Uniti (UNIT) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, March 2, 2026 astatine 10:10 AM CST 47 min read

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Monday, March 2, 2026 astatine 8:30 a.m. ET

• President & Chief Executive Officer — Kenneth A. Gunderman

• Chief Financial Officer — Paul Bullington

• President, Kinetic — John Harrobin

Kenneth A. Gunderman: Thanks, Bill. Good morning, everyone, and convey you for joining. 2025 was a landmark twelvemonth for Uniti Group Inc. We successfully closed our transformative merger with Windstream, establishing america arsenic the premier insurgent fibre provider. We person a scaled nationalist wholesale fibre footprint that puts america successful a uncommon institution to triumph large-scale fibre infrastructure deals, and we are archetypal oregon aboriginal with fibre to hundreds of tier 2 and tier 3 markets astir the country. Within a fewer months of closing the merger, we person established a caller insurgent enactment squad with caller palmy acquisition successful fiber-to-the-home businesses.

We reignited the fibre builds astatine some Kinetic and Fiber Infrastructure and person importantly lowered our outgo of superior done respective landmark ABS transactions. We are good positioned strategically. We person the close assets and program and squad successful spot to aboriginal impervious our business. Slide 5 highlights the aboriginal occurrence of our execution. In the 4th fourth of past year, we had terrific year-over-year gross maturation successful our halfway fibre concern of 13%.

At Kinetic, wherever our transformational efforts are astir acute, user fibre gross adds of 38,000 successful the 4th fourth were the highest ever, and nett adds of 28,000 were the highest successful astir 3 years, bringing Kinetic churn down to our industry-leading levels astatine Uniti Group Inc. is simply a large absorption of ours, and we person already started to spot success, posting the champion user fibre churn since the pandemic. Importantly, we besides deed an inflection constituent successful December and person heavy ramped up the build. Our concern is being fueled by duplicate engines close now, including the fiber-to-the-home physique astatine Kinetic and the hyperscaler AI physique astatine Fiber Infrastructure.

As we antecedently foreshadowed, the 4th fourth was a grounds 4th for america successful presumption of caller bookings, bringing the largest lawsuit contracts ever signed successful our company's history. Our priorities volition not alteration this year. We are going to ramp our fiber-to-the-home physique astatine Kinetic targeting 450 to 500 caller homes, astir doubling past year's activity, and astir 700,000 user fibre subs by 2026. At Fiber Infrastructure, we are continuing to payment from each the tailwinds driving wholesale fiber, including fiber-to-the-home, mobile wireless, satellite, and, of course, hyperscaler and generative AI demand, among others. For the hyperscalers, we expect to spot adjacent much enactment successful 2026 than past year.