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]