The company expects a reduction in site rental revenues by approximately $200 million in 2025 due to higher tower non-renewals related to T-Mobile and Sprint network consolidation[112]. - Approximately 89% of site rental revenues for the nine months ended September 30, 2025, were derived from T-Mobile, AT&T, and Verizon Wireless[110]. Financial Metrics - Adjusted EBITDA for Q3 2025 was $718 million, a decrease of $59 million or 8% compared to Q3 2024[117]. - Adjusted EBITDA for the first nine months of 2025 decreased by $113 million (5%) to $2.145 billion from $2.258 billion in the same period in 2024[148]. - Adjusted Site Rental Gross Margin for Q3 2025 was $767 million, down $56 million (7%) from $823 million in Q3 2024, reflecting the same factors affecting site rental revenues[122]. - Adjusted Services and Other Gross Margin increased to $31 million in Q3 2025, up $2 million (7%) from $29 million in Q3 2024, driven by carrier network enhancements[123]. - Income from continuing operations for Q3 2025 was $277 million, a decrease of $17 million (6%) from $294 million in Q3 2024, attributed to lower Adjusted Site Rental Gross Margin and increased interest expenses[128]. Cash Flow and Capital Expenditures - For the nine months ended September 30, 2025, net cash provided by operating activities was $2.2 billion[110]. - Net cash provided by operating activities for the first nine months of 2025 was $2.2 billion, an increase of $121 million or 6% compared to the same period in 2024[158]. - Net cash used for investing activities decreased by $142 million or 15% to $805 million in the first nine months of 2025, primarily due to reduced discretionary capital expenditures[159]. - Total capital expenditures for continuing operations were $123 million for the first nine months of 2025, relatively stable compared to $124 million in the same period of 2024[161]. - Discretionary capital expenditures for the nine months ended September 30, 2025, were $104 million, primarily for improvements to existing towers[110]. Debt and Financing - As of September 30, 2025, 84% of the company's debt had fixed rate coupons, with a weighted-average interest rate of 4.0%[110]. - As of September 30, 2025, the company's outstanding debt had a weighted-average interest rate of 4.0% and a weighted-average maturity of approximately six years[110]. - Net cash used for financing activities increased by $394 million to $1.4 billion for the first nine months of 2025, driven by the net impact of debt issuances and repayments[164]. - The company expects to use a portion of cash proceeds from the Strategic Fiber Transaction, anticipated in the first half of 2026, to repay existing debt and fund share repurchases[156]. - The company aims to maintain an investment-grade credit profile and compliance with financial maintenance covenants in its 2016 Credit Agreement[169]. Income and Losses - Net income for Q3 2025 was $323 million, compared to $303 million in Q3 2024, primarily due to improved income from discontinued operations[131]. - The company recognized a loss from disposal of discontinued operations of $231 million and $1.3 billion for the three and nine months ended September 30, 2025, respectively[101]. - The loss from disposal of discontinued operations was $(1.3) billion for the first nine months of 2025, primarily due to the Fiber Business being classified as "held for sale"[146]. - Income from discontinued operations before gain from disposal was $637 million for the first nine months of 2025, compared to $12 million in the same period of 2024[145]. - The company reported a loss from discontinued operations of $46 million in Q3 2025, compared to a loss of $9 million in Q3 2024[179]. Operational Changes - The company initiated a restructuring plan in July 2023 to reduce costs and align operational needs with lower tower activity[110]. - Selling, general and administrative expenses rose to $97 million in Q3 2025, an increase of $4 million (4%) from $93 million in Q3 2024, mainly due to variable employee-related costs[124]. - Stock-based compensation expense for the nine months ended September 30, 2025, was $55 million, down from $69 million in the same period of 2024, a decrease of 20.3%[174]. - Total depreciation, amortization, and accretion for Q3 2025 was $167 million, down from $181 million in Q3 2024, a decrease of 7.7%[179]. - The company plans to continue investing in small cells and fiber until the closing of the sale of the Fiber Business[150].