Crown Castle raises 2026 Adjusted EBITDA outlook as third-quarter net income falls to $283 million

Crown Castle Inc. (CCI) said in a filing on Wednesday that third-quarter net income fell to $283 million from $323 million a year earlier. The tower operator also raised the midpoint of its full-year 2026 Adjusted EBITDA and AFFO outlook.

Here's how the company did:

• Net income: $283 million vs. $323 million a year earlier
• Net income per diluted share: $0.67 vs. $0.74 a year earlier
• Net revenues: $995 million vs. $1,072 million a year earlier
• Adjusted EBITDA: $673 million vs. $718 million a year earlier
• AFFO: $530 million vs. $490 million a year earlier
• AFFO per share: $1.24 vs. $1.12 a year earlier

Site rental revenue was $966 million, down 4.5% from the third quarter of 2025. The filing cited a $61 million unfavorable impact from DISH lease terminations and a $5 million impact from Sprint cancellations.

Excluding those items, organic contribution to site rental billings was $35 million, or 3.5% organic growth, the company said.

Adjusted EBITDA fell 6% from a year earlier. The company said the decrease was primarily a result of lower site rental revenue and lower services contribution, partially offset by lower selling, general and administrative expenses.

AFFO rose 8% to $530 million, and AFFO per share rose 11% to $1.24. The company said the increase was primarily a result of lower interest expense and fewer outstanding common shares, following the use of proceeds from the sale of its Fiber Business.

Capital expenditures were $66 million in the quarter, up 57% from $42 million a year earlier. The filing attributed the increase mainly to a $24 million rise in land capital expenditures.

The company paid common stock dividends of about $452 million, or $1.0625 per share, unchanged from a year earlier. It bought $1,043 million of its common stock in the first nine months of 2026.

Crown Castle completed the sale of its Fiber Business on May 1, 2026. The gross contractual purchase price was $8.5 billion, and net cash proceeds were $8.4 billion after preliminary purchase price adjustments of $124 million.

EQT Active Core Infrastructure fund acquired the small cells business, and Zayo Group Holdings Inc. acquired the fiber solutions business. Results of the Fiber Business are reported in discontinued operations through April 30, 2026.

In the quarter, the company acquired a residual economic interest on a subset of its tower sites and extended the term of a customer on those sites, according to the press release.

"In the third quarter, we improved margins and strengthened our customer relationships including the completion of an agreement with a key customer," said President and Chief Executive Officer Chris Hillabrant. "As we look ahead, we remain focused on becoming a best-in-class U.S. tower operator."

The company raised its full-year 2026 Adjusted EBITDA midpoint to $2,715 million, up $25 million from its July 22 outlook. The range is $2,690 million to $2,740 million.

The AFFO midpoint is $1,980 million, up $5 million, with a range of $1,955 million to $2,005 million. The AFFO per share midpoint is $4.60, up from $4.59.

Chief Financial Officer Sunit Patel said the company is increasing its guidance for Adjusted EBITDA and AFFO. He said the change was made "to reflect higher ground lease buyout activity, additional operational efficiencies, and the impact of a customer agreement."

Net income guidance is $755 million to $1,035 million, against $730 million to $1,010 million previously. The site rental revenue midpoint is $3,875 million, up $20 million, reflecting higher straight-lined revenues from contractual term extensions.

Discretionary capital expenditures are now expected at $190 million to $290 million, up $40 million at the midpoint from higher ground lease buyout activity. Site rental costs of operations are expected to be $5 million lower.

The company expects to finish the year toward the bottom end of its $60 million to $70 million range for core leasing activity.

Net debt was $17,599 million at the end of the quarter, or 6.5 times last quarter annualized Adjusted EBITDA. The company said 97% of its debt is fixed rate and its weighted average debt maturity is about 7 years.

Selling, general and administrative expenses were $82 million, down from $97 million a year earlier. Restructuring charges were $6 million in the quarter and $20 million for the nine months, tied to a restructuring plan announced in February 2026.

The filing does not disclose headcount changes.

The company will hold a conference call on Wednesday at 4:45 p.m. Eastern time to discuss the results.