Telephone And Data Systems Stock Earnings Reports

Key points for investors: 1) Corporate action: TDS announced a proposal to acquire the remaining public shares of Array in an all‑stock merger (exchange ratio 0.86 TDS shares per Array share, subject to assumed spectrum sale dividends), intended to simplify corporate structure, reduce duplicate costs, increase liquidity, and give combined exposure to towers and growing fiber. The offer is subject to a special committee review, shareholder approvals and customary conditions. 2) Fiber momentum (TDS Telecom): Delivered a record 40,000 marketable fiber service addresses in Q1 (nearly 3x Q1 2025), added ~11,000 net fiber connections (up 32% YoY), and now serve ~1.1 million fiber addresses (58% of footprint). TDS is targeting 200k–250k new fiber service addresses in 2026, with 2026 Telecom revenue guidance $1.015B–$1.055B, adjusted EBITDA guidance $310M–$350M, and capex guidance $550M–$600M. Q1 capex was $126M. 3) M&A and capital allocation: Agreed to acquire Granite State Communications (~11k fiber addresses, contiguous to existing NH markets), expect close in Q3; share buyback authorization of $520M remains available but no purchases in Q1. 4) Array (tower business) operational and spectrum progress: Cash site‑rental revenue rose materially (Q1 normalized +64% YoY excluding DISH); Array paused recognizing DISH revenue and fully reserved unpaid 2025 amounts due to nonpayment and breach claims. Multiple spectrum sales to carriers (AT&T closed; several T‑Mobile and Verizon deals expected to close in Q2–Q3 subject to approvals) are progressing and have funded substantial dividends. 5) Financials and cost program: Consolidated Telecom revenues down ~3% (1% ex‑divestitures), adjusted EBITDA down ~3%; fiber revenue up ~13% YoY offsetting legacy declines. Transformation and cost‑savings program targeting $100M run‑rate by end of 2028 with early benefits already appearing. Overall guidance ranges unchanged for both business units.