SBA Communications Corporation

Welcome, and thank you all for joining the SBA fourth quarter 2025 results. I'll now turn it over to Louis Friend, Vice 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 Cavanaugh, our President and Chief Executive Officer, and Marc Montagnier, 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 26, 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. 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 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 Equistar. In the fourth quarter, the FFO per share was $3.19, with a cash dividend of $1.11 per share, an increase of 13% compared to the fourth quarter of 2024. Operationally, we added approximately $10 million of domestic new leases and abandoned buildings. The bulk of the activity continues to come from new co-locations as carriers both intensify 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 focus on network extension. With respect to churn, we are getting closer to the end of consolidation churn in the U.S. Prince-related turn of approximately $17 million in the quarter. Internationally, we continue to see healthy demand, adding approximately $6 million of new leases and amendment buildings in the fourth quarter. International return continues to be elevated, and we lost approximately $8 million of revenue in the quarter from period consolidation, bankruptcy restructuring, and wireless operators' network optimizations. The team has been working around the clock to integrate the newly acquired sites 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 power operator in Central America. 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 includes our initial 2026 outlook. Domestically, our 2026 outlook reflects a similar level of new revenue growth from care and losing activity to what we experienced in 2025. The outlook also assumed a range of $55 to $56 million related to spring churn, which is slightly higher than we estimated last quarter. The increase is due to timing, and we now expect spring churn in 2027 and beyond to be less than the $20 million previously provided. In addition, our current Outlook removes all future recurring revenue from Equestall. We'll continue to pursue legal rights to recover these revenues from Equestall. For our international segment, Outlook will effect a full year contribution from the acquisition of sites from MediClub 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 2020-25. Our OCCLU consumer range of $36 to $40 million related to churn. The current churn range includes $14 million related to oil wireline, which will not continue into 2027. They are the annual foreseen event to 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 care and network activity in 2026. Regarding our balance sheet, in January, we successfully paid off $750 million of ABS debt with a revolving credit facility. and our outlook assumes that we will use our free cash flow to pay down the current outstanding amount on its credit facility over time. We will also assume that our $1.2 billion November ABS maturity will be recognized in November of 2026 by five and a quarter percent. The 40 communities will be committing investment-grade issuers, and we look to make our initial inaugural investment-grade bond at some point in 2026, depending on market conditions. During the fourth quarter, we declare our pay or cash dividend of $118.2 million, or $1.11 per share. And today, we announce that our board of directors declare our first quarter dividend of $1.25 per share, payable of March 27, 2026, to shareholders of record as of close of business of March 13, 2026. This dividend represents an increase of approximately 13% over the dividend in the first quarter of 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 with purchase or acquisition beyond those which, as of today, are in 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 Brandon.