TDS-PV Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Total Operating Revenues:: Declined 3% year-over-year, or 1% excluding divestitures, reflecting legacy revenue pressures.

Adjusted EBITDA:: Decreased by 3%, primarily due to revenue losses from divestitures.

Capital Expenditures:: Totaled $126 million, driven by heightened construction activity and investments in internal construction crews.

Fiber Service Addresses:: Delivered 40,000 in Q1, nearly tripling year-over-year, with a total of approximately 1.1 million fiber addresses now served.

Residential Fiber Net Adds:: Approximately 11,000, up 32% year-over-year.

Cash Expenses:: Decreased by 3%, benefiting from transformation initiatives.

2Strategic Updates and Business Highlights

Acquisition Proposal:: TDS announced a proposal to acquire the remaining shares of Array in an all-stock transaction aimed at simplifying corporate structure and enhancing growth investments.

Fiber Growth Plan:: TDS Telecom is focused on expanding its fiber network, with a target of 200,000 to 250,000 new service addresses for the year.

Granite State Communications Acquisition:: Aimed at enhancing fiber service addresses in New Hampshire, expected to close in Q3 2026.

Operational Improvements:: TDS is investing in construction capabilities and modernizing systems to enhance customer experience and operational efficiency.

3Forward Guidance and Outlook

Revenue Guidance:: Projected Telecom revenues between $1.015 billion and $1.055 billion for 2026, with expectations leaning towards the lower half due to current headwinds.

Adjusted EBITDA Guidance:: Remains between $310 million and $350 million.

Capital Expenditures Guidance:: Expected to be between $550 million and $600 million for the year.

4Bad News, Challenges, or Points of Concern

Legacy Revenue Pressures:: Continued declines in copper and cable markets are impacting overall revenue.

DISH Revenue Issues:: Array has ceased recognizing revenue from DISH due to nonpayment, affecting tenancy ratios and financial performance.

Competitive Pressures:: Ongoing challenges in the cable segment, with a 10% revenue decline year-over-year, necessitating investments to stabilize performance.

Operational Transition Costs:: Array is experiencing costs related to the transition from a wireless to a tower-focused company, which may suppress EBITDA in the medium term.

5Notable Q&A Insights

Fiber Business Metrics:: Management is focused on improving transparency in fiber business metrics, including build velocity and net performance.

Sales and Customer Experience Improvements:: TDS is enhancing its sales capabilities and customer experience, particularly in new fiber markets.

Cost Transformation Savings:: TDS remains on track for $100 million in run-rate savings by 2028, with some benefits starting to materialize in 2026.

C-Band Spectrum Monetization:: Management is optimistic about the value of remaining spectrum holdings but is not in a rush to sell, preferring to optimize existing assets first. Overall, TDS-PV is navigating a transformative phase with a strong focus on fiber expansion and strategic acquisitions, while facing challenges from legacy business declines and operational transitions.