We use cookies to improve your experience, analyze site usage, and show relevant ads. Go to our Privacy Policy for details.
The call highlighted meaningful operational progress and strategic momentum: record fiber build velocity (40,000 addresses in Q1), strong fiber customer growth (+32% net adds) and fiber revenue (+13%), solid tower rental growth for Array (55%–64% normalized) and substantial spectrum monetization progress (~70% monetized). Management reiterated disciplined capital allocation (Granite State tuck-in, $520M buyback authorization) and a $100M cost-savings target by 2028 with early benefits appearing in 2026. Offsetting these positives are persistent legacy revenue pressures (cable -10%, total revenues -3%), modest adjusted EBITDA decline (-3%), uncertainty and reserves related to DISH nonpayment at Array, and ongoing wind-down/transition costs that compress near-term margins and widen guidance ranges. On balance, the operational wins, growth in fiber and tower cash rents, advance on spectrum monetization, and strategic M&A/structural proposal outweigh the short-term transitional headwinds.
The companies reiterated unchanged 2026 guidance: TDS Telecom projects total telecom revenues of $1.015 billion to $1.055 billion (with current copper/cable headwinds biasing toward the lower half), adjusted EBITDA of $310 million to $350 million, and capital expenditures of $550 million to $600 million to fund a plan to deliver 200,000–250,000 new fiber service addresses (after delivering 40,000 in Q1 and serving ~1.1 million fiber addresses today); Array Digital Infrastructure said its guidance for total operating revenue, adjusted EBITDA, OIBDA and capital expenditures is also unchanged (with wider-than-normal ranges due to T‑Mobile MLA timing and interim site uncertainty).
TDS proposed to acquire the remaining public shares of Array Digital Infrastructure in an all-stock merger at an exchange ratio of 0.86 TDS shares per Array share (assuming $10.40 per share dividend from spectrum monetization), aimed at simplifying corporate structure, eliminating duplicative costs, increasing share liquidity and strengthening capital structure.
TDS Telecom delivered 40,000 marketable fiber service addresses in Q1 — the highest first-quarter total in company history and nearly 3x the delivery in 2025 — and remains on track for the 2026 target of 200,000–250,000 new fiber service addresses with a robust pipeline and record crew counts.
TDS now serves approximately 1.1 million fiber service addresses (about 58% of total footprint), with 79% of addresses capable of gig speeds, reinforcing progress toward becoming a fiber-centric company.
Residential fiber net adds were ~11,000 in Q1, up 32% year over year. Fiber revenue increased 13% YoY (an uplift of ~$11 million), helping to offset legacy copper and cable pressure.
Completed billing conversion in cable markets, launched a new FieldForce platform for technicians, enabled multi-gig speeds across the entire cable footprint, and continue modernization that is starting to deliver cost benefits.
Announced agreement to acquire Granite State Communications (adds 11,005 fiber service addresses adjacent to existing New Hampshire markets); $520 million share buyback authorization remains available though not executed in Q1.
Transformation initiatives are delivering benefits: cash expenses decreased 3% in Q1 and management remains on track to realize $100 million of run-rate savings by year-end 2028, with some savings already contributing to the bottom line in 2026.
Array reported cash site rental revenue up 55% YoY (64% when normalized for DISH nonpayment); when including T-Mobile interim site revenue the increase is 86% YoY (98% normalized). Normalized tenancy ratio improved sequentially from 0.95 to 0.96.
Array has monetized or reached agreements to monetize roughly 70% of its spectrum holdings; AT&T sale closed (resulted in $10.25/share dividend paid Feb 2), recent small T-Mobile transaction closed and additional T-Mobile/Verizon sales expected to close in Q2–Q3 subject to approvals.
Ladies and gentlemen, thank you for joining us, and welcome to the TDS NRA first quarter 2026 Operating Results Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press 9 to raise your hand and 6 to unmute when prompted. I will now hand the conference over to John Toomey, Treasurer, Vice President Corporate Relations. Please go ahead.
Good morning, and thank you for joining us. The presentation we prepared to accompany our comments this morning can be found on the investor relations sections of the TDS and Array Digital Infrastructure, Inc. websites. With me today and offering prepared comments are, on behalf of TDS, Walter Carlson, president and CEO, and Vicki L. Villacrez, executive vice president and chief financial officer. On behalf of TDS Telecom, Ken Dixon, president and CEO of TDS Telecom, and Chris Bothfeld, vice president of financial analysis and strategic planning of TDS. And on behalf of Array Digital Infrastructure, Inc., Anthony Carlson.
In my capacity as CEO and chair of TDS, the proposal TDS submitted to the board of directors of Array Digital Infrastructure, Inc. to acquire the remaining shares of Array Digital Infrastructure, Inc. not currently owned by TDS in an all-stock transaction. As TDS continues its transformation, this proposal is the next step in executing our strategy, simplifying our corporate structure, and enhancing our ability to invest in targeted areas of growth. Array Digital Infrastructure, I...