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Crown Castle Inc. (CCI) recently reported another lights-out quarter, beating both top- and bottom-line expectations and raising full-year guidance. The next big catalyst will be the announcement of a new CEO (second time’s a charm), notes Tom Hayes, editor of HedgeFundTips.

In the meantime, the business continues to hum along with organic growth rates accelerating to 4.7%, the Sprint churn overhang largely gone by the end of 2025, and secular trends in mobile data consumption and 5G driving annual wireless data demand growth of 20% to 30%.

Here are a few more key points:

1. Management raised full-year 2025 guidance, increasing site rental revenues by $10 million, adjusted EBITDA by $25 million, and AFFO by $35 million in the updated outlook.
2. Higher leasing activity drove organic revenue growth to 4.7%, adjusted for the $51 million impact from Sprint cancellations. Management continues to expect even stronger leasing activity in the second half of the year.
3. The $8.5 billion sale of the capital-intensive small cells and fiber solutions business remains on track to close in the first half of 2026, with Crown Castle already securing state-level approvals. Once completed, Crown Castle will become the only publicly traded, pure-play tower company focused exclusively on the US.
4. The board is actively searching for a new CEO, with a decision expected before the Fiber business deal closes.
5. Management remains committed to maintaining an investment grade balance sheet, with approximately 86% of debt at fixed rates, a weighted average debt maturity of over six years, and $4.7 billion of availability under a revolving credit facility.

About the Author

Thomas J. Hayes is the founder, chairman, and managing member of Great Hill Capital, LLC (a long/short equity manager based in New York City). Before starting his own firm, Mr. Hayes worked with Cornwall Capital, LP (one of the firms featured in The Big Short book and movie).

On a weekly basis, he publishes his timely stock market commentary, Hedge Fund Tips with Tom Hayes videocast and podcast. He has a wide following in the investment management, hedge fund, and media community.

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