Financial Data and Key Metrics Changes - The company exceeded internal projections for the second quarter of 2025, leading to an increase in full-year guidance across all key metrics [6][17] - Domestic organic leasing revenue growth was 5% on a gross basis and 1% on a net basis, with $11 million of churn related to Sprint consolidation [17][18] - The company ended the quarter with $12.6 billion of total debt and $12.3 billion of net debt, with a leverage ratio of 6.3 times net debt to adjusted EBITDA [23] Business Line Data and Key Metrics Changes - The services business outperformed expectations, with a nearly 20% increase in full-year services revenue guidance, primarily driven by construction services [7][8] - International organic leasing revenue growth was 0.8% net, including 7.5% churn, while total international churn remained elevated due to ongoing carrier consolidation [19] Market Data and Key Metrics Changes - The U.S. market showed sustained activity levels, marking the sixth consecutive quarter of increased bookings, with carriers investing in wireless networks [6][7] - International markets continued to perform well, with new leases signed and ongoing densification, although challenges were noted in Brazil with one carrier customer [10][11] Company Strategy and Development Direction - The company is focused on expanding its presence in key markets while exiting subscale markets, as evidenced by the sale of its tower business in Canada [14][15] - The company plans to continue deploying capital towards share repurchases and debt reduction, maintaining a balanced approach to capital allocation [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about domestic organic growth opportunities due to initiatives from major customers and the growth of fixed wireless access subscribers [8][9] - The reinstatement of the FCC's Spectrum Auction Authority is seen as a positive development for network capacity and investment [9] Other Important Information - The company declared a quarterly dividend of $1.11 per share, representing a 13% increase over the previous year [24] - S&P upgraded the company's corporate credit rating to BBB investment grade, reflecting stable cash flows and anticipated revenue growth [21][22] Q&A Session Summary Question: Durability of demand drivers for FWA and densification - Management feels confident about the long-term demand drivers, including fixed wireless access and new spectrum auctions, which are expected to require continued investment in networks [28][29] Question: Activity levels and revenue timing - Management noted an increase in activity but acknowledged that new colocations may delay revenue recognition compared to amendments [35][36] Question: Drivers of services business growth - The growth in services is linked to increased leasing activity and construction work, particularly in rural areas [38][39] Question: Domestic activity slowdown in Q2 - Management indicated that the slowdown was mostly rounding and not indicative of a trend, with expectations for increased activity in the second half of the year [45][46] Question: AI application growth as a driver - Management sees AI applications as a potential driver of increased activity, although specifics are hard to quantify [52][53] Question: Canadian asset sale and scaling challenges - The company faced challenges in scaling its Canadian operations due to market dynamics and the decision to sell was based on realizing a better valuation [56][58] Question: Exposure to U.S. Cellular and DISH - Management indicated limited planned churn from U.S. Cellular and ongoing operations with DISH, with total revenues of $20 million and $55 million respectively [68][70] Question: Millicom Towers feedback - Initial feedback from carriers regarding the Millicom Towers acquisition has been positive, suggesting better-than-expected lease-up opportunities [74][75] Question: Use of proceeds from Canadian sale - Proceeds from the Canadian sale will be used flexibly for various purposes, including debt reduction and share buybacks [78][79] Question: Long-term AFFO per share growth rate - Management anticipates a mid to high single-digit growth rate for AFFO per share, contingent on interest rate normalization [105][106] Question: Investment grade debt considerations - Management is exploring the balance between maintaining flexibility and the potential benefits of moving to investment grade debt [112][113]

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]