Crown Castle (CCI) 2Q26: Still Simmering

Research evidence excerpt

Crown Castle (CCI) 2Q26: Still Simmering

agement reiterated confidence in delivering an AFFO run-rate of approximately $2.1B across 2H26 and

1H27 combined, providing further support for the view that earnings growth should improve as churn headwinds moderate.

Capital expenditures were $59M during the quarter ($52M discretionary and $7M sustaining), up from $40M in the prior

year, largely driven by increased land purchases beneath tower assets. Management continues to view ground lease buyouts

as one of its highest-return capital allocation opportunities, citing attractive returns above the company's cost of capital

while simultaneously improving margins and operational control. The dividend remained unchanged at $1.0625 per share,

with approximately $460M paid during the quarter. Following receipt of $8.4B of net proceeds from the Fiber and Small Cell

divestitures, Crown Castle repurchased $1B of stock at an average price of $88.66 per share, retiring more than 11M shares,

and repaid approximately $7.2B of debt. The company ended the quarter with leverage of 6.3x net debt to EBITDA, within its

targeted investment-grade range of 6.0x-6.5x, 100% fixed-rate debt, an average debt maturity of roughly seven years, and

approximately $4.5B of revolver capacity.

Pure-play tower strategy, DISH litigation and emerging growth opportunities: Management highlighted that Crown

Castle is now the only publicly traded pure-play U.S. tower operator following completion of the Fiber and Small Cell divestitures

on May 1. Strategic priorities remain centered around operational efficiency, customer service improvements, system

modernization, AI-enabled process automation, and increased land ownership beneath towers. The company continues to