Shenandoah Telecommunications Company (SHEN) Bank of America 2026 Media,Communications & Entertainment Conference summary

Market dynamics and competition

• Minimal impact from Starlink and fixed wireless, with only rural areas seeing some churn; pricing and speed adjustments have reduced churn.

• Main competition in Glo Fiber markets is from cable companies, with little fiber competition; 87-88% of passings have no fiber competitor.

• Most Glo Fiber markets have only two wired broadband options: fiber and cable.

• Majority of gross additions are coming from cable customers, supporting ongoing share gains.

• Consolidation among fiber operators is expected, with potential acquisition opportunities identified.

Growth strategy and financial targets

• Over $600 million invested in fiber-to-the-premises network, with 510,000+ Glo Fiber passings expected by year-end.

• Focus on driving penetration from 21% to a midterm target of 37% over 5-7 years, with some older cohorts already above 40%.

• Commercial fiber business is expanding, targeting enterprise and wholesale customers, with 20,000 route miles of fiber.

• Revenue growth driven by net adds, stable ARPU ($76-77), and success-based commercial contracts; pricing power expected to increase over time.

• Free cash flow positive targeted for 2027, supported by declining CapEx and stable operating expenses.

Operational efficiency and cost management

• 10% workforce reduction announced, with benefits expected from 2027 as construction winds down.

• AI initiatives deployed to improve customer service, reduce truck rolls, and enhance operational efficiency.

• Margin expansion target of 300-400 basis points annually over the next 12-24 months.

• Capital intensity projected to decline to 25-30% in 2027, with further reductions as more homes are connected.

• Cost per new customer connection is $750-850, with drop costs stable over time.