Telephone and Data Systems, Inc. Q4 2025 Earnings Call Summary

21 hours ago 3

Moby Intelligence

Fri, February 20, 2026 astatine 11:32 AM CST 3 min read

Management characterized 2025 arsenic a transformative twelvemonth defined by the divestiture of wireless operations, which provided the fiscal capableness to pivot toward fibre enlargement and operation infrastructure.
Performance successful the 4th fourth was driven by record-high operation unit counts, resulting successful the strongest physique 4th since 2023 and demonstrating momentum successful the fibre engine.
The institution is shifting its superior allocation model to prioritize fibre 'edge out' opportunities successful astir 50 caller communities wherever they expect to beryllium first-to-market with mid-teens returns.
Array's modulation to a standalone operation institution is supported by a caller Master Lease Agreement (MLA) with T-Mobile, which importantly accrued currency tract rental gross by 96% year-over-year including interim sites.
Operational ratio is being addressed done a concern translation programme aimed astatine delivering $100,000,000 successful savings by the extremity of 2028 done modernized systems and organizational alignment.
Management attributed humble residential gross per transportation maturation to industry-wide trends of customers opting for standalone broadband implicit accepted video bundles.

The institution accrued its semipermanent marketable fibre work code extremity from 1.8 cardinal to 2.1 million, targeting important completion by the 2029-2030 timeframe.
2026 guidance assumes the transportation of 200,000 to 250,000 caller fibre addresses, supported by a superior expenditure fund of $550,000,000 to $600,000,000.
Array's gross guidance of $200,000,000 to $215,000,000 reflects uncertainty regarding the timing of T-Mobile interim tract terminations and excludes immoderate imaginable gross from DISH.
Management intends to opportunistically monetize remaining C-band spectrum, viewing it arsenic a highly charismatic plus for 5G deployment with nary build-out requirements until 2029.
Strategic absorption for the operation concern includes reducing the 'cash burden' of astir 800 to 1,800 'naked' towers that volition deficiency tenants pursuing the UScellular exit.

DISH Wireless has ceased making contractually required payments arsenic of December 2025, asserting it is relieved of obligations; TDS maintains these assertions are without merit and is pursuing ineligible protections.
The institution completed a $1,018,000,000 spectrum merchantability to AT&T successful January 2026, utilizing proceeds to money a peculiar dividend and repay $150,000,000 successful outstanding word indebtedness debt.
A prospective alteration successful the classification of spot taxes and security from SG&A to outgo of operations was implemented successful Q4 2025 to bespeak the caller tower-centric concern model.
Elevated SG&A expenses related to the wind-down of bequest wireless operations are expected to persist done 2026 earlier declining successful aboriginal periods.