Q4 2025 SBA Communications Corp Earnings Call

February 26, 2026

President of Finance and capital markets. Please, go ahead sir.

Good evening and thank you for joining us. For sba's fourth quarter 2025 earnings conference call here. With me today, are Brendan Kavanagh, our president and chief executive officer and Mark Minier, our Chief Financial Officer

Some of the information we will discuss on this call is forward-looking including but not limited to any guidance for 2026 and Beyond.

In today's press release. And in our SEC filings, we detail material risks, that may cause our future results to differ from our expectations.

Our statements are, as of today, February 26th, and we have no obligation to update any forward-looking statements. We may make

David Barden: Welcome. Thank you all for joining the SBA Q4 2025 results. I'll now turn it over to Louis Friend, Vice President of Finance and Capital Markets. Please go ahead, sir.

Mark DeRussy: Welcome. Thank you all for joining the SBA Q4 2025 results. I'll now turn it over to Louis Friend, Vice President of Finance and Capital Markets. Please go ahead, sir.

In addition, our comments will include non-gaap Financial measures and other key. Operating metrics. The reconciliation of and other information regarding these items can be found in our supplemental. Financial data package, which is located on the landing page of our investor relations website.

With that, I will now turn over the call to Mark to comment on the fourth quarter results in our 2026 Outlook.

Thank you, Luis. The fourth quarter was sorry, finished to the year.

Result for the quarter in line, with our estimates, even with higher than forecasted bad debt. Expenses related to equi store,

in the fourth quarter, after 4 to share with 3.19 cents and we took cash dividend of a dollar 11 per share, an increase of 13% compared to the fourth quarter of 2024

Operationally, we added approximately 10 million domestic new, leases and abandonment Billings.

the bulk of the activity continues to come from new collocations,

K is both identify and expand their Network footprint.

Our service business also continues to perform well, increasing Revenue by 13% in the fourth quarter compared to the fourth quarter of 2025.

This was mostly due to construction related project focused on network expansion.

With respect to turn, we're getting closer to in the end of consolidation, turn in the US.

The Sprints related turn of approximately 17 million dollar in the quarter.

Internationally we continue to see healthy demand adding approximately 6 million dollars of new leases and Amendment Billings in the fourth quarter.

International return continues to be elevated and we lost approximately 8 million dollar of Revenue in the quarter from period, consolidation bankruptcy, restructuring and wise operators. Network optimizations. The team has been working around the clock to integrate a newly acquired sites for medical in Central America.

Louis Friend: Good evening. Thank you for joining us for SBA's Q4 2025 Earnings Conference Call. Here with me today are Brendan Cavanagh, our President and Chief Executive Officer, and Marc Montagner, our Chief Financial Officer. Some of the information we will discuss on this call is forward-looking, including, but not limited to, any guidance for 2026 and beyond. In today's press release and in our SEC filings, we detail material risks that may cause our future results to differ from our expectations. Our statements are as of today, 26 February, and we have no obligation to update any forward-looking statements we may make. In addition, our comments will include non-GAAP financial measures and other key operating metrics. The reconciliation of and other information regarding these items can be found in our supplemental financial data package, which is located on the landing page of our investor relations website.

Also wrapping up our new bill program in a region, senior our business for future success, as a leading independent power operator in Central America.

In the quarter, we deploy significant Capital to buy back our shares.

Earning 23 million dollars to retire 1.1 million, shares at an average price of 191.77.

In total in 2025, we spend 500 million dollar to repurchase 2.5 million shares. And as of today, we have 1.1 billion dollar remaining on our share buyback authorization.

We continue to believe that share BuyBacks play a significant role in creating shareholder value over time.

Louis Friend: With that, I will now turn over the call to Marc to comment on the Q4 results and our 2026 outlook.

Additions, our comments will include non-gaap Financial measures and other key operating metrics. The reconciliation of and other information regarding these items can be found in our supplemental. Financial data package, which is located on the landing page of our investor relations website.

Today's earnings press release include our initial 2026 Outlook domestically a 2026 Outlook reflects a similar level of new Revenue growth from carers leasing activity to what we experienced in 2025.

Marc Montagner: Thank you, Lewis. The Q4 was a solid finish to the year. Results for the quarter were in line with our estimates, even with higher than forecasted bad debt expenses related to Oi Wireline. In the Q4, the FFO per share was $3.19, and we took cash dividend of $1.11 per share, an increase of 13% compared to Q4 2024. Operationally, we added approximately $10 million domestic new leases and amendment billings. The bulk of the activity continues to come from new colocations as carriers both densify and expand their network footprint. Our service business also continues to perform well, increasing revenue by 13% in the Q4 compared to Q4 2025. This was mostly due to construction-related project focused on network expansion.

With that, I will now turn over the call to Mark to comment on the fourth quarter results and our 2026 Outlook.

Thank you, Luis. The fourth quarter was sorry, finished to the year.

Also assume a range of 55 to 56 million with 80 to Spring turn, which is slightly higher that we estimate last quarter.

result for the quarter, we in line, with our estimates, even with higher than 4%, but that expenses related to ecos

The increase is due to timing and we now expect spring training in 2027 and Beyond to be less than 20 million previously. Provided

in the fourth quarter, after 4 to share with 3.9 cents and we took cash dividend of $0.11 per share an increase of 13% compared to the fourth quarter of 2024

in addition, our turnout group removes all future. Recurring revenue from Microsoft. We'll continue to pursue legal rights to recover these revenues from Equity stock

Or domestic new leases and abandoned buildings.

For international segment. Our Outlook reflects a full year contribution from the acquisition of sites for Medical Center.

The bulk of the activity continues to come from new COO locations.

Care is both densifying and expanding their network footprint.

The ALCO issue study Network investment from our customer in 2026, and we're guiding to a range of 19 to 21 billion dollars for new. This is man at slightly from 22025.

Our services business also continues to perform well, increasing revenue by 13% in the fourth quarter compared to the fourth quarter of 2025.

Marc Montagner: With respect to churn, we are getting closer to the end of consolidation churn in the US. The Sprint-related churn of approximately $17 million in Q4. Internationally, we continue to see healthy demand, adding approximately $6 million of new leases and amendment billings in Q4. We lost approximately $8 million of revenue in Q4 from carrier consolidation, bankruptcy restructuring, and wireless operators network optimizations. The team has been working around the clock to integrate the newly acquired sites for Millicom in Central America. We're also ramping up our new build program in the region, setting up our business for future success as a leading independent tower operator in Central America.

Which will not continue into 2027.

This was mostly due to construction related project, focus on network expansion, with respect to turn. We getting closer to in the end of consolidation, turn in the US.

The Sprints related turn of approximately 17 million in the quarter.

Expect International return to Trend down over the next couple of years.

Turning to Services, we will guide into a range of 190 to 210 million Revenue.

Internationally, we continue to see healthy demand adding approximately 6 million dollar of new leases and Amendment Billings in the fourth quarter.

Higher than our initial outlook for 2025 had lower, the extreme strong result. We delivered last year, our services backlogs of sport of Continuous Care and network activity in 2026.

International return continues to be elevated and we lost approximately 8 million dollar of Revenue in the quarter. From here consolidation, bankruptcy restructuring and wise operators Network optimizations

The team has been working around the clock to integrate newly acquired sites for medical in Saint for America.

Regarding our balance sheet in January, we successfully paid off 750 million of ABS. That is a revolving credit facility and our Outlook assume that we will use our free cash flow to pay down the current outstanding amount on his credit to the over time.

Marc Montagner: In the quarter, we deployed significant capital to buy back our shares, spending $213 million to retire 1.1 million shares at an average price of $191.07. In total, in 2025, we spent $500 million to repurchase 2.5 million shares, and as of today, we have $1.1 billion remaining on our share buyback authorization. We continue to believe that share buybacks play a significant role in creating shareholder value over time. Today's earnings press release include our initial 2026 outlook. Domestically, our 2026 outlook reflects a similar level of new revenue growth from carriers leasing activity to what we experienced in 2025.

also 1 thing that our new bill program in a region, senior our business for future success, as a leading independent power operator in Central America

In the quarter, it deployed significant capital to buy back our shares.

In 213 million retire, 1.1 million shares at an average price of 191.7.

We will also assume that our 1.2 billion dollar November EBS, Security will be open at November of 2026 at 5 and a quarter episode. The 40 Community will be coming in investment of great cash. And we look to make our initial inaugural investment, Great Bond at some point in 2026 depending on market conditions.

In total in 2025, we spent 500 million to repurchase 2.5 million shares. And as of today, we have 1.1 billion remaining on our share buyback. Authorization

We continue to believe that share BuyBacks play a significant role in creating shareholder value over time.

Today's earnings press release includes our initial 2026 outlook.

During the fourth quarter, we declare a pair of cash development of 118.2 million or a dollar 11 cents per share. And today, we now set up all of directors declare our first quarter dividend of the door and 25 cents per share, payable of March 2726 to shareholders of business of March 1320 26.

Marc Montagner: The outlook also assumes a range of $65 to $66 million related to Sprint churn, which is slightly higher than we estimated last quarter. The increase is due to timing, and we now expect Sprint churn in 2027 and beyond to be less than the $20 million previously provided. In addition, our churn outlook removes all future recurring revenue from Equus. We'll continue to pursue legal rights to recover these revenues from Equus. For our international segment, our outlook reflects a full year contribution from the acquisition of sites from América Móvil in Central America. The outlook also issues steady network investment from our customer in 2026, and we're guiding to a range of $19 to $21 million for new leases and amendments, up slightly from 2025. Our outlook assumes a range of $36 to $40 million related to churn.

Domestically a 2026 Outlook reflects, a similar level of new Revenue growth. From carers leading activity to what we experienced in 2025.

Is Devon represents an increase of approximately 13% over the dividend pay in the first quarter of 2025 and approximately 41% of the midpoint of a full year for Outlook.

The Outlook also assume a range of 55 to 56 million dollar related to Spring turn, which is likely higher that we estimated last quarter.

The increases are due to timing, and we now expect spring training in 2027 and beyond to be less than $20 million previously provided.

This also note that the Outlook does not assume any further share repurchase or acquisition Beyond those which as of today, want to contract or expected to close by the end of the year.

However, we anticipate that we invest in additional asset, or share buyback or both in the year.

In addition, our turnout group removes all future recurring revenue from Microsoft. We'll continue to pursue legal rights to recover this revenue from the ecosystem.

This will potentially have an impact on our full year outlook.

I will now turn the call over to Brandon.

Thank you, Mark.

And good afternoon.

For international segment, our Outlook reflects a full year contribution, from the acquisition of sites for medical and for America.

Today, I want to share our perspective on sba's near and long-term Outlook, and the opportunities ahead starting with the US market and the key drivers of future growth.

For our us customers.

Also, issued study Network investment from our customer in 2026. And we're guiding to wage of 19 to 21 billion dollars for new business at slightly from 22025.

Marc Montagner: The current churn range includes $14 million related to Oi Wireless, which will not continue into 2027. Barring any unforeseen events, we expect international churn to trend down over the next couple of years. Turning to services, we are guiding to a range of $190 to 210 million in revenue, higher than our initial outlook for 2025 but lower than the extremely strong results we delivered last year. Our services backlogs are supportive of continuous carrier network activity in 2026. Regarding our balance sheet, in January, we successfully paid off $750 million of ABS debt with our revolving credit facility, and our outlook assumes that we will use our free cash flow to pay down the current outstanding amount on this credit facility over time.

To stabilize 3, carrier markets, maintaining a high quality and user experience remains Paramount.

Our Outlook is showing a range of 36 to 40 million dollar relation, the current Insurance range includes 14 million dollar related to oil water line, which will not continue into 2027.

Offering Superior Network, quality, reliability, and speeds, that meet the needs of today, and tomorrow requires significant ongoing Investments.

Barring any unforeseen expect International return to Trend down over the next couple of years.

We've seen this demonstrated in numerous Cycles over the last several decades and it is perhaps even more the case today.

Mobile data, use continues to climb As Americans rely on their devices across everyday experiences.

According to ctia in 2024 Americans consumed more than 132 trillion megabytes of mobile data up 35% compared to the prior year. Marking a single largest jump in history.

Turning to Services, we will guide you into a range of 190 to 210 million in revenues higher than our initial outlook for 2025 but lower the extremely strong result. We delivered last year, our services by drugs or support of Continuous Care and network activity in 2026 regarding our balance sheet in January, we successfully paid off 750 million of a

The way to keep up with this level of demand remains relatively unchanged.

Marc Montagner: We will also assume that our $1.2 billion November ABS maturity will be refinanced in November 2026 at 5.25%. We're fully committed to becoming an investment-grade issuer. We look to make our initial inaugural investment-grade bond at some point in 2026, depending on market conditions. During Q4, we declared to pay a cash dividend of $118.2 million, or $1.11 per share. Today, we announced that our board of directors declared Q1 dividend of $1.25 per share, payable 27 March 2026 to shareholders of record as of close of business 13 March 2026.

Yes, that is how we've already created the facility and our outlook assumes that we use our free cash flow to pay down the current outstanding amount on this credit over time.

it typically starts with a wave of amendment to efficiently upgrade existing Towers deploying new Spectrum bands, if available adding or swapping equipment, followed by a shift toward densification,

Today, we are still seeing upgrades but with certain customers have seen a clear increase in new collocation activity tied to both densification and expansion.

We will also assume that our $1.2 billion November EBS maturity will be open at November of 2026 by 5 and a quarter percent. The 40 Community to be convenient investment of great issuer and we look to make our initial inaugural investment grade bond at some point in 2026 depending on market conditions.

On the amendment side, we've seen new technology upgrades such as massive mimo largely tied to new Spectrum including CB band and DOD and are starting to see initial mass of mimo deployment and Legacy AWS and PCs bands, significantly increasing network capacity.

Marc Montagner: This dividend represents an increase of approximately 13% over the dividend paid in Q1 2025 and approximately 41% of the midpoint of our full year FFO outlook. Please also note that our outlook does not assume any further share repurchase or acquisition beyond those which, as of today, are under contract or expected to close by the end of the year. However, we anticipate that we'll invest in additional assets or share buyback or both during the year. This will potentially have an impact on our full year outlook. I will now turn the call over to Brendan.

With regard to collocation activity, our customers work to address coverage gaps in the US meet regulatory requirements and support 5G, use cases like fixed wireless access.

On fixed wireless, access growth and adoption have been impressive with total subscribers of approximately 15 million, initially driven by excess 5G capacity.

Is divided on represents an increase of approximately 13% over the dividend pay in the first quarter of 2025 and approximately 41% of the midpoint of a full year for Outlook.

This also note that the Outlook does not assume any further share repurchase or acquisition Beyond those which as of today, want to contract or expected to close by the end of the year.

Services.

however, we anticipate that we invest in additional assets, or share by back or both in the year

This will potentially have an impact on our full year outlook.

I will now turn the call over to Brandon.

At 5G continues to build out. We expect further support from the upper sea band auction, adding another growth driver for our industry.

Brendan Cavanagh: Thank you, Marc, and good afternoon. Today, I want to share our perspective on SBA's near and long-term outlook and the opportunities ahead, starting with the US market and the key drivers of future growth. For our US customers, in a stabilized three-carrier market, maintaining a high quality end user experience remains paramount. Offering superior network quality, reliability, and speed that meet the needs of today and tomorrow requires significant ongoing investment. We've seen this demonstrated in numerous cycles over the last several decades, and it is perhaps even more the case today. Mobile data use continues to climb as Americans rely on their devices across everyday experiences. According to CTIA, in 2024, Americans consumed more than 132 trillion megabytes of mobile data, up 35% compared to the prior year, marking the single largest jump in history.

Thank you, Mark.

And good afternoon.

At least 100 megahertz of upper sea band is expected to be auctioned by mid 2027.

Today, I want to share our perspective on fda's near and long term Outlook, and the opportunities ahead starting with the US market and the key drivers of future growth.

For our us customers and to stabilize 3, carrier markets, maintaining a high quality and user experience remains Paramount.

Now looking beyond the near-term we're increasingly excited about 6G. We've already seen legislative Tailwind, including restoring the fcc's auction, Authority and 800 megahertz of spectrum to be studied and eventually auctioned, including the aforementioned, 100 megahertz of upper sea band in 2027.

Offering Superior Network, quality, reliability, and speed that meet the needs of today and tomorrow requires significant ongoing Investments.

Other bands currently being evaluated include 2.7 to 2.9 gigahertz 4.4 to 4.9 gigahertz and 7.25 to 7.4 gigahertz.

We've seen this demonstrated in numerous Cycles over the last several decades and it is perhaps even more the case today.

These new bands will require new radios and likely a denser footprint. Given the higher band properties, creating future growth opportunities for SBA.

Mobile data, use continues to climb As Americans rely on their devices across everyday experiences.

Brendan Cavanagh: The way to keep up with this level of demand remains relatively unchanged. It typically starts with a wave of amendments to efficiently upgrade existing towers, deploying new spectrum bands if available, adding or swapping equipment, followed by a shift toward densification. Today, we are still seeing upgrades, but with certain customers have seen a clear increase in new colocation activity tied to both densification and expansion. On the amendment side, we've seen new technology upgrades such as massive MIMO, largely tied to new spectrum, including C-band and DoD, and are starting to see initial massive MIMO deployments in legacy AWS and PCS bands, significantly increasing network capacity. With regard to colocation activity, our customers work to address coverage gaps in the US, meet regulatory requirements, and support 5G use cases like fixed wireless access.

According to ctia in 2024 Americans consumed more than 132 trillion megabytes of mobile data up 35% compared to the prior year, marking the single largest jump in history.

Beyond Spectrum. We see a fundamental shift in the network architecture. Most evident in the transition from 5G to 6D with 5G traffic follows an 8020 downlink to Uplink. Mix as users, primarily consume data streaming videos shopping, connecting on social media or gaming online,

A way to keep up with this level of demand remains relatively unchanged.

Looking ahead, we anticipate a more balanced figure with 6G driving significantly more data Upstream to support. Increasing, AI driven interactions.

It typically starts with a wave of amendments to efficiently upgrade existing Towers deploying new Spectrum bands. If available adding or swapping equipment, followed by a shift toward densification,

Technology that seamlessly integrates into everyday experiences. With data, interpreted in real time is what will truly differentiate 6G.

Today, we are still seeing upgrades, but with certain customers, we have seen a clear increase in new collocation activity tied to both densification and expansion.

Many of these use cases are likely to emerge first in the home or Enterprise using Wi-Fi or private networks eventually though migrating Outdoors for a fully mobile experience reliant, on the terrestrial Network.

We expect a wide range of use cases.

On the amendment side, we've seen new technology upgrades such as massive mimo, largely tied to new Spectrum, including c-band and DOD and are starting to see initial mass of limo deployment and Legacy AWS and PCs bands, significantly increasing network capacity.

Today we are starting to see the early signs of the preparation for 6G. AI is beginning to move from the core to the ram. But true 6G cannot be done with just software. It will also require physical components.

Brendan Cavanagh: On fixed wireless access, growth and adoption have been impressive, with total subscribers of approximately 15 million, initially driven by excess 5G capacity. Today, it's estimated that more than half of overall wireless network capacity is being used to support fixed wireless access, a figure that could increase over time as carriers look to grow their subscriber base and lean further into convergence, bundling home internet, mobile, and enterprise services. As 5G continues to build out, we expect further support from the upper C-band auction, adding another growth driver for our industry. At least 100 megahertz of upper C-band is expected to be auctioned by mid-2027. Looking beyond the near term, we're increasingly excited about 6G.

That means more compute at the tower site with higher capacity, radios and denser and more intelligent antenna configurations to send and receive growing volumes of data.

With regard to collocation activity, our customers work to address coverage gaps in the U.S., meet regulatory requirements, and support 5G use cases, like fixed wireless access. On fixed wireless, access growth and adoption have been impressive, with total subscribers of approximately 15 million, initially driven by excess 5G capacity.

With regard to the compute element. The specifics are really, still just starting to develop. But rapid advances in AI. Particularly as it becomes more performative, we believe will drive the need for compute to be closer to end users, where devices rely on real time, ultra low latency environments.

We believe our large distributed us portfolio. Makes this a real opportunity for SBA.

Today, it's estimated that more than half of overall, wireless network capacity, is being used to support fixed wireless access a figure. That could increase over time as carriers look to grow their subscriber base and lean further into convergence, bundling home, internet mobile and Enterprise services.

Turning now to our International markets, let me start with Brazil.

5G continues to build out. We expect further support from the upper sea band auction, adding another growth driver for our industry.

With a portfolio of over 12,000 sites, Brazil remains our second largest market.

At least 100 megahertz of upper, CB band is expected to be auctioned by mid 2027.

We intend to continue to harvest and grow cash, flow organically in Brazil.

Brendan Cavanagh: We've already seen legislative tailwind, including restoring the FCC's auction authority and 800 MHz of spectrum to be studied and eventually auctioned, including the aforementioned 100 MHz of upper C-band in 2027. Other bands currently being evaluated include 2.7 to 2.9 GHz, 4.4 to 4.9 GHz, and 7.25 to 7.4 GHz. These new bands will require new radios and likely a denser footprint given the higher band properties, creating future growth opportunities for SBA. Beyond spectrum, we see a fundamental shift in the network architecture, most evident in the transition from 5G to 6G. With 5G, traffic follows an 80/20 downlink to uplink mix as users primarily consume data, streaming videos, shopping, connecting on social media, or gaming online.

We believe the country itself is very well positioned to be a leader, in Latin America, over the coming years.

It's a commodity superpower with meaningful exports of food energy and metals. It has a population of over 200 million and a younger demographic that drives higher mobile data usage.

Operationally we've performed well in Brazil. So we faced elevated churn largely driven by industry, consolidation and network rationalization.

In the Brazilian Wireless Market more. Broadly, we see several opportunities.

Other bands currently being evaluated include 2.7 to 2.9 gigahertz 4.4 to 4.9 gigahertz and 7.25 to 7.4 gigahertz.

These new bands will require new radios and likely a denser footprint. Given the higher band properties, creating future growth opportunities for SBA.

The Operators continue to rationalize their networks reducing redundant infrastructure while increasing tendency. There's a clear opportunity to improve both the carriers and the tower companies return through site consolidations and increase control locations.

Beyond Spectrum. We see a fundamental shift in the network architecture. Most evident in the transition from 5G to 6p.

We're actively working with our customers to find more efficient ways to help them meet their Network needs.

This is a key Focus area for SBA in 2026.

Another structural opportunity is Network density.

Brendan Cavanagh: Looking ahead, we anticipate a more balanced figure with 6G, driving significantly more data upstream to support increasingly AI-driven interactions. Technology that seamlessly integrates into everyday experiences with data interpreted in real time is what will truly differentiate 6G. Many of these use cases are likely to emerge first in the home or enterprise using Wi-Fi or private networks. Eventually, though, migrating outdoors for a fully mobile experience reliant on the terrestrial network. We expect a wide range of use cases. Today, we are starting to see the early signs of the preparation for 6G. AI is beginning to move from the core to the RAN. True 6G cannot be done with just software. It will also require physical components. That means more compute at the tower site with higher capacity radios and denser and more intelligent antenna configurations to send and receive growing volumes of data.

5G traffic follows an 8020 downlink to Uplink. Mix as users, primarily consume data streaming videos shopping, connecting on social media or gaming online.

According to a UBS research report from October 2025 Brazil has an estimated foresight for 10,000 people compared with roughly, 16 sites per 10,000 people in the US.

Looking ahead, we anticipate a more balanced figure with 6G driving significantly more data Upstream to support increasingly AI driven interactions.

We see that Gap, providing a meaningful opportunity for additional collocations as carriers densified their Networks.

Technology that seamlessly integrates into everyday experiences. With data, interpreted in real time is what will truly differentiate 6G.

And lastly there is Spectrum, the government is planning to auction, both 450 megahertz and 700 megahertz Spectrum bands.

while the timing remains uncertain recent estimates suggest this would happen in 2027,

Cases are likely to emerge first in the home or enterprise using Wi-Fi or private networks. Eventually, though, migration outdoors for a fully mobile experience relying on the terrestrial network is expected.

We expect a wide range of use cases.

Each of these factors gives us confidence in the long-term prospects, for Brazil.

Today, we are starting to see the early signs of the preparation for 6G.

in the meantime, operators continue to invest in advancing 5G coverage

AI is beginning to move from the core to the ram. But true 6G cannot be done with just software. It will also require physical components.

Koi Capital through new site. Builds an organic growth as these markets remain earlier in the 5G deployment cycle.

Brendan Cavanagh: With regards to the compute element, the specifics are really still just starting to develop. Rapid advances in AI, particularly as it becomes more performative, we believe will drive the need for compute to be closer to end users, where devices rely on real-time, ultra-low latency environment. We believe our large distributed US portfolio makes this a real opportunity for SBA. Turning now to our international markets. Let me start with Brazil. With a portfolio of over 12,000 sites, Brazil remains our second-largest market. We intend to continue to harvest and grow cash flow organically in Brazil. We believe the country itself is very well positioned to be a leader in Latin America over the coming years. It's a commodity superpower with meaningful exports of food, energy, and metal. It has a population of over 200 million and a younger demographic that drives higher mobile data usage.

That means more compute at the tower site with higher capacity, radios and denser and more intelligent antenna configurations to send and receive growing volumes of data.

as we've discussed previously, the milcom transaction has positioned us as the leading independent Tower company in Central America supported by long-term Master weeks agreements with the leading carrier

We expect that agreement to drive predictable, operating results and durable cash flow.

Our select African markets, have continued to deliver, Superior risk, adjusted returns as well, and our highest return on invested Capital across our company.

We believe our large, distributed US portfolio makes this a real opportunity for SBA.

Turning now to our International markets, let me start with Brazil.

In addition to strong, operational and Technology indicators, we feel good about the future due to the strength of our balance sheet and capital return profile.

With a portfolio of over 12,000 sites, Brazil remains our second-largest market.

We intend to continue to harvest and grow cash, flow organically in Brazil.

As discussed on our prior earnings. Call. We have recently achieved investment grade rating from 2, major rating agencies.

We believe the country itself is very well positioned to be a leader in Latin America over the coming years.

And operated comfortably between 6 and 7 turns of Leverage for the last 3 years.

While investing meaningfully in new assets and share repurchases. We've still delivered, the fastest growing dividend in our industry.

Brendan Cavanagh: Operationally, we've performed well in Brazil, though we faced elevated churn, largely driven by industry consolidation and network rationalization. In the Brazilian wireless market more broadly, we see several opportunities. As the operators continue to rationalize their networks, reducing redundant infrastructure while increasing tenancy, there's a clear opportunity to improve both the carriers' and the tower companies' return through site consolidation and increased colocations. We're actively working with our customers to find more efficient ways to help them meet their network needs. This is a key focus area for SBA in 2026. Another structural opportunity is network density. According to a UBS research report from October 2025, Brazil has an estimated 4 sites per 10,000 people, compared with roughly 16 sites per 10,000 people in the US. We see that gap providing a meaningful opportunity for additional colocation as carriers densify their networks.

It's a commodity superpower with meaningful exports of food energy and metals. It has a population of over 200 million and a younger demographic that drives higher mobile data usage.

Operationally we've performed well in Brazil. So we faced elevated churn largely driven by industry, consolidation and network rationalization.

In the Brazilian Wireless Market more. Broadly, we see several opportunities.

We believe the strength of our capital structure will allow us to consistently provide meaningful and growing shareholder remuneration going forward in the form of share, BuyBacks and dividends while also preserving the flexibility and opportunistically invest in new Assets, in our markets and minimizing, the cost of debt.

In summary SBA is very well positioned to play a meaningful role in future network. Deployments helping our customers meet their Network needs.

Our Towers Remain, the backbone of the network and offer a truly TurnKey option, the ground space Power and most importantly location.

We're actively working with our customers to find more efficient ways to help them meet their network needs.

This is a key Focus area for SBA in 2026.

Another structural opportunity is Network density.

Opening it up for questions. I'd like to thank our team members, we strive to be the industry's leader in digital infrastructure, and it is only possible because of the incredible team members we have at SBA

I'd like to thank our customers for their trust in US.

According to a UBS research report from October 2025 Brazil has an estimated foresight for 10,000 people compared with roughly, 16 sites per 10,000 people in the US.

And lastly, I'd like to thank our shareholders for their ongoing support.

And with that operator, we are now ready for questions.

Brendan Cavanagh: Lastly, there is spectrum. The government is planning to auction both 450 MHz and 700 MHz spectrum bands. While the timing remains uncertain, recent estimates suggest this could happen in 2027. Each of these factors gives us confidence in the long-term prospects for Brazil. In the meantime, operators continue to invest in advancing 5G coverage. Beyond Brazil, Central America and Africa offer diverse customer bases attractive opportunities to deploy capital through new site builds and organic growth as these markets remain earlier in the 5G deployment cycle. As we've discussed previously, the Millicom transaction has positioned us as the leading independent tower company in Central America, supported by long-term master lease agreements with the leading carrier. We expect that agreement to drive predictable operating results and durable cash flow.

We see that Gap, providing a meaningful opportunity for additional co-location as carriers densified their Networks.

And lastly, there is spectrum. The government is planning to auction both 450 megahertz and 700 megahertz spectrum bands.

while the timing remains uncertain recent estimates suggest this would happen in 2027,

Ask a question, please dial pound 2 on your telephone keypad to enter the question queue. When it's your turn to speak, I will announce You by name and organization and you will hear a notification that your line is unmuted at that time. You may ask your question and again,

Each of these factors gives us confidence in the long-term prospects, for Brazil.

Pressing pound 2 will indicate that you wish to ask a question.

Please stand by as we queue up our callers.

in the meantime, operators continue to invest in advancing 5G coverage

Beyond Brazil, Central America, and Africa. Offer diverse customer bases, attractive opportunities, to deploy Capital through new site, builds and organic growth. As these markets remain earlier in the 5G deployment cycle,

Okay, let's go ahead and move on to our first caller. Richard Cho from JP Morgan.

You want to expect to see um, domestic collocation Revenue growth through this year. And can you give us a sense of what the carriers are looking for?

We expect that agreement to drive predictable operating results and durable cash flow.

Brendan Cavanagh: Our select African markets have continued to deliver superior risk-adjusted returns as well and our highest return on invested capital across our company. In addition to strong operational and technology indicators, we feel good about the future due to the strength of our balance sheet and capital return profile. As discussed on our prior earnings call, we have recently achieved investment-grade rating from 2 major rating agencies and have operated comfortably between 6 and 7 turns of leverage for the last 3 years. While investing meaningfully in new assets and share repurchases, we still deliver the fastest-growing dividend in our industry.

Uh, yeah. Hi Richard. Um,

Our select African markets, have continued to deliver, Superior risk, adjusted returns as well, and our highest return on invested Capital across our company.

well, so in terms of our domestic, collocation expectations, we obviously gave our outlook for the full year. Um,

In addition to strong, operational and Technology indicators, we feel good about the future due to the strength of our balance sheet and capital return profile.

As discussed in our prior earnings. Call we have recently achieved investment grade rating and 2, major rating agencies.

And operated comfortably between 6 and 7 turns of Leverage for the last 3 years.

Brendan Cavanagh: We believe the strength of our capital structure will allow us to consistently provide meaningful and growing shareholder remuneration going forward in the form of share buybacks and dividends, while also preserving the flexibility to opportunistically invest in new assets in our markets and minimizing the cost of debt. In summary, SBA is very well positioned to play a meaningful role in future network deployments, helping our customers meet their network needs. Our towers remain the backbone of the network and offer a truly turnkey option for ground space, power, and most importantly, location. Before opening it up for questions, I'd like to thank our team members. We strive to be the industry's leader in digital infrastructure, and it is only possible because of the incredible team members we have at SBA. I'd also like to thank our customers for their trust in us.

While investing meaningfully in new assets and share repurchases, we still deliver the fastest growing dividend in our industry.

Which is assumes that 35 million dollars of incremental Revenue added to your new leases and amendments in the US. Uh, we would expect that. Um, we'll be contributed perhaps slightly heavier in the beginning of the year, but we would expect activity levels with the carriers in terms of new business, being signed up to be pretty steady, uh, throughout the year. That's our assumption, and based on the way things are are starting. That's what we, we think will continue to happen and, uh, it'll be a mix. Um, as we said, in some of our prepared comments of, uh, densification, uh, as well as as expansion of coverage,

And 1 quick phone number in Brazil, as we look at the buckets of growth that could drive uh, your Revenue there. How should we think about the difference between a bills upgrading to, I guess 5G intensification in Spectrum over the next few years, like where do you expect to see kind of most of the growth come from there eventually.

Are truly, TurnKey options. The ground space Power and most importantly location.

Thank our team members. We strive to be the industry's leader in digital infrastructure and it is only possible because of the incredible team members we have at SBA

Brendan Cavanagh: Lastly, I'd like to thank our shareholders for their ongoing support. With that operator, we are now ready for questions.

So, like to thank our customers for their trust in US.

And lastly, I'd like to thank our shareholders for their ongoing support.

And with that operator, we are now ready for questions.

Operator: If you'd like to ask a question, please dial pound 2 on your telephone keypad to enter the question queue. When it's your turn to speak, I will announce you by name and organization, and you will hear a notification that your line is unmuted. At that time, you may ask your question. Again, pressing pound 2 will indicate that you wish to ask a question. Please stand by as we queue up our callers. Okay, let's go ahead and move on to our first caller, Richard Chung from JPMorgan.

To ask a question, please dial pound to on your telephone keypad to enter the question queue. When it's your turn to speak, I will announce You by name and organization and you will hear a notification that your line is unmuted at that time. You may ask a question and again,

pressing pound 2 will indicate that you wish to ask a question.

Please stand by as we queue up our callers.

Sites per per person in Brazil and they're basically, um, there are 4 times more in the US than there are in Brazil. And so with that sort of dynamic, it leads to the need for, uh, increased investment in the network and expansion of the network. By each of the remaining carriers. It's been a, I'd say a little bit muted over the last couple of years since the consolidation of OI into the Big 3 carriers that are remaining there. Um, as they work through sort of rationalization of that, that's been a big Focus, but as we kind of get on the back end of that, um I would expect significant investment into uh expanding the network and competing on network quality.

Thank you.

Okay, let's go ahead and move on to our first caller. Richard Chaw from J.P. Morgan.

Sure.

Richard Chung: Do you expect to see domestic colocation revenue growth through this year? Can you give us a sense of what the carriers are looking for?

Moving on to the next caller, but Levy UPS.

Do you want to expect to see, um, domestic collocation revenue growth through this year? And can you give us a sense of what the carriers are looking for?

Brendan Cavanagh: Yeah, hi, Richard. Well, so in terms of our domestic colocation expectations, we obviously gave our outlook for the full year, which assumes about $35 million of incremental revenue added through new leases and amendments in the US. We would expect that will be contributed perhaps slightly heavier in the beginning of the year, but we would expect activity levels with the carriers in terms of new business being signed up to be pretty steady throughout the year. That's our assumption and based on the way things are starting, that's what we think will continue to happen. It'll be a mix, as we said in some of our prepared comments of densification, as well as expansion of coverage.

Uh, yeah. Hi Richard. Um,

well, so in terms of our domestic, collocation expectations, we obviously gave our outlook for the full year. Um,

Great. Thank you. Um a follow up on the domestic activity when you look at the range you provided the low end would suggest to slow down. Can you provide more color on? How much visibility you have for the year ahead versus maybe last year and what could drive that low end? Um and also um the Verizon MLA that you recently signed, how does that impact the trend against the lower capex? That they're going to thank you.

Which assumes that 35 million dollars of incremental Revenue added to your new leases and amendments in the US. Uh, we would expect that. Um, we'll be contributed perhaps slightly heavier in the beginning of the year, but we would expect activity levels with the carriers in terms of new business, being signed up to be pretty steady, uh, throughout the year. That's our assumption, and based on the way things are are starting. That's what we, we think will continue to happen and, uh, it'll be a mix. Um, as we said, in some of our prepared comments of, uh, densification, uh, as well as as expansion of coverage,

Richard Chung: One quick one on Brazil. As we look at the buckets of growth that could drive, your revenue there, how should we think about the difference between new builds, upgrading to, I guess, 5G, densification, and spectrum over the next few years? Like, where do you expect to see kind of most of the growth to come from there eventually?

And 1 quick quote on Brazil, as we look at the buckets of growth that could drive uh your Revenue there. How should we think about the difference between me builds upgrading to I guess 5G intensification in Spectrum over the next few years like where do you expect to see kind of most of the growth come from there eventually.

Brendan Cavanagh: Yeah, I think, we're not building that many sites down there, so most of the growth is gonna come organically through new lease up. In terms of the drivers of that new lease up, some of that will be, just new spectrum that's gonna be auctioned off, we believe, over the next couple of years. Some of that's gonna be, just further expansion and densification of the network. I think if you heard in the prepared comments, one of the things we pointed out was a statistic about the amount of sites per person in Brazil, and they're basically, there are four times more in the US than there are in Brazil.

Sure, um, on the the overall range that we're guiding to, uh, we're not a pretty good visibility. We obviously give a range because it's not set in stone and there's a certain amount, particularly at the beginning of the year, uh, that we have to see how the the first half of the year in particular goes in terms of new business being signed up. So that's why we give a range. And obviously, if it's slow out of the gates, you could be towards the low end of the range, but we're typically, uh, focus on the midpoint, as our, our best estimate of where we expect to be. And so I, you know, it's a little bit less than last last year. It's about 2 million dollars less than last year, although we did actually have 2 million dollars of lease up contribution from Dish last year. So excluding that which is zero. Now it's basically flat. I will say that there's uh a different

Sort of mix among the the Big 3 carriers in terms of the relative contribution of each that we expect and to kind of pivot to your second question because it's related to that, you know, we do expect to see more of a contribution from Verizon because of the MLA that we signed with them late last year. Uh, in terms of, you know, their comments around capex. Uh, I know they have a number of things that they're focused on in terms of controlling costs, but our agreements is pretty well set in terms of um, minimum commitments that they have. And so for the most part, our assumptions are built around those minimum commitments, as well as existing backlog.

Brendan Cavanagh: With that sort of dynamic, it leads to the need for increased investment in the network and expansion of the network by each of the remaining carriers. It's been, I'd say, a little bit muted over the last couple of years since the consolidation of Oi into the big three carriers that are remaining there. As they've worked through sort of the rationalization of that's been a big focus. As we kind of get on the back end of that, I would expect significant investment into expanding the network and competing on network quality.

That we have with them and our backlogs have have grown quite a bit. Over the last couple of months, as you might expect after we sign that agreement. So, you know, we feel, we feel pretty good that we're going to see increased contributions from Verizon due to that agreement. Uh, this starting this year.

Got it. Thank you.

Sure.

Yeah, I think uh, we're not building that many sites down there. So most of the growth is going to come organically through, new lease up, uh, in terms of of the drivers of that new lease up some of that will be uh, just new Spectrum. That's going to be auctioned off. We believe over the next couple of years. And some of that's going to be, uh, just further expansion and densification of the network. I think if you heard in the prepared comments, 1 of the things we pointed out with the statistic about, uh, the amount of, uh, site's per per person in Brazil, and they're basically, um, there are 4 times more in the US and there are in Brazil. And so, with that sort of dynamic, it leads to the need for, uh, increased investment in the network and expansion of the network. By each of the remaining carriers, it's been, uh, I'd say a little bit muted, uh, over the last couple of years, since the consolidation of OI into the Big 3 carriers that are remaining there, um, as they work through sort of the

All right, moving on to Rick. Apprentice from Raymond James.

Good afternoon, everybody.

Hey.

Rationalization of that—that's been a big focus—but as we kind of get on the back end of that, I would expect significant investment into expanding the network and competing on network quality.

Richard Chung: Thank you.

Brendan Cavanagh: Sure.

Okay, thank you.

Sure.

Operator: Moving on to the next caller, Batya Levi, UBS.

um, couple questions 1, thanks for uh, giving the cleanest view was taken, just out of of the guidance, but the update is as far as

Moving on to the next caller, but Levy, UPS.

Batya Levi: Great. Thank you. A follow-up on the domestic activity. When you look at the range you provided, the low end would suggest a slowdown. Can you provide more color on how much visibility you have for the year ahead versus maybe last year and what could drive that low end? Also, the Verizon MLA that you recently signed, how does that impact the trend against the lower CapEx that they're guiding to? Thank you.

What the process did you guys file a lawsuit? Have you terminated the contract? And just how, how do you see kind of the timeline, or how this this might play out?

yeah, so we we did actually file a lawsuit uh, just recently and as part of that, um, because of their default lack of payment, we did terminate and accelerate, um, the rents that were due under that contract

Brendan Cavanagh: On the overall range that we're guiding to, we have pretty good visibility. We obviously give a range because it's not set in stone, and there's a certain amount, particularly at the beginning of the year, that we have to see how the first half of the year in particular goes in terms of new business being signed up. That's why we give a range. Obviously, if it's slow out of the gates, you could be towards the low end of the range. We're typically focused on the midpoint as our best estimate of where we expect to be. You know, it's a little bit less than last year. It's about $2 million less than last year, although we did actually have $2 million of lease up contribution from DISH last year.

Sure. Um,

Uh I mean I can't really get into too much in terms of the details around that. Um and what we foresee happening there, but the basic gist of it is that um they defaulted on the agreements and we filed suit, we tried to um get them to comply with the agreements. They did not.

Brendan Cavanagh: Excluding that, which is 0 now, it's basically flat. I will say that there's a different sort of mix among the big three carriers in terms of the relative contribution of each that we expect. To kind of pivot to your second question because it's related to that, you know, we do expect to see more of a contribution from Verizon because of the MLA that we signed with them late last year. In terms of, you know, their comments around CapEx. I know they have a number of things that they're focused on in terms of controlling costs, but our agreement is pretty well set in terms of minimum commitments that they have. For the most part, our assumptions are built around those minimum commitments as well as existing backlogs that we have with them.

We filed suit. We're going to, you know, go after uh, enforcing our rights under the agreement as best we can and we'll see where it all shakes out. But um, for now we thought the cleanest thing to do in terms of our outlook for this year was to basically just remove them entirely. As it seems like others in the industry are doing. This is kind of a consistent issue across across the industry, but for us, you know, the relative size of that. Exposure is less than than others. But nonetheless, it's all out.

The first half of the year in particular goes in terms of new business being signed up. So, that's why we give a range. And obviously, if it's slow out of the gates, you could be towards the low end of the range, but we're typically, uh, focused on the midpoint as our, our best estimate of where we expect to be. And so, I, you know, it's a little bit less than last year. It's about 2 million dollars less than last year, although we did actually have 2 million dollars of lease up contribution from Dish last year. So excluding that which is zero. Now it's basically flat. I will say that there's a different

Question for me, I think Mark mentioned um I was thinking Mark with a CS set of Mark with a K here but um Mark mentioned that uh you're closer to in I think probably the us closer to carrier consolidation from being done there is 1 more, maybe in progress, right? T-Mobile USM, can you update as far as how much T-Mobile USM churn might be when you're thinking it might affect you guys?

Brendan Cavanagh: Our backlogs have grown quite a bit over the last couple of months, as you might expect, after we signed that agreement. We feel pretty good that we're gonna see increased contributions from Verizon due to that agreement starting this year.

sort of mix among the the Big 3 carriers in terms of the relative contribution of each that we expect and to kind of pivot to your second question because it's related to that, you know, we do expect to see more of a contribution from Verizon because of the MLA that we signed with them late last year. Uh, in terms of, you know, their comments around capex. Uh, I know they have a number of things that they're focused on in terms of controlling costs, but our agreement is pretty well, set in terms of um, minimum commitments that they have. And so for the most part, our assumptions are built around those minimum commitments, as well as existing backlogs that we have with them and our backlogs have have grown quite a bit. Over the last couple of months, as you might expect after we sign that agreement. So, you know, we feel, we feel pretty good that we're going to see increased contributions from Verizon due to that agreement. Uh, this starting this year.

Operator: Got it. Thank you.

Batya Levi: Got it. Thank you.

Brendan Cavanagh: Sure.

Got it. Thank you.

Sure.

Operator: All right, moving on to Ric Prentiss from Raymond James.

All right, moving on to Rick. Apprentice from Raymond James.

Ric Prentiss: Thanks. Good afternoon, everybody.

Thanks, good afternoon, everybody.

Brendan Cavanagh: Hey, Ric.

Ric Prentiss: Hey. A couple questions. One, thanks for giving the cleanest view and taking just out of the guidance. Can you update us as far as what's the process? Did you guys file a lawsuit? Have you terminated the contract? Just how do you see kind of the timeline or how this might play out?

Hey.

Yeah we have. Um and Lewis can correct me on this if I'm wrong. I believe somewhere around 1 to 2 million dollars of our current estimate for this year, uh covers uh specifically USM charm associated with that. So there's a little bit in there. The total amount of Revenue that we have under those US Cellular leases is 20 million dollars. So uh we've had a very small amount of that uh realized already plus we've incorporated. As I said, 1 to 2 million in our numbers for this year. So, you know, somewhere less than 20 million. I don't know that it will all necessarily turn. There may be some that, uh, are capped. I would think. But, um, we've we've kind of assumed that over the next 5 years. You'll see all of it. Go away kind of evenly over that period of time.

Hey um, couple questions 1, thanks for uh giving the cleanest view. We're taking just out of of the guidance, but the update is, as far as

What's the process? Did you guys file a lawsuit? Have you terminated the contract? And just how do you see kind of the timeline or how this this might play out?

Brendan Cavanagh: Yeah. We did actually file a lawsuit just recently. As part of that, because of their default lack of payment, we did terminate and accelerate the rents that were due under that contract. I mean, I can't really get into too much in terms of the details around that, and what we foresee happening there, the basic gist of it is that they defaulted on the agreement, and we filed suit. We tried to get them to comply with the agreement. They did not. We filed suit. We're going to, you know, go after enforcing our rights under the agreement as best we can, and we'll see where it all shakes out.

Okay? And related to USM and we obviously get the question a lot. Um what does directed device satellite mean for terrestrial Wireless terrestrial Towers? I'll admit I'm in the camp that thinks it's complimentary it's maybe 6 is white space but I hope people understand. Are there any sites On The Fringe of where you have sites or how you think, you have directed devices and what it might need to terrestrial Wireless and terrestrial Towers.

Yeah, so we we did actually file a lawsuit uh just recently and as part of that um because of their default lack of payment, we did terminate and accelerate the rents that were due under that contract.

well, first of all, we agree with, um, the premise that you just mentioned, which is that it is uh, largely a complimentary, uh, solution and it is

Brendan Cavanagh: For now, we thought the cleanest thing to do in terms of our outlook for this year was to basically just remove them entirely, as it seems like others in the industry are doing. This is kind of a consistent issue across the industry. For us, you know, the relative size of that exposure is less than others, but nonetheless, it's all out.

I mean, I can't really get into too much in terms of the details around that. Um and what we foresee happening there, but the basic gist of it is that um, they defaulted on the agreements and we filed suit, we tried to um get them to comply with the agreements. They did not, we filed suit. We're going to, you know, go after uh, enforcing our rights under the agreement as best we can and we'll see where it all shakes out. But um, for now we thought the cleanest thing to do in terms of our outlook for this year was to basically just remove

Ric Prentiss: Great. Great. Okay. Second question for me. I think Marc Montagner mentioned, I believe a Marc with a C instead of Mark with a K here, but Marc Montagner mentioned that you're closer to in, I think probably US, closer to carrier consolidations from being done. There is one more maybe in progress, right? T-Mobile UScellular. Can you update as far as how much T-Mobile UScellular churn might be when you're thinking it might affect you guys?

Them entirely, as it seems like others in the industry are doing, this is kind of a consistent issue across across the industry, but for us, you know, the relative size of that. Exposure is less than than others. But nonetheless, it's all out.

Suited in some of those um harder to reach areas those areas that maybe aren't economic to cover with a traditional terrestrial solution and so, um, I don't see it having a huge impact on our business because even when we have sites that you would classify as slightly more rural, they're still in population centers or they're covering, uh, areas that people. Where there's, there's a concentration of people we typically don't have sites that are in the middle of nowhere. Those don't last for very long. So I don't think it's going to have, uh, much of an impact Rick. And there are are clearly limitations, uh, both financial and, um, just physical properties, in terms of the ability to deliver speeds and latency levels at, um, level that it's, it's going to be required particularly with the new

Or technologies that are coming. I think as we move towards 6G and there's greater Uplink, um, it's going to be much harder to provide anywhere close to the same solution through a satellite product. But, um, you know that will all play out over time. But for now, we haven't seen anything that indicates, uh, a threat from that.

great, I see a couple of you next week, then

Sounds good. Thanks Rick.

Right, right. Okay, second question for me, I think. Mark mentioned um I think Mark was a CS set of Mark with a K here, but um, Mark mentioned that, uh, and you're closer to in the I think probably the us closer to carrier consolidation for being done. There is 1 more, maybe in progress, right? T-Mobile USM, can you update as far as how much T-Mobile USM turn might be when you're thinking it might affect you guys.

Brendan Cavanagh: Yeah. We have, Lewis can correct me on this if I'm wrong. I believe somewhere around $1 to 2 million of our churn estimate for this year covers specifically USM churn associated with that. There's a little bit in there. The total amount of revenue that we have under those UScellular leases is $20 million. We've had a very small amount of that realized already, plus we've incorporated, as I said, $1 to 2 million in our numbers for this year. You know, somewhere less than $20 million. I don't know that it will all necessarily churn. There may be some that are capped, I would think. We've kind of assumed that over the next five years, you'll see all of it go away kind of evenly over that period of time.

Our next caller is Eric Loop Chow from Wells, Fargo.

Great. Thanks for taking the question. Um, you know, Brenda, um, now that we have effectively a stable 3 carrier Market, uh, in the US going forward, um, maybe you could just update us some kind of longer term expectations where you think, you know, net organic growth can get to domestically especially once you wash out some of the consolidation here and you know, that you've talked about on this call.

Um and Lewis can correct me on this if I'm wrong. I believe somewhere around 1 to 2 million dollars of our current estimate for this year uh covers uh specifically USM charts associated with that. So there's a little bit in there. The total amount of Revenue that we have under those US Cellular leases is 20 million dollars. So uh we've had a very small amount of that uh realized already plus we've incorporated. As I said, 1 to 2 million in our numbers for this year. So, you know, somewhere less than 20 million. I don't know that it will all necessarily turn. There may be some that, uh, are capped, I would think. But, um, we've we've kind of assumed that over the next 5 years.

We’ll see all of it go away kind of evenly over that period of time.

Ric Prentiss: Okay. Related to USM, we obviously get the question a lot on what does directed device satellite mean for terrestrial wireless, terrestrial towers? I'll admit I'm in the camp that thinks it's complementary, maybe fixes white space. Help people understand, are there any sites on the fringe of where you have sites or how you're thinking of directed device and what it might mean to terrestrial wireless and terrestrial towers?

Terrestrial wildlife and terrestrial Towers.

Brendan Cavanagh: Well, first of all, we agree with the premise that you just mentioned, which is that it is largely a complementary solution, and it is best suited in some of those harder to reach areas, those areas that maybe aren't economic to cover with a traditional terrestrial solution. I don't see it having a huge impact on our business because even when we have sites that you would classify as slightly more rural, they're still in population centers or they're covering areas that people, where there's a concentration of people. We typically don't have sites that are in the middle of nowhere. Those don't last for very long. I don't think it's gonna have much of an impact, Rick.

1% area. And so that leaves the organic lease up as kind of the question of question mark. And I think 2 to 3% for that item is a reasonable expectation over time. Especially when you get back to more of a um, network-driven competitive environment. Uh, which we tend to to thrive in, I think there will be quarters where we do something towards the higher, end of that range. And there will be quarters where we do something towards the lower end. But I think that's the the best reasonable assumption going forward.

Brendan Cavanagh: There are clearly limitations, both financial and just physical properties in terms of the ability to deliver speeds and latency levels at a level that it's going to be required, particularly with the newer technologies that are coming. I think as we move towards 6G and there's greater uplink, it's going to be much harder to provide anywhere close to the same solution through a satellite product. You know, that'll all play out over time. For now, we haven't seen anything that indicates a threat from that.

From, from new colos, uh, this year, if you could just remind us if you have any split between colors and amendments and I guess, um, you know, some of the spectrum options that have been talked about like upper C band. Do you think we're still, you know, kind of 2 to 3 years away from seeing, you know, Amendment activity from new Spectrum, pick up again. Um or what do you think the timeline is from when we really start to see? Uh, you know, new Spectrum actually hitting your sites where you can monetize it.

Yeah. So

Well, first of all, we agree with um, the premise that you just mentioned, which is that it is uh, largely a complimentary, uh, solution and it is best suited in some of those um, harder to reach areas those areas that maybe aren't economic to cover with a traditional terrestrial solution and so, um, I don't see it having a huge impact on our business. Because even when we have sites that you would classify as slightly more rural, they're still in population centers or they're covering, uh, areas that people. Where there's, there's a concentration of people we typically don't have sites that are in the middle of nowhere. Those don't last for very long. So I don't think it's going to have, uh, much of an impact Rick. And there are are clearly limitations, uh, both financial and, um, just physical properties, in terms of the ability to deliver speeds and latency levels at, um, level that it's

It's going to be required, particularly with the newer technologies that are coming. I think, as we move towards 6G and there's greater uplink, um, it's going to be much harder to provide anywhere close to the same solution through a satellite product. But, um, you know, that'll all play out over time. But for now, we haven't seen anything that indicates, uh, a threat from that.

Ric Prentiss: Great. Thanks, guys. See a couple of you next week then.

Brendan Cavanagh: Sounds good. Thanks, Ric.

Great, thanks. I see a couple of you next week, then

Sounds good. Thanks Rick.

Operator: Our next caller is Eric Luebchow from Wells Fargo.

Our next caller is Eric Loop. Ciao from Wells, Fargo.

Eric Luebchow: Great. Thanks for taking the question. You know, Brendan, now that we have effectively a stable three-carrier market, in the US going forward, maybe you could just update us on kind of longer term expectations where you think, you know, net organic growth can get to domestically, especially once you watch out, some of the consolidation churn, you know, that you've talked about on this call?

We still have a, a heavy amount of contribution from collocations. I can't give you the specific percentage, uh, because there's some nuances in the way that the master Agreements are set up, but it, it's, it's definitely more in terms of dollars. Coming from collocations than from amendments, uh, from a spectrum implication standpoint. You know, the upper C band piece likely will be several years away. I mean, I think that's somewhere around the turn of the decade before that starts to, to impact us, even though it is expected to be auctioned by mid-year next year, uh, By the time it's cleared, and actually gets starts getting deployed. It's probably going to be 2029 to 2030, but there is, uh, Spectrum driven activity that we expect will be taking place prior to that with Spectrum. That's currently in the hands of the carriers that they haven't yet deployed and there's there's a mix of those things. Um, a lot of them

Great. Thanks for taking the question. Um, you know, Brendan, um, now that we have effectively a stable 3 carrier Market uh in the US going forward, um maybe you could just update us some kind of longer term expectations where you think, you know, net organic growth can get to domestically especially once you watch out some of the consolidations here and you know, that you talked about on this call.

Brendan Cavanagh: Yeah, sure. I would expect, I'll give you a little range because I think at any given period, any given quarter, we don't know for sure. It's probably in that 4% to 5% range. It's basically made up of 3% roughly from escalators. I think the long-term domestic churn is around 1%. I think what we guided to for this year is slightly higher than that, but we have, you know, like the UScellular stuff and a couple other things in there that I think will ultimately wash out. Long term, I think that's in the 1% area. That leaves the organic lease-up as kind of the question mark.

You know, for instance, uh, some of the carriers have with their AWS and PCs specs, from the need, uh, to deploy, massive mimo antennas, and in particular radios, in order to maximize the benefit of that, uh, you have CB band that's sitting with T-Mobile. That has not been deployed at all, yet that at some point, we would expect them to start to to deploy. So they're still going to continue to be activity with the specs from that's currently in the hands of the carriers and some of the new spectrum that they've acquired for instance, AT&T is required from Dish. Those will all be drivers but the new specs from auctions will be helpful to start to fill the coffers back up. So that as they get through those Cycles you start to see the next wave of activity uh with those newer brands.

Okay. Thanks Brandon.

Sure.

Brendan Cavanagh: I think 2% to 3% for that item is a reasonable expectation over time, especially when you get back to more of a network-driven competitive environment, which we tend to thrive in. I think there will be quarters where we do something towards the higher end of that range, and there will be quarters where we do something towards the lower end, but I think that's the best reasonable assumption going forward.

Okay, moving on to Michael Rollins from City.

Science and good afternoon. Um,

Yeah, sure. I I would expect. Um, I'll give you a little bit of a range because I think at any given period, any given quarter you don't we don't know for sure but it's probably in that 4 to 5% range and you make, it's basically made up of 3%, roughly from escalators. I think the long-term, uh, domestic churn is around 1%. Uh, I think what we got it to for this year is slightly higher than that. Uh, but we have, you know, like the US sell stuff in a couple other things in there that I think will ultimately wash out so long term. I think that's in the 1% area. And so that leaves the organic lease up as kind of the question of question mark. And I think 2 to 3% for that item is a reasonable expectation over time especially when you get back to more of a um Network driven competitive environment.

Which we tend to thrive in, I think there will be quarters where we do something towards the higher end of that range, and there will be quarters where we do something towards the lower end, but I think that's the best reasonable.

Assumption going forward.

Eric Luebchow: Great. Thanks for that. Just one follow-up. I think you said that the bulk of your activity was coming from new colos this year. If you could just remind us if you have any split between colos and amendments. I guess, you know, some of the spectrum auctions that have been talked about, like upper C-band, do you think we're still, you know, kinda 2 to 3 years away from seeing, you know, amendment activity from new spectrum pick up again? What do you think the timeline is from when we really start to see, you know, new spectrum actually hitting your sites where you can monetize it?

so just thinking about just some of the comments you were providing about leasing if um organic Leaf manually should be 2 to 3%. A year. I think this year it's calculating at the midpoint to be slightly below that. Do you view 2026 as the bottom and what you just described in terms of factors that contribute to activity, just collectively driving you know more activity.

Over the next few years and then secondly was just curious. Um,

you know, as you're getting through, you know, carrier consolidation and your um,

Great, thanks for that and just 1 follow-up. I, I think you said that the bulk of your activity was coming from from new colos uh, this year, if you could just remind us if you have any split between colors and amendments and I guess, um, you know, some of the spectrum options have been talked about like upper C band. Do you think we're still you know, kind of 2 to 3 years away from seeing, you know, Amendment activity from new Spectrum pick up again. Um or what do you think the timeline is from when we really start to see? Uh, you know, new Spectrum actually hitting your sites where you can monetize it.

Brendan Cavanagh: Yeah. We still have a heavy amount of contribution from colocations. I can't give you a specific percentage because there's some nuances in the way that the master agreements are set up, but it's definitely more in terms of $ coming from colocation than from amendments. From a spectrum implication standpoint, you know, the upper C-band piece likely will be several years away. I mean, I would think that's somewhere around the turn of the decade before that starts to impact us, even though it is expected to be auctioned by mid-year next year. By the time it's cleared and actually starts getting deployed, it's probably gonna be 2029 to 2030.

Yeah. So

You're pulling out, uh, customers that aren't, you know customer. I haven't paid you. Um, what's left? So what's left in terms of remaining consolidation insurance that we need to be mindful of

Both in the US and internationally and is there anything else that gets me to away of a kind of smoother? Organic path from here?

Okay. Thanks Mike for the questions. Um, on the organic leasing question and whether 26 is the bottom. Basically, I

Brendan Cavanagh: There is spectrum-driven activity that we expect will be taking place prior to that with spectrum that's currently in the hands of carriers that they haven't yet deployed. There's a mix of those things. A lot of them, you know, for instance, some of the carriers have, with their AWS and PCS spectrum, the need to deploy massive MIMO antennas and, in particular, radios in order to maximize the benefit of that. You have C-band sitting with T-Mobile that has not been deployed at all yet, that at some point we would expect them to start to deploy. There's still gonna continue to be activity with the spectrum that's currently in the hands of the carriers and some of the new spectrum that they've acquired. For instance, AT&T has acquired from DISH.

We still have a, a heavy amount of contribution from collocations. I can't give you the specific percentage, uh, because there's some nuances in the way that the master Agreements are set up, but it, it's, it's definitely more in terms of dollars. Coming from collocations than from amendments, uh, from a spectrum implication standpoint. You know, the upper C band piece likely will be several years away. I mean, I think that's somewhere around the turn of the decade before that starts to impact us, even though it is expected to be auctioned by mid-year next year, uh, By the time it's cleared, and actually gets starts getting deployed. It's probably going to be 2029 to 2030, but there is uh, Spectrum.

From driven activity that we expect will be taking place prior to that with Spectrum. That's currently in the hands of the carriers that they haven't yet deployed and there's there's a mix of those things. Um, a lot of them

I think it's it's definitely right at the bottom. I think it probably is the bottom. I mean, obviously, I I have to see how things play out. The reason that it's a little bit below, the range that I gave is you see a little bit of cyclicality and while we're seeing a pickup with Verizon, we had some pretty heavy, uh, leasing activity with 1 of the other carriers. Uh, T-mobile. And that has slowed, those those go in Cycles a little bit more. Um, but I expect that we'll start to see that pick up again which will help move the total back up. And with regard to AT&T, I think we've discussed before the structure of our MLA which was a little bit front end loaded in terms of payments.

Brendan Cavanagh: Those will all be drivers. The new spectrum auctions will be helpful to start to fill the coffers back up so that as they get through those cycles, you start to see the next wave of activity with those newer bands.

Associated with activity, and because it was front end loaded. Uh, it's a little bit slower now, but the actual amount of activity is more even uh, than the actual Revenue wreck recognition was for us, so given that Dynamic that that agreement will be up in a couple of years and I would expect that in a normalized environment. If you normalize for that, we would definitely be within the range that I mentioned. So I'm pretty comfortable but that is an appropriate range going forward

Up and deployed at all yet that at some point we would expect them to start to to deploy. So they're still going to continue to be activity with the specs from that's currently in the hands of the carriers and some of the new specs from that they required. For instance, AT&T is required from dish, but those will all be drivers. But the new specs from auctions will be helpful to start to fill the coffers back up. So that as they get through those Cycles you start to see the next wave of activity uh with those newer brands.

Eric Luebchow: Good. Thanks, Brendan.

Brendan Cavanagh: Sure.

Okay. Thanks Brandon.

Sure.

Operator: Okay, moving on to Michael Rollins from Citi.

Okay, moving on to Michael Rollins from City.

Michael Rollins: Thanks, and good afternoon. Just thinking about just some of the comments you were providing about leasing. If organic lease annually should be 2% to 3% a year, and I think this year it's calculating at the midpoint to be slightly below that. Do you view 2026 as the bottom? What you were just describing in terms of factors that contribute to activity, just collectively driving, you know, more activity over the next few years. Secondly, I was just curious, you know, as you're getting through, you know, carrier consolidation and you're pulling out, customers that aren't, you know, customers that haven't paid you, what's left? What's left in terms of remaining consolidation churn that we need to be mindful of both in the US and internationally?

In the process of happening right now, we're in the last year of. Um, well we we're taking all the dish and we're in the last big year of Sprint. Although there is still some amount of Sprint left less than 20 million dollars of that left uh over over time over the next couple of years.

Thanks in the afternoon. Um, so just thinking about just some of the comments you were providing about leasing if um, organically finally should be 2 to 3% a year and I think this year, it's calculating at the midpoint to be slightly below that. Do you view 2026 as the bottom?

And what you just described in terms of factors that contribute to activity—just collectively driving, you know, more activity.

Over the next few years and then secondly was just curious. Um,

You know, as you're getting through your career consolidation and your, um,

You're pulling out, uh, customers that aren't, you know customer. I haven't paid you. Um, what's left? So what's left in terms of remaining consolidation insurance that we need to be mindful of

Michael Rollins: Is there anything else that gets into a way of a kind of smoother organic path from here?

Um, and then you have the US sell turn in the US that we talked about earlier outside of those items. It's really, you know, miscellaneous cats, and dogs. So there's nothing that I would think would be, uh, overly material in terms of its impact internationally. Um, we've also faced most of the big items particularly in Brazil with oil, we've actually pulled forward into this year. All of that oil wire line, uh, system churn. So there won't be any more of that after this year. Uh, there may be some um, continued nuances. We still, uh, have overlapping sites there between claro and la and between claro and Nextel even. And so there's a little bit of that. But in terms of things of scale and size, I think, we've really, we've really seen all of them. So I would expect, uh, to see a market Improvement as we get through this next year, or 2, and then, uh, there's just not that much left.

Both in the US and internationally and is there anything else that gets me to away of a kind of smoother or organic path from here?

Very helpful. Thank you very much.

Brendan Cavanagh: Okay. Thanks, Michael Rollins, for the questions. On the organic leasing question and whether 2026 is the bottom, basically. I think it's definitely right at the bottom. I think it probably is the bottom. I mean, obviously, I have to see how things play out. The reason that it's a little bit below the range that I gave is you see a little bit of cyclicality. While we're seeing a pickup with Verizon, we had some pretty heavy leasing activity with one of the other carriers, T-Mobile, and that has slowed. Those go in cycles a little bit more. I expect that we'll start to see that pick up again, which will help move the total back up.

Thanks.

Our next question comes from Jim Schneider. Goldman Sachs

Okay. Thanks, Mike, for the questions. Um, on the organic leasing question and whether $26 is the bottom. Basically, I—

Good afternoon. Thanks for taking my question. Um, you know, just wrapping up the past couple questions into the broader long-term question for you, uh, Brenda I was just kind of curious, you know. Do you think that there's a clear path with domestic getting back to 4 to 5 International hopefully, better than that? You can get the entire business back to serve that 5% range and it's something that could happen. Um, as early as, uh, 27 or could it be 2028 or later? Thank you.

Brendan Cavanagh: With regard to AT&T, I think we've discussed before the structure of our MLA, which was a little bit front-end loaded in terms of payments associated with activity. Because it was front-end loaded, it's a little bit slower now, but the actual amount of activity is more even than the actual revenue recognition was for us. Given that dynamic, that agreement will be up in a couple of years, and I would expect that in a normalized environment, if you normalize for that, we would definitely be within the range that I mentioned. I'm pretty comfortable that that is an appropriate range going forward. On the consolidation question, in terms of what's left, I think there's not much left. I mean, certainly all the big things have happened or are in the process of happening right now.

Sure. Well, the answer is, yes, I think we can get back there. Uh, I think the timing

Is probably.

Think it's it's definitely right at the bottom. I think it probably is the bottom. I mean, obviously, I I have to see how things play out. The reason that it's a little bit below, the range that I gave is you see a little bit of cyclicality and while we're seeing a pickup with Verizon, we had some pretty heavy, uh, leasing activity with 1 of the other carriers. Uh, T-mobile. And that has slowed, those those go in Cycles a little bit more. Um, but I expect that we'll start to see that pick up again which will help move the total back up. And with regard to AT&T, I think we've discussed before the structure of our MLA which was a little bit front end loaded in terms of payments associated with activity, and because it was front end loaded, uh it's a little bit slower.

Now, but the actual amount of activity is more even, uh, than the actual Revenue recognition was for us. So given that Dynamic that that agreement will be up in a couple of years and I would expect that in a normalized environment. If you normalize for that, we would definitely be within the range that I mentioned. So I'm pretty comfortable but that is an appropriate range going forward

Will be moving partially back there in 2027, and I think more fully there as you get into 28 and 29, uh, because there will be some hangovers of some of these, you know, remaining churn items that we're dealing with. But uh, yeah, I would expect definitely that we should get there and and international should should grow faster. That's, that's the idea of why we're there. They're less mature markets. They have a lot more to do in terms of network buildout. And I think, as we've seen some of these rationalizations take place, which is is the challenge of the international markets. We're getting many of them behind us and so growth should should definitely improve.

Those markets uh, in the coming years.

Brendan Cavanagh: We're in the last year of. Well, we're taking all the DISH, and we're in the last big year of Sprint, although there is still some amount of Sprint left, less than $20 million of that left, over time, over the next couple of years. You have the UScellular churn in the US that we talked about earlier. Outside of those items, it's really, you know, miscellaneous cats and dogs. There's nothing that I would think would be overly material in terms of its impact. Internationally, we've also faced most of the big items, particularly in Brazil with Oi. We've actually pulled forward into this year all of that Oi Wireline system churn. There won't be any more of that after this year. There may be some continued nuances.

Thank you. And then maybe specifically uh, I think you mentioned some activity among your specific, uh, domestic carriers, but

And then, um, on the consolidation question in terms of what's left, I I think there's not much left. I mean, certainly all the big things have happened or in the process of happening right now. We're in the last year of um, well, we're taking all the dish and we're in the last big year of Sprint. Although there is still some amount of Sprint left less than 20 million dollars of that left uh over over time over the next couple of years.

Relative to Verizon, I think, on their prior conference calls, they've talked about sort of finishing up their cban, deployments. And adding more small cells, is that consistent with the business trends that you're seeing from them right now.

Brendan Cavanagh: We still have overlapping sites there between Claro and Oi and between Claro and Nextel even, and so there's a little bit of that. In terms of scale and size, I think we've really seen all of them. I would expect to see a marked improvement as we get through this next year or two, and then, there's just not that much left.

Um, and then you have the US sell turn in the US that we talked about earlier outside of those items. It's really, you know, miscellaneous cats, and dogs. So there's nothing that I would think would be, uh, overly material in terms of its impact internationally. Um, we've also faced most of the big items particularly in Brazil with oy, we've actually pulled forward into this year. All of that oil water line, uh, system churn. So there won't be any more of that after this year. Uh there may be some um, continued nuances. We still, uh, have overlapping sites there between claro and lie and between claro and Nextel even and so, there's a little bit of that.

But in terms of things of scale and size, I think we've really, we've really seen all of them. So I would expect to see a marked improvement as we get through this next year or two, and then there's just not that much left.

Richard Chung: Very helpful. Thanks very much.

Michael Rollins: Very helpful. Thanks very much.

Brendan Cavanagh: Thanks.

Very helpful. Thank you very much.

Thanks.

Operator: Our next question comes from Jim Schneider, Goldman Sachs.

Um, yeah, we we've seen them get, it's, it's consistent in the sense that they have done, a lot of the cban upgrades. There may be some, uh, we still have a small percentage of sites where I would expect to still see a little bit of activity there. Uh, so it's consistent in that respect. Um, and I think when they talk about the small sales, they're talking about those upgrades with that Spectrum or deploying that Spectrum through small cells and that piece, you know, we have not a lot to do with because we're not a small cell company. But what we do have is a very significant embedded base with them and under our agreement, it's clear that they have expectations for really expanding out their Network through new collocations. Plus, we would expect to see, um, some of their existing AWS and PCs deployments be upgraded with massive Mo radio, so that should drive some Amendment activity as well.

Our next question comes from Jim Schneider, Goldman Sachs.

Thank you.

Jim Schneider: Good afternoon, thanks for taking my question. You know, just wrapping up on the past couple questions into a broader long-term question for you, Brendan, I was just kind of curious, you know, do you think that there's a clear path with domestic getting back to 4% to 5%, international hopefully better than that, you can get the entire business back to sort of that 5% range? Is something that could happen, as early as 2027, or could it be 2028 or later? Thank you.

Sure.

Before we move on to the next caller, a reminder to our audience. If you want to ask a question, please dial pound 2.

Our next call is from David Barton, New Street research.

Hey guys, thanks so much for taking the question. Um,

uh, so I guess I had 2, um,

1 was

just uh,

Maybe.

International, hopefully better than that. You can get the entire business back to serve that 5% range, and it's something that could happen as early as '27, or could it be 2028 or later? Thank you.

Brendan Cavanagh: Sure. Well, the answer is yes. I think we can get back there. I think the timing is probably. We'll be moving partially back there in 2027, and I think more fully there as you get into 2028 and 2029, because there will be some hangovers of some of these, you know, remaining churn items that we're dealing with. Yeah, I would expect definitely that we should get there and international should grow faster. That's the idea of why we're there. They're less mature markets. They have a lot more to do in terms of network build-out. I think as we've seen some of these rationalizations take place, which is the challenge of the international market, we're getting many of them behind us. Growth should definitely improve in those markets in the coming years.

For you Louis or Mark? Um,

On on the Brazilian, real forecast.

Sure. Well, the answer is, yes, I think we can get back there. Uh, I think the timing

Is probably.

Is 5.13 and I would love to kind of understand, you know, how you guys?

Come to your assumption. Uh, so we can kind of figure out maybe who's

right.

And then the second question if I could, I've asked this of others and Brendan, um,

You know.

if this is not paying their bills,

You know, following a lawsuit is 1 thing but you know why are you not sending guys out in the field?

With a pair of snippers.

Jim Schneider: Thank you. Maybe specifically, I think you mentioned some activity among your specific domestic carriers, but relative to Verizon, I think on their prior conference calls, they've talked about sort of finishing up their C-band deployments and adding more small cells. Is that consistent with the business trends that you're seeing from them right now?

And just turning off the network and tearing down the gear and selling it for scrap metal. I'm fairly sure if you asked Jeff.

To go do that for you, he would volunteer. So like what is the what's the strategy around this and um why would you not do that? Thank you.

Well, David do you first of all?

Thank you. And then maybe specifically, uh, you, you think you mentioned some activity, among your specific, uh, domestic carriers, but relative to Verizon, I think on their prior conference calls they've talked about sort of finishing up their CB band deployments and adding more small cells, is that consistent with the business trends that you're seeing from them right now.

Brendan Cavanagh: Yeah. We've seen them get... It's consistent in the sense that they have done a lot of the C-band upgrades. There may be some, we still have a small percentage of sites where I would expect to still see a little bit of activity there. So it's consistent in that respect. I think when they talk about the small cells, they're talking about those upgrades with that spectrum, or deploying that spectrum through small cells. That piece, you know, we have not a lot to do with because we're not a small cell company. What we do have is a very significant embedded base with them, and under our agreement, it's clear that they have expectations for really expanding out their network through new colocations.

You don't know what we're doing and what we're not doing.

Okay.

Okay. Okay. And second of all, why

we follow the law and Jeff is busy right now, so I don't have to call him about it but

um, yeah, we're I mean

We obviously have been fully as as I'm sure our peers have have been fully evaluating all of our rights and opportunities. Um, to enforce

you know, our position so I can't really say much more about it, but

Brendan Cavanagh: Plus, we would expect to see some of their existing AWS and PCS deployments be upgraded with massive MIMO radios, so that should drive some amendment activity as well.

Um and your other question, I I mean I can let Mark answer the 1 on the brl. Yeah, thanks David. Uh, I think the only thing I could tell you is that both 515 and 520 will probably be the wrong answer. We debated that internally a lot. I give you 1 day appointment. The Federal Bank of Brazil is forecasting. 550.

uh,

And that piece, you know, we have not a lot to do with because we're not a small cell company. But what we do have is a very significant embedded base with them and under our agreement, it's clear that they have expectations for really expanding out their Network through new collocations. Plus, we would expect to see, um, some of their existing AWS and PCs deployments be upgraded with massive myo radio, so that I should drive some Amendment activity as well.

Jim Schneider: Thank you.

Thank you.

Brendan Cavanagh: Sure.

Economist uh, forecast to have anything between 550 and Below 5.

Operator: Before we move on to the next caller, a reminder to our audience, if you wanna ask a question, please dial pound two. Our next call is from David Barden, New Street Research.

Before we move on to the next caller, a reminder to our audience: if you want to ask a question, please dial Town 2.

Our next call is from David Barton, New Street Research.

David Barden: Hey, guys. Thanks so much for taking the question. I guess I had two. One was just maybe for you, Louis or Marc, on the Brazilian real forecast, you know, American Tower made an assumption that the real for 2026 is gonna be 5.5, and you guys made an assumption it's gonna be 5.2, and it's trading at 5.13. I would love to kinda understand, you know, how you guys come to your assumption, so we can kinda figure out maybe who's right.

Hey guys, thanks so much for taking the question. Um,

Uh, so I guess I had two, um,

1 was

just uh,

Maybe.

Are you Louis or Mark? Um,

On on the Brazilian, real forecast.

Uh, the spot is at 514 and uh, I could tell you that Brazil uh basically uh exported and the next export of over 4 billion dollar uh just in January, they are exporting more than importing. So everybody is buying uh RI and the short term interest rates of 15%. So, based on this we think the reality is going to be strong and probably closer to 5.0 than 550 by the end of the year. So we had to take a shot. Uh, and this is the best shot we have

Um, you know, American Tower, made an assumption that we all for 2020. 6 is going to be 5.5 and you guys made an assumption. It's going to be 5.2 and it's trading at 5.13%.

F520 and uh, I'm sure it's going to change, but the we expect the Royale to be strong in in 2026 just because short-term interest rates are high.

And the country is the next exporter.

Uh, so we can kind of figure out maybe who’s

David Barden: The second question, if I could, I've asked this of others, Brendan, you know, if DISH is not paying their bills, you know, filing a lawsuit is one thing, but, you know, why are you not sending guys out in the field with a pair of snippers and just turning off the network and tearing down the gear and selling it for scrap metal? I'm fairly sure if you ask Jeff to go do that for you, he would volunteer. Like, what is the, what's the strategy around this, and why would you not do that? Thank you.

right. And then the second question if I could, I've asked this of others and Brendan, um,

You know, if this is not paying their bills,

Yeah. And David, at the end of the day, we're giving you an estimate and we're telling you exactly what it is. If you think it's something different, you can you know, come to your own conclusions on that. That's why we tell you what we're assuming. But as Mark said,

Neither of us is going to be right? Just we just don't know which 1 of us is further off. So

You know, following a lawsuit is 1 thing. But you know, why are you not sending guys out in the field with a pair of snippers?

That was super helpful guys. I really appreciate it. Thank you.

All right, our next caller is David borino. From Green Street.

And just turning off the network and tearing down the gear and selling it for scrap metal. I'm I'm fairly sure if you asked Jeff.

Brendan Cavanagh: Well, David, first of all, you don't know what we're doing and what we're not doing.

To go do that for you, he would volunteer. So like what is the what's the strategy around this and um why would you not do that? Thank you.

David, do you first of all?

David Barden: Okay.

You don't know what we're doing and what we're not doing.

Brendan Cavanagh: Okay. Second of all, you know, we follow the law, and Jeff is busy right now, so I don't have to call him about it. Yeah, we're. I mean, we obviously have been fully, as I'm sure our peers have been fully evaluating all of our rights and opportunities to enforce, you know, our position. I can't really say much more about it. Your other question, I mean, I can let Marc answer the one on the BRO.

Okay.

Thank you and I land in Guatemala. You purchase, we often we don't really get comps or evaluations for land underneath Tower site, so it's be great to hear how you underestimate the deal. Whether it was from a multiple perspective or an IR perspective and then are there any other land large land portfolios underneath your site that you guys might look to acquire in the future?

Okay. And second of all,

we follow the law and Jeff is busy right now, so I don't have to call him about it but

Yeah. I mean we have a constant uh program to look at the land under our Towers, first of all just generally speaking. Uh we do that in the US and internationally and look for opportunities to to buy the land where we can for for 2 Reasons, 1 because typically we're able to negotiate deals that are very accretive. Uh, so there's a financial reason, but the other reason is

um yeah we're I mean we obviously have been fully as as I'm sure our peers have have been fully evaluating all of our rights and opportunities um to enforce

you know, our position so I can't really say much more about it, but

Marc Montagner: Yeah. Thanks, David. I think the only thing I could tell you is that both BRL 5.50 and BRL 5.20 will probably be the wrong answer. We debated that internally a lot. I'll give you 1 data point. The Central Bank of Brazil is forecasting BRL 5.50. Economists forecast of anything between BRL 5.50 and below BRL 5. The spot is at BRL 5.14. I could tell you that Brazil basically exported at a next export of over $4 billion just in January. They're exporting more than importing, so everybody's buying reals and the short-term interest rates of 15%. Based on this, we think the real is gonna be strong and probably closer to BRL 5.0 than BRL 5.50 by the end of the year.

The wrong answer, we debated that internally a lot. I give you 1 day appointment. The Federal Bank of Brazil is forecasting. 550.

uh,

Economist uh, forecast to have anything between 550 and Below 5.

Is that it secures those properties and um, removes a risk that that could exist at some point as they near um, the end of terms. So for both of those reasons we do that, in the case of the Guatemala deal, it was kind of a special opportunity because it was so concentrated together so that we could do 1 transaction, and um, essentially Buy in the land under 3,900 sites, uh, this was part of the the the pool of sites that we bought in the millicom transaction. So that's why that opportunity arose and we bought it at a high single digits are actually mid single digits.

is he also, uh, de-risks any, you know, concerns around around those properties and those assets that we have on them

Marc Montagner: We had to take a shot, and this is the best shot we have, 5.20, and I'm sure it's gonna change. We expect the Real to be strong in 2026 just because short-term interest rates are high and the country's a next exporter.

All right, that's helpful. Make sure I color on the multiple on that and then maybe switching goes on the data center side. I know in the past, you've made some. Let's call it smaller R&D, like Investments, but obviously nothing needle. Moving for the company. But should we think about SBA looking to invest more heavily in the data center space? Going forward, based on what you've learned or you still think towers are the best ownership model for the company.

But we do, I mean, obviously data centers are are hot these days. Um, but

Uh, the spot is at 5.14 and, uh, I could tell you that Brazil, uh, basically, uh, exported at the net export of over $4 billion, uh, just in January. They are exporting more than importing. So everybody's buying, uh, Real, and short-term interest rates are 15%. So, based on this, we think the Real is going to be strong and probably closer to 5.0 than 5.50 by the end of the year. So we had to take a shot, uh, and this is a best shot. We have 5.20, and I'm sure it's going to change, but we expect the Real to be strong in 2026 just because short-term interest rates are high.

And the countries are next exporter.

Brendan Cavanagh: Yeah. David, at the end of the day-

Marc Montagner: That's incredible.

Brendan Cavanagh: At the end of the day, we're giving you an estimate, and we're telling you exactly what it is. If you think it's something different, you can, you know, come to your own conclusions on that. That's why we tell you what we're assuming. As Marc said, neither of us is gonna be right. Just, we just don't know which one of us is further off.

Yeah. And David, at the end of the day, we're giving you an estimate and we're telling you exactly what it is. If you think it's something different, you can, you know, come to your own conclusions on that. That's why we tell you what we're assuming. But as Mark said,

Marc Montagner: That was super helpful, guys. I really appreciate it. Thank you.

David Barden: That was super helpful, guys. I really appreciate it. Thank you.

Neither of us is going to be right? Just we just don't know which 1 of us further off. So

Brendan Cavanagh: Sure.

that was super helpful guys. I really appreciate it. Thank you.

Operator: All right, our next caller is David Guarino from Green Street.

All right, our next caller is David borino. From Green Street.

David Guarino: Same. Thanks. On the land in Guatemala you purchased, we often don't really get comps or valuations for land underneath tower sites. It'd be great just to hear how you underwrote the deal, whether it was from a multiple perspective or an IRR perspective. Are there any other land, large land portfolios underneath your sites that you guys might look to acquire in the future?

Same.

The, the data centers that we owned were helpful to us, and becoming educated around, how to run that type of operation, with the idea that we were looking at more Edge Computing, type of, um, Solutions down the road that would largely be based at our tower sites. That that was the, the thesis and why we spent the money on it. They performed fine, Standalone operations, but, uh, it's not our intention to continue to add, uh, those types of data centers. However, I do think that, uh, the development of incremental Edge compute opportunities is starting to advance more than it has in the past. I mean, this has been something we've been talking about for a decade and we haven't really seen much of it. But I would say, in recent times, we're starting to see more indicators, that, that, that may become something that's a little more prevalent with.

Thanks then I land in Guatemala. You purchase, we often we don't really get comps or valuations for land underneath Tower site, so it'd be great just to hear how you under us the deal. Whether it was from a multiple perspective or an IR perspective and then are there any other land large land portfolios underneath your site that you guys might look to acquire in the future?

Brendan Cavanagh: I mean, we have a constant program to look at the land under our towers, first of all, just generally speaking. We do that in the US and internationally and look for opportunities to buy land where we can for two reasons. One, because typically we're able to negotiate deals that are very accretive, so there's a financial reason, but the other reason is that it secures those properties and removes a risk that could exist at some point as they near the end of terms. For both of those reasons, we do that. In the case of the Guatemala deal, it was kind of a special opportunity because it was so concentrated together so that we could do one transaction and essentially buy in the land under 3,900 sites.

It's uh pushing out, AI based Solutions uh further to the edge compute needs to be a little bit closer and I think uh we're we're going to be a player in that space that we'll be able to help people, just because we have such a, a large set of assets and locations all across the country. So that element will definitely be participating in and I, and I'm excited about what it might bring. But in terms of, you know, the bigger, uh, Standalone data centers, we don't think we need to have those to support that effort, so I wouldn't expect to see us invest any more there.

All right. Thank you.

Thanks.

Okay, and there are no further questions in the queue.

Yeah. I mean we have a constant uh program to look at the land under our Towers, first of all, just generally speaking. Uh we do that in the US and internationally and look for opportunities to to buy the land where we can for for 2 Reasons, 1, because typically we're able to negotiate deals that are very creative. Uh, so there's a financial reason, but the other reason is that it secures those properties and um, removes a risk that that could exist at some point as they near um, the end of terms. So for both of those reasons we do that

Well, great. Well, thank you everybody for joining. We appreciate it and we look forward to sharing our first quarter results with you in a couple of months. Thank you.

Brendan Cavanagh: This was part of the pool of sites that we bought in the Millicom transaction, so that's why that opportunity arose. We bought it at a high single digits or actually mid-single digits multiple. The valuation was very, very good. It was immediately accretive to us. As I said before, on the overall strategy, it also de-risked any, you know, concerns around those properties and those assets that we have on them.

Thank you to our speakers. And everyone in the audience for joining us today, the call has concluded and you may now disconnect

In the case of the Guatemala deal, it was kind of a special opportunity because it was so concentrated together so that we could do 1 transaction, and um, essentially Buy in the land under 3,900 sites, uh, this was part of the the the pool of sites that we bought in the millicom transaction. So that's why that opportunity arose and we bought it at a high single digits are actually mid single digits. Um, multiple. So the valuation was very, very good. It was immediately accretive to us. Uh, and as I said before on the overall strategy, it also, uh, de-risked any, you know, concerns around around those properties and those assets that we have on them

David Guarino: All right. That's helpful. Make sure I call around the multiple on that. Maybe switching gears on the data center side. I know in the past you've made some, let's call it smaller R&D-like investments, but obviously nothing needle-moving for the company. Should we think about SBA looking to invest more heavily in the data center space going forward based on what you've learned, or do you still think towers are the best ownership model for the company?

Brendan Cavanagh: Yeah, we do. I mean, obviously data centers are hot these days. The data centers that we own were helpful to us in becoming educated around how to run that type of operation with the idea that we were looking at more edge computing type of solutions down the road that would largely be based at our tower sites. That was the thesis and why we spent the money on it. It performed fine as standalone operations, but it's not our intention to continue to add those types of data centers. However, I do think that the development of incremental edge compute opportunities is starting to advance more than it has in the past. I mean, this has been something we've been talking about for a decade, and we haven't really seen much of it.

All right that's helpful. Make sure to call her on the multiple on that and then maybe switching you guys on the data center side. I know in the past, you've made some, let's call it smaller R&D, like Investments, but obviously nothing, you know, moving for the company. But should we think about SBA looking to invest more heavily in the data center space? Going forward based on what you've learned or you still think towers are the best ownership model for the company.

Yeah, we do. I mean, obviously data centers are, are hot these days, um, but the data centers that we owned were helpful to us and becoming educated around, how to run that type of operation, with the idea that we were looking at more Edge Computing, type of, um, Solutions down the road that would largely be based at our tower sites. That that was the

Brendan Cavanagh: I would say in recent times, we're starting to see more indicators that may become something that's a little more prevalent with pushing out AI-based solutions. Further to the edge compute needs to be a little bit closer. I think we're gonna be a player in that space that will be able to help people just because we have such a large set of assets and locations all across the country. That element we'll definitely be participating in, and I'm excited about what it might bring. In terms of, you know, the bigger standalone data centers, we don't think we need to have those to support that effort, so I wouldn't expect to see us investing more there.

Will be able to help people just because we have such a, a large set of assets and locations all across the country. So that element will definitely be participating in, and I, and I'm excited about what it might bring. But in terms of, you know, the bigger, uh, Standalone data centers, we don't think we need to have those to support that effort, so I wouldn't expect to see us invest any more there.

David Guarino: All right. Thank you.

All right. Thank you.

Brendan Cavanagh: Thanks.

Thanks.

Operator: Okay. There are no further questions in the queue.

Okay, and there are no further questions in the queue.

Brendan Cavanagh: Well, great. Well, thank you, everybody, for joining. We appreciate it, and we look forward to sharing our Q1 results with you in a couple of months. Thank you.

Oh great. Well, thank you everybody for joining. We appreciate it and we look forward to sharing our first quarter results with you in a couple of months. Thank you.

Operator: Thank you to our speakers and everyone in the audience for joining us today. The call has concluded, and you may now disconnect.

Operator: Thank you to our speakers and everyone in the audience for joining us today. The call has concluded, and you may now disconnect. This conference is no longer being recorded.

Thank you to our speakers, and everyone in the audience for joining us today. The call has concluded, and you may now disconnect.

Operator: This conference is no longer being recorded.

This conference is no longer being recorded.

Q4 2025 SBA Communications Corp Earnings Call

Request a DemoDemo

SBAC

SBA Communications

Earnings