Some of the information we will discuss on this call is forward-looking, including but not limited to any guidance for 2025 and beyond. and international businesses performed very well, and we are pleased to increase our full-year guidance across all key metrics, both in total and on a constant currency basis. The backlog also remains healthy, which bodes well for the remainder of the year and into 2026. bookings, our services business outperformed our expectations, and we are increasing our full-year services revenue guidance by almost 20%.
Most of the increase is related to construction services as carrier installations accelerate across the U.S. I am optimistic about domestic organic growth opportunities over the next year or two due to the specific initiatives of each of our major customers, but I am also optimistic about the long term. Additionally, with bonus depreciation being permanently reinstated, improving available liquidity for our customers, we could see greater investment in their networks as they have more capital available to invest. As indicated in our updated full-year guidance, we are increasing international churn by $5 million, primarily related to Oi.
As previously disclosed, Oi Wireline, the remaining Oi business post the wireless business breakup, which is mostly point-to-point wireless backhaul, represents approximately $20 million of run rate revenue. Today, Canada represents approximately CAD 27 million of annual leasing revenue in Canadian dollars and CAD 15 million of cash flow after taxes. In addition to portfolio acquisitions, you should expect SBA to continue to deploy capital towards a mix of share repurchases and/or debt reduction, as seen in our latest quarter and revised outlook. We continue to be committed to a balanced approach to capital allocation, opportunistically using each of these different options to invest in value-creating assets or to return capital to our shareholders.
| Metric | Period | Current guidance |
|---|---|---|
| Site leasing revenue (2025) | FY2025 | Increased |
| Tower Cash Flow (2025) | FY2025 | Increased |
| Adjusted EBITDA (2025) | FY2025 | Increased |
| FFO and AFFO per share (2025) | FY2025 | Increased |
| Services revenue (2025) | FY2025 | Increased by almost 20%, mostly construction services |
| International churn (2025) | FY2025 | Increased by $5 million, primarily Oi |
| Sprint churn (2025) | FY2025 | ~$50-52 million |
| Sprint churn (2026) | FY2026 | ~$50 million |
| Sprint churn (2027 and thereafter) | 2027+ | ~$20 million total |
| New leases and amendments contribution (2025) | FY2025 | Unchanged (kept the same despite higher activity) |
| Metric | YoY | Note |
|---|---|---|
| Domestic organic leasing revenue growth (gross) | +5% | Sustained bookings momentum and improving activity levels |
| Domestic organic leasing revenue growth (net) | +1% | Offset by 4% churn, including $11 million of Sprint consolidation churn |
| International organic leasing revenue growth (net, constant currency) | +0.8% | Offset by 7.5% churn from carrier consolidation and Oi wireless churn |
| Services revenue guidance | +almost 20% (full-year guidance raise) | Accelerating carrier construction and installation activity across the U.S. |
| Quarterly dividend per share | +~13% (to $1.11) | Approximately 35% of the midpoint of full-year AFFO outlook |
| Sites acquired | 4,329 sites for ~$563 million in Q2 | Partial early closing of Millicom transaction in Guatemala and Panama |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Portfolio review | Ongoing | Expanded in Central America via Millicom (~4,300 sites, $550 million) while exiting subscale Canada; balanced capital allocation toward buybacks and/or debt reduction | — |
| Demand drivers | 5G densification and FWA | Sixth sequential quarter of rising U.S. bookings; FWA subscriber growth, AI-intensive apps, 5G Advanced use cases, and 800 MHz of new spectrum to be auctioned seen as durable long-term drivers | — |
| Oi / Brazil | Elevated but manageable churn | Oi filed amended judicial reorganization citing financial difficulties; bad debt allowance booked; ~$20 million Oi Wireline run-rate revenue at risk over 2025-2026 | — |
| Investment grade | High-yield issuer retaining flexibility | S&P upgraded corporate rating to BBB investment grade; no change yet to financial policy but one step closer to IG debt market | — |
| Satellite / direct-to-device | Emerging competitive question | Viewed as complementary to terrestrial towers, suited to economically hard-to-cover rural areas; EchoStar LEO plans seen as potentially favorable for the tower industry | — |
| Spectrum | Uncertain auction authority | FCC auction authority reinstated and 800 MHz of spectrum to be auctioned; 100 MHz to be auctioned by mid-2026, higher bands requiring new equipment at towers | — |