Shentel Lifts 2026 Capital Spending Forecast To $255 Million-$275 Million As Fiber Growth Outpaces Cable Decline
The broadband provider kept its revenue and adjusted profit outlook but raised its network spending range, citing more fiber passings and slower grant payments.
Shentel, the Virginia-based broadband provider, raised its 2026 capital spending forecast to $255 million to $275 million, up from $220 million to $250 million, while leaving its revenue and adjusted EBITDA outlook untouched. The company said Wednesday that third-quarter revenue rose 4.6% to $93.9 million as its Glo Fiber business grew and its older cable business shrank.
Why the spending range moved
The spending figure is net of government grant reimbursements. The company said the revised range reflects a plan to pass 517,000 Glo Fiber homes by the end of 2026, up from 510,000, plus a later timetable for some subsidy payments, which it now expects to stretch into 2027.
Shentel still expects to be substantially complete with its planned network expansion by the end of 2026. For the first nine months, capital expenditures were $215.0 million, versus $251.5 million a year earlier, as government grant construction projects in its incumbent markets were substantially completed.
Revenue guidance is $370 million to $377 million and adjusted EBITDA guidance is $131 million to $136 million, both unchanged.
Fiber grows, cable shrinks
Shentel provides broadband, video and voice over fiber and cable networks in parts of eight states. Net loss narrowed to $9.2 million from $9.4 million. Adjusted EBITDA, which strips out interest, taxes, depreciation and certain other items, grew 11.8% to $33.2 million, and its margin was 35%, against 33% a year earlier.
Glo Fiber Expansion Markets revenue jumped 32.2% to $28.2 million, helped by a 31.8% rise in data revenue generating units. Incumbent Broadband Markets revenue fell 6.8% to $39.1 million. Video units in those markets dropped 13.0% as customers moved to streaming, and data revenue per unit fell 3.0%.
CEO Ed McKay said the company delivered "a record 8,600 Glo Fiber net additions in the third quarter" and passed 500,000 Glo Fiber passings. He said fiber revenue grew nearly 20% and now represents 52% of total revenue.
Layoffs, debt and liquidity
Shentel previously announced a workforce cut of about 10% to match the end of Glo Fiber construction. It expects annual savings of about $12.3 million starting in 2027, roughly half in operating expenses and half in capitalized labor, and about $2.5 million in restructuring costs.
Interest expense in the quarter was $10.5 million, versus $6.8 million a year earlier. Long-term debt stood at $747.1 million at September 30, against $628.2 million at the end of 2025.
Total available liquidity was $138.6 million at September 30, including $18.6 million of unrestricted cash and $49.8 million available under its revolving credit facility.
McKay said the company is entering a phase focused on customer growth, operating leverage and cash generation, and management discussed it on an 8:30 a.m. ET earnings call Wednesday.
Sources
- 8-K Filing — SHENANDOAH TELECOMMUNICATIONS CO/VA/ (SHEN) — SEC EDGAR
- Exhibit exh_991.htm — SHENANDOAH TELECOMMUNICATIONS CO/VA/ 8-K exhibit — SEC EDGAR
