ITTI(TDS) - 2025 Q4 - Annual Results

Financial Performance - TDS reported total operating revenues of $330.7 million for Q4 2025, a 12% increase from $295.3 million in Q4 2024[5] - Net income for Q4 2025 was $37.2 million, with diluted earnings per share of $0.32, compared to $1.0 million and $0.01 in Q4 2024[5] - For the full year 2025, total operating revenues were $1,228.2 million, down from $1,297.0 million in 2024[6] - Total operating revenues for TDS Telecom were $260,956,000 in Q4 2025, down 1% from $264,295,000 in Q4 2024[26] - Operating income for TDS Telecom decreased significantly by 71% year-over-year to $14,118,000 in Q4 2025, compared to $49,454,000 in Q4 2024[26] - The company reported a net income from continuing operations attributable to TDS shareholders of $54,525,000 in Q4 2025, a substantial increase from $18,311,000 in Q4 2024[27] - Net income for the year ended December 31, 2025, was $20,242,000, a significant improvement from a net loss of $26,481,000 in 2024[32] - Total operating revenues for the year ended December 31, 2025, were $1,038,358,000, down 2% from $1,060,857,000 in 2024[41] - Operating income for the year ended December 31, 2025, was $19,657,000, a decline of 81% compared to $105,309,000 in 2024[41] Investments and Capital Expenditures - The company repurchased 1,765,863 common shares for $67.4 million in Q4 2025[8] - Capital expenditures for TDS Telecom increased to $154,904,000 in Q4 2025, up from $102,429,000 in Q3 2025, reflecting a focus on infrastructure investment[22] - Cash paid for additions to property, plant, and equipment was $390,529,000 in 2025, compared to $365,446,000 in 2024, indicating continued investment in infrastructure[32] Revenue Growth and Projections - Estimated total operating revenues for TDS Telecom in 2026 are projected to be between $1,015 million and $1,055 million[10] - Array's estimated total operating revenues for 2026 are projected to be between $200 million and $215 million, up from $163 million in 2025[11] - TDS plans to invest in the expansion of TDS Telecom's fiber business and support profitability initiatives at Array in 2026[7] - The company experienced a 34% increase in expansion residential revenues for the year ended December 31, 2025, totaling $152,531,000 compared to $114,113,000 in 2024[41] - Total operating revenues for Array increased by 58% year-over-year to $162,961,000 in 2025, compared to $102,933,000 in 2024[43] Customer Metrics and Service Expansion - TDS Telecom ended 2025 with 1.06 million marketable fiber service addresses, having deployed 140,000 new addresses during the year[5][8] - The company reported a total of 561,900 broadband connections as of December 31, 2025, a slight decrease of 0.1% from 562,400 connections in the previous quarter[22] - The company experienced a net addition of 15,100 residential fiber connections in Q4 2025, compared to 11,200 in Q3 2025, indicating a growth trend[22] - TDS increased its long-term marketable fiber service address goal to 2.1 million, an increase of 300,000 addresses[8] Operating Expenses and Financial Health - Total operating expenses for TDS Telecom increased by 15% year-over-year to $246,838,000 in Q4 2025, compared to $214,841,000 in Q4 2024[26] - Total operating expenses decreased by 30% year-over-year to $255,493,000 in 2025, down from $363,268,000 in 2024[43] - The company reported a net cash used in financing activities of $2,347,065,000 in 2025, significantly higher than $277,459,000 in 2024, primarily due to long-term debt repayment[32] - Cash and cash equivalents at the end of the period increased to $770,150,000 in 2025 from $383,222,000 in 2024, reflecting improved liquidity[32] Earnings and Cash Flow - The company reported a basic earnings per share from continuing operations of $0.32 for Q4 2025, compared to $0.01 in Q4 2024[29] - Free cash flow from continuing operations was reported at $(54,178,000) for 2025, an improvement from $(70,917,000) in 2024[45] - Adjusted EBITDA for the year was $330,255,000, compared to $349,775,000 in 2024, indicating a slight decline[48] - EBITDA for Array reached $89,487,000 in Q4 2025, a substantial increase from $23,535,000 in Q4 2024[48] - Array's adjusted free cash flow for Q4 2025 was reported at $74,862,000, reflecting strong operational cash generation[52] Impairment and Losses - Array's loss on impairment of licenses decreased by 65% to $47,679,000 in 2025, compared to $136,234,000 in 2024[43]