Crown Castle Reports $6.6 Billion Revenue Decline and Strategic Fiber Segment Sale

Crown Castle Inc. reported a total revenue of $6.6 billion for the fiscal year ending December 31, 2024, a decrease of 6% compared to $6.98 billion in 2023. The decline was primarily driven by a reduction in site rental revenues, which fell to $6.36 billion from $6.53 billion in the previous year. The Towers segment generated $4.27 billion in site rental revenues, a slight decrease from $4.31 billion, while the Fiber segment saw a more significant drop, with revenues declining to $2.09 billion from $2.22 billion. The company also recorded a net loss of $3.9 billion, largely attributed to a goodwill impairment charge of $5 billion related to its Fiber segment.

In terms of operational changes, Crown Castle announced a strategic decision to sell its Fiber segment, which includes both fiber solutions and small cell businesses, to Zayo Group Holdings and EQT Active Core Infrastructure for a total of $8.5 billion. This transaction is expected to close in the first half of 2026, pending regulatory approvals. The Fiber segment will be classified as a discontinued operation starting in the first quarter of 2025, with an anticipated loss of $700 to $800 million recognized upon its classification as held for sale.

Crown Castle's restructuring efforts included a 15% reduction in employee headcount as part of the 2023 Restructuring Plan, which aimed to align operational needs with lower tower activity. A subsequent 2024 Restructuring Plan was initiated to enhance operational efficiencies, particularly within the Fiber segment, resulting in an additional 10% reduction in workforce. The company expects to realize approximately $100 million in annualized cost savings from these restructuring initiatives.

As of December 31, 2024, Crown Castle operated over 40,000 towers and approximately 105,000 small cell nodes, with a weighted average remaining life of tenant contracts of about six years, representing $35.9 billion in expected future cash inflows. The company’s largest tenants, T-Mobile, AT&T, and Verizon Wireless, accounted for approximately 73% of total site rental revenues. The company employed around 3,900 people as of January 31, 2025, all based in the U.S.

Looking ahead, Crown Castle anticipates a year-over-year reduction in site rental revenues in its Towers segment due to higher non-renewals related to the T-Mobile and Sprint network consolidation, which is expected to impact revenues by approximately $200 million in 2025. The company is also updating its capital allocation framework to focus on free cash flow generation and financial flexibility, which may lead to a reduction in dividends starting in the second quarter of 2025.