Crown Castle reported lower third-quarter revenue and earnings but raised parts of its full-year 2026 outlook, a mixed result that weighed on the company’s shares.
Adjusted EBITDA dropped 6% to $673 million, reflecting lower site-rental and services contributions. AFFO moved in the opposite direction, rising 8% to $530 million, or $1. 24 per share, as lower interest expense and fewer shares outstanding helped offset the revenue pressure following the sale of the company’s Fiber and Small Cell businesses.
The company said quarterly organic contribution to site-rental billings was $35 million, representing 3. 5% growth after excluding the effects of DISH contract terminations and Sprint cancellations. Core leasing activity contributed $16 million, while escalators added $25 million; non-renewals reduced billings by $7 million.
The revisions include higher straight-line revenue from contractual term extensions, lower operating costs tied to ground-lease buyouts and additional efficiencies, and $40 million of increased discretionary capital spending for those buyouts.
Management expects core leasing activity to finish near the bottom of its previously issued $60 million-to-$70 million range. Crown Castle also reported $66 million in third-quarter capital spending and paid approximately $452 million in common-stock dividends. Its balance sheet ended the quarter with 97% fixed-rate debt, an average debt maturity of about seven years and roughly $3. 9 billion available under its revolving credit facility.