Company Reports

Crown Castle's efforts to build fiber networks and promote small cells to wireless carriers ended with poor returns on capital. The firm wisely, in our view, sold this fiber business in May 2026, becoming a pure US wireless tower operator. The firm's tower infrastructure is critical to the functioning of US wireless networks, but we don't expect the three major US carriers to drive much new growth in the coming years. SpaceX could provide a spurt of demand, but we believe it is premature to assume it builds a substantial traditional terrestrial wireless network.

Crown Castle’s revenue fell 7.2% year over year in the third quarter as rental revenue continues to decline 4%-5% and the services business faces stiff headwinds. Carrier activity remains weak, and the firm now expects new lease contributions in 2026 to come in at the low end of its forecast range.

Shares of US wireless carriers and tower firms traded lower after SpaceX claimed that it will use satellite dishes to build a wireless network capable of competing in the US wireless industry. SpaceX also claimed that it will launch 10 times as many V3 broadband satellites as V2.

Crown Castle’s revenue declined 4.9% during the second quarter, on par with the prior quarter despite slightly improved leasing results. Lost Dish Wireless revenue will continue to drag down growth for the remainder of the year. Services revenue, while a small contributor overall, dropped 21%.

Crown Castle has pursued a different growth strategy than its two largest competitors by focusing solely on the US telecom market. Efforts to build fiber networks and promote small cells to wireless carriers ended with poor returns on capital. The firm wisely, in our view, decided to sell its fiber business, closing the transaction in May 2026. Crown is now a pure US wireless tower operator with few major growth opportunities in front of it, but its infrastructure is still critical to the functioning of US wireless networks.

Crown Castle has pursued a different growth strategy than its two largest competitors by focusing solely on the US infrastructure market. This focus led to a decade of building fiber networks and promoting small cells to wireless carriers to differentiate its core tower business. However, with carrier consolidation and AT&T and Verizon developing extensive fiber networks of their own, this strategy hasn't panned out. Crown Castle has, wisely, in our view, decided to sell its fiber business, a transaction it expects to close by the end of June 2026.

Crown Castle’s first-quarter revenue declined 4.8%, marking the 11th consecutive quarterly drop in the US tower business. The loss of Dish Network revenue is now the primary drag, as Sprint-related churn is nearly finished. The firm still expects its fiber asset sale to close by the end of June.

Crown Castle has pursued a different growth strategy than its two largest competitors by focusing solely on the US infrastructure market. This focus led to a decade of building fiber networks and promoting small cells to wireless carriers to differentiate its core tower business. However, with carrier consolidation and major players like AT&T and Verizon developing extensive fiber networks of their own, this strategy hasn't panned out. Crown Castle has, wisely, in our view, decided to sell its fiber business.

Crown Castle’s fourth-quarter revenue declined 4%, as the last major chunk of Sprint churn rolled off the books. Management expects a similar revenue decline in 2026, absent revenue from EchoStar, which has ceased making lease payments. Crown is pursuing legal action to recover this business.

Crown Castle has pursued a different growth strategy than its two largest competitors by focusing solely on the US infrastructure market. This focus led to a decade of building fiber networks and promoting small cells to wireless carriers as a way to differentiate its core tower business. However, with carrier consolidation and major players like AT&T and Verizon developing extensive fiber networks of their own, this strategy hasn't panned out. Crown has, wisely, in our view, decided to sell its fiber business. After the sale closes, the firm will use most of its cash flow to fund the dividend, largely forgoing major growth investments.

Crown Castle's revenue, excluding the sold fiber and small cell businesses, declined 4% year over year as it continues to work through the bulk of remaining Sprint cancellations. Excluding Sprint churn, same-tower rental revenue increased 5.2%, with carrier activity showing improvement.

Shares of US tower firms American Tower, Crown Castle, and SBA Communications are under renewed pressure following EchoStar's announcement that it will sell spectrum to SpaceX. The three stocks are now down 8%-14% since EchoStar announced its first spectrum sale, to AT&T, two weeks ago.

Crown Castle has pursued a different growth strategy than its two largest competitors by focusing solely on the US infrastructure market. This focus led to a decade of building fiber networks and promoting small cells to wireless carriers as a way to differentiate its core tower business. However, with carrier consolidation and major players like AT&T and Verizon developing extensive fiber networks of their own, this strategy hasn't panned out. Crown has, wisely, in our view, decided to sell its fiber business for $8.5 billion.

On Aug. 4, 2025, Crown Castle announced that Christian Hillabrant will assume the CEO position on Sept. 15. Daniel Schlanger, Crown's interim CEO and former CFO, will assume the role of chief transformation officer, overseeing the divestiture of its small cell and fiber business.

Crown Castle has pursued a different growth strategy from its two biggest competitors by exclusively focusing on expanding in the US, specifically by investing in fiber and small cells to supplement towers. But after nearly a decade of deploying significant capital into its fiber business, the firm recently announced that it is selling that business for $8.5 billion.

Crown Castle posted organic same-tower sales growth of 4.7%, excluding Sprint cancellations, during the second quarter. Management slightly raised its full-year guidance for revenue, adjusted EBITDA, and adjusted funds from operations due to improving demand from wireless carriers.

With its fiber and small cell business now categorized as discontinued operations, Crown Castle posted healthy 5.1% organic sales tower revenue growth, excluding the impact of Sprint cancellations, in the first quarter.

The data center and communications equipment stocks we cover traded down by midsingle digits while investors pushed tower stocks higher in response to the US tariff announcement April 2. We see little risk of material tariff-related headwinds for these businesses, and therefore we maintain our fair value estimates across our coverage.

Only two weeks after its 2024 fourth-quarter earnings calls in which management announced the $8.5 billion agreement to sell its fiber and small cell business, Crown Castle announced the termination of its CEO, Steven Moskowitz, effective immediately. Although we are surprised by the announcement, we maintain our $125 per share fair value estimate and narrow moat rating.

Crown Castle has pursued a different growth strategy from its two biggest competitors by exclusively focusing on expanding in the US, specifically by investing in fiber and small cells to supplement towers. But after nearly a decade of deploying significant capital into its fiber business, the firm recently announced that it is selling that business for $8.5 billion.