UZE Q4 2025 Earnings Call Summary

1Key Financial Results and Metrics

Total Operating Revenues: Decreased by 1% in Q4 and 2% for the full year, primarily due to divestitures, but flat year-over-year when excluding this impact.

Adjusted EBITDA: Increased by 6% in Q4, but declined by 6% for the full year, largely due to divestitures and a non-cash adjustment in Q1.

Capital Expenditures: Totaled $406 million for 2025, with an increase expected to $550 million-$600 million in 2026.

Share Repurchases: $67 million spent in Q4 to repurchase 1.8 million shares, totaling 2.8 million shares for the year. Remaining authorization for buybacks stands at $524 million.

2Strategic Updates and Business Highlights

Divestiture of Wireless Operations: Completed the largest transaction in company history, divesting wireless operations to strengthen the balance sheet and focus on fiber and tower businesses.

Fiber Business Growth: Added 58,000 new marketable fiber addresses in Q4 (up 39% YoY) and 140,000 for the full year. The goal for 2026 is to deliver 200,000-250,000 new addresses.

Array Digital Infrastructure: Focused on optimizing tower operations and monetizing spectrum holdings, with significant revenue growth from T-Mobile agreements.

C-Band Spectrum Monetization: Approximately 70% of spectrum holdings have been monetized, with ongoing efforts to maximize value from remaining assets.

3Forward Guidance and Outlook

2026 Revenue Guidance: Expected telecom revenues between $1.015 billion and $1.055 billion, reflecting growth from fiber investments but offset by declines in video and legacy services.

Adjusted EBITDA Forecast: Projected between $310 million and $350 million for 2026, with pressures from divestitures and legacy revenue declines.

Fiber Address Goals: Long-term target raised to 2.1 million addresses, with a focus on new edge-out markets.

4Bad News, Challenges, or Points of Concern

Revenue Declines: Continued secular declines in cable and copper markets are impacting overall revenue.

DISH Wireless Agreement: DISH has not met contractual obligations, leading to uncertainty in revenue forecasts for 2026.

Execution Risks: While Q4 showed strong fiber address growth, the company did not meet its 150,000 address target for 2025, raising concerns about execution in 2026.

Competitive Pressures: The need to be first to market in fiber expansion is critical, with potential competition from other providers in identified markets.

5Notable Q&A Insights

DISH Revenue Impact: DISH revenues are excluded from 2026 guidance, and any settlements would be considered upside.

Fiber Strategy: The company is optimistic about achieving its fiber goals, with a focus on maintaining construction crew levels through winter to ensure timely execution.

Tower Business Growth: The integration with T-Mobile is expected to significantly enhance revenue, with a strong pipeline of new colocation applications.

Spectrum Monetization: The company remains optimistic about the value of its C-band spectrum and is not in a rush to sell, indicating a strategic approach to monetization. Overall, UZE's Q4 2025 results reflect a transformative year with significant strategic shifts, but challenges remain in execution and market competition as they look to capitalize on growth opportunities in fiber and tower operations.