Executive Summary

Beat-and-raise quarter: Q3 revenue ($1.072B) and diluted EPS ($0.74) exceeded S&P Global consensus of $1.05B* and $0.53*, respectively; management raised FY25 midpoints for Site Rental Revenues (+$10M), Adjusted EBITDA (+$30M), and AFFO (+$40M) .
Organic growth remained healthy at 5.2% ex-Sprint cancellations, offset by headwinds from lower straight-lined revenues (-$39M) and lower amortization of prepaid rent (-$17M) versus prior year .
Balance sheet steady: ~84% fixed-rate debt, ~6-year weighted average debt maturity, ~$4.2B revolver availability vs. ~$2.7B maturities over next 12 months, supporting liquidity and capital allocation priorities .
Capital return: Board declared $1.0625 dividend (payable Dec 31, 2025); payout cadence and AFFO-based policy remain intact as CCI transitions to a pure-play U.S. tower model post Fiber sale (expected 1H26) .
Potential stock catalysts: beat/raise, improving service margins and operating efficiency, and reiterated contract confidence with EchoStar/DISH amid spectrum redeployments (management: “we expect to be paid per the terms of the agreement”) .

What Went Well and What Went Wrong

What Went Well

Solid organic growth: “5.2% organic growth… excluding the impact of Sprint Cancellations,” with core leasing and escalators contributing positively (Q3) .
Outlook raised: FY25 midpoints increased for Site Rental Revenues (+$10M), Adjusted EBITDA (+$30M), AFFO (+$40M), citing stronger demand and cost efficiencies .
Strategic clarity: New CEO emphasized U.S.-only tower focus and operating improvements: “investing in our systems… streamlining processes… drive efficiencies,” positioning for attractive risk-adjusted returns .

What Went Wrong

YoY pressure from revenue recognition and churn: site rental revenues fell 5.1% YoY on -$39M straight-lined revenue and -$17M amortized prepaid rent; Sprint cancellations (-$51M) also weighed on GAAP site rental revenues .
Profitability compression vs. prior year: Adjusted EBITDA ($718M) and AFFO/share ($1.12) declined 8% and 7% YoY, respectively, despite organic growth ex-Sprint cancellations .
Ongoing Sprint headwind: Non-renewals tied to T-Mobile/Sprint consolidation continue through FY25, with management highlighting organic growth ex-Sprint in both results and guidance .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025	Q3 2025 Consensus
Net Revenues ($B)	$1.120	$1.060	$1.072	$1.0529*
Site Rental Revenues ($B)	$1.066	$1.008	$1.012	—
Diluted EPS ($)	$0.70	$0.67	$0.74	$0.53*
Adjusted EBITDA ($B)	$0.777	$0.705	$0.718	EBITDA $0.6935* (SPGI est.)
AFFO ($B)	$0.525	$0.444	$0.490	—
AFFO per Share ($)	$1.20	$1.02	$1.12	FFO/share $0.918*
EBITDA Margin %	69.4%*	64.4%*	64.9%*	—
Net Income Margin %	27.1%*	27.5%*	30.1%*	—

Notes: consensus values marked with * come from S&P Global; margins marked with * from S&P Global. Values retrieved from S&P Global.

Segment/KPI detail – Site Rental Drivers (Q3 2025 vs Q3 2024)

Component ($M)	Q3 2025	Q3 2024
Prior year site rental billings	995	952
Core leasing activity	33	27
Escalators	24	23
Non-renewals	(7)	(8)
Other billings	2	—
Organic Contribution (Adj. for Sprint)	52	43
Sprint cancellations	(51)	—
Straight-lined revenues	(11)	28
Amortization of prepaid rent	23	39
Other revenues	4	4
Total Site Rental Revenues	1,012	1,066

Additional KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Organic Contribution to Site Rental Billings (Adj. for Sprint), $M	49	45	52
Capital Expenditures ($M)	40	40	42
Common Dividend per Share ($)	1.565	1.0625	1.0625
Debt Mix / Maturities	—	—	~84% fixed, ~6-yr WAM; ~$4.2B revolver availability vs. ~$2.7B 12-mo maturities

Guidance Changes

Metric	Period	Previous Guidance (mid)	Current Guidance (mid)	Change
Site Rental Revenues ($M)	FY25	4,020	4,030	Raised $10M
Adjusted EBITDA ($M)	FY25	2,805	2,835	Raised $30M
AFFO ($M)	FY25	1,830	1,870	Raised $40M
AFFO per Share ($)	FY25	4.20	4.29	Raised $0.09
Interest Expense, net ($M)	FY25	972–1,017	957–1,002	Lowered ~$15M (mid)
Site Rental Costs of Ops ($M)	FY25	972–1,017	967–1,012	Improved ~$5M (mid)
Services & Other Gross Margin ($M)	FY25	75–105	80–110	Raised ~$5M (mid)
SG&A	FY25	—	-$10M vs prev. outlook	Lowered
Discretionary Capex ($M)	FY25	185	155	Lowered $30M

Earnings Call Themes & Trends

Topic	Q1 2025 (prior two quarters)	Q2 2025 (prior quarter)	Q3 2025 (current)	Trend
Fiber sale timeline & separation	Sale announced; targeting 1H26; early regulatory steps	“On track” 1H26; DOJ second request progress	Reiterated 1H26 close expectation	Steady progress
Operating efficiency & systems	Cost control; beginning systems/process upgrades	Shorter cycle times; SG&A down $10M YoY; services margin improved	CEO priority: invest in systems, streamline processes, drive efficiencies	Improving
Organic growth & leasing	5.1% organic (ex-Sprint); activity consistent	4.7% organic (ex-Sprint); activity broad-based	5.2% organic (ex-Sprint); one-time ~$5M uplift; 4Q expected to normalize	Healthy
Sprint cancellations	Headwind highlighted; 2025 focus on ex-Sprint	-$51M quarterly headwind continues	-$51M again in Q3; FY guide shows 4.7% organic ex-Sprint	Ongoing headwind
EchoStar/DISH exposure	—	DISH ~5% tower revenues; contract through 2036; confident in payment	Reiterated confidence: “expect to be paid per the terms”	De-risked by contract
Capital allocation	Dividend reset to $4.25 annualized from Q2; IG leverage target 6–6.5x; buybacks post-close	Reinforced framework; debt reduction then buybacks	Reiterated; dividend paid Q3 and declared post-Q3	Stable
AI/technology demand	—	Discussed potential AI-driven traffic over time; too early to quantify	CEO cites rising data demand and spectrum pipeline as long-term driver	Long-term tailwind

Management Commentary

“We delivered strong operational and financial results in the third quarter and are increasing full year 2025 Outlook as we continue to find opportunities to operate more efficiently.” – CEO Chris Hillabrant .
“Our third quarter results… demonstrated the solid performance of our tower business… we are well to meet our updated full year 2025 Outlook… [with] approximately 84% fixed rate debt, [~6-year] weighted average debt maturity, and approximately $4.2 billion of availability under our revolving credit facility” – CFO Sunit Patel .
“To maximize organic growth while enhancing profitability as a standalone tower company, we are investing in our systems… streamlining processes… and continuing to drive efficiencies across the business.” – CEO .

Q&A Highlights

EchoStar/DISH payments: Management reiterated confidence in the master lease agreement through 2036 and “expect to be paid per the terms” .
Spectrum redeployment impact: More spectrum bands and growing data demand generally favor towers over time; near-term effects depend on carrier deployment choices .
Efficiency progress: Some third-quarter leasing uplift (~$5M) was timing-related; expect 4Q leasing to align with 1H levels; multi-year runway for systems/process automation and ground lease buys .
M&A/market dynamics: Minimal exposure to U.S. Cellular; private market tower multiples remain elevated vs. public; focus remains U.S. tower-only, high bar for M&A .
Capex pacing: FY discretionary capex lowered due to timing; expect continued investments ($150–$250M annually post-close) in tower mods, land, and technology .

Estimates Context

Q3 revenue beat: $1.072B actual vs $1.0529B consensus*; Q3 diluted EPS beat: $0.74 vs $0.53 consensus* .
EBITDA context: SPGI EBITDA actual of ~$696M vs ~$693.5M consensus*, while company-reported Adjusted EBITDA was $718M (definitions differ; company Adjusted EBITDA excludes additional items) .
FFO/share beat: Q3 FFO/share $1.01 vs $0.918 consensus* .
Outlook: FY25 midpoints raised for Site Rental Revenues, Adjusted EBITDA, AFFO, and AFFO/share (see Guidance Changes) .
Estimates marked with * come from S&P Global. Values retrieved from S&P Global.

Key Takeaways for Investors

Beat/raise quarter strengthens near-term narrative; consensus likely moves higher on EPS/FFO and EBITDA given the guidance lift and demonstrated operating leverage .
Underlying demand robust: 5.2% organic growth (ex-Sprint), improving services gross margin, and a constructive multi-year spectrum pipeline support medium-term growth .
Headwinds mostly non-cash and transitory: Lower straight-lined revenues and amortization of prepaid rent are depressing GAAP comparisons; ex-Sprint, organic trends remain solid .
Capital allocation visibility: Dividend maintained at $1.0625 quarterly; post-sale framework targets 75–80% payout of AFFO (ex-prepaid rent), with debt reduction and buybacks enhancing per-share growth .
Balance sheet resilience: High fixed-rate mix and ample revolver capacity reduce rate/refinancing risk through the sale close and beyond .
Watch items: Timing of Fiber sale approvals (1H26 goal), pace of efficiency realization, trajectory of Sprint churn abatement, and EchoStar/DISH developments .
Trading lens: Positive setup on improved FY25 outlook and beats; definitional EBITDA differences vs. SPGI should be communicated when benchmarking to street models .

Appendix: Additional Data Tables

Components of Changes in Site Rental Revenues (FY25 Outlook)

Component ($M)	FY25 Current Outlook	FY25 Previous Outlook
Site rental revenues	4,007–4,052	3,997–4,042
Core leasing activity	110–120	110–120
Escalators	90–100	90–100
Non-renewals	(25)–(35)	(25)–(35)
Other billings	5	5
Sprint cancellations	(205)	(205)
Straight-lined revenues	(5) to 25	(15) to 15
Amortization of prepaid rent	80–110	80–110

Dividend Declaration (Post-Q3)

Item	Detail
Dividend per common share	$1.0625; payable Dec 31, 2025 (record date Dec 15)

Non-GAAP notes: Company highlights Adjusted EBITDA, AFFO, FFO (including per share) as performance measures and discloses reconciliations; AFFO excludes straight-lined revenues/expenses and sustaining capex; Adjusted EBITDA excludes D&A, interest, taxes, stock-based comp, discontinued ops, and other items .

CROWN CASTLE INC. (CCI)·Q3 2025 Earnings Summary