Batya Levy

Batya Levy asked for more details on bridging to the 2026 EBITDA guidance, specifically regarding the $300 million EBITDA contribution from fiber sold, the impact of higher cost savings versus increased SG&A, the pacing of EBITDA, and the quantified PCF sale contribution for 2026.

Answer

Chris Stansbury, CFO, stated that an 8-K with pro forma economics would be released to detail the 2026 EBITDA bridge. He noted that modernization costs are largely in special items and that projected $700 million in M&S savings for 2026 (up from $400 million in 2025) would offset other cost increases. He also reiterated that Lumen is fully funded, not requiring new borrowing, with excess cash to fund growth initiatives, reduce leverage, and potentially buy back stock.

Batya Levy (UBS Investment Bank) inquired about the specific impacts of the new Verizon Master Lease Agreement (MLA) on SBA's future new leasing revenue, including components like amendments and colocations, and how it addresses adjacent spectrum. She also asked for an update on DISH Network's current payment status and any discussions regarding early contract termination.

Answer

Brendan Cavanagh, President and CEO of SBA, highlighted the Verizon MLA's long-term growth potential, featuring minimum colocation commitments for the next decade and amendment components tied to activity. He clarified the agreement is more linear than the AT&T deal. Regarding DISH, Mr. Cavanagh confirmed they are current on rents and expected to honor agreements, while keeping details of ongoing correspondence private.