I would like to remind everyone that having an agreement to sell our fiber segment means that the fiber segment results, are required to be reported within Crown Castle's financial statements, as discontinued operations. Consistent with our first quarter reporting, the company's full year 2025 outlook and second quarter results do not include contributions from what we previously reported under the fiber segment, except as otherwise noted. To aid in the review of our second quarter results, we have included in our earnings materials full year 2024 results on a comparable basis. Additionally, SG&A, has been allocated between continuing and discontinued operations to develop our outlook.
As a result, adjusted EBITDA, AFFO, and AFFO, per share in our 2025 outlook and quarterly results may not be representative of the company's anticipated performance following the close of the sale. As evidenced by our solid second quarter results and our increased 2025 guidance, we are delivering on our first priority. We have improved the margins in our services business by reducing operating costs, and we have reduced expected full year 2025 overhead costs by $10 million. We believe our continued focus on operating the tower business more efficiently, along with our previously announced capital allocation framework, will position the company to maximize value as a pure-play U.S.
In the second quarter, we made progress implementing our capital allocation framework by decreasing our dividend per share to $4.25 on an annualized basis, which will increase our financial flexibility going forward. Following the close of our sale transaction, we intend to grow the dividend in line with AFFO, excluding amortization of prepaid rent, by maintaining a payout ratio of 75-80%. To wrap up, as supported by our updated full year 2025 outlook, we are making solid progress across our three near-term priorities. We are focusing on driving efficiencies and implementing our capital allocation framework, which we believe will position the tower business to maximize long-term value creation.
| Metric | Period | Current guidance |
|---|---|---|
| Site rental revenues (full year 2025) | FY2025 | raised by $10 million (+$10 million) |
| Adjusted EBITDA (full year 2025) | FY2025 | raised by $25 million (+$25 million) |
| AFFO (full year 2025) | FY2025 | raised by $35 million (+$35 million) |
| Organic growth excluding Sprint cancellations (full year 2025) | FY2025 | 4.7% midpoint (+0.2 pts) |
| Estimated annual AFFO at anticipated transaction close | post-close annualized | $2.265B-$2.415B (reiterated) (unchanged) |
| Discretionary capital expenditures (full year 2025) | FY2025 | $185M ($145M net of $40M prepaid rent) (unchanged) |
| Metric | YoY | Note |
|---|---|---|
| Organic growth excluding Sprint cancellations | 4.7% | Wireless customers continuing to augment network capacity, driving higher leasing and services activity across the footprint. |
| SG&A | -$37 million | Staffing reductions and office closures announced in June 2024 and the absence of $20 million of advisory fees incurred in Q2 2024. |
| Services activity contribution | +$6 million | Higher activity levels and structural improvements in service gross margin from cost-structure work over the prior 6-12 months. |
| Non-cash straight-line revenues | -$34 million | Decline in non-cash straight-line revenue recognition. |
| Non-cash amortization of prepaid rent | -$16 million | Decrease in non-cash amortization of prepaid rent. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Fiber/small cell sale and pure-play tower transition | on track to close in the first half of 2026 | on track, with state-level approvals beginning and a second DOJ request for information being processed | Advancing |
| Operational efficiency in the tower business | early focus on efficiency | shorter cycle times, improved services margin, and $10 million lower full year overhead already showing in results | Improving |
| Leasing demand | guidance set at beginning of year | higher than expected, with more core leasing activity expected in the second half than the first half | Strengthening |
| Capital allocation framework | framework announced | dividend reset to $4.25, 75%-80% payout target post-close, $150M-$250M annual net capex, and share repurchases planned | Implementing |